bwef weofi 323r by foliandersolas

The Magazine of The National Association of Home Builders

PLUS

Housing updates from six hot new-home markets across the country PAGE 102

L I VI NG I N BAL AN CE → J A PA N E S E- I N S P I R E D

DESIGN AND BUILDING

PROCESSES COME TO THE U. S . V I A C H ŌWA , O U R

L AT E S T C O N C E P T H O M E , B U I LT I N L A S V E G A S

January 2020

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Contents DEPARTMENTS 16

From the Editor Up Front

Pulse

Design Trends

Marketing

Industry

Show Guide NAHB Notes

117

Chairman’s Letter

118

Home Innovation Research Labs

120

Dietz’s Economy

128

Last Detail

110 ONLINE 24/7 Visit us at builderonline.com for the latest housingrelated news

Cover: Kip Dawkins Photography; This page: Jason Ford

F E AT U R E S

102

110

The BUILDER Chōwa Concept Home brings Japan-based Sekisui House’s precision-crafted construction method to the U.S. By Symone Garvett

A look at the state of housing in six top new-home markets: Dallas–Fort Worth, Denver, Miami, Phoenix, Seattle, and Washington, D.C. By Mary Salmonsen, Scott Sowers, and Symone Garvett

What recent housing-related policies have found success, and how can builders get involved at either local or federal levels? By Scott Sowers

Curated Connections

Market Monitor

Policy Plays

Volume 43, number 1. Builder (ISSN 0744-1193; USPS 370-600) is published 12 times per year: monthly in Jan., Feb., March, April, May, June, July, Aug., Sept., Oct., Nov., and Dec. by Hanley Wood, 1152 15th St. NW, Suite 750, Washington, D.C. 20005, for the National Association of Home Builders and printed in the USA. Copyright 2020 by Hanley Wood. Opinions expressed are those of the authors or persons quoted and not necessarily those of the NAHB. Reproduction in whole or in part prohibited without written authorization. Single-copy price: $8.00 (except House Plans issues, which are $12.95). Periodicals postage paid at Washington, D.C., and at additional mailing offices. Postmaster: Send address changes to Builder, P.O. Box 3494, Northbrook, IL 60065-9831. Member: Business Publications Audit, American Business Media.

B U I L D E R O N L I N E .C O M

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THE MAGAZINE OF THE NATIONAL ASSOCIATION OF HOME BUILDERS

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FROM THE EDITOR

A Builder’s Dilemma

“

we’re gonna party like it’s 2019!” doesn’t roll off the tongue. Nor, for builders of new homes and communities, does it seem likely that 2019 will go down in home builder business annals among the more raucous moments of unbridled exuberance that defined Prince’s “the devil may care” anthem to the eve of Y2K. We envision looking back at the moment as a bridge, connecting the past to our futures. The end of a decade, and somewhere amid the United States’ single longest period of economic recovery—it’s a moment to take stock, to find the teachable, to move forward. The bridge spans a bottomless crevice—obsolescence, disruption, insolvency, oblivion. On one side of the bridge, where we are and have been, we’re on a “knowing curve” that tracks with a trajectory of knowledge, canniness, and experience builders draw upon, tapping into generations who came before and what they’ve proved to work. It’s “the way we do things.” Discomfort with any other way of doing things gets expressed in the form of refusal of capital, denial of permits, abandonment by skilled labor crews, delayed building cycles, etc., leading ultimately to a firm’s inability to do what it’s set up to do—build homes and make money. On the other side of the bridge is a “learning curve.” The learning curve—with its share of failures, flailing, and frustration— calls on our primal instinct to explore, discover, and venture into new, uncharted turf.

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The bridge gives us access to both curves. By the end of 2029, will lots, labor, materials, and lending continue to bedevil builders as the Four Horsemen of chronic and existential risk to budgets, bottom lines, and business models? Our bet is no, even as fundamental as those four essential resources are to our business and operational models today and for all the millennia that such has been the case. On the eve of this decade, we’d bet that our futures—and their learning curve—will more meaningfully determine the viability and sustainability of businesses and business models than the past. Note, I’ve been referring to “our futures” as more than one and the past as singular. We can envision, at any time, multiple futures. There’s the one that happens to us if we continue to pursue status quo; there’s the one we prepare for as evidence suggests we evolve; and there’s the one we help shape as agents of change. As we look at our futures and housing’s job in how they may play out, we must think of the challenges and crises, which include the mismatch between the expense of assembling resources to create homes and communities and what households earn; the mismatch between sheltered space’s impact on the environment and nature’s capacity to regeneratively support its balances; and the mismatch among skills, jobs, and expertise and their sustainable ability to produce value to support households’ needs and dreams. Today, we face existential challenges—to leadership, to society, to business models— with varying notes of urgency, impact, immediacy, and desperation. It’s a false dilemma that we have to pick one bridge or the other. Instead, we probe the challenges for how we might do the next right thing. We look ahead to our futures in the sense of our need to act today. We need to seize on this lingering chance to give some of the future we’ve already taken back to our children. Their children. We owe action, we owe behavior, and we owe doing and being accountable to them. Isn’t that essential to “the way we do things?” B

John McManus Editorial Director, Residential Construction

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Notable news, trends, and data from around the industry

Epcon Communities Bets Big on 55-Plus when the treasury bond yield curve became inverted in August, economists warned of a possible recession in late 2020. The news has since dropped off the front page, but the economic indicator is still there to see. Home builders know all too well what an economic calamity can do to their business. BUILDER recently checked in with Paul Hanson, president of Epcon Franchising, a subsidy of Dublin, Ohio–based Epcon Communities—ranked No. 45 on the latest Builder 100 list. Discussion topics included the 55-plus market, recession concerns, and why Central Ohio has turned into a hot real estate market.

Q: How is Epcon preparing for a possible economic downturn? A: We don’t expect a pullback in housing in

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The clubhouse at The Courtyards at O’Kelly Chapel, Epcon’s 55-plus community in Cary, N.C.

2020 because we see so much unmet demand in our markets. In the next year, Epcon Communities expects to double its number of communities in Central Ohio alone. That said, every strong company is prepared for the unexpected. We hired a vice president of product development to ensure our products meet evolving market conditions, we’ve upgraded our software and purchasing capabilities to increase efficiency, and we’ve invested in marketing resources and assets to stay ahead of competitors. Q: What lessons were learned from the Great Recession? A: I’m sure many of the lessons we learned are similar to what other builders learned—limit your exposure on inventory homes, fight the urge to keep employees longer than you should, and take the initiative in renegotiating labor and supplier agreements that are no longer compatible with market realities. An added lesson that’s somewhat specific to us as both a builder and a developer is that it’s impossible to get a good enough deal on a bad—or questionable—location. Our buyers want to live in the best locations, so we don’t consider any sites that are not a consensus A+ location. Since the Great Recession, we have seen consistently strong absorption and sales prices, and we feel that is due in large part to this discipline. Q: Columbus has become a hot real estate market—is that having any effect on the company? A: For years, the area has had strong job growth in banking, insurance, and tech, as well as having the added economic benefits of being home to a state capital and major university. All of this has had a positive impact on our company, as many of our buyers want to stay in the area or move here to be near family. Without a strong job base to attract and keep younger workers, we would not have the opportunity to build homes and develop communities that have proved to be so popular with 55-plus buyers.—scott sowers

B U I L D E R O N L I N E .C O M

Epcon Communities Franchising/Colin McGuire

Q: Why does Epcon favor the 55-plus market? A: Over 30 years ago, our founders saw an unmet need in the Columbus area for low-maintenance ranch homes and experimented with a project that became popular with 55-plus buyers. Epcon Communities and our franchise builders have since developed and built over 400 communities within this unique niche of home building. We prefer to stick with this singular and disciplined approach for several reasons. First, we believe a builder cannot be all things to all people. Many builders attempt to enter this space by offering products they’ve built in traditional single-family communities. Our products, by contrast, are unique layouts that are the result of continuous research into what buyers want. Second, research shows more than one-third of new-home buyers are over age 50, and our products and communities are well-received by that group. Studies also show that 55-plus buyers control a strong majority of the nation’s wealth, so they can afford to buy the home they want. What other segment within the housing industry can boast statistics such as those? It’s an incredible business to pursue right now.

