Building Insider Q2 2023

INDUSTRY STARS SHINE BRIGHT AT BIG NIGHT

Tackling the Tight Labor Market

New Resources Help Prevent Opioid Misuse in the Home Building Industry

NAHB Findings: 74% of Central Ohio Households Priced-Out of New Home Ownership

VOLUME 40 • ISSUE 2

BUILDING INSIDER is the official publication of the Building Industry Association of Central Ohio.

MISSION STATEMENT

As leaders in the housing industry, we are dedicated to protecting the industry while promoting ethical business practices and standards. We support our community and our members through professional development, legislative outreach, industry promotion and charitable efforts

BIA OFFICERS

Jane Arthur Roslovic, President

Josh Barkan, Senior Vice President

Troy Fritz, Builder Vice President

Mike Reeves, Associate Vice President

Joe Thomas, Secretary

Jonathan Wilcox, Treasurer

Bob Yoakam, Immediate Past President

Jonathan Melchi, Executive Director

BIA TRUSTEES

Kate Allen

Tom Hart

Todd Lipschutz

Jeff Memmer

Jeff Miller

Nanette Pfister

Mark Robinson

Title First’s Builder Division

Our builder division, headed by Mark Martin (Columbus) and Paul Thompson (Akron), has 18 staff members that are laser-focused on partnering with builders.

“What it all boils down to is having the experience of working with builders for the last 30 years and being able to customize our workflow to meet their deadlines. “We work with them as business partners, we understand their business and we do everything we possibly can to help them meet their goals.”

Sean Stoner, President

Title First Agency works with both local and regional home builders, offering personalized, high-touch service that meets each builder ’s specific needs — everything from land take downs, subdivision infrastructure, and development, to construction loans, lot purchases and final home sales.

For more information contact: Mark Martin, VP Builder Division 614.854.0980 PH | 855.861.8083 FAX mark.martin@titlefirst.com www.titlefirst.com

Erin Uritus

Jeff Woda

Kelly Woods

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Dave Prosser, Chief Creative Officer

Gianna Barrett, Vice President, Sales

Jamie Armistead, Vice President, Operations

Tyler Kirkendall, Rachel Karas Editors

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BUILDING INSIDER is published quarterly. For advertising information, call 614-572-1240.

INDUSTRY STARS SHINE BRIGHT AT BIG

The Value of Your Membership!

Troy Fritz from Weaver Homes

- “For us (Weaver) it is being involved in an organization that has its hand directly on the pulse of our industry, to the point it helps guide our business decisions in this market. We wouldn’t be as well off without the BIA.”

Mike Reeves from Kimley–Horn

- “I appreciate the relationships that we develop with other members and the collaboration that occurs as a result of those relationships.”

Jane Arthur Roslovic 2023 BIA President Treplus Communities

Joe Thomas from Metro Development - “I believe there is more power in numbers, I believe we have greater access to decision makers due to the number of members.”

Jonathan Wilcox from Wilcox Communities - “I get a lot of value out of making connections with elected officials and development professionals that I wouldn’t otherwise make without my BIA membership.”

Our members are working hard on advocacy issues for development and construction for both the single family and multifamily products. The City of Columbus is working with our members to streamline the approval processes. They are also working with our members on the landlord rental rights. Our Builders and Developers Council meets monthly to discuss the issues going on with the eight counties we represent. They have their finger on the pulse of the rapidly growing Licking County initiatives.

It is that time of year to renew your membership with the BIA. The members of the BIA have the largest impact on resolving the housing issues in central Ohio and we need everyone’s help. It is also a good time to think about how you and your organization can get more out of your membership. At BIG Night, Joel Rhoades, CEO of Epcon Communities, who was receiving the Baldy Esper Jones award commented “we find the more we put into it (BIA), the more we get out of it and we are a better company because of our involvement in the BIA.”

At Treplus Communities, Julie Stein, VP of Marketing, is active in the Parade of Homes marketing efforts at the BIA and the 55+ Council at the NAHB levels. Nicki Martin, Director of Land Acquisition and Entitlement, is a co-chair of the Builders and Developers Council, Jim Lipnos, SVP of Site Acquisition and Construction, is a past president and Geoff Arthur, President, is on the board of the NAHB 55+ Council. “We have really learned that it is beneficial to give of our time for Treplus and the BIA.”

Your membership gets you in on all of the advocacy the BIA is working on every day. Our industry in central Ohio is growing at such a rapid pace. The Housing Study commissioned by the BIA Foundation, which is posted on the BIA website, is an invaluable tool for any size homebuilder planning their next project.

The opportunities for you and your organization to get involved and get the most out of your membership are significant. The benefits of the BIA are better engaged employees and enthusiasm about their industry, the opportunities for networking and learning about best practices with peers. I would encourage you to have your staff go to the website and sign up for a program, a council or attend one of the plethora of meetings that are offered each month. Take advantage yet this year of the Golf Classic, Big Gun Clay Shoot and the POH/ Parade of Excellence Party.

