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Volume 6: Issue 2 February 2022
While single-family starts dipped in Decem- ber due to ongoing supply-side challenges, they still managed to post double-digit gains in 2021. Overall housing starts increased 1.4% in December to a seasonally adjusted annual rate of 1.70 million units, according to a report from HUD and the Census Bureau. The December reading of 1.70 million starts is the number of housing units builders would begin if development kept this pace for the next 12 months. Within this overall number, single-family starts decreased 2.3% to a 1.17 million seasonally adjusted annual rate. The multifamily sector, which includes apartment buildings and condos, increased 10.6% to a 530,000 pace. Total housing starts for 2021 were 1.6 million, a 15.6% gain over the 1.38 million total from 2020. Single-family starts in 2021 totaled 1.12 million, up 13.4% from the previous year. Multifamily starts in 2021 (5+units) were up 22.1% compared to the previous year. On a regional and year-to-date basis (January through December of 2021 compared to that same time frame a year ago), combined single-family and multifamily starts are 22.2% higher in the Northeast, 10.9% higher in the Midwest, 15.3% higher in the South and 16.9% higher in the West. Overall permits increased 9.1% to a 1.87 million unit annualized rate in December. Single-family permits increased 2.0% to a 1.13 million unit rate. Multifamily permits increased 21.9% to a 745,000 pace.
Total Housing Starts Up 15.6% in 2021
February 2022
Administration Withdraws Vaccine Rule The Biden Administration on Jan. 26 moved to formally withdraw its vaccine and testing mandate after the Supreme Court voted 6-3 to block OSHA from enforcing the mandate for employers with at least 100 workers. NAHB urged OSHA to withdraw the rule after the decision. NAHB had earlier filed a Petition for Review challenging OSHA’s rule and was pleased with the Supreme Court ruling, especially since it indicated that OSHA has the authority to “set workplace safety standards, not broad public health measures.”
FHFA Raising Fees on Second Homes In a move strongly opposed by NAHB, the Federal Housing Finance Agency (FHFA) in January announced increases for upfront fees that Fannie Mae and Freddie Mac will charge for second home mortgage loans and certain high balance mortgage loans that exceed standard conforming loan limits. These fees will significantly increase the purchase cost of a second home and some homes in high-cost areas. Beneficial pricing on the agencies’ affordable loan products will not be increased.
Sawmills Failing to Keep Pace with Strong Demand U.S. sawmills have failed to boost output at a pace sufficient to meet consumer demand for newly built homes. The lumber industry has cited ongoing challenges with labor as a key reason for the insufficient lumber production in the U.S. But Bureau of Labor Statistics data indicate that sawmill industry employment is higher than a year ago. As of October 2021, the most recent data available, sawmill employment was 90,100. This is a 2.4% increase from October 2020, or a net gain of 2,100 jobs. Resi- dential construction employment was up 4.0% or 118,500 net jobs over the same period. IRS Extends Relief In Response to COVID Last summer, NAHB and other groups requested the IRS extend some of the COVID-19 relief granted one year ago. On Jan. 11, the agency released Notice 2022-05, which grants the extensions we requested, along with additional relief in response to COVID-19 related challenges. The relief includes extended compliance deadlines, as well as temporary waivers and revised compliance requirements.
SCOTUS to Consider WOTUS At the urging of NAHB and other business groups, the U.S. Supreme Court has agreed to hear a challenge to the Clean Water Act that would clarify an earlier ruling from the nation’s highest court issued in 2006. In that case, Rapanos vs. U.S., the Supreme Court issued a split 4-1-4 decision regarding the definition of “waters of the United States” (WOTUS) that led to two different tests to determine jurisdictional waters.
Construction Wages Rising Average hourly earnings for residential building workers have been growing fast recently, driven by the tightening construction labor market. The Bureau of Labor Statistics (BLS) in January reported that the unemployment rate declined to 3.9% in December, the lowest rate since the pandemic. As the labor market remains tight, wages have increased rapidly, particularly in the residential building sector. According to a recent BLS report, average hourly earnings for residential building workers were $28.74 in November 2021, increasing 7% from $26.87 a year ago. Learn more at NAHB's Eye on Housing blog.