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the world green building council, a global network of 70 Green Building Councils, has unveiled a new digital library of case studies showcasing the world’s most cutting-edge sustainable buildings and development projects. Each entry demonstrates a given building’s excellence in health benefits or net-zero carbon operations, as verified by a Green Building Council or other certification parties or rating tools. Following the library’s launch at the U.S. Green Building Council’s Greenbuild conference in Atlanta on Nov. 19, the case study library will be open to new submissions via the WorldGBC website on a rolling basis. Submissions are reviewed based on criteria developed by WorldGBC, as well as a panel of development partners. The net-zero carbon case studies include buildings or spaces that can produce or generate sufficient renewable energy to meet the building’s demands over 12 consecutive months, as shown by market rating tools or certifications. The health case studies cover buildings or spaces that can show features that enhance human health, as verified through ratings or related certifications. Projects that achieve both the healthy and net-zero performance criteria will be identified as “game changers,” with entries highlighting their features, lessons learned and project information. Examples of game changer projects include Floth’s office in Brisbane, Australia; CBRE’s office in Vancouver, Canada; and City Hall in Freiburg, Germany. WorldGBC developed the library in partnership with Delos, Integral Group, and Saint-Gobain as a part of two WorldGBC initiatives: Advancing Net Zero, which aims to progress net-zero carbon uptake to 100% by 2050, and Better Places for People, which aims to increase market demand for sustainable buildings. “As a global network committed to achieving a sustainable built environment, I’m delighted to launch our new case study library,” says Cristina Gamboa, CEO of the World Green Building Council. “It showcases the most cutting-edge examples of sustainable building worldwide as verified by our local Green Building Councils. Buildings are a vital part of the solution to the climate crisis as they are the fastest, most viable and cost-effective means to achieve emissions reductions. Therefore, our case study library will be a valuable resource to further inspire commitment toward improving human health and eliminating the building and construction sector’s CO2 emissions to reach net zero before 2050.”—mary salmonsen

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Kristin Laing/2018 Houzz

2020 Design Trends Wood cabinets, tiled bathroom aprons, and softly colored kitchens are among Houzz’s trends to watch in 2020

To help designers stay ahead of the curve, design platform Houzz has shared trends it predicts will dominate residential design in 2020, based on research, talks with experts, and activity among its users. Here are the 10 design trends Houzz expects to top idea boards and social media feeds in 2020. Wood accents amid painted cabinets. According to the 2019 Houzz Kitchen Trends Study, white is the most popular kitchen cabinet color. However, Houzz has seen designers add wood drawers, shelves, and pullouts to add visual interest and warmth and break up the expanse of white. Dining rooms with personality. Families are increasingly having meals in informal spaces, while the dining room remains popular for special occasions. Houzz expects to see more personality brought into dining rooms via color, pattern, and lighting that might not fit within the context of the style found elsewhere in the home. Seating in the bathroom. A place to sit can be used while brushing teeth, taking off slippers, or idling away on the internet. Houzz sees seating pop up in the bathroom more frequently in

B U I L D E R O N L I N E .C O M

the form of built-in benches or stools that provide versatility. Tiled bathroom aprons. Tile can update and transform a bathroom. Houzz sees many homeowners and designers order extra tile to wrap the tub apron. Designers are also achieving the same effect by wrapping tub aprons with materials such as wood. Softly colored kitchens. Many of the popular kitchens on Houzz’s site have “soft” palettes such as light grays and blues, and Houzz expects more of the same in 2020. Color experts suggest the widespread use of grays and blues is in response to the recent rise in popularity of moody hues. Double floating vanities. Double vanities free up floor space and make cleaning the floor easy. Nearly seven in 10 renovating homeowners chose a double-sink setup, according to the 2019 Houzz Bathroom Trends Study. Cheery laundry rooms. Designers have championed a move toward more enjoyable laundry room spaces. Designers and homeowners are using colors, patterns, and features to create lively, quirky spaces. Fully wrapped powder rooms. Bold style choices in powder rooms is not a new trend, but a fresh take Houzz has seen is wrapping the entire space in a feature wallpaper or other material. Wood detail on range hoods. Wood details on ranges can bring warmth and texture into the sightline in the kitchen and helps break up large expanses of cabinetry, says Houzz. Warmer colors. Neutral colors remain popular, but Houzz is beginning to see a shift away from gray toward warmer colors.—vincent salandro

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PULSE

Data Shows New-Home Market Share Varies by Region

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the sector breakdown of the housing industry has notably changed over the past two decades. New-home building represented 16% of overall housing transactions in the early- and mid-2000s. Today, it makes up 12%. Ali Wolf, director of economic research for BUILDER’s sister company Meyers Research, was curious about how this trend varied over time as well as by market, and she provides the highlights below. The new-home industry is a vital part of the U.S. economy. Newhome buyers are estimated to spend 10% more on appliances, furnishings, and property repairs and alterations compared with those buying an existing home. In addition, it is calculated that for every 1,000 average single-family homes built, 2,975 jobs are created. This is considerably higher than the 500 jobs attributed to 1,000 existing home sales and is spread across more specialties, including land development, private equity, banking, construction, government, and architecture. The new-home market is also critical in addressing today’s supply and demand imbalance. Home builders are able to bring inventory to a market where the already short supply is exacerbated by the lock-in effect of low mortgage rates encouraging existing homeowners to stay put. The drop in overall market share for new homes, however, is largely due to exogenous factors. Builders and developers are aware of the supply shortage and the opportunities created by today’s demographics, but land availability, land costs, a lack of labor, and strict government regulation are holding them back. As we all know, home building is local. The 12% new-home market share is low nationally, but the percentage varies widely by market. For example, the current new-home market share of 17% in Las Vegas is low compared with the 45% capture in 2006. To look at this trend closer, we studied the top markets in the country to identify where new-home sales remain a big part of overall transactions. The metros in the chart below are sorted by highest to lowest based on 2019’s year-to-date new-home market share. From our research, we found: ▪ New-home sales are approaching 30% of the market in Austin and Raleigh. ▪ The top 10 markets with the largest new-home share are in Texas or the Southeast. Las Vegas is the exception. ▪ Of all the top U.S. markets, the ones with the biggest change compared with 2006 are Las Vegas (-27%), Miami (-22%), Phoenix (-19%), Riverside (-19%), and San Diego (-18%). The markets with the smallest change are Austin (flat), Salt Lake City (-1%), and Baltimore (-3%). ▪ Among top markets, the share only increased compared with 2010 in Austin, Dallas, Salt Lake City, and Denver. For more information and data, visit meyersresearchllc.com. —ali wolf, director of economic research, meyers research

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BUILDER INTEL

WHOLE-HOME WELLNESS AND COMFORT ON $1.50 A DAY This Virginia home builder leapfrogs competitors with next-gen HVAC technology. Home builder Jay Epstein waited nearly four decades for his DARST moment. “DARST,” an acronym Epstein coined years ago for his children, stands for Dreams and Reality Sometimes Touch. The acronym is now on dramatic display at Walnut Farm, a new community of 75 single-family homes now under construction by his company in Williamsburg, Va. The development is the state’s first zero-energy ready home community. It may also be the first community in America that must be experienced to be believed. $1.50/DAY

Start with daylight. “It’s sunny outside and you look out towards the window. You notice the expected dust particles are missing. The sunbeam is clear and dust-free,” explains Epstein, founder and president of Health E Community Enterprises. It’s just the first of many subtle sustainability and wellness wonders incorporated into Walnut Farm homes. There is one marvel no one will overlook: The utility bill is guaranteed to average out at just $1.50 a day over the course of a year. Epstein knows most home buyers don’t geek-out over sustainability, though. To the contrary, “They’re not interested in a HERS or SEER rating or R- or U-values. That’s numbers overdose. They relate to personal experience,” Epstein says. 9.5% BUILDER BONUS

A recent North Carolina study determined high-performance homes now command a 9.5 percent dollar dividend over other new homes. “A builder always looks at the bottom line using proven products without warranty issues,” he says. Epstein can pinpoint nearly to the day when the gloves came off for high-performance home builders. “The playing field didn’t level until the government removed the 30 percent geothermal tax credit.

