Families Must Spend 38 Percent of Their Income on House Payments
2024 Leadership Board
Dax Campbell President Campbell Construction & Company
Heath Kelly Secretary Heath Kelly Construction
Austin Tenpenny 1st Vice President aDoor Properties
Wilma Shortall 2nd Vice President The First Bank
Lindy Hurd Past 2nd Vice President/SMC Chair First International Title
Amir Fooladi Immediate Past President ParsCo
Steve Moorhead Legal Counsel Moorhead Law Group
Jennifer Reese Treasurer
Reese Construction Services
Kevin Sluder 3rd Vice President Gene’s Floor Covering
Josh Peden Financial Officer Hudson, Peden & Associates
2024 Home Builders
Association of West Florida Board of Directors
SENIOR OFFICERS
Dax Campbell, Campbell Construction & Company, President
Austin Tenpenny, Adoor Properties, 1st Vice President
Jennifer Reese, Reese Construction Services, Treasurer
Heath Kelly, Heath Kelly Construction, Secretary
Josh Peden, Hudson, Peden & Associates, Financial Officer
Lindy Hurd, First International Title, Past 2nd VP, Sales Council Chair
Kevin Sluder, Gene’s Floor Covering, 3rd Vice President
Wilma Shortall, The First Bank, 2nd Vice President
Amir Fooladi, Encore Homes by ParsCo, Immediate Past-President
Stephen Moorhead, Moorhead Law Group, Legal Counsel
ASSOCIATE MEMBERS
Bill Batting, REW Materials
John Scanlon, Pensacola Energy
Rick Byars, Florida Power & Light
Mickey Clinard, Renasant Mortgage
Laura Gilmore, Fairway Ind. Mortgage, Affordable Housing Liaison
Chris Graye, Graye’s Granite
Thomas Hammond, Hammond Engineering, Civil Engineering Liaison
John Hattaway, Hattaway Home Design, Cost and Codes Chair
Shellie Isakson-Smith, SWBC
Mary Jordan, Gulf Coast Insurance, Tradesman/Education Council Chair
Daniel Monie, KJM Land Surveying
Alex Niedermayer, Underwood Anderson & Associates
Zach Noel, Clear Title of NW FL
Suzanne Pollard-Spann, Legacy Insurance Brokers, Ambassadors Chair
Marty Rich, University Lending Group
Wilma Shortall, The First Bank
Pam Smith, Real Estate Counselors, Pensacola Assn. of Realtors Liaison
Chris Thomas, Acentria Insurance
Janson Thomas, Swift Supply
BUILDER/DEVELOPER MEMBERS
Chad Edgar, Joe-Brad Construction
Joseph Everson, D.R. Horton
Fred Gunther, Gunther Properties
Drew Hardgrave, Landshark Homes
Alton Lister, Lister Builders, Governmental Affairs Chair
Kyle McGee, Sunchase Construction
Tomas Ondra, Ondra Home Building
Shon Owens, Owens Custom Homes & Construction
Josh Rayls, Holiday Builders
Douglas Russell, R-Squared Construction
Monte Williams, Signature Homes
Anton Zaynakov, Grand Builders
PAST-PRESIDENT/EX-OFFICIO MEMBERS
Blaine Flynn, Flynn Built
Edwin Henry, Henry Homes
Shelby Johnson, Johnson Construction
Russ Parris, Parris Construction Company
Newman Rodgers, Newman Rodgers Construction
Thomas Westerheim, Westerheim Properties
Doug Whitfield, Doug Whitfield Residential Designer
Curtis Wiggins, Wiggins Plumbing
CORNERSTONE MAGAZINE CONTENTS
JENNIFER
MANCINI
Executive Director jennifer@hbawf.com
HBAWF News
Publisher Malcolm Ballinger malcolm@ballingerpublishing.com
Executive Editor Kelly Oden kelly@ballingerpublishing.com
Art Director Ian Lett ian@ballingerpublishing.com
Graphic Designer/Ad Coordinator Ryan Dugger advertise@ballingerpublishing.com
Editor Morgan Cole morgan@ballingerpublishing.com
Assistant Editor Nicole Willis nicole@ballingerpublishing.com
Sales & Marketing
Paula Rode, Account Executive, ext. 28 paula@ballingerpublishing.com
Geneva Strange, Account Executive, ext. 31 geneva@ballingerpublishing.com
Cornerstone, the monthly publication of the Home Builders Association of West Florida serving Escambia and Santa Rosa Counties, is published monthly, twelve (12x) per year. Send address changes to HBA of West Florida, 4400 Bayou Boulevard, Suite 45, Pensacola, Florida 32503-1910. Cornerstone, is published in the interests of all segments of the home building industry and is distributed to its members and others associated with the HBA of West Florida. HBA of West Florida and Ballinger Publishing does not accept responsi-bility for, or endorse any statement or claims made by advertisers or authors of any articles. Every effort has been made to assure ac-curacy of information, but authenticity cannot be guaranteed. No part of this publication may be reproduced without the written consent of Home Builders Association of West Florida, Copyright ©, 4400 Bayou Boulevard, Suite 45, Pensacola, Florida 32503-1910, 850.476.0318. Advertisers and advertorials in Cornerstone do not constitute an offer for sale in states where prohibited by law.
