May 2021
Housing Starts Up Sharply in March
Housing production rebounded in March as buyer demand remains solid due to low mortgage interest rates. Overall housing starts increased 19.4% to a seasonally adjusted annual rate of 1.74 million units, according to a report from HUD and the U.S. Census Bureau. This was the fastest pace for combined single-family and multifamily construction since June 2006. The March reading of 1.74 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 increased 15.3% to a 1.24 million seasonally adjusted annual rate. When comparing the first quarter of 2021 to the first quarter of 2020, single-family starts are up 19.6%. The multifamily sector, which includes apartment buildings and condos, increased 30.8% to a 501,000 pace. “Builder confidence remains strong, pointing to gains for single-family construction in 2021,” said NAHB Chairman Chuck Fowke. “However, rising costs for most kinds of building materials continue to impede positive additional momentum in the market.” On a regional basis compared to the previous month, combined single-family and multifamily starts are 64% higher in the Northeast, 122.8% higher in the Midwest, 13.5% higher in the South and 13.6% lower in the West. The gain in the Midwest is likely weather-related.
DHS Approves Additional H-2B Visas The Department of Homeland Security (DHS) has announced that it will issue an additional 22,000 H-2B guest worker visas over the coming months. Of these additional visas, 6,000 will be reserved for workers from El Salvador, Honduras and Guatemala. Given the chronic labor shortages facing the home building industry, NAHB has been urging both Congress and DHS to expand the number of H-2B visas available each year.
FEMA Releases Details On Risk Rating 2.0 The Federal Emergency Management Agency (FEMA) recently released new details outlining the implementation schedule for Risk Rating 2.0, an initiative to transform the National Flood Insurance Program (NFIP) to make it better reflect the actual risks properties face. The new Risk Rating 2.0 changes the way FEMA rates a property’s flood risk and prices flood insurance. NAHB Spring Meetings Will Be Done Virtually NAHB’s Spring Leadership Meetings, taking place June 14-18, will again be conducted virtually. Subcommittee sessions, and some select committees, will meet in advance of the Spring Leadership Meetings. As the housing industry continues to face unprecedented challenges, including soaring lumber prices, these meetings are an important opportunity to connect with fellow members and receive important industry updates. View a tentative schedule.
Lumber Adds $36K to Cost of New Home Soaring lumber prices that have tripled over the past 12 months has caused the price of an average new single-family home to increase by $35,872, according to new analysis by the NAHB Economics team. This lumber price hike has also added nearly $13,000 to the market value of an average new multifamily home, which translates into households paying $119 a month more to rent a new apartment. The latest Random Lengths prices as of the week ending on April 23 show the price of framing lumber near $1,200 per thousand board feet – up nearly 250% since April 2020, when the price was roughly $350 per thousand board feet.
NAHB Puts Emphasis on Mental Health NAHB has launched two new tools designed to identify and understand mental health issues before they become urgent. First is an online screening tool that enables members to take an anonymous self-assessment and, depending on the outcome, connect them with appropriate services to address mental health and/or addiction issues. Second is the JustFive NAHB portal, which helps members learn more about substance abuse disorder.
People View Housing as a Better Investment than Stocks
Who Are NAHB Builder Members? NAHB’s recently published 2020 membership census reveals that the typical builder member today is a 57-year-old small business owner with a median number of five employees, a median five housing units started in 2020 and a median gross revenue of $2.6 million. More than six out of 10 NAHB builder members are single-family builders, according to the NAHB census. Of the 37,595 builder members, 63% are single-family builders (spec/tract, custom, or general contracting), 22% are residential remodelers, 5% each are land developers and commercial builders, and 4% are multifamily builders. Fewer than 2% each are commercial remodelers and manufacturers of modular/panelized log homes.
A recent study by the Federal Reserve Bank of New York found that most households view housing as a good investment compared to the stock market. Asked to choose between investing in a rental property or the overall stock market, more than 50% of households recocom- mended housing in all three administra- tions of the New York Fed survey, which was run in February 2020 (largely before the COVID-19 outbreak in the United States), October 2020 and February 2021. Another question asks whether a young couple should buy a primary residence or invest in the stock market and the preference for housing is much stronger in this response with more than 90% of the survey respondents choosing to buy a home. In selecting housing as a better investment over stocks, most survey respondents cited “desired living environment and provides stability” and “housing prices less volatile” as their primary reasons.