Remodelers Show Confidence in Market at Close of 2021
The NAHB/Royal Building Products Remodeling Market Index (RMI) for the fourth quarter posted a reading of 83, up four points from the fourth quarter of 2020. The finding is a signal of residential remodelers’ confidence in their markets, for projects of all sizes. The NAHB/Royal Building Products RMI survey asks remodelers to rate five compo- nents of the remodeling market as “good,” “fair” or “poor.” Each question is measured on a scale from 0 to 100, where an index number above 50 indicates that a higher share view conditions as good than poor. “Higher home equity provided resources for home owners to improve their existing homes, supporting high demand for remodeling,” said NAHB Remodelers Chair Steve Cunningham, CAPS, CGP, a remodeler from Williamsburg, Va. “Many remodelers are completely booked well into the future, however, supply chain problems continue to delay projects and make it difficult to work off the backlog.”
for home owners to improve their existing homes, supporting high demand for remodeling,” said NAHB Remodelers Chair Steve Cunningham, CAPS, CGP, a remodeler from Williamsburg, Va. “Many remodelers are completely booked well into the future, however, supply chain problems continue to delay projects and make it difficult to work off the backlog.”
High Prices Deterring Buyers The share of adults planning a home purchase within 12 months has fallen for two consecutive quarters — dropping from 17% in the second quarter of 2021 to 16% and 15% in the third and fourth quarter, respectively — according to data from NAHB’s Housing Trends Report. The downward trend provides evidence that higher home prices and low housing availability (relative to demand) are leading some Americans to postpone their homeownership plans. Meanwhile, the share of these prospective buyers who are purchasing a home for the first time dropped for the first time since mid-2020 from 65% in the third quarter to 63% in the fourth quarter of 2021.
NAHB Chief Economist Robert Dietz recently provided this housing industry overview in the bi-weekly e-newsletter Eye on the Economy. For the first time since the early 1980s, the U.S. economy is experiencing a period of elevated inflation. Because of supply-chain issues attributable to the pandemic and a significant rise in government spending, the consumer price index (CPI) measure of consumer inflation recorded a 7% year-over-year gain in December 2021 — the highest in nearly 40 years. In contrast, during the 2010s, the CPI averaged an annual growth rate of just 1.8%. The Federal Reserve, having retired the call that these inflationary pressures would be “transitory,” is now clearly signaling tighter monetary policy ahead. The NAHB forecast sees the Fed raising the federal funds rate three times in 2022 and accelerating the pace of the taper of asset-backed security purchases. These moves will continue to cause interest rates to rise over the course of 2022. The 10-year Treasury rate already rose from 1.4% at the start of December to higher than 1.7% during the second week of January, and the average 30-year fixed-rate mortgage is expected to increase to 4% near the end of the year. Combined with ongoing home price appreciation, higher rates will place additional pressure on housing affordability. To subscribe for free to Eye on the Economy, please visit nahb.org.
combined with ongoing home price appreciation, higher rates will place additional pressure on housing affordability. To subscribe for free to Eye on the Economy, please visit nahb.org.
NAHB's Economic Outlook for 2022
Upcoming Meetings & Events
March 8th, 11:30-1:00 Construction Luncheon - Presented by the Young Professionals FABA Office March 9th, 9:00-10:00AM Associates Committee Meeting FABA Office or Zoom March 9th, 10:30-11:30AM Membership Committee Meeting FABA Office or Zoom March 17th, 8:30AM Legislative Committee Meeting Zoom March 17th, 5:00PM Hard Hat Sponsored by Huber Motors MB of Fredericksburg Strangeways Brewing March 23rd, 2:00-3:00PM Community Service Committee Meeting FABA Office or Zoom
Calendar at a Glance
Don’t miss award entries on page 23
Membership Committee
The Membership Committee brings builder and associate members together to focus on recruitment of new members and retention of current members. This committee hold a hybrid meeting (in-person or zoom) every 2nd Wednesday at 10:30AM.
We want your feedback! The membership committee wants to hear from you! Please take a moment and fill out this simple 10 question survey. We want to do all we can to help you get the most from your membership!