President’s Message
Dear Members.
As the year comes to close, I would like to thank you for your continued support, service, and dedication to our association. Without your involvement and commitment to our mission for the Home Builders Association of West Florida , we would not be where we are today. It has been an honor to serve you this past year as the HBA President. I am excited to continue being actively involved through the newly formed HBA Past Presidents Council.
I would like to remind everyone to please make sure to attend the Installation & Awards Banquet on Thursday, December 12th, at Sander’s Beach Community Center. I hope to see everyone there as we welcome in our 2025 HBA President, Austin Tenpenny. I am confident that Austin will have an incredibly successful term serving as our President and I wish him all the best next year!
I hope everyone has Happy Holidays and a Happy New Year!
Dax Campbell HBA President
Mary Jordan Agent/Owner
Cassy Smith Operations Manager
Jim Crutcher Director of Marketing
Vicki Ruschel Personal Lines Manager
Families Must Spend 38 Percent of Their Income on House Payments
In another sign of America’s ongoing housing affordability crisis, the National Association of Home Builders (NAHB)/Wells Fargo Cost of Housing Index (CHI) found that in the third quarter of 2024, a family earning the nation’s median income of $97,800 needed 38% of its income to cover the mortgage payment on a median-priced new home. Low-income families, defined as those earning only 50% of median income, would have to spend 75% of their earnings to pay for the same new home.
The figures track identically for the purchase of existing homes in the U.S. as well. A typical family would have to pay 38% of their income for a median-priced existing home while a low-income family would need to pay 75% of their earnings to make the same mortgage payment.
“The Cost of Housing Index underscores the severity of the housing affordability crisis in countless communities across the nation,” said NAHB Chairman Carl Harris, a custom home
builder from Wichita, Kan. “NAHB’s 10-point housing plan directly addresses this critical issue by focusing on the need to tackle burdensome regulations, permitting roadblocks, inefficient building material supply chains and other factors that are preventing builders from constructing additional homes that our nation desperately needs.”
There was no change in the percentage of a family’s income needed to purchase a new home (38%) between the second and third quarters of 2024, but affordability did improve slightly for low-income families, falling from 77% to 75%.
Meanwhile, affordability of existing homes edged higher for both median- and low-income families between the second and third quarter. The CHI indices were 38% and 75% in the third quarter vs. 39% and 79%, respectively, in the second quarter.
“With the nation facing a shortfall of roughly 1.5 million housing units, the latest CHI data clearly illustrate that a lack of housing is making it difficult
for American families to afford to purchase a home,” said NAHB Chief Economist Robert Dietz. “In order to boost the nation’s housing supply, officials at all levels of government must work to eliminate barriers so that builders can build more attainable, affordable housing.”
The NAHB/Wells Fargo Cost of Housing Index, or CHI, is a quarterly analysis of housing costs in the U.S. and at the metropolitan area level. The CHI represents the share of a typical family’s income needed to make a typical mortgage payment. The mortgage payment is calculated by taking median home prices, assuming a 10% down payment, and adding taxes, insurance and PMI. Median family income is published by the Department of Housing and Urban Development. A low-income CHI is also calculated for families earning only 50% of the area’s median income.