Remodeling Confidence Strong NAHB released its Remodeling Market Index (RMI) in the first quarter of 2021, posting a reading of 86, up 38 points from the first quarter of 2020. The finding is a signal of residential remodelers’ confidence in their markets for projects of all sizes. The RMI survey asks remodelers to rate five components of the remodeling market as “good,” “fair” or “poor.” The Current Conditions Index is an average of three of these components: the current market for large remodeling projects, moderately- sized projects and small projects. The Future Indicator Index is an average of the other two components: the current rate at which leads and inquiries are coming in and the current backlog of remodeling projects. Any number over 50 indicates that more remodelers view remodeling market conditions as good than poor.
Calendar of Events Check GCBA's Monday eMail for current Location & Registration Information. Wednesday, May 12, 2021 10AM / Via Zoom / THE ONE HOUR MBA Sponsored by GCBA Sales & Marketing Council Wednesday, May 19, 2021 12 Noon / Via Zoom / Builder Panel Thursday, May 20, 2021 12 Noon / Via Zoom Insurance Forum Sponsored by the GCBA Remodelers Council Wednesday, May 26, 2021 7AM / Golf Outing Thursday, May 27, 2021 5PM / Via Zoom Professional Women in Building Kick Off Meeting Wednesday, June 15-18, 2021 NAHB Spring Leadership Thursday, June 24, 2021 Save the Date / Cigar Night Thursday & Friday, July 15 & 16, 2021 SEBC / Orlando, FL All dates and locations are subject to change.
If you are interested in serving on the Board and/or Becoming an Office please contact KT at 561-228-6137 or KT@GCBAFlorida.com
Leadership List 2021 GCBA Officers and Directors OFFICERS PRESIDENT Fred Pfister, Toll Brothers 1ST VP Rafael Roca, DR Horton 2ND VP Michael Nunziata, 13th Floor Homes ASSOCIATE VP Tony Macaluso, Universal Engineering Sciences VP FINANCE Steve Karp, Melamed & Karp PA IMMEDIATE PAST PRESIDENT Jay Huebner, HSQ Group DIRECTORS Steven Dassa, Mattamy Homes Frank Coppola, Coppola Brothers Herb Tremble, Master Contractor and Subcontractor Association of Florida Karl Albertson, DR Horton Irina Heyaime, Pulte Homes David Donvito, Minto Peggy West, GRS Community Management Josh Hedden, Hydroshield Ken Lebersfeld, Capitol Lighting Lisbeth Linert, Clive Daniel Home Rick Baxter, Palm Beach Post Executive Officer: KT Catlin Design: Gregory J. Del Deo
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The 2021 Solar Decathlon Design Challenge – a U.S. Department of Energy (DOE) collegiate competition that tasks students with designing low-carbon, high-perform- ance buildings powered by renewable energy – marked the competition’s 19th year, with the first ever Virtual Village on the National Mall featuring nine builds with 3D renderings, diagrams and videos for each university’s project. Of the 72 competing teams, representing 12 countries, Northwestern University was named the grand winner for the Residential Divisions and the University of Oregon was named the grand winner of the Commercial Divisions. Northwestern University’s NuHome is a delicately balanced design that accounts for site challenges such as harsh winters and humid summers in Chicago, and a narrow footprint shaded by three-story buildings on both sides (making solar access more difficult for residential solar photovoltaics). Despite these constraints, the student team was able to incorporate high-performance features such as a tight thermal envelope, highly efficient HVAC system, natural lighting and graywater reuse system. The design strategically reduces thermal bridging and effectively manages moisture (preventing mold and improving indoor air quality), and achieves a remarkable EUI rating of 12 and a HERS score of -22. As a proud sponsor of the Solar Decathlon, NAHB congratulates all the student teams and faculty for their hard work, innovative solutions, outstanding projects and, most of all, for leading the charge in the next generation of housing. See DOE’s press release for a full list of winners from this year’s competition.
Northwestern Wins 2021 Solar Decathlon Residential Contest
Contact Us - FHBA Private Insurance Exchange Phone: (800) 282-8626 Fax: (904) 212-2058 Address: FHBA Member Benefits 10739 Deerwood Park Blvd. Suite 200-B Jacksonville, FL 32256
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ASSOCIATES U.S. Bank Home Mortgage Catalyst Solar ConStructured Cabling Group, Inc Wisch and Jackson Co. of Florida, Inc. Congruity HR MSG Concepts, Inc. Asadorian, Inc. BUILDER AAA Custom Pools, Inc. AFFILIATES Carpenter Contractors of America Mullinax Ford U.S. Bank Home Mortgage If you sponsored one of these individuals please let KT or Robin know! We will be having year long contests and recognition for Recruiting & Retention!