Lastly, if you are reading this article, it will remind you that you receive the Building Insider four times a year chockfull of relevant information. However, do not miss the online weekly updates that are emailed to you. Pass the articles around internally or to your friends, colleagues and peers in the industry. Now that the local print newspapers are gone, the BIA staff gathers and disseminates weekly the latest news that is relevant to our members in the communities in which we work.

Renew, join, refer and bring a peer!

Meeting the Needs of an Expanded Market

When I was tapped to be the BIA Executive Director at the end of 2017, our advocacy efforts primarily focused on Delaware County, with a little bit of Union County (primarily Jerome Township) and the City of Columbus (mostly utility related).

My how things have changed. According to the latest Zonda Marker report, only three of the top ten bestselling communities are currently in Delaware County, as builders have continued to look for opportunities in other parts of central Ohio to meet the significant market demand that exists in our region.

The expanding market view of our members has meant that builders, developers and the BIA need to have increased relationships in areas we may not have previously had. The leadership of our Builders and Developers Council (Nicki Martin / Treplus Communities, Jeff Miller / CESO, and Mike Reeves / KimleyHorn) has smartly broken the Council’s work into working groups, which allows for a more focused approach in our advocacy efforts.

If your company is doing work in one of the counties that the BIA represents (Delaware, Fairfield, Franklin, Hocking, Knox, Licking, Madison, Marion, Perry, Pickaway and Union) or even in areas adjacent to those counties, chances are there is a group of BIA members who are too. We must work together as these growing areas implement policies to help meet the needs of their changing communities. These groups will be crucial to the future policy effectiveness of the BIA.

Moreover, the leadership of our organization understands the need

for the BIA to be at the table in these discussions. As such, at the time of writing this, the BIA is currently searching for the Association’s first full-time in-house government affairs manager. This position will augment and work collaboratively with Malcolm Porter, who remains our ever-effective consultant, me, and our leadership, to help spread the message of effective and efficient housing creation in central Ohio.

My personal belief is that growth in our region will continue to move over the next decade from I-270 to the surrounding county seats (Circleville, Delaware, Lancaster, London, Marysville and Newark) with forays into Mt. Vernon, Urbana and Bellefontaine. We will also see more of our members engaged in infill projects that we couldn’t have imagined even five years ago.

It will be vital for our organization to be active, and we will continue to work proactively through our committees, councils and leadership to ensure that we are meeting the needs of the central Ohio building community.

A change that many of you may have noticed is a request to establish new login credentials with the BIA. The Association has moved to a new CRM platform that will provide a better user experience for you and improve processes internally, allowing us to dedicate more resources to serve you. This update also includes a new website refresh, of which we are very proud. I want to thank Edna Mae Berkey, the BIA’s Manager of Finance & Administration, for guiding this process internally for the BIA. It was a challenging task, but one we believe will be worth it for our members.

JON MELCHI BIA Executive Director

Tackling the Tight Labor Market

By Carol Rich

It’s the challenge the home building industry has struggled with for the last five years — and locally, it’s about to get worse. The difficulties of recruiting workers, especially in skilled trades such as carpenters, plumbers and electricians, has become a chronic problem for home builders.

“Unfortunately, there isn’t a community or region that we can point to in terms of someone who has solved the issue of labor in our industry,” says BIA Executive Director, Jon Melchi. “This uncertainty means that in central Ohio, we need to be at the forefront of embracing new technologies and untraditional labor markets because it appears unlikely that the tight labor market will subsist in the short-term.”

With fewer young people choosing construction careers, baby boomers moving into retirement and sharp competition from the commercial side, home builders nationwide are drawing from a smaller pool of qualified workers. The resulting labor shortage is wreaking havoc with construction schedules and raising builders’ costs.

For years, the BIA’s Workforce Development Committee, led by co-chairs, Craig Tuckerman, President, The Tuckerman Home Group, and Ann Misiolek, Building Products Specialist, Parksite, has worked creatively and diligently to find solutions.

“I have been actively involved with this issue since 2017, when Bob Gardner, then BIA president, first established our Workforce Development Committee, and we are still dealing with many of the same issues!” observes Misiolek.

increase the need for construction workers to build everything from homes to roads.

Intel estimates it will need 7,000 construction workers to build its $20 billion project in New Albany. But some local experts estimate that the total number working onsite to build Intel’s two chip factories will actually rise as high as 10,000.

To meet the expected need, local trade unions are pulling out all the stops and tripling their recruitment efforts. Union reps are holding frequent job fairs and initiating outreach to groups like women and veterans.

The excitement of working on a high-profile project like Intel is firing up enthusiasm among many of the new apprentices recruited by unions like the local United Association of Plumbers and Pipefitters. It’s also diverting potential home building labor to commercial work.

Tuckerman says that workers and subcontractors who had previously been working on residential projects are now taking jobs on the commercial side, primarily due to the higher pay. While he believes these workers will ultimately return to home building, the competition with commercial builders creates an additional roadblock.