That’s when everyone rushed into the market with multistage HVAC compressors. ERVs (energy recover ventilators) got smarter too. We now have the technology to build the home of the future today,” he says. HIGH VALUE, HIGH PERFORMANCE

At Walnut Farm, that future-is-now technology includes: • Advanced framing techniques, cellulose insulation, two-by-six wall framing, thermal break sheathing panels • Solar-ready construction with pre-wiring, enhanced roof trusses, and dedicated roof area • Building information modeling (BIM) pre-planned construction • Next-generation HVAC systems powered by groundbreaking Tranquility by Trane technology

Epstein singles out Trane for special recognition because “… the product is that good.” Take the air handler, for example. “Before Trane, I had to control noise with cellulose. Now the unit is naturally quiet. The compressor outside is quiet too. Conversations by the air compressor aren’t impaired. Little things like that make a huge difference,” Epstein says. DARST MAGIC

As for building code, “I don’t worry about it,” Epstein says. “The homes we build are way above current code. I build toward what I know should be the 2025 code.” Interestingly, that forward thinking has little impact on price— Walnut Farm starts in the high $300s, competitive for the market. To demonstrate the community’s comfort and wellness edge, Epstein plans to open one of his model homes for overnight stays. “The house is cleaner. The air is crisper, clearer. There are no comfort or breathing issues. Customers need to experience it for themselves.” “Yes, dreams and reality not only touch, they come true,” Epstein says.

To learn more about Tranquility by Trane, please visit trane.com/builders. Produced by Hanley Wood Strategic Marketing Services Group

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DESIGN TRENDS

House Plan Outlook Top designers share their thoughts on what will be big in floor plans going into the new year b y AU RO R A Z E L E D O N

t the start of a new year, people tend to reflect on the previous 12 months in addition to looking ahead in anticipation of what’s to come. As such, we asked a few designers to share their predictions surrounding hot house plan design trends for 2020. What stands out the most from these insights may be how relatively little has changed since last year. Modern farmhouse style dominates the bestseller lists and new plans alike, showing that this trend remains a powerhouse. Open layouts are still ubiquitous, with the kitchen continuing to serve as the social hub of the home. And amenities tend toward the practical—not ornamental— with abundant storage and flexible, multipurpose spaces. Given that these trends easily scale up or down to accommodate all levels of budget and life stage, perhaps we shouldn’t be in any hurry to see them go.

MODERN FARMHOUSE S T Y LE

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(Plan # 51-1146)

Yes, shiplap is going strong, and the farmhouse style shows no signs of stopping. “We are still seeing a climb in farmhouse designs pretty much nationwide,” confirms Kieran Liebl of Midwest Custom Home Plans, whose modern farmhouse designs sell at a rapid pace. But how long will the trend last? “Another two to three years,” predicts architect Wayne Visbeen. After all, “it’s a safe way to go more contemporary without going off the grid.”

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DESIGN TRENDS

So, what will come after farmhouse eventually does decline? Visbeen foresees that the movement will be toward even more modern and transitional designs. Indeed, it does seem that the newest wave of pre-drawn house plans feature clean-lined exteriors with minimum fuss.

S T R E A M L I N E D D E TA I L S In contrast with the heavy, ornate styles that were popular a decade or two ago, today’s hottest designs feel sleek and simple. Jonathan Boone of design firm House Plan Zone claims French country and Acadian styles are on their way out, along with “arched windows or arches altogether.” Meanwhile, Visbeen observes that “cleaner, slicker, modern homes are almost becoming the norm.” Of course, a certain amount of pizazz is still needed, and many of the bestselling plans achieve that via large windows, metal roof accents, shed dormers, and large porches.

AMPLE STORAGE SOLUTIONS When it comes to the pantry, there’s no such thing as too much space. Both Boone and Liebl note the importance of storage in the kitchen. Liebl is seeing “more open shelves and cleaner lines.” For Visbeen, it’s all about changeable systems and things that morph to fit a variety of needs. “People don’t want to see the TV, but they all want a huge TV,” he muses. And that’s not the only thing to stash out of sight: “We work very hard to hide the garages more and more.” Meanwhile, it’s becoming increasingly common to see walk-in closets for secondary bedrooms, even in smaller homes. Combine that with utility rooms (usually near the entrance from the garage) and drop zones, and today’s layouts really make it easier to stay organized.

MASTER SUITE SIMPLICITY While the tub in the master bath hasn’t disappeared, when it does appear it’s likely to be a freestanding model. And

showers keep expanding (much like kitchen islands, it seems more is more here). When it comes to storage, think ease as well as space, such as master closets that open directly to the laundry room. More and more plans include this clever feature, which makes it remarkably simple to throw in a load of laundry without taking more than a few steps from the hamper.

FLE XIBLE SPACE

Visit go.hw.net/BD0120-plans for more trends, and view other plans at builderhouseplans.com.

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Above: Jason Breland (Plan # 430-192 ); Left: Bob Pearl (Plan # 51-1132)

Although open layouts reign, there are times when a separate space for work or play comes in handy. A bonus space above the garage has long been a popular item, but now more plans are featuring versatile rooms on the main floor, where they’re easier to access. These rooms serve many functions, far more than just storage. Boone points out flex spaces on the main floor can be used for a game room, while Liebl notes that “we are also seeing a trend in pocket office space with builtin counters.” Visbeen stresses the importance of keeping a visitor’s space multifunctional by asking, “How often do you need a guest room? Not that often.” B

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MARKETING

While market research into your competitors is certainly important, what that startup founder was describing is not what the term actually means. If you want to differentiate yourself from your competitors, the last thing you want to do is look exactly like them. You’re trying to stand out in a crowd, not blend directly into it. But more than that, market research is a far broader term than this client—and a lot of other people—suspect. In fact, it’s not something that should start with your competitors at all. Rather, it should start with the people you’ve dedicated yourself to serving.

BREAKING THINGS DOWN

Research Matters It’s not your website that generates leads—it’s the market research you do before the website is built b y D ON N A C A M PA N E L L I

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Adobe Stock/chinnarach

s someone who has spent a significant amount of time helping home builders and contractors optimize their online presence, there’s one common misconception that I hear time and again. I most recently encountered it while in a discovery session (our version of a pre-construction meeting) with a potential client. This particular person was in the process of starting a company, and we were discussing steps he could take to hit the ground running with his strategic plan going into 2020. He had a name but hadn’t yet designed a brand, and he knew he needed a website. We started talking about his brand when I asked him what he wants it to convey. He said he wants it to convey that his company is professional and experienced. I then asked if he had done any market research. He said the following: “Oh, I’ve done a great deal. I looked at my top three competitors on Google, and all their sites have a red and black color scheme. So that’s what we’re going to do, too, and—” That’s when, as politely as possible, I told him that I was going to have to stop him right there.

When you’re talking about a field as carefully focused as home building and contracting, one of the core goals of your brand and your website should always be making it easy for customers to make a decision about which company they are going to choose. Naturally, you want to position yourself in such a way that you come out on top in any head-to-head comparison that someone happens to make. To get to that point, you need to do market research, meaning that you need to know as much about who is doing the comparing as you possibly can. Think about your ideal customer and ask yourself some of the following questions: Who is this person? What do they like? What are they looking for? What do they care about? What problems do they have, and how can I help them solve them? How can I uniquely make their lives easier in a way that my competitors can’t? The answers to those questions are what I mean when I say “market research,” and they should absolutely drive the majority of your marketing decisions moving forward. When someone comes looking for a business like yours, your website needs to immediately put them at ease. It needs to confirm as quickly as possible not only that they’re in the right place, but that your business is the one that can give them what they want. You can’t do this without market research, and you certainly can’t do it if you simply copy what your competitors are doing and assume that it is working for them.

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Put the focus of your website not on your business, your services, or even yourself—but on your customers. You need to make them feel like you and you alone understand their needs and to do that, you need to do as much market research as you can before designing your brand or building your website.