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mEMBERSHIP NEWS
GCBA 2021 TOP RECRUITERS HV Tremble - 25 Fred Pfister - 11 KT Catlin - 2 Rafael Roca - 1 Greg Garnish - 1 Walter Robles - 1 Mike Brown - 1 Tamara Ksiazek - 1 Rick Baxter - 1 Mark Anderson - 1 Matthew Blum - 1 Frank Williams - 1 GCBA SPIKE CLUB Members reach the GCBA Spike Club once you recruit 5 or more members in the current year. GCBA Spike Club Members will be recognized at Board Meetings & more!
PEO’s Your Friend, Not Your FOE So, what is a PEO, how do they work and how can a PEO help grow and increase profits for your business??? These are all good questions so let us get to work and address these questions. A PEO is a Professional Employer Organization that creates a “Co-Employment” relationship sharing the burdens and liability of managing employees. The PEO takes on the liability for all areas of HR, payroll, workers compensation and benefits including compliance with all the federal and state laws governing both employers and employees. In a co-employment relationship, you still run every aspect of your company, but allow the PEO to do what it does best: payroll, workers comp and benefits administration. Through leveraged purchase power a PEO can provide a substantial savings in the following areas: Payroll, technology and tax administration Employee benefits and benefit administration Worker’s compensation, safety and risk management. “The average cost savings from using a PEO is $1,775 per year per employee, according to the study, which also reinforced the findings of earlier research, again showing notably lower employee turnover, higher rates of both employee and revenue growth, and enhanced employee benefit offerings.” This according to a recent NAPEO analysis of companies of like size and industry who partner with a PEO versus those who do not. The same study shows a company who partners with a PEO can see an average “return on investment” of up to 27% just from the cost savings. Chris Glatz Sr Business Consultant Congruity HR
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View a tentative schedule. Registration information will be available shortly and will include participation details for all meetings.
The Building Industry Blazes Through 2021 Session A week ago today, lawmakers had sent just 77 bills to the Governor’s desk. But, by the time the hankie dropped on the 2021 Legislative Session Friday, April 30, that number topped 260 out of the more than 3,000 bills filed this session. As we close out this session, several construction - and more importantly, FHBA initiatives - are becoming a reality! Before reading the highlights below, please note that the Governor hasnot yetweighed in on these important priorities, outside of the COVID Liability Protection Bill. Highlights of Key FHBA Issue Victories: COVID 19 Liability Protection- sent to the Governor Impact fee Bill- sent to Governor: Glide Path to phase in impact fee increases Restricts the type of “infrastructure” for which impact fees can be used Clarifies retroactivity of impact fee transfers established last year Code Bill (minus the private provider septic language)- sent to Governor: Prohibits local government from using “interim” FEMA Maps Prohibits local government from requiring contract prior to issuing permit Provides a mechanism to determine if a land development regulation is a code issue and should not be in the local land development code Prohibiting Local Governments from Banning Natural Gas- sent to Governor Providing incentives (no mandates) for use of Gray Water- sent to Governor Providing discounts to permit fees if local government does not meet statutory time requirements- sent to the Governor Reversing the Centex Case, which discouraged developers from contributing to HOA Reserves- sent to the Governor Building Inspections- sent to the Governor: The bill requires local enforcement agencies to allow requests for inspections to be submitted electronically The bill clarifies that any government entity with authority to enforce the Building Code may perform virtual inspections at the discretion of the government entity. Excluding structural inspections on threshold buildings As the dust settles on the Florida Capitol, the Florida Politics Blog produces an annual list of "Winners and Losers" from Session. You don't want to miss the article here, featuring several wins for the construction industry including FHBA for work on Impact Fess and the over all success of bills related to the industry, Lennar Homes with the passage of the Gray Water Incentive Bill and FHBA Preferred Partner, Florida Natural Gas, with the pre-emption of local Government's ability to ban natural gas and other energy sources. FHBA Staff is working feverishly to produce a comprehensive summary of all the action from the past 60 days. Stay tuned for a briefing later this week on how FHBA ultimately fared in the 2021 session. NAHB Spring Leadership Meetings Will Be Virtual The NAHB Spring Leadership Meetings, taking place June 14-18, will again be supported exclusively through virtual sessions. NAHB committees and councils, as well as the Leadership Council and Board of Directors, will meet virtually. Subcommittee sessions, and some select committees, will meet in advance of the Spring Leadership Meetings, beginning the week of May 17 through June 11. As the housing industry continues to lead the nation’s economic recovery and face unprecedented challenges with soaring lumber prices and the availability of other materials, these meetings are an important opportunity to connect with fellow members and receive important industry updates.
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It's no secret that in the state of Florida, all State Registered and Certified Contractors and Inspectors must complete a required 14 hours of continuing education prior to their renewal period. Registered Contractors, meaning your CILB license begins with an "R," must renew by August 31 of every odd numbered year. The Southeast Building Conference is here to ensure you reach your deadline offering all of the hours you need to renew your license!