Intel

escalates local need for construction workers

In central Ohio, the arrival of Intel, plus other companies including Amazon, Google and Meta, is poised to sharply

“The challenge is pretty obvious…we have been short on labor in our industry for almost a decade and with these large new employers entering our market it has exacerbated the issue. The impact of competing with so many other companies is creating huge issues for both our builder and associate members,” says Misiolek. “Higher labor costs equate to higher cost for housing, making affordability a bigger struggle. The limited labor force has also created longer build times which again drives up costs.”

Intel’s arrival also affects builders’ costs. Tuckerman points out that recently prices for some building items have leveled off — and the price of lumber has dropped. “However, the prices we are paying for materials AND especially labor are still through the roof,” he says. “The prices for some items, like concrete, dump trucks and gravel, I think because of Intel, etc. are still crazy and still rising, even though oil prices have fallen for the past few months.”

The hunt for solutions

To continue to build homes, it’s essential that builders continue to work individually and collectively to solve labor issues and grow our pipeline of skilled workers.

From meetings with students to hiring events, the BIA has taken action through the years to try and reduce our local workforce shortage. For example, the BIA website includes a page on construction careers that includes job postings from BIA members.

The BIA Foundation has also been active in supporting workforce development. Case in point: the Foundation’s grant to Franklinton Rising, a nonprofit corporation that prepares at-risk young adults for construction careers. The program funded by the Foundation enabled BIA members to add a Franklinton Rising trainee to their team for a 30-day tryout while the nonprofit paid the trainee’s salary.

Says Misiolek: “Our biggest challenge is knowledge. Getting the word out to all levels of the available workforce about what a great career residential construction can be is extremely difficult. Emphasizing that it is not just a job to get through each day but a rewarding career that individuals can be proud to be a part of.”

She observes that more voices can help with this message and our members need to become more proactive in supporting the efforts of our Workforce Development Committee.

“One person, one company, not even one association can solve this problem. Which is why last year, we joined forces with NARI to create the Joint Workforce Development Committee to provide a stronger voice for our residential construction industry,” says Misiolek. “Changes are happening, like graduation requirements for high school students announced by ODE, which are spotlighting every angle of workforce development and we are finally moving from just talking to doing things about it. However, we do need help from our members to really be impactful.”

New Resources Help Prevent Opioid Misuse in the Home Building Industry

By Carol Rich

Substance misuse, particularly of opioids, continues to be a significant labor challenge for industries across the board — including home building. Approximately 15% of all construction workers in the U.S. have a substance use disorder compared to 8.6% of the general adult population.

The statistics are grim. According to the National Institute of Health, in 2021 more than 106,000 people in the U.S. died from a drug-involved overdose. Ohio has been especially hard-hit: our state ranks fourth in the nation in overdose deaths. And nationwide, construction workers represent about 25% of fatal opioid overdoses among all workers.

People in the construction trades are especially at risk for addiction. Injuries occur more often in construction work than in desk-job fields, and opioids like oxycodone (OxyContin®) and hydrocodone (Vicodin®) are commonly prescribed to treat pain after an on-the-job injury. Opioid dependence, misuse and addiction often begin when workers start relying on pain killers after an injury, especially when they want to get back to work quickly.

Want to know how your business can start or improve a prevention program? Visit nahb.org for more information.

Substance misuse has a destructive impact on individuals and their families, but the negative affect on a home building business is also severe. The consequences for a business can start with healthcare expenses, absenteeism, turnover and a loss of productivity — and spiral into more problems.

It pays for business owners and supervisors to learn about ways to prevent opioid and substance misuse on their job site. NAHB provides multiple resources targeted to the construction trades that can help you with prevention at your workplace.

Partnering with the Job-Site Safety Institute, Advocates for Human Potential, Inc. and SAFE Project, NAHB has taken an innovative approach to addressing opioid use and misuse, viewing the problem holistically and creating solutions and educational resources that address intervention points across the spectrum of prevention, treatment, recovery and return-to-work. Along with expanded online resources, NAHB now has expanded online resources that include the No Shame tool kit, as well as new video materials.

Antonio Benton (614) 595-0592 abenton@fcbanking.com

NMLS#: 271684

Natalie Moore (614) 264-4154

nemoore@fcbanking.com

NMLS#: 728210

Linda Tempesta (614) 403-8208 ltempesta@fcbanking.com NMLS#: 440057

Nancy Garrabrant (740) 272-1348

ngarrabrant@fcbanking.com NMLS#: 728209

Member Spotlight: Feicht & Co. Crafts One-of-a-Kind Cabinetry & Furniture

By Carol Rich

Feicht & Co. handcrafts beautiful wood cabinetry and furniture — custom creating each piece to meet their client’s vision. But this family business, co-founded by husband-and-wife team Melissa and Andrew Feicht, goes a step further by also providing a creative and enjoyable experience for their customers.

“Our whole goal in this industry is to do our best to make sure that process is as enjoyable as the end product,” Melissa says.

The company started out as a hobby for Andrew, who previously had a day job as an engineer. His grandfather had done woodworking and Andrew loved following in his footsteps and handcrafting wood pieces in his off-hours.

A series of small, rustic furniture projects grew the company out of Andrew’s basement workshop and into a business known for its well-designed, high-quality products.