BACK TO YOUR COMPETITORS While we don’t start with your competitors in market research, we definitely do want to include them as part of the overall process. When you go looking at your competitors, look for three key things: 1. What they’re doing wrong. 2. What they are doing so well that you don’t want to or can’t compete with. 3. What they’re doing that you think you can do even better. Is there some element of their messaging that you absolutely hate? Terrific—take the

opportunity to improve on that idea with your own efforts. Is there a gap in their services that exists, some raw value that is missing from what they provide? Perfect— that’s an opportunity that is just waiting to be taken advantage of by your company. This is what we mean when we say “market research,” and, make no mistake, it’s more important than you think. If you don’t do the right type of market research— or worse, if you don’t do any at all—you’ll be making decisions based on little more than false assumptions and gut feelings. Both of those things can result in failure. More often than not, you’ll be leaving a tremendous amount of money on the table because those false assumptions will add up to a brand or website that may look great and function well, but it fails to connect with the people you got into business to serve in the first place. This is also why, despite the fact that you already have a full-time job as a home builder or contractor, your second full-time

job needs to be that of the savvy marketer. Yes, it takes a significant amount of time, and, yes, it’s something you have to think about every single day. But if you train your brain to see the situation in this way, and you make decisions based not on gut instinct but on actual research, there’s literally no limit to what you can accomplish. If you don’t have the capacity to make marketing your full-time job, that’s OK, too—there are plenty of marketing companies out there that are more than willing to help you and your business in these situations. So if you don’t have the ability to do everything yourself, don’t be afraid to find someone who can. Rest assured, that’s the type of partnership that will serve both of you well for years to come. B Donna Campanelli is a marketing strategist and the owner of Contractor-Websites.com. Her company works with construction companies, contractors, and the trades to increase their visibility and grow sales.

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T H E B U I L D I N G I N D U S T RY H A S REACHED AN INFLECTION POINT TODAY’S CONSTRUCTION PRACTICES CAN’T MEET TOMORROW’S HOUSING NEED. IT’S TIME TO SHIFT FROM MATERIALS AND MANPOWER TO AUTOMATION, DIGITAL CONNECTIVITY AND COLLABORATION. WHY DO WE NEED TO CHANGE?

1.2 billion homes are needed right now.

35 million homes are needed globally every year for the foreseeable future. That’s 4,000 per hour.

8.5 million very-low-income families are without a home. ─ McKinsey

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WHERE’S THE COMPETITION?

This New England builder wouldn’t mind more competition in the ICF field.

L to R: Dave, Fenton and Joe Groen. Courtesy: Groen Construction

Courtesy: Groen Construction

Fenton, Dave, and Joe Groen welcome healthy competition. Not because they need it, but because they want it. The father and two sons are the principals behind Groen Construction, a family-owned and operated full-service (including design) residential and commercial builder out of Rochester, N.H. The firm specializes in ICF (insulated concrete form) construction, though offer traditional construction services as well. Residential projects range from $250,000 to $2.5 million, mostly custom work with occasional spec homes.

They should know. They’ve been offering ICF construction services for 18 years. The eureka moment arrived at a 2001 NAHB event when Dave tracked down his father and brother and said, “Hey, you’ve got to come take a look at this ICF booth!” There was no looking back. In fact, their belief in ICF construction has only intensified.

WANTED: COMPETITORS

Business is good, with a half-dozen residential and commercial projects in work. Groen Construction benefits from ICF’s rising popularity as the go-to for exceptional construction durability, comfort, and value. Which leaves the Groens wondering … why aren’t more of our competitors building with ICF? “We’re excited about ICF and want it to grow,” says Fenton Groen. “I wish there were more ICF general contractors because it would help grow the whole field. A rising tide lifts all boats.”

OWNER FAVORITE

The puzzle has always been why there are so few ICF contractors taking the field. After all, owners love ICF. “In 18 years we’ve never had a residential or commercial customer say, ‘I wish I had not spent the money on ICF.’ The police and fire chiefs in a nearby town talk us up before state meetings all the time. The 19,000 square foot building we built for them cut their heating bill by $30,000 a year. That saves taxpayers nearly $150,000 every five years,” explains Groen. It’s a great story. But Groen is just getting started. He thinks adding ICF construction to any residential builder’s arsenal is a smart business move: 1. Rapid Learning Curve. “The skills required for ICF are way more closely aligned

Courtesy: Groen Construction

with a framing crew than a traditional concrete contractor. We always look first at hiring someone with framing experience over someone with concrete experience,” explains Dave. ICF assembly complements stick-built framing. 2. Sells Itself. An ICF system typically adds about 10 percent to residential project cost (and pencils-out competitively on commercial work). Even so, 50 percent of homeowners opt for ICF once they weigh the benefits. “There’s no better way to set yourself apart from the competition,” David advises. 3. No Thermal Breaks. No Mold. No Problem. Gone are all the familiar headaches of traditional stick-built construction, like mold issues. “One fairly sizable hotel chain switched over to ICF because of problems with metal stud curtain walls,” Fenton says. For the Groens, adding ICF to your service set is a “no brainer.” But they understand every contractor’s situation is different. The way forward for the Groens is clear: “ICF is an incredibly versatile system that we can apply to just about any situation.”

To learn how you can multiply projects and profits, visit BuildWithStrength.com.

Produced by Hanley Wood Strategic Marketing Services Group sms.hanleywood.com

INDUSTRY

12 Predictions for Home Building BUILDER blogger George Casey gives his take on where the residential construction industry is headed in the next decade b y GE ORGE C A S E Y

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1. The excess of housing demand over housing supply will probably continue for a good part of the decade. The factors noted as limitations on supply for this past decade probably will not be corrected. NIMBYism will be hard to reverse. Unless immigration policy changes course considerably, fewer and fewer citizens will be available for the trades. A change in government policy back to multifaceted support for housing creation and ownership does not look likely, either. Meanwhile, housing production at the current level is not sufficient to create enough supply to meet the ongoing natural demand of 1.6 million new homes per year, much less make a dent in the 6 million unit deficit from the past decade. 2. The structural/societal bias toward homeownership will continue to erode. With government policy (tax benefits and subsidies) for homeownership declining along with the societal bias against rental continuing a long-term decline, rental property occupancy should continue to increase. Sometimes this will be by necessity (can’t save the down payment; too much student debt) and sometimes it will be by choice (job

B U I L D E R O N L I N E .C O M

Adobe Stock/FrankBoston

en years ago, as we were starting to see “green shoots” of recovery, I started writing columns such as this one. At the time, the best metaphor I could conjure for the housing industry was that of Humpty Dumpty: He had fallen off the wall and there was a question of whether he could be put back together again. I thought the industry would get put back together, but it would look different from what we had known before the Great Recession. So, what are my predictions for the next 10 years? As was true a decade ago, one can see some of the future by looking at where we are now. In addition, there are new green shoots of what might be growing trends for the next decade. Together they form at least one person’s view of the operating environment and potential opportunities and threats that the industry will be confronting.

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INDUSTRY

mobility, having someone else take care of the maintenance). The net effect will be a tailwind for rental apartment and single-family for rent production. On the used housing side, there will most likely be a trend toward taking existing housing occupied by one family and converting it to occupancy by multiple individuals or families, most likely via direct rental or quasi-rental solutions such as co-housing. This continues the trend of adult children living at home from the recession and expands it to other demographic categories. 3. Productivity improvements will take on increasing importance. These improvements will be on parallel tracks: on-site and off-site. In the on-site world, look for a few sub-trends: industrial engineering focused on waste reduction in time, materials, and labor; using more sub-components built off-site; bringing critical labor components in-house vs. total subcontract. These all will have the effect of driving higher productivity in the on-site process. In the off-site world, look for these trends: pre-fabricated wall and floor panels and roof systems will become even more widely used; modules and whole homes built off-site will be more prevalent; the drive to productivity improvement and scale in factories will also increase to help make factory-built solutions even more prevalent. Building product manufacturers moving up the supply chain and becoming the JV partners or outright owners of the factories producing the sub-modules, modules, and whole homes coming out of factories. It will allow them to create new, more efficient, and more-locked-in channels that are not as dependent on price alone. 4. There will be an increase in integration of upfront design and engineering with trade partners. Entekra’s FIOSS—fully integrated off-site system—is a model here. By doing the design/engineering with trade partners up front, waste and inefficiency are significantly conquered before material and labor are ever used. The result: higher productivity. 5. Look for an integration of purchasing and financial analysis at the builder level. Looking at just “apples to apples” comparisons for bricks and sticks alternatives misses impacts on other non-construction costs and

leads to faulty conclusions. A holistic approach is needed, and smart builders and developers will learn to create these approaches organizationally. 6. There will be a higher migration of women into the home building workforce at the builder and trade/factory level. Roughly 4% of trade contractors are female, yet 30% to 40% of factory workers are female. When we say we have an undersupply of trade contractors, we are really saying that we have an undersupply of male trade contractors. By moving more component and module creation into factories, a wider labor force opens up for the industry. Women and their influence will make a stronger companies across the industry and will drive improvements that we cannot imagine currently. 7. Developers, par ticularly master planned community developers, will be among the first to really embrace factorybuilt housing solutions. Often with decades of lots ahead of them, master plan developers will see putting a housing factory on-site as a double benefit: the transportation component of modules and components will be minimized, and there will be a long-term job creation mechanism for the community in place early on. Some developers may use the opportunity to actually move totally into the builder shoes and handle sales, marketing, and the simplified builder role in their communities once the bulk of production is done in a factory. 8. New single-family for rent builders/ developers will be the other early adopters of off-site solutions. The simplicity and repeatability of the forrent product will really allow factory solutions to scale and for cost efficiencies to be realized. I would not be surprised to see this technique carried over to a more simplified for-sale set of products addressing the attainable housing/housing supply shortage issue.