The U.S. data for the percentage of earnings needed to purchase a new home in the third quarter is based on a national median new home price of $420,400 and median income of $97,800. The third quarter median new home price is up from $412,300 in the second quarter. The corresponding price for an existing home in the third quarter is 418,700, down from $422,100 in the previous quarter. The average 30-year mortgage rate fell from 7.08% in the second quarter to 6.60% in the third quarter.
HUD defines cost-burdened families as those “who pay more than 30% of their income for housing” and a severe cost burden is defined as paying more than 50% of one’s income on housing.
The CHI breaks down the percentage of a family’s income needed to make a mortgage payment on an existing home in 176 metropolitan areas based on the local median home price and median income. Percentages are also calculated for low-income families in all of these markets.
In 10 out of 176 markets in the third quarter, the typical family is severely cost-burdened (must pay more than 50% of their income on a median-priced existing home). In 85 other markets, such families
are cost-burdened (need to pay between 31% and 50%). There are 81 markets where the CHI is 30% of earnings or lower.
The Top 5 Severely Cost-Burdened Markets
San Jose-Sunnyvale-Santa Clara, Calif., was the most severely cost-burdened market on the CHI, where 85% of a typical family’s income is needed to make a mortgage payment on an existing home. This was followed by:
• Urban Honolulu, Hawaii (75%)
• San Diego-Chula Vista-Carlsbad, Calif. (70%)
• San Francisco-Oakland-Berkeley, Calif. (68%)
• Miami-Fort Lauderdale-Pompano Beach, Fla. (63%)
Low-income families would have to pay between 127% and 170% of their income in all five of the above markets to cover a mortgage.
The Top 5 Least Cost-Burdened Markets
By contrast, Decatur, Ill., was the least costburdened markets on the CHI, where typical families needed to spend just 16% of their income to pay for a mortgage on an existing home. Rounding out the least burdened markets are:
• Cumberland, Md.-W.Va. (18%)
• Springfield, Ill. (18%)
• Elmira, N.Y. (19%)
• Peoria, Ill. (19%)
Low-income families in these markets would have to pay between 33% and 39% of their income to cover the mortgage payment for a median-priced existing home.
Please visit nahb.org/chi for tables and details.
Court Vacates New Overtime Rule in Major Win for NAHB
In a major win for NAHB members last month, the Eastern District of Texas issued a nationwide injunction in a coalition lawsuit NAHB filed challenging the Department of Labor’s 2024 Overtime Rule. As a result of the ruling, the salary level for determining overtime pay eligibility for salaried employees — categorized as executive, administrative or professional workers — has been lowered to the pre-2024 level of $35,568.
“This is a huge win for NAHB, home builders and remodelers, and associated subcontractors,” said NAHB Chairman Carl Harris. “The ruling means that bureaucrats in Washington cannot arbitrarily mandate salary levels when regulating how employees are paid and must abide by established labor laws.”
In late 2023, the DOL proposed a rule that would increase the current salary level for determining
overtime pay requirements for executive, administrative, professional, outside sales and computer employees from $684 a week ($35,568 annualized) to $1,059 a week ($55,068 annualized) — a nearly 55% increase.
The court noted that the Fair Labor Standards Act (FLSA), which allows DOL to define and delimit which employees are exempt from overtime pay requirements, focused on the duties an employee performs rather than their wages to determine whether they should be exempt from overtime pay. Although the court acknowledged that DOL has authority to include a salary threshold component in determining whether an employee is exempt, the court held that the salary threshold must be a reasonable proxy for the duties test.
The court held that “because the 2024 Rule’s changes make salary predominate over duties for millions
of employees, the changes exceed [DOL’s] authority to define and delimit the relevant terms.” The court further noted: “When a third of otherwise exempt employees who the [DOL] acknowledges meet the duties test are nonetheless rendered nonexempt because of an atextual proxy characteristic — the increased salary level — something has gone seriously awry.”
The court also held that the FLSA requires DOL to define and delimit the exemption through the formal notice-and-comment rulemaking process, which means that the 2024 Rule’s automatic updating feature is unlawful and exceeds DOL’s statutory authority.