Chair - Marc Simes, msimes@tricordinc-va.com
Click here to complete the survey
Every Third Thursday of the month, join us for our networking Hard Hat Events from 5:00-7:00. This month is sponsored by Huber Motor Cars Welcome Patty Pollaci from 610 Merchant Services as our Hard Hat Chairman for 2022!
The Associates Committee plans member events to promote doing business with members. These volunteers coordinate networking and social events for business connections. This committee has a hybrid meeting (in-person or zoom) every 2nd Wednesday at 9:00AM.
Chair- Mike King- Rayssiddingcompany@gmail.com Rays
Associates Committee
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2022 Events Committee Conference President's Gala Spring Golf Spring Clay Shoot Crab Feast and Auction Fall Clay Shoot Holiday Party A little something for everyone!
Associates Committee Hybrid Meeting Zoom Link: Second Wednesday of each month at 9:00 AM
Curious how FABA and HBAV are fighting for the building industry? Follow along with these weekly updates from the Home Builders Association of Virginia every week.
Culpeper County Quarterly Meeting Zoom March 3rd, 9:00AM Caroline County Quarterly Meeting Zoom March 16th, 11:00AM City of Fredericksburg Bi-monthly Meeting Zoom April 1st 9:00AM Orange County Quarterly Meeting Zoom April 1st, 1:00PM Spotsylvania County Bi-Monthly Meeting Zoom April 4th, 3:00PM Stafford County Bimonthly Meeting Zoom April 11th, 9:00AM King George County Quarterly Zoom April 15th, 10:00AM
Legislative Committee
Upcoming County Zoom Meetings
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Latest updates from your three in one membership hard at work for BUSINESS
Developers Council The working mission of the Council is to stay on top of land development issues affecting local builders and developers in our region and work together to advocate for our positions as needed. The Council is open to Builder and Developer members of FABA. Jeh Hicks, Jarrell Properties , Inc., is the chairman of the Developers Council. This group meets every other month. For more information contact Chrissy Urian at c.urian@fabava.com
Chair - Bruce Reese, bruce@legacy-eng.com
The Legislative Committee meets monthly to discuss the status of local and state level legislation that affects the building industry. For more information from each county, plan to attend the Legislative Committee meeting. This committee meets virtually every third Thursday at 8:30AM.
Check out the upcoming events for 2022
Chair - Greg Schmidt, greg@pestsolutionsva.com
The Community Service committee seeks to increase civic engagement among the members of FABA and utilize professional skills to actively benefit the Fredericksburg area. We are always looking for new ways to get help and support the community. If you are interested in submitting an idea for the community service committee feel free to join us!
Learn more about CANstruction here
Community Service Committee
Interested in helping assemble or donating to the CANstraution project? Email Meghan@fabava.com for more information about how to get involved!
CANstruction March 25-27 Blood Drive with the Red Cross Community Service days - With 516 Project May 14th Saturday Fall work day - with 516 Project, October 15th Trees of Hope - November
This committee holds a hybrid meeting (in-person and virtual/zoom) every 4th Wednesday at 2:00PM.
We are excited to kick off the Young Professionals Construction Luncheon Series on March 8th from 11:30-1:00! Tickets are just $10 for lunch and insight on financial education from Topside Credit Union. Join us at the FABA office bimonthly for more educational opportunities that can help everyone!
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Meghan Butcher - FABA Staff Meghan@FABAVA.com
The Education Committee coordinates workshops and virtual learning opportunities focused on industry safety, marketing, and personal growth. Stay tuned for upcoming educational opportunities.