MODERN PRINCIPLES. MARVIN INNOVATION. Part of the Marvin Signature™ Collection, our Modern line considers every detail. The result is a line of windows and doors that pairs pure modern design with category-leading energy

9. In the single-family for rent space, I would not be surprised to see a longer term (five- to 10-year) triple-net lease surface. This would pass some of the variable costs of occupancy on to tenants in return for a longer-term claim on the residence and the stability that creates. Essentially, this product

performance. marvin.com/modern

Some discounts, coverages, payment plans and features are not available in all states, in all GEICO companies, or in all situations. Commercial auto coverage is underwritten by Government Employees Insurance Company. Business operations and property coverages, and in some cases commercial auto coverage, are provided through GEICO Insurance Agency, Inc., either under an arrangement with Berkshire Hathaway affiliates or with non-affiliated insurers. GEICO is a registered service mark of Government Employees Insurance Company, Washington, DC 20076; a Berkshire Hathaway Inc. subsidiary. GEICO Gecko image ÂŠ 1999-2019. ÂŠ 2019 GEICO

INDUSTRY

Adobe Stock/virtua73

THIS IS MODERN would get even closer to the ownership model in terms of duration but giving up equity creation in return for no down payment and an ability to break the lease (with penalty) if needed. A much easier solution than trying to sell a home, particularly in a down cycle.

prices and rents will be the introduction of rent control regimes. Rent control does nothing to create more supply, but it will happen anyway, creating risk in land and property ownership in governmental jurisdictions that adopt this policy.

10. With the undersupply problem not going away soon, there will be growing pressure for other housing solutions. I believe that one will be how to take existing single-family homes, remodel them, and create updated homes that have been carved into multiple dwelling units. Some cities (such as Bend, Ore.) are working around solutions like this and I can see it expanding. To make it work at scale, regional and national remodelers and builders will be needed to bring scale and financial heft to the opportunity. I look with interest at what Zillow is doing and think that this company may be positioning to take complex data and combine it with a remodeling operation to create the updated residences with more household density and more inherent value.

12. There will be more non-traditional player s, foreig n compa nie s, joint ventures, and innovation from outside of the industry. It is apparent that significant innovation is not coming enough from within the industry’s current players, leaving the opening to others to solve the big problems we face.

11. On the other hand, expect to see the situation get worse in some areas as the policy response to undersupply and rising

Regardless of what happens, it is going to be an interesting decade ahead, particularly if you enjoy change. The good news about residential building is that people always will need shelter. How, where, and who supplies that in-demand shelter will be the most interesting question—one that requires a certain 2020 vision. B George Casey is CEO of Stockbridge Associates and chair of the Housing Innovation Alliance, a collaboration of builders, developers, and industry suppliers focused on innovation.

•

LEADING PERFORMANCE

•

MODERN AESTHETICS

•

SEAMLESS INSTALLATION

Part of the Marvin Signature™ Collection Explore all the possibilities of Modern. Visit us at IBS 2020, booth #C3819.

HOT

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TamlynWrap RainScreen 6.3TM & TamlynWrap RainScreen 10.1TM are both a 3-in-1 Water Resistive Barrier System that enhances the drainage efficiency and drying proficiency of a building. These products allow longer durability and sustainability of a buildingĘźs sheathing (OSB, plywood, stucco, fiber cement, stone, metal panels, etc.). Both systems allow for extremely effective water management to occur due to air cavity spacers in between the cladding and the sheathing material allowing water to dry and preventing water damage. Since the thick cavity spacers are uncompressible, it also acts as a furring strip and reduces additional installation cost and liability.

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Show Guide ON-THE-GO APPS FOR NEW-HOME SALES TEAMS Technology is more affordable with more features every year. The challenge is knowing what you need and how to use it for your business. Below are several apps staffers at NEXT New Homes Group use daily, all of which are all user- and budget-friendly (in fact, many are free). GSuite Formerly Google Apps for Work, GSuite is a collection of web applications created by Google for businesses. With the Basic version (as low as $6/user) you get Gmail and Google Drive (30GB storage) along with word processing (Docs), spreadsheets (Sheets), and presentation (Slides). Select the Business version for $12/user and get unlimited storage, additional controls, and so much more. Most everything at NEXT New Homes Group lives within GSuite. Our documents are stored on Google Drive, and we can control who has access to which ﬁles and what they can do with them (view, edit, delete). Our sales and construction teams can connect via Google Meet or Chat—these tools have been especially great for remote employees. Teams are able to work on ﬁles simultaneously and chat back and forth in the document they are working on in real time. No more wasting time in meetings and afterward creating a chain email for additional comments or, god forbid, another meeting. We’re currently working on migrating our sales reporting into Sheets that will give us high level and microlevel data analysis of all communities in one central location to track over time. Integrating it with our Google Data Studio will allow us to have “big builder” analytics on a “small builder” budget.

Google Photos This app allows you to have on-thego photo editing. It also backs up all photos and allows quick sharing of high-res photos from the sales team in the field to the marketing team in the office. Because of this, 90% of our social media posts start with this app.

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Thursday, Jan. 23 12:45 – 1:15 PM

Canva Need a quick social media graphic or ﬂyer? Don’t spend 30-plus minutes in Adobe Illustrator designing the “perfect” piece. Spend eight minutes in Canva, drag your brand elements from the saved folder of colors and logos into a pre-designed graphic, drop in the model photo you want to promote, and you’ve got a eye-grabbing graphic for social media or flyer for that last-minute sale you just decided to do on Friday at 4:00 p.m.

GoPro Quik If you need a great app to make high-quality, short-format videos for social media, then Quik is the go-to app. Take a series of videos and photos with your phone (or GoPro), open the app, select the images/clips you want, then select the style you want. In ﬁve minutes, you have a great video with music and titles ready to load to your favorite social platform. Spend seven minutes and you can edit all the details you want, resulting in something even more custom.

PRESENTER

Christopher Brown Principal, NEXT New Homes Group and NEXT Crafted

Google Voice Need a phone number for a new community and the lines haven’t been pulled to the community yet? Google Voice allows you to set up a full auto attendant to answer calls, take messages, and forward calls to a salesperson. The sales team can answer calls and send and receive text messages from their cell phones without having to give our their actual phone number. You can change assigned users at any time in case you change out sales people at a community. Hootsuite Social media content can be overwhelming. Using a scheduler like Hootsuite allows you to sit down and create a schedule of your social media content for a week or a month, or more. Easily post different versions of messages to Instagram and Facebook and publish them at different times. View all your content in a calendar to make sure you haven’t duplicated something or missed out on a certain day or time. Sprout Social, Loomly, and Later are other good options. Spark AR Rolling out right now is Facebook’s leap into augmented reality. This will be a more user-friendly app to create unique AR environments. Image turning your brochure, price sheet, and models into AR environments that your customers can interact with using their existing Facebook app. This is still in the early phases, but we will see this develop in a big way in 2020, particularly in retail.

B U I L D E R O N L I N E .C O M

Courtesy Christopher Brown/NEXT New Homes Group

EverNote Building homes is a complicated business and you take a lot of notes. Keep them all organized by project, client, lot— whatever concept you prefer. Turn a text, photo, audio ﬁle, or attachment into a note and save it to the app. That note is now synced across your devices and shareable with whomever needs it and allow them to add to it.

SESSION

Cell Phones That Can Sell Homes

The NAHB INTERNATIONAL BUILDERS’ SHOW is ready to welcome attendees to the Las Vegas Convention Center, Jan. 21–23. IBS is part of Design & Construction Week, which is co-located with the National Kitchen & Bath Association’s Kitchen & Bath Industry Show. For those involved in residential construction and design, there’s a lot to pack into a few days. Here, BUILDER editors share insight on where to get started.