As explained by the court, the DOL “endorses the Automatic Indexing Mechanism based on its conclusions that (1) it hasn’t done a bang-up job administering the EAP Exemption over the years; (2) its sporadic regulation has been driven by the difficulty of its task; so (3) the best way forward is to abdicate from more frequent and thorough
rulemaking efforts by placing the regulation of the EAP Exemption on autopilot through the Automatic Indexing Mechanism. While this may be a satisfying solution for [DOL], it is unlawful under the [Administrative Procedures Act]. As it turns out, the APA’s notice-and-comment provisions must be followed even when an agency finds them inconvenient.”
The court relied on the Supreme Court’s recent decision in Loper Bright Enterprises v. Raimondo, which overturned the long-held Chevron deference, to guide its interpretation of FLSA. It also utilized the APA to vacate the rule nationally and remand it to DOL for further consideration in light of the opinion.
NAHB remained active throughout the rulemaking process and submitted comments when DOL issued the proposed rule, citing the negative impact such a significant increase would have on housing affordability, among other concerns.
Source: NAHB
FHA Increases Loan Limits for 2025
The Federal Housing Administration (FHA) has announced its loan limits for 2025. The nationwide rise in median home prices indicates most buyers across the country will see increases.
The FHA floor will increase from $498,257 to $524,225 for single-family home loans. The floor amount is the lowest the FHA loan limit can be for any area of the country. FHA’s ceiling loan limits, the maximum loan amount the agency will insure, will increase from $1,149,825 to $1,209,750 for a single-family property. The ceiling rises even higher to $1,814,625 in Alaska, Hawaii, Guam and the U.S. Virgin Islands.
The following table lists the 2024 FHA loan limits for low- and high-cost areas:
Alaska, Hawaii, Guam, and U.S. Virgin Islands “Ceiling”1
The new loan limits will apply to all loans assigned FHA case numbers on or after Jan. 1, 2025. The 2025 FHA loan limits by Metropolitan Statistical Area (MSA) or county can be reviewed on FHA’s loan limits page.
FHA also increased the loan limits for its Home Equity Conversion Mortgage (HECM), or reverse mortgage program, to $1,209,750 effective Jan. 1, 2025. The HECM program regulations do not allow loan limits to vary by MSA or county, so this limit applies to all mortgages regardless of location.
Source: NAHB
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* NAHB Member pricing valid through January 10, 2025
Members of our local association are automatically NAHB Members, which means that you can experience the NAHB International Builders’ Show® (IBS) at the member rate.
Top trends & strategies to wow your customers
Construction
Florida Workers’ Comp Insurance Rates to go
Down at Beginning of the Year
The price of workers’ compensation insurance for Floridians will be more affordable soon.
The Office of Insurance Regulation (OIR) announced approval of a final order for the National Council on Compensation Insurance (NCCI) that augments a statewide decrease of workers’ comp rates by 1%. The lower rates begin on Jan. 1.
“I’m pleased to announce that Florida businesses will see a further reduction in workers’ compensation rates for the eighth consecutive year,” said Florida Insurance Commissioner Mike Yaworsky.
“Following historic legislative reforms in this space, it is abundantly clear that the workers’ compensation market in Florida is stable and competitive. A further reduction in workers compensation rates will assist new and existing businesses in Florida find success.”
A public hearing on the issue was held in October after the NCCI applied for the rate decrease in August.
NCCI requested an overall average decrease in rate levels of 1% for the voluntary market for all new and renewal workers’ compensation insurance policies written in Florida, effective January 1, 2025,” a rate hearing notice said.
OIR is the state bureau that handles regulation of compliance and enforcement of state laws that cover insurance businesses in Florida. The agency also monitors the insurance industry markets.
One of the more high-profile aspects of the agency is keeping tabs on insurance claims in Florida, especially due to hurricanes. OIR is the agency tracking the amount of and estimated costs of insurance claims from both Hurricanes Helene and Milton, which hit Florida in September and October, respectively. The amount of insurance claims from both of those storms is now approaching $5 billion in Florida.
Source: Florida Politics
Exciting Announcement from McCombs Electrical Company
HBA member, McCombs Electrical Company, Inc was started by Jack McCombs in 1974. He had been working in the electrical and HVAC industry prior to for 20 years. His goal for McCombs was for it to be ran as a family business with customer service at the forefront. His son, Mike, joined the company in 1974 and the father and son duo ran the business up until Jack’s death in 2023. Jack was a pillar in the community serving Northwest Florida for their electrical and HVAC needs. His relationships with home builders and local contractors are unmatched. Mike McCombs grew up in the electrical and HVAC industry and is known for his knowledge of wiring methods and specializes in the National Electrical Code. Mike has continued strong relationships with McCombs’ customers. Mike has decided it is time to retire to spend more time with his wife of 47 years, Teresa, and his family and friends.