Register here
Sean Halsey - Halsey Homes
Access training and educational materials on YouTube
Education Committee
Young Professionals Committee
Young Professionals committee is for individuals in the 21-40 age group to connect, and provides opportunities for professional development, social networking, mentoring, and personal growth for our members. To join the FABA Young professionals committee email Meghan@fabava.com
As a Cornerstone benefit for Partner, Platinum and Diamond levels they are able to contribute educational content to the newsletter each month. Check out this month's contribution from Contractors Websites Plus
Customer complaints is one of those subjects most contractors don't spend much time thinking about. We know why. First, you believe in what you do and that you do it well. In fact, you believe you do it so well, there should be no reason for a customer to complain. What you’re forgetting is they feel there’s a reason. That's all that matters. In your customer’s mind there is something wrong and they want it corrected. Secondly, if a customer complains about something, you’re confident you can handle it on the fly with on-the-spot thinking. There are three goals people generally have when they complain and they’re all easy fixes. They want the problem fixed, they want to be compensated, or they want an apology. The problem is complaints always seem to pop up at the worst of times when you’re too busy or you don’t have the manpower to address it. Then you forget about it, and it festers. But, if you can handle complaints in a calm, well thought out, and productive manner, you become a rock star and can create raving fans instead of complaining customers. Need some help planning your response to customer complaints? Contact us for a Builders Brand Schematic and we’ll help you create a brand and website to dominate your market and a plan to communicate with your customers like a rock star!
Customer Complaints
Member Contributions
Cornerstone 2021
Thank you to our life directors
FABA Student Chapters
Spotsylvania High School Gladys H Oberle School Orange County High School Caroline High School
Spotsylvania Career and Technical Center James Monroe High School Stafford High School
FAB Foundation
Donate or apply today!
FAB Board of Directors Glen Raymond Greg Schmidt Eddie Payne Guy Miller-Richards Emily Hall Christine Singhass Mike King Ricky Robinson Tim Thompson Gary Parker Scottie Davis
The FAB Foundation board of directors meets monthly to discuss ways to involve the association with local workforce educators and help promote workforce development in our area. If you would like to be involved with these students, contact FABA for more information.
The FAB Foundation recently awarded Sandra a grant request for her communications education courses! FAB Foundation is pleased to offer this workforce grant to assist students in continuing in the trades in the building industry. This grant will provide financial assistance for continuing education, tools, equipment, training costs, certification, or other expenses that may be necessary to further them in the building industry. Must attend school in the following counties or cities: Spotsylvania, Stafford, King George, Caroline, Fredericksburg, Culpeper and Orange.
2022 FABA Board of Directors
President Scott Hine Union Home Mortgage 1st Vice President Marc Simes Tricord Companies 2nd Vice President Jeh Hicks Jarrell Properties Secretary Michelle Hall J. Hall Homes Treasurer Jeremiah Horstick CORELOT Immediate Past President Stacey Lampman Spaces Design Studio Associate Vice President Michael King Ray's Siding Executive Officer Maria Moore FABA Legal Counsel Charlie Payne Hirschler NAHB State Representative Shawn Callahan Metwood Building Solutions Builder Director Tim Hall Tricord Companies Builder Director Allen Harrison Battlefield Homes Builder Director Steve Flanagan Built Right Homes Builder Director Teressa Taylor-Griffis Foundation Homes Associate Director Sara Fila Legacy Engineering Associate Director Rick Furnival Sullivan, Donahoe & Ingalls, PC Associate Director Emily Hall Spotsylvania Career & Tech Center Associate Director Bruce Reese Legacy Engineering, PC Associate Director Greg Schmidt Pest Solutions Life Builder Director Sean Halsey Halsey Homes Life Builder Director Dan Sandoval Republic Home Builders
FABA has been working with our exclusive, private partner, Small Business Growth Partners (SBGP) to help our members reach maximum growth and potential through their one of a kind BPA Process. This has been refined for over 10 years of working exclusively with Builders, Remodelers & HBA Associate Members. As an exclusive FABA member benefit, we are offering you the chance to register for and redeem your 2021 Business Diagnostic & Plan of Actions. An annual BPA is included 100% with your FABA Member Benefits (A $2,200 value).
Learn More Here
HBAV Housing Excellence Awards Awards to recognize and highlight HBAV members who exemplify leadership, engagement, and dedication to the success of the HBA, community, and the Virginia building industry. HBAV will announce 2022 award winners at the Housing Excellence Awards Celebration on June 9, 2022, held at the Marriott Virginia Beach Oceanfront. Call for Entries is Open! **announcing 2 new award categories!** CALL FOR ENTRIES PACKET Questions? Contact Emily Lucas: Phone:804.643.2797 Send a Message
Enter here!