HIGHLIGHTS

Q&A SESSION

What’s Next in Single-Family Architecture Tuesday, Jan. 21 4:15 – 5:15 PM

PRESENTERS

Cassie Cherry & John Danielian Danielian Associates Architects + Planners, Irvine, Calif.

Q What are some top characteristics being incorporated in today’s production homes? A With affordability being so important in many market segments, open floor plans that feel spacious while weaving in flexible, customizable spaces is key. Indoor-outdoor living elements throughout the home are here to stay. Above all else today’s home buyers are all about ‘the experience’, and the architectural design and features throughout the home will reflect that.

Adobe Stock

Q How will new homes in 2020 differ from the ones before them? A The old adage ‘less is more’ is coming into play. Rethinking the home and homeowner relationship, right-sizing floor plans, creating opportunities for personalization, flexible/multipurpose spaces, and working

B U I L D E R O N L I N E .C O M

211 new exhibitors

1,400+

hand in hand with your interior design team to seamlessly integrate the architectural design with the interior design of the home. Pricing challenges have forced us to look at all aspects of design with our builder clients, but the end results have yielded great products. Q What trends are starting to fade and which are coming into the picture? A The growing trend of modern design aesthetics and minimalism has certainly been on the upswing for many years now, particularly in California. I think we are going to see that slowly begin to fade and return to a comfortable level of contemporary, along with more traditional style elements. Stark whites and cool grays are gone in favor of warmer colors and cozier interiors. Rethinking interior spaces and, with single-family homes, the relationship to the

lot and surrounding neighborhood offer opportunities to stand apart from existing housing stock and provide the heightened living experience that buyers are looking for at competitive price points. Q What are mostwanted home features for millennials? Active adults? A While there is crossover in these market segments, there is one big differentiator—price. Right-sized, customizable spaces; a good location; a low-maintenance lifestyle; and pet-friendly places appeal to both markets, but the No. 1 purchase factor for millennials is price while active adult buyers require a heightened sense of luxury. The bones of these products may be similar, but builders should note the features, finishes, and upgrade options are different for these two buyer profiles.

exhibits across more than 600,000 square feet

150 education sessions will cover seven industry tracks

IBS EDUCATION For 2020, 35% of speakers are new to the show and 80% of the sessions will consist of never-offeredbefore content

JANUARY 2020

B U I L D E R 57

SHOW GUIDE

S TA F F P I C K S BUILDER editors went through the show’s session list to identify some presentations to pencil into your schedule.

Meet the Speaker VAUGHAN BUCKLEY

Technology in Your Sales & Design Centers TUESDAY, JAN. 21

10:00 – 10:30 AM LVCC—South 229

Volumetric Building Cos. Philadelphia

Q How do local regulations and labor interact with off-site construction? A Off-site construction is typically regulated at the state level, with each state having their own statutes. Most states eliminate the nuance of having to work with individual AHJs [building departments] by managing the process directly with the authorized regulatory agency responsible for that state’s off-site construction. Labor harmony is achieved through a combination of foresight and transparency within the specific market, as needs and planning requirements change depending on local labor availability, cost, and organization.

TUESDAY, JAN. 21

11:00 AM – 12:00 PM LVCC–North 253

WEDNESDAY, JAN. 22

1:45 – 2:45 PM LVCC—South 227

Developing Mixed-Income Multifamily Housing WEDNESDAY, JAN. 22

Q How/why does the impact of design affect constructability? A Design casts the largest shadow on project cost and constructability. The impact of design is far reaching; from the time it takes to ﬁnish off-site construction in the ﬁeld, to the cost and availability of components used in manufacturing. Designs that do not take these issues into consideration can result in substantial and avoidable budget and schedule overruns.

Single-Family Lifestyle in a Multifamily World

Attainability: Design Strategies to Keep Costs Down & Meet Consumer Demand

Understanding Today’s New Home Buyer SESSION

Make Modular Construction Work for Your Next Multifamily Project Thursday, Jan. 23 1:15 – 1:45 PM

3:30 – 4:30 PM LVCC—North 253

TUESDAY, JAN. 21

12:45 – 1:45 PM LVCC—South 227

What’s Next in Curb Appeal & Elevations TUESDAY, JAN. 21

12:45 – 1:45 PM LVCC—South 232

Addressing the Trade Shortage: Solutions You Can Implement Today

Diversifying the Construction Workforce WEDNESDAY, JAN. 22

3:30 – 4:30 PM LVCC—North 252

Innovations in Attached & Multifamily Housing THURSDAY, JAN. 23

8:30 – 9:30 AM LVCC—North 258

TUESDAY, JAN. 21

Q What are some of the pitfalls for new-to-modular builders? A Modular construction in general requires a shift in mindset

Q Will modular eventually replace stick building on-site? A Modular is not intended to be a replacement for on-site construction, it is simply a different method of construction. Modular construction uses the same material and builds to the same construction codes as on-site construction. Our beneﬁts revolve around safety, quality, and efﬁciency. Modular construction is therefore intended to be an additional tool in a developer’s toolbelt, not a replacement for the other tools.

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How Urban Solutions Are Framing Future Suburbs

The Perfect Bridge to the Missing Millennial & More THURSDAY, JAN. 23

9:15 – 10:15 AM LVCC—South 232

TUESDAY, JAN. 21

2:30 – 3:30 PM LVCC—South 221

Interior Design & Finishes Today’s Top Buyer Segments Demand

Creating the Healthier Homes Your Customers Want at a Price They Can Afford THURSDAY, JAN. 23

1:45 – 2:45 PM LVCC—North 253

WEDNESDAY, JAN. 22

8:30 – 9:30 AM LVCC—South 227

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Courtesy Shawn Hendrix/Volumetric Building Cos.

from site construction. How units are connected structurally and mechanically in the ﬁeld, how much labor/material is needed to complete on-site scope, managing the complex logistics that a modular project requires are all questions that don’t have intuitive answers to a new builder. This skill can only be learned through experience or shared knowledge and is the primary reason why a highly qualiﬁed manufacturer and builder are a requirement on a new-to-modular project.

2:30 – 3:30 PM LVCC—North 252

See what matters. Secure what’s inside.

See us at IBS 2020 Booth C7937

The new LiftMaster 85503 offers more than most garage door openers. It can be the eyes and ears for your homebuyer. It keeps them connected garage door opener with a built-in wide-angle 1080p camera and 2-way communication connected by myQ® smart technology. With the myQ App your customer can see and hear what's happening in their garage, anytime, anywhere.* For more information on the 85503 with integrated HD camera, visit LiftMaster.com/video-for-builder

Download the FREE myQ® app

*View a live-stream of your garage for free. 7-day and 30-day video storage options are available via a monthly subscription.

SHOW GUIDE

PRODUCTS

Product Debut

A look at some of the new products that will be introduced at the International Builders’ Show. by MARY SALMONSEN

American Standard American Standard has expanded its Studio S collection with a new set of kitchen fixtures: a semi-professional faucet, pull-out faucet, pull-down dual spray faucet, bar faucet, and wall-mount pot filler. Each features a minimalist design aesthetic, with onepiece handles for easy cleaning. All of the faucets feature magnetic docks to keep the spray head in place. The collection is available in a matte back, polished chrome, or stainless steel finish. The faucets feature a 1.5 gpm flow rate, while the pot filler fills at 4 gpm. americanstandard.com. BOOTH N3105

AZEK Building Products TimberTech AZEK’s Multi-Width Decking offerings will include two new 7.25-inch wide board colors in the Harvest Collection, brownstone and slate gray. Also new to TimberTech AZEK are MAX boards, 02

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which offer a 1.5-inch thickness in a choice of two gray shades, coastline and slate gray. TimberTech PRO will add the new Reserve Collection, which includes four colors, two grays and two browns, in a matte finish, and TimberTech EDGE now includes the Prime+ Collection, which features two color blends with a scalloped profile and tight, straight-grain embossing pattern. azekco.com. BOOTH N1408

Bertazzoni The Collezione Metalli line adds a series of decorative finish options to the Heritage Series of ranges, hoods, refrigerators, and dishwashers, including control knobs and handle finials in a choice of gold, copper and black nickel. Each set is plated with real metal in a high-shine finish, treated for protection from wear and tear. us.bertazzoni.com. BOOTH C8904

Dekton by Cosentino The Dekton Chromica Collection is a new series of ultra-saturated color profiles for Cosentino’s Dekton solid architectural surfacing, designed in collaboration with architect and designer Daniel Germani. At launch the collection includes two color profiles: Baltic, a deep blue inspired by the depths of the ocean, and Feroe, a dark green inspired by hidden and “unexplored” corners of nature. Each is available in a sleek matte finish.