With three full-time employees and a handful of parttimers, Feicht & Co. has been able to expand its offerings from small furniture to large cabinets, shelves and other customizable pieces.

Andrew has a track record for expertly guiding clients from concept through design — and then drawing on his skilled workmanship to bring his customer’s vision to life. He also excels at sourcing the quality materials, including reclaimed wood, that are just right for each project.

Feicht & Co. became a BIA member in 2021. “We joined the BIA because we had seen the excellence and quality in the Parade of Homes and we are passionate about working with people who value those things as much as we do,” says Melissa. “Our BIA membership has been helpful to us in that it has allowed us to meet and experience first-hand the phenomenal group of trades and craftspeople that are a part of Columbus’s building community, as well as the opportunity to partner with them to facilitate the growth that is occurring in the Columbus area.”

Want the specifics on how Feicht & Co. creates custom wood products? Visit feicht.co or email melissa@feicht.co for more information.

Industry Stars Shine Bright at BIG Night

By Carol Rich

Our local industry celebrated its superstars during one of the BIA’s favorite events — the annual BIG Night, the Building Industry Gala. This year BIG Night took place Friday, April 28, at the Columbus Convention Center, and it drew a large and enthusiastic crowd.

The 2023 event honored our local industry’s outstanding accomplishments over the past year throughout a spectacular evening filled with food, fun and celebration. Party-goers connected with friends, networked and enjoyed a delicious spread of food.

The highlight of BIG Night was the recognition of our BIG award winners at a ceremony emceed by Jon Melchi, the BIA’s Executive Director. Attendees applauded the BIA Annual Awards of Distinction recipients, Hall of Fame inductees and judged Sales and Marketing Award winners. BIG award winners cross all BIA membership ranks and include builders, interior designers, architects, landscapers, suppliers, remodelers, realtors and more.

Thank you to BIG Night sponsors:

FRIENDS

Congratulations to our BIG award winners:

Sales Professional of Year

Kristy Reynolds-Rafiyq, D.R. Horton

Online Sales Team of The Year

Kristi Farmer & Rachel Black, PulteGroup

Online Sales Counselor

Nichole Smith, D.R. Horton

Sales Manager of The Year

Rachael Durant, 3 Pillar Homes

Best Logo Design

Carbon Homes

Best Print or Digital Advertisement

The Residences at Woodside, Wilcox Communities

Best Video for a Community Epcon Buyers Story, Epcon Communities

Best Video for an Associate Birthday Sale, America's Floor Source

Best Website for an Associate AmericasFloorSource.com, America's Floor Source

Best Realtor Relations Sales Program

Superhero Real Estate Agent Rewards Program, D.R. Horton

Best Development / Community Marketing Plan

The Courtyards of Glenshire, Epcon Communities

Best Sales Office for a Builder Centex Sales Office

Best Design Center for a Builder

Rockford Homes Design Center, Rockford Homes

Best Community Welcome Center Nottingham Trace, PulteGroup

Best Community Feature Carpenters Mill, PulteGroup

Best Landscape Project

Liberty Grand, Schottenstein Real Estate Group

Best Outdoor Living Space for a Home Dason Residence, Blendon Gardens Landscape

Best Outdoor Living Space for a Community

The Residences at Phillips Farm, Wilcox Communities

Best Interior Design/Merchandising for a New Home

Hyland Run-Provenance Plan, Epcon Communities

Best Architectural Design for a New Home

Hyland Run-Provenance Plan, Epcon Communities

Best Multifamily Model Home

The Residences at Phillips Farm, Wilcox Communities

Best Remodel of a Home

Clintonville House, DTV Real Estate LLC

Multifamily Community of The Year

The Residences at Phillips Farm, Wilcox Communities

Development of The Year

Evans Farm, Zenios Construction

Million Dollar Sales Awards - Realtor Honors

Stephanie Sciabarrasi, Coldwell Banker Realty

Lari Madosky Shaw, Coldwell Banker Realty

Yasmeenah Estep, Coldwell Banker Realty

Lari Madosky Shaw and Team, 3 Pillar Homes

Angel Perez, The Village at Union Park LLC

Leo Renegado, Coldwell Banker Realty

Million Dollar Sales Awards - Builder Sales PulteGroup

Andrew Murphy

Dana Levins

Gregg Herbst

Stuart Helmuth

Mandi Shear

Jay Freese

Tamara Clark-Lloyd

Samuel Boahen

Tiffany McFarland

Jordan Spencer

Ajah Hart

Hayley Wray

Molly Rutherford

Jennifer Hendricks

Ruben Fernandez

Claire Murphy

Samantha Seale

Marissa Alexander

Chris Smart

Eric Hill

Million Dollar Sales Awards Builder Sales cont.