We are excited to announce that McCombs Electrical has transitioned to new ownership, with Josh Rogers now at the helm. Josh brings a wealth of experience in the electrical industry. Josh grew up in Pace, FL and earned his Electrical Engineering degree from the University of Florida. He spent 16 years working at Gulf Power and Georgia Power. He most recently served as the Vice President of Distribution at Coastal Electrical Construction in Flomaton, AL. Josh currently resides in Chumuckla, FL with his wife, Mallory, and their three kids.
Josh is committed to continuing the tradition of providing exceptional electrical and HVAC needs to our valued customers. We look forward to this exciting new chapter and appreciate your continued support.
Explore the Many Ways to Connect with NAHB
ContentNAHB has a wide range of communication channels for members, HBA staff, and anyone interested in the residential construction industry to stay on top of the latest housing news and the Federation’s efforts to tackle top priorities.
Blogs
The NAHB Now blog is the premier news destination for the home building industry. The blog keeps members apprised of efforts by NAHB’s staff experts to tackle key issues, updates from Capitol Hill and state houses, the good work being done by HBAs across the country, and more.
For nationally acclaimed economic analysis, NAHB also publishes Eye on Housing, featuring content by NAHB Chief Economist Dr. Robert Dietz and his expert staff. For the latest on the International Builders’ Show, check out the Know the Show blog. And the Best in American Living blog offers inspiration in home design and development.
Social Media Outlets
Beyond blogs, NAHB has a robust presence on popular social media and digital communication channels. Follow NAHB on Facebook, LinkedIn, X and Instagram for the latest from NAHB. And check out some of NAHB’s specialized groups on Facebook and LinkedIn, such as Professional Women in Building, NAHB Remodelers, NAHB Associates, and other dedicated content areas. Just search in Facebook and LinkedIn for NAHB groups.
The International Builders’ Show has its own social accounts on Facebook, LinkedIn and Xto keep IBS attendees informed about the latest developments for the upcoming show. These accounts are must-follows for anyone planning to attend the show in Las Vegas.
Podcasts and Videos
NAHB also produces a podcast, Housing Developments, featuring CEO Jim Tobin and Chief Operating Officer Paul Lopez, that dives into important topics in the home building industry. Subscribe to Housing Developments through your favorite podcast provider or watch each episode on YouTube.
Speaking of YouTube, NAHB has an award-winning production department that makes professional videos for the industry. The NAHB YouTube channel features content such as the popular safety video toolbox series, skilled trades promotional videos, the Chairman’s Update, and much more. And be sure to check out the IBS YouTube channelfor videos from the show.
Member Community and Updates
Engage with other members directly on NAHB Connect, a platform exclusively for NAHB members to exchange ideas and network digitally. No staff, no non-members — just home builders, remodelers, and associate members discussing their businesses.
NAHB also offers a wide range of email newsletters covering all areas of the Federation to help keep members up to date on the latest news. Check our list of newsletters and subscribe to those that suit your interests.
Learn more about these and other key digital media and publications from NAHB on nahb.org.
SPIKE CLUB
In construction, a spike is a steel object that is essential to making a building strong. As in construction, the HBA of West Florida sees a Spike as someone that works to keep our association strong. Spikes work on the recruitment and retention of members in addition to keeping members active with the association. Anyone is eligible for Spike status. On Spike credit is awarded for each new member recruited and an additional credit is awarded for that new member’s renewal on or before their anniversary date. If you help to retain a member, you are eligible to receive a half point for each member.
Spike Club Levels
Spike Candidate 1-5 Credits
Blue Spike 6-24
Life Spike 25-49
Green Spike 50-99
Red Spike 100-149
Royal Spike 150-249
Super Spike 250-499
Statesman Spike 500-999
Grand Spike 1000-1499
All-Time Big Spike 1500+ Spike Club Members and their credits as of 09/30/2023.
Statesman Spike
Harold Logan
Super Spike
Rod Hurston
Royal Spike
Rick Sprague
William “Billy” Moore
Charlie
Kim
Spike
Shelby