Dekton by Cosentino’s solid surfacing is highly scratch-, stain-, and UV-resistant, according to the manufacturer, with low maintenance requirements. It is available in large-format slabs and a variety of thicknesses. cosentino.com. BOOTH N1919

Eldorado Stone The Vintage Ranch wood-look architectural stone veneer is now available in a new profile, Dawnwood, made to resemble whitewashed beige barn wood. According to the manufacturer, the profile is designed both to meet the demand for an aged barn wood look and to “warm up” the colder neutral tones in contemporary spaces. The Vintage Ranch veneer is available in panelized systems of 2-, 4-, and 6-inch high planks, designed for quick installation. eldoradostone.com. BOOTH C4519

Emser Tile New product options from Emser Tile for 2020 include: Allure, a natural stone mosaic inspired by parquet design; Impulse, a chevron-style natural stone pattern; Rhythm, a geometric glazed porcelain tile available in black or white matte; Splash, a bold molten glass mosaic pattern; Sterlina glazed porcelain, which evokes both marble and concrete; and Yakedo, a glazed porcelain plank that resembles burnt wood. emsertile.com. BOOTH C7237

B U I L D E R O N L I N E .C O M

SIDING

DECKING

TRIM & MOULDINGS

STONE

SOFFITS

SHUTTERS, MOUNTS & VENTS

ACCESSORIES

RAINWARE

Next-level siding for customers. Fatter pockets for you. Seamless. Virtually maintenance free. Gorgeous. Cellular composite siding.

SHOW GUIDE

DesignRail Panel Infill is an alternative rail infill solution designed to slot easily into Feeney’s DesignRail frames. Each of the infill styles, including wire mesh, resin, and laser-cut aluminum, may be mixed and matched with all DesignRail infill options, as well as DesignRail top rails and Feeney Post Accent lights. The panels are available for 36- and 42-inch railing heights. feeneyinc.com.

The PD96 selflatching mortise lock for sliding doors features a bolt actuator on the strike plate and a solid brass push button on the lock face. When the door closes, a 1-inch, heavy-duty brass bolt automatically latches the door. The lock is available in three metallic finishes and all CeraMax Rainbeaux finishes.

The James Hardie Dream Collection adds 700 custom color options for ColorPlus Technology, which provides fade, chip, and crack resistance. The collection is divided into five color families: classic lights and darks, grays and neutrals, blues and greens, earth tones, and peaceful pastels. Each one is made to order in any of James Hardie’s siding and trim options. jameshardie.com.

Feeney

BOOTH C1264

INOX

unisonhardware.com. BOOTH SL3104

James Hardie

BOOTHS C2529, N763, P22

Kohler

The Graze kitchen faucet collection features a squared base and bold silhouette. The collection covers 10 faucet options available in vibrant stainless, polished chrome, and matte black finishes. The faucet heads feature three spray settings: Stream, Sweep, and BerrySoft, a light spray for delicate applications. Touchless control options and voice commands via Kohler Konnect are available for select models. kohler.com. BOOTH N2205

11 11

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LOTTE The Locelain sinteredstone collection consists of 100% ceramic materials sintered into superhard sheets. The material is UV-, scratch and extreme temperature resistant, waterproof, stainproof, and resists household chemicals. As of launch Locelain is available in nine

PRODUCTS

colors, including baltistan charcoal and calacatta snow. lottechem.com. BOOTH SL1543

LP Building Solutions The LP WeatherLogic Water Screen is a polymer-based screen designed to increase the ventilation and drainage of a home’s existing envelope, thus extending the life of its surfaces. It may be used either with OSB and a WRB house wrap or with an integrated panel. The screen is lightweight, easy to install, and moldresistant. lpcorp.com. BOOTH C3810

True Residential True Residential has added an ultra matte black finish option for all appliances in its Build Your True custom finish and hardware program. According to the manufacturer, the new finish adds drama and depth to indoor or outdoor spaces, and may even serve as a neutral in some palettes. true-residential.com. BOOTH C8922

TOTO The RP Washlet+ toilet features a modern design with a skirted, D-shaped bowl and clean lines. The SP WASHLET+ has an angular, contemporary look, while the AP WASHLET+ features an elongated, skirted bowl. All WASHLET+ toilets feature an automatic flush, softclose lids and built-in cleaning technologies. toto.com. BOOTH N2925

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AURALINE ™ COMPOSITE WINDOWS AND PATIO DOORS Auraline™ composite windows and patio doors capture the beauty of wood with the durability and easy maintenance of vinyl. Don’t miss your chance to get a firsthand look at our newest product innovation. Visit us at booth C5230.

CONGRATULATIONS TO HANLEY WOODâ&#x20AC;&#x2122;S JESSE H. NEAL AWARD WINNERS

Hanley Wood is committed to publishing quality content that serves the information needs of construction industry professionals. Our editors have once again been honored by the most prestigious editorial awards program. Join us in congratulating them. 2019 WINNERS

2019 FINALISTS

ARCHITECT Best Use of Social Media

ARCHITECT

AFFORDABLE HOUSING FINANCE Best Single Article

AFFORDABLE HOUSING FINANCE MULTIFAMILY EXECUTIVE

SUPPORTING SPONSOR

ONE COMPANY— ENDLESS POSSIBILITIES Bringing together unique pieces to make a unified whole.

PRODUCTS DESIGNED TO LAST

At the forefront of American craftsmanship and tradition, acpi® believes the best in quality, design, and production starts at home—providing jobs and supporting US communities with our family of premium cabinetry brands for over 100 years. We deliver our wide array of products with professional service and support, backed by a single manufacturer you can trust. Every project is different, and has its own unique design and budgetary needs. Whether for a multifamily community or a custom home, our family of brands offers the on-trend styles, species and finishes to bring your project to life. From traditional to modern, farmhouse to contemporary, and everything in between, acpi® is sure to have a brand and style tailor-fit for any creation. Crafting quality cabinetry means making a product designed to last. With brands

designed specifically for multifamily, single family new construction, home center, and independent dealers, we take pride in providing long-lasting products across all our lines. With thousands of potential combinations, our brands provide options for every budget, affording robust American craftsmanship without sacrificing style or design. BE BOLD. BE SAVVY. BE STYLISH. ALL WITH DESIGN-CRAFT®.

Design-Craft®, an acpi® brand featured in the Builder Chowa Concept Home, offers trend-forward cabinetry that balances modern styles and space-optimizing design for a bold statement in every room. The Chowa house features our Bella slab front cabinets in Onyx, a warm black finish on premium veneer reconstituted heartwood. An efficient contemporary design for a home with a keen focus on clean lines and balance. All of our savvy styles can be seen at designcraftcabinetry.com.

Explore the acpi® commitment to quality, design, and family of brands on our website: www.acpicorp.com

FOUNDING SPONSOR

BMC IS PROUD TO BE A FOUNDING SPONSOR OF THE CHŌWA CONCEPT HOME And honored to partner with Sekisui House and Woodside Homes to deliver this transformative project Over the past 30 years, BMC has built a reputation for innovation, combining cutting-edge technology, design and processes to deliver solutions that make homebuilding better, faster, safer and greener. Even with the industry taking notice, we couldn’t have anticipated being singled out by Japan’s top homebuilder, Sekisui House, and asked to partner on what would become the zero-net energy BUILDER Chōwa Concept Home. We are humbled to be part of this moment and hope it catalyzes how the U.S. homebuilding industry addresses three of the greatest challenges we face: sustainability, efficiency and affordability. THE FUTURE OF BETTER BUILDING IS NOW

BMC is a leading provider of diversified building products, services and innovative solutions to builders, contractors and professional remodelers in the U.S. residential housing market. Our comprehensive portfolio of products and solutions spans building materials, including: • Lumber and materials distribution • Millwork, doors and windows • READY-FRAME®*, trusses and EWP • Turnkey construction solutions • Design services • eBusiness platform * READY-FRAME® is BMC’s computerized pre-cut, pre-labeled framing package that framers install onsite. It’s a faster, easier way to frame that requires fewer laborers and less supervision, while producing less waste. Each project goes through BMC’s whole-house design to ensure all elements are precision-cut and installed to plan.