M/I Homes

Joy Adkins

Kristin Collins

Caryn Rodeffer

Korri Titus

Krista Cupp/Angela

Kohler

Phyllis Jensen

Kimberly Cohen

Bobbie Toretzky

Shawna Shepherd/

Morgan Cassan

Tyler Watkins

Amy Hile

Morgan Cassan/Shawna

Shepherd

Jenny Walenczak

Eric Jenkins

Rachelle West

Denise DeMicco

Kelly Williamson

Colleen O'Dell

Rockford Homes

Deron Bender

Troy Borden

Mark Boyd

Erin Edwards

Tina Hoffman

Julie Hykes

Lindsay Pinna

Tarah Santos

Erika Wehner

Epcon Communities

Debbie Johnson

Josh Veitmeier

Katie Summers

Jeanne Schorsten

Lauren Just

Annie Rogers

Angie Brownowski

Emily Harman

D.R. Horton

Kristy Reynolds-Rafiyq

Danielle Patterson

Michael Anderson

Samuel Emig

Myndi Zipf

Chad Babbert

Skyler Smart

Justin Phillips

Jennifer Scheel

John Art

3 Pillar Homes

Grace Groene

Maronda Homes

Sumeet Pahouja

Isaiah Xavier Thompson

Jeff Pruzan

Vicki Dravenstott

Jessica Burnett

Dawn Henderson

Million Dollar Sales Awards - New Home Loan Originator

Kelly Woods & Mike Reeve / The Reeve Team, First Financial Bank

Special awards and members honored at 2023 BIG Night:

Citizen of the Year – Chris Bauserman, Delaware County Engineer

Baldy, Esper, Jones Awards – Epcon Communities & Cambridge Exteriors

Irving Schottenstein Builder of the Year Award – Thrive Companies

Associate of the Year Award – Mike Reeves, Kimley-Horn

Washburn Schofield Memorial Award – Hamilton Parker

Rising Star Award – Andrew Rus, P&D Builders & R.J. Sabatino, T&R Properties

Hall of Fame Inductees – Donald R. Kenney & Jeffrey Lamp

Golden Hammer Award – Nicholas Saxton, D.R. Horton

Trinity Homes

Scott Esker

Shelley McCoy

Member Spotlight: T&R Properties Celebrates 40 Years

By Carol Rich

T&R Properties, a leading property management and real estate development company, is celebrating its 40th anniversary this year.

Founded in 1983 by current President/CEO, P. Ronald Sabatino, T&R Properties has grown into a large-scale company with approximately 200 employees. T&R’s high-quality projects have been crucial to its market longevity and success. But another key element is the company’s outstanding leadership and staff. Even during tough times, such as during the Great Recession and the COVID-19 shutdowns, team members have always stuck together and helped make sure no one was left in the dust, Ron says.

“We’ve never laid anybody off in 40 years, including in 2008-2009, in which our industry was decimated by the banks,” Ron observes. “We were able to shift our people and give them something else to do when no home building was going on.”

T&R Properties started out with a focus on real estate development of beautiful multi-family, single-family and condominium homes. Over the years, T&R expanded its portfolio to include development and management of mixed-use and commercial projects, including golf courses.

The company continues to thrive and expand, and T&R now has developments in progress in Ohio, Pennsylvania and Florida.

One of the company’s newest projects is Boulder Reserve, located in southwest Delaware. The Reserve features new 1,500 square-foot homes priced around $300,000. By offering the homes almost $100,000 less than the average new build, Ron says, T&R is hoping to help fill the need for more affordable homes in the Delaware area.

T&R has been an active member of the BIA since joining in 2004. RJ Sabatino, son of Ron and T&R’s Development Manager, currently co-chairs the BIA’s Young Professionals Council.

“We are proud to be a part of a family here at T&R that has thrived for four decades,” says RJ. “Our teamwork and community involvement has allowed us to create many thousands of homes and other commercial developments throughout central Ohio and the Midwest. We have a lot in the pipeline to come, and we are looking forward to creating more communities for another 40 years and beyond.”

Council Spotlight: Builders & Developers Council and Multi-Family Council

Making the most of your BIA membership: Try a Council meeting or event.

You can’t find it anywhere else in central Ohio: The networking, learning and advocacy opportunities provided by the BIA are one-of-a-kind. By getting involved in one of our Councils, you can connect with others in a variety of building industry fields, exchange ideas, pick up valuable advice and enjoy a camaraderie you won’t find in any other organization.

What’s the best way to up your involvement and reap the benefits? Attend a BIA council meeting or event.

Here, in their own words, are the leadership of two BIA Councils explaining the value you’ll get from participating.

Builders and Developers Council

Mike Reeves (Kimley-Horn), Jeff Miller (CESO) and Nicki Martin (Treplus Communities) Co-Chairs

“Builders and Developers Council meetings are a great source of local building information. We provide updates on many local municipalities including zoning and building code changes and can collectively discuss challenges to stormwater regulations and utility availability. Our meetings also provide an opportunity for our members to communicate current industry challenges which help us prioritize our time and efforts.

Builders and Developers Council continues to work with the City of Columbus to improve the development process and engineering plan review flow and we look forward to shorter review times soon. We are also working with Plain City and Madison County on sewer improvements and zoning code rewrites.” —Mike

Reeves

Multi-Family Council

Jane Arthur Roslovic (Treplus Communities) and Joe Thomas (Metro Development) Co-Chairs

“The Building Industry Association Multi-Family Council advocates for the interest of builders in the multi-family construction industry. Attending Council meetings can give builders a chance to share their concerns and ideas with the Council, and potentially influence policy decisions that impact the industry.

One major item we have been working on in Multi-Family is monthly meetings with Director Messer at the City of Columbus on shortening the engineer plan approval process. We think we can get the approval process down to four months with the cooperation of the City of Columbus, the engineering consultant, and the developer/ builder.” —Joe Thomas

“The BIA Multi-Family Council will be hosting our quarterly meetings this summer and fall. We are going to have a forum with Columbus Development Director Mike Stevens and Erin Prosser, who heads Housing Strategy for the City. Moving forward we plan to have Council member and Zoning Chair Rob Dorans and Council President Shannon Hardin. Dates for our meetings will be posted on the BIA website." — Jane Arthur Roslovic

NAHB Findings: 74% of Central Ohio Households Priced-Out of New Home Ownership

By Carol Rich

An updated “priced-out” affordability report from NAHB finds that 668,215 central Ohio households are now unable to afford the median price of a new home in our region.

A median new home price in our area is $427,798 and an income of $137,345 is needed to qualify at that price. With 73% of households unable to qualify for a mortgage on a central Ohio median-priced home, the Columbus area ranks slightly worse than the national average. Numbers like these bring housing affordability concerns front and center for our industry.

Observes Jon Melchi, BIA Executive Director: “We are currently in an environment where builders and developers face ever-mounting regulations and then are asked, ‘Why can’t you build something more affordable.’ The reality is, at all levels of government, the regulations never see an elimination of ineffective or outdated policies. They simply continue to compound, and these siloed entities feign shock at the rising cost of housing.”

Nationwide, the median price of a new single-family home is $425,786, meaning half of all new homes sold in the U.S. cost more than this figure and half cost less. A total of 96.5 million households — roughly 73% of all U.S. households — can’t afford this median-priced new home.

At current lending standards, Columbus area data shows that for every $1,000 increase in a home price, an additional 1,086 households will not be able to qualify.

Affordability hits low level

The steep rise in mortgage rates that began early in 2022, along with ongoing building material supply chain

bottlenecks that increased construction costs, has led to a drop in housing affordability proven by three consecutive quarterly declines last year.

Housing affordability now stands at its lowest level since NAHB began tracking it on a consistent basis in 2012.

According to the NAHB/Wells Fargo Housing Opportunity Index (HOI), just 38.1% of new and existing homes sold between the beginning of October and end of December were affordable to families earning the U.S. median income of $90,000. This marks the third straight quarterly record low for housing affordability since the Great Recession, trailing the previous mark of 42.2% in the third quarter and 42.8% set in the second quarter.

NAHB reports, however, that a recent drop in mortgage rates early in 2023 signals that declining affordability conditions may have reached their low point for this cycle and are ready for a turnaround.

“With mortgage rates anticipated to continue to trend lower later this year, affordability conditions are expected to improve, and this will increase demand and bring more buyers back into the market,” said NAHB Chief Economist Robert Dietz. “Ultimately, the best way to reduce housing costs is for policymakers to put into place the right policies that will allow builders to produce more affordable housing by fixing broken supply chains, easing excessive regulations and ensuring sufficient liquidity in the housing market.”

“With mortgage rates anticipated to continue to trend lower later this year, affordability conditions are expected to improve, and this will increase demand and bring more buyers back into the market.”

– NAHB Chief Economist Robert Dietz

Revamp Your Website to Add Appeal

explains that this means the format of your web page will shift to adapt to any screen accessing your content.

When they arrive at your website, consumers are looking for content that’s informative and current — so whether you’re revamping your website or building a new one from scratch, both are key.

visualization tools that let consumers ‘try on’ different design options, like paint colors, countertops, flooring or even room layouts. Consumers like being able to visualize how a product will look and fit in before committing to it. They’ll buy with more confidence — and enjoy the interactive process.

By Carol Rich

A dynamic and engaging website is a fundamental tool for attracting potential customers and generating new business. But how do you improve your company’s website to make it more compelling?

First step: go through your site to evaluate what’s working and what needs to change. Decide whether your content appeals to consumers and whether it conveys the right message about your products and/or services.

Is everything up-to-date? Check all the links to be sure they’re working, and keep an eye out for any missing or incorrect information. Take a good look at the images and videos — are they poor quality or outdated?

If you have Google analytics or a similar data analysis tool, you can take a deeper dive into the way people are interacting with your site. You’ll get information that can help you make decisions about what needs to be altered.

Design-wise, since many buyers will want to check out your website from their phones, try to optimize you site for mobile searches. Velocity23, a marketing firm for home builders,

Buyers are likely to do extensive research online, especially when it comes to a major purchase like a new home. According to NAHB, prospective home buyers usually research builders online for an average of nearly two years, although after they make their first contact with a builder the majority will be under contract for their new home in just a month.

From the writing to the images, quality counts. So it’s critical to make sure your website is well-written and typo-free — and to use a variety of high-resolution images of your products.

High-quality videos are another essential. Videos starring your products and/or customer testimonials are a big positive for any site. Virtual walkthroughs and drone videos of the developments where you build, will upgrade builder websites.

If you’re a builder, having your portfolio on your website is a musthave. Velocity23 says your portfolio gives potential clients an idea of your versatility as a home builder and will help them decide if you are the right builder for them. Your portfolio should be clearly identified and easy to access. Choose images of homes that are different from each other so consumers can see the range of your work. But don’t display so many that it makes the page hard to load.

A feature that can add value and drive more traffic to your site: online

Be sure you have a ‘who-we-are’ page on your site that explains what sets your business apart. You might want to highlight your business philosophy, team members, company culture, community involvement and/ or awards. Builders can talk about their approach to home building, for example a commitment to using quality materials or the ways they create energy efficiency.

Content that illustrates your company’s experience is a good way to create consumer trust, so consider including information on your organization’s history. You can illustrate your company’s story with a timeline that features photos and text about milestones.

Adding a blog and/or news feed will keep your site looking fresh. Importantly, a blog will also drive more traffic your way through SEO. Courtney Stewart, Vice President of Client Services for Denim Marketing, recommends promoting your blog through social media and then linking it back to your website. Integrating your site and social can help you reach new customers from a variety of audiences.

Other solid website additions: clear contact information, testimonials, email or e-newsletter sign up forms and Frequently Asked Questions pages. Builders can also benefit by including information on their stepby-step process, the communities they build in and maps to their homes.

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By Malcolm Porter

Central Ohio Housing: Outlying Communities and the City of Columbus Are Key GOVERNMENT AFFAIRS

The previous edition of this column outlined changes that the BIA has made to reflect the growing presence of BIA members in the seven county Central Ohio region.

Builders and Developers Council co-chairs have divided up the region by county for purposes of tracking issues in an expanded number of communities -- Nicki Martin from Treplus Communities (Delaware and Union), Jeff Miller from CESO (Licking and Fairfield) and Mike Reeves from Kimley-Horn (Franklin, Madison, Pickaway).

This expanded effort does not alter the reality that the region’s core, the City of Columbus, remains the single largest jurisdiction for BIA members. No member builds in all communities, but Columbus is essential for multi-family and singlefamily companies alike, as well as infill, remodeling, and all the associate businesses who support this work.

This column will highlight some key efforts in the City of Columbus.

Zoning Code Reform. Over 90% of residential development projects in the city require rezoning and/or a variance. The City’s current zoning code clearly is dysfunctional and an impediment to housing market supply and a contributor to higher than necessary housing prices/rents.

The city has identified main throughfare corridors for its initial focus of a code re-write. Over 11,500 parcels that front 140 lane miles of roadway and are in over 30 area/neighborhood commissions encompass this focus area. The city will spend 2023 working on creating new zoning options that can better address future needs in these areas. There will be extensive community outreach and engagement over the course of the year, pointing towards an early 2024 adoption of new code map and language.

BIA Executive Director Jon Melchi sits on the City’s Zoning Code Advisory Committee. Maps and other details are available on the city’s special zoning code website: zone-in-columbus.hub.arcgis.com.

Zoning Approval Process. The city is not waiting for a new code to begin to tackle the long-time challenge of the excessive amount of time it takes to get approvals on zoning requests. Spearheading this effort is Scott Messer, the Director of Building and Zoning Services.

Director Messer has created a case manager system so that the City has a designated staff member who is responsible for engaging with all the relevant stakeholders in the approval process. Additionally, staff are tracking and working to improve zoning approval timeframes. This effort was launched in the first week in April. The BIA serves on a steering committee for this work. There is a high level of transparency on the status of projects, and everyone involved is working towards seeing improvements yet this calendar year.

Development Approval Process. Getting development plans fully approved so that construction can begin can many times involves as much time as getting zoning approved. Again, Scott Messer, the Director of Building and Zoning Services, is spearheading an initiative to improve this process, with an initial goal of reducing average approval times by 50% - from the current 9 months to 4.5 months.

This initiative also involves a project management system, with regular reporting on plan status, number of reviews required, etc. The BIA also serves on this steering committee and is working with the city to incorporate an expediated review process that would involve commitments from both public and private sector parties to commit to

timelines for key steps in the process.

Policy Changes. In addition to the big issues involved in the work described above, the increased focus on timeframes for city approvals has brought to light in our public/ private steering groups a number of individual policies or practices that should and can be changed.

To the City’s credit, they have begun to take action on items like improvements to the traffic study process to shorten the time required or altering the timeframe for payment of construction inspection deposits to allow earlier construction starts.

Also there have been standards changes, like the placement of backflow devices that may remove the need for a separate external structure or increased flexibility in mixed use building on the need for separate water taps.

Conclusion. There is no doubt that the city is a large, complex and often is a maddening entity, with which to navigate approvals. However, there are serious people in leadership in the city who are working to make improvements. As the city is an essential part of the housing market for the BIA membership, the BIA will remain engaged and focused on any and all opportunities for improvement to help members better meet the housing demand in Central Ohio.

BIA members can discuss updates and have input on this work through the BIA’s monthly Builders and Developers Council meeting that is tracked on the BIA’s website calendar.

Malcolm Porter is Public & Government Affairs Consultant for the BIA.

For questions, please contact Gareth Whaley at gwhaley@isaacwiles.com

Ohio’s Remodeling Law is in Limbo

A recent decision by Ohio’s Eleventh Appellate District has turned what may seem like an easy question – does remodeling count as construction? – into a confusing and potentially costly ruling for homebuilders and homebuyers in Ohio.

In Beder v. Cerha Kitchen & Bath Design Studio1, the appeals court ruled that home remodeling does not count as construction under the Ohio Home Construction Service Suppliers Act (HCSSA). An appeal to the Ohio Supreme Court was recently dismissed – meaning that the decision now stands as precedent. Other courts have already followed this ruling, leading to contradictory interpretations of the HCSSA and headaches for home construction litigants.

When customers sue builders, they ordinarily allege violations of the HCSSA. The HCSSA provides regulations for homebuilders and sets standards for purchasers seeking to sue. An alternative statute, the Consumer Sales Practices Act (CSPA), is meant to apply to small projects and non-construction transactions (such as buying clothing). Previously, large-scale remodeling contracts were assumed to be construction – after all, most of the same considerations and risks are involved. Adding a wing onto an existing house is much closer to building a house than it is to purchasing a pair of pants. But the Cerha ruling creates new uncertainty as to which projects are considered “construction.” For example, the Fifth District recently relied on Cerha to rule that a newly built $75,000

outdoor pool was not “construction” because it was built next to an existing house, and therefore counted as a remodeling project2. This contradicts prior rulings – for instance, a 2022 ruling in the Ninth District found that the HCSSA covered a dispute arising from a $27,380 attached garage project.3

The Cerha decision will increase the costs of legal compliance faced by home builders and, consequently, will increase the cost of construction and housing. Housing contractors will need to draft a new set of contracts for “non-construction” remodeling projects. For projects which walk the line between remodeling and “construction,” or which involve some combination of the two, contractors may have to draft “hybrid” contracts with the required provisions and disclosures for both statutes. Plaintiffs have taken to suing under both laws just in case, whenever a dispute arises – meaning the parties must litigate twice as many claims for the same issue. This hurts plaintiffs, by making litigation more costly and timeconsuming. It leads to higher expenses for builders, too, and those costs are inevitably passed on to purchasers.

It is harmful to complicate the law on this issue without good reason, because as the applicable law grows more complex, the uncertainty and risk of errors also increases – and disputes become harder to resolve without resorting to litigation. Ohio must decide what “construction” means – one way or another.

1 Beder v. Cerha Kitchen & Bath Design Studio, LLC, 11th Dist. Geauga No. 2022-G0008, 2022-Ohio-4463.

3 State ex rel. DeWine v. Wolfe, 9th Dist. Summit C.A. No. 30021, 2022-Ohio-1580.

2 Est. of Tomlinson v. Mega Pool Warehouse, Inc., 5th Dist. Delaware No. 22 CAE 03 0020, 2023-Ohio-229.

GARETH WHALEY Attorney, Isaac Wiles

EVENT CALENDAR 2023

Aug. 7, 2023

September 2023

Sept. 21 - Oct. 8, 2023

October 12, 2023

December 2023

JON MELCHI BIA Executive Director

BIA Foundation Plays a Critical Leadership Role on Housing Issues

If you could study any area of our housing market, what would it be?

Would it be the impact of Intel and other large commercial projects on the labor market? How does the central Ohio market compare to peer cities in terms of fees and taxes that come with building a residential project? Or, perhaps, it’s the actual impact on schools in terms of attendance and (or) performance that comes with new housing in population growth? Maybe it’s the impact of online sales as a disruptor in the traditional sales model for suppliers and builders.

There are any number of issues that might be important to our members and the central Ohio community as a whole, and part of the BIA Foundation’s role is to find the answers to those questions.

In 2017 and again in 2022, the Foundation’s support of the Central Ohio Housing Needs Assessment has played a critical role in demonstrating

the underbuilding occurring in central Ohio and has been the backbone for other work being done regionally in terms of accommodating the anticipated growth in central Ohio. In short, the Housing Study helped our members and the community at large.

It is imperative for the Foundation to continue to be at the forefront of that leadership. It simply cannot occur twice a decade.

If you or your company has a thought on an area that might be important to research, please let us know. Being seen as an organization that brings trusted information to the public is a critical role for both the BIA and the Foundation, and now is the time to make our move.

New Albany Walking Classic

presented by

September 10, 2023 • 8:00 am

Distance: 5k (3.1 miles) or 10k (6.2 Miles)

Location: New Albany, Ohio

Sign up!

● Reserve your hoodie

● Receive a nisher medal

● Indulge in our post race celebration foods

www.newalbanywalkingclassic.com

Train with the New Albany Walking Club

● Meets every Sunday at 7:30 am

● Walk together in small groups

● Enjoy the camaraderie of others during the walks

● Receive discounts on clothing

● Gather indoors prior to and after the walks

● Join members from throughout Central Ohio www.newalbanywalkingclub.com

Our awesome hoodie