BUILD EASIER | For more information, visit www.BuildWithBMC.com

ALLIANCE SPONSOR

CURB APPEAL, DURABILITY AND RESILIENCY WITH CONCRETE ROOF TILE The Chowa House features:

Boral Concrete Tile Saxony ® 900 Slate | Charcoal

CONCRETE ROOF TILE

BORAL TILESEAL® HT UNDERLAYMENT

Boral Roofing concrete roof tile is a premium durable and highly sustainable roofing material. Available in numerous hues and profiles, the tile complements a number of architectural styles and maximizes the beauty of any home. The tile is Earth-friendly, manufactured with locally sourced, abundant, natural geological materials, optimizes energy efficiency and is recyclable.

This self-adhered premium high-temp underlayment is ideal for tile and metal roofing. TileSeal provides a slip resistant surface for durability, and the modified asphalt core seals around penetrations and fasteners, making it the industry’s preferred choice.

Boral concrete tile helps protect the home from inclement weather and offers a Class A Fire rating. The low maintenance tile is long lasting and is a practical investment that adds substantially to the value of your property. ®

Figaroll 900 Plus Vented Ridge

FIGAROLL® PLUS PREMIUM VENTED RIDGE AND WEATHER BLOCK

A roof vent and weather block in one, Figaroll Plus is easily installed onto the hip and ridge of the roof, sealing to profiled roof tiles. The innovative channel system provides unobstructed ventilation and helps protect against wind-driven rain and snow.

Boral TileSeal HT Underlayment

For more info call 800-699-8453 or visit BoralRoof.com.

ABOUT BORAL ROOFING

Boral Roofing is the nation’s largest manufacturer of sustainable, durable and affordable clay, concrete, stone coated steel and composite slate roofing products. Boral’s brands include Boral Roofing, US Tile by Boral, Boral Steel and Inspire roofing products with a portfolio that includes both Energy Star compliant colors and cool roof rated colors certified by the Cool Roof Rating Council (CRRC). Boral Roofing products are available in a wide variety profiles and colors, including Spanish Mission barrel, low-profile villa, shake and slate, to compliment a spectrum of architectural styles.

FOUNDING SPONSOR

INTRODUCING DAIKIN’S VRV LIFE Revolutionizing the Future as Shown in the 2020 BUILDER Chōwa CONCEPT HOME

The new Daikin VRV LIFE heat pump system was engineered specifically for residential applications, whether single family homes, townhomes or condominiums, due to its very compact outdoor unit style. VRV LIFE offers an industry first, ducted style furnace and evaporator coil system combination commonly applied in residential applications throughout North America. The VRV LIFE heat pump system also offers several other styles of both ductless and ducted indoor models providing the ultimate system for application and design flexibility. Up to 9 indoor units can be connected to a single

outdoor VRV heat pump to heat or cool, with high heating capacities well below 0°F (-18°C). Daikin VRV LIFE systems use inverter driven VRV technology to solve some of the age-old residential HVAC challenges. Traditional HVAC systems use single speed or dual speed compressors, while VRV LIFE systems are equipped with revolutionary Daikin variable speed inverter technology. VRV LIFE systems can be configured as a heat pump or a dual fuel system using a gas

For more details, visit https://daikincomfort.com/go/vrvlife/

furnace. As an all-electric heat pump, VRV LIFE provides efficient cooling and heating during extreme ambient temperatures from -4°F to 122°F. VRV LIFE systems can also be paired with a gas furnace to provide a reliable source of heat during colder months or for optimizing operational cost. The small footprint and side discharge design requires less space and is quieter than traditional air conditioning systems. The VRV LIFE system includes a 10-year parts limited warranty.

TITLE SPONSOR

YOUR HOME CAN DO MORE FOR YOUR HEALTH Introducing a New Era in Wellness Living

We all want healthier homes. A recent study from the Joint Center for Housing Studies of Harvard University shows that 30 percent of US households worry that their homes may negatively affect their health, up from 27 percent in 2014. Indoor environmental issues that generated the most concern include moisture/mold, dust, pests, water quality, and pet dander. Emergent smart home technologies offer holistic solutions to address these concerns, enabling indoor environments that work to

promote wellness. Recent innovations include DARWIN, the world’s first home wellness intelligence network designed to address indoor contaminants that can negatively impact health & well-being. Developed by Delos, the global wellness pioneer, DARWIN delivers a whole-home ecosystem complete with responsive air purification, filtered water at every tap, circadian lighting to help enhance energy levels and sleep cycles, and comfort elements to promote mindful living.

To learn more about DARWIN, visit https://delos.com/.

“We consider health to be a right, not a privilege” says Paul Scialla, CEO and Founder of Delos. “By enhancing the elements within our built environments, we have a profound opportunity to positively impact both the daily performance and the long term health of people everywhere.” For Delos, it’s what’s on the inside—of homes at least—that counts. Their solutions are grounded by evidence-based science, in collaboration with leading research institutes, and are at the forefront of the global healthy homes movement.

SUPPORTING SPONSOR

IDEVICES SMART HOME SOLUTIONS BRING HOMEBUILDERS TO THE CUTTING-EDGE Integrated Wi-Fi products provide energy savings and peace of mind The guiding principle at iDevices, the smart home division of Hubbell Incorporated, is to ‘Make the Everyday Extraordinary.’ The company turns ‘everyday’ household items, such as light switches and outlets, into extraordinary smart home accessories. By providing homeowners with tangible benefits like energy insights, enhanced security, and the ability to monitor and control their home from anywhere, these accessories make ‘every day’ extraordinary for homeowners. iDevices is at the forefront of the burgeoning smart home industry, partnering with top homebuilders nationwide to include products as a standard. With a focus on Wi-Fi enabled lighting, power, and HVAC solutions, iDevices offers a true single SKU smart home solution, meaning builders save money and avoid buying several versions of the same product. iDevices products work across the most popular smart home platforms (HomeKit, Google Home, Amazon Alexa, IFTTT) without the need for a hub or additional hardware.

INSTINCT™ IN A LIGHT SWITCH

Instinct, the company’s latest award-winning innovation, combines the performance of a Wi-Fi enabled smart switch with the convenience of integrated voice control in an unparalleled design, creating one of the most immersive smart home experiences to date. While the company’s other high-tech smart switches work with Alexa (requires a separate Alexa device for voice control), Instinct is an Alexa device. Homeowners can stream music and podcasts, get weather and traffic updates, download thousands of custom Skills, and create dynamic schedules and automations with Instinct. The bonus: it doesn’t take up precious counter space like existing smart speakers.

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ALLIANCE SPONSOR

HOW CONNECTED IS YOUR BUSINESS? Keep up with new technologies through resources tailored to your business With access to news, trends and technology at their fingertips, homeowners are increasingly more connected and so are their homes. From smart doorbells to app-controlled HVAC systems, voice-controlled showers and appliances, technology in the home is driving convenience, efficiency and a higher level of comfort. And these new home solutions are in high demand. Is your team as connected as your clients? The future growth of your business depends heavily on the ability to access information to help guide clients through ever-emerging technologies and solutions. Even at your busiest, finding time for your teams to stay abreast of new products, technologies and trends is guaranteed to pay off in the long run. Brands like Kohler offer tradeexclusive tools and support that can keep you up to date on the newest products, provide valuable insights into trends, specification tools to help you customize solutions for your clients, and a helpful guide to installation questions. Using the Kohler Pro Toolbox gives your team and business the resources to give you a competitive advantage and continue to be a trusted partner to your clients.

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ALLIANCE SPONSOR

KWIKSET IS FEATURED AS PART OF THE CHOWA CONCEPT HOME DURING IBS 2020 Kwikset is committed to manufacturing secure smart lock solutions that meet homeowner needs by delivering convenience without compromising security. Kwikset will be featuring the Halo Wi-Fi-enabled smart lock paired with the San Clemente Handle in an Iron Black finish at the Chowa Living in Balance concept home the coincides with the NAHB’s 2020 International Builders’ Show in Las Vegas, Nevada. Halo™ smart lock will connect directly to homeowners’ existing Wi-Fi router and smartphone to create a simple and secure smart home, without a third-party hub, panel or subscription service. Through the Kwikset app, homeowners can experience the ease of access control with remote capabilities from anywhere in the world, while connected to the Internet. A homeowner will be able to remotely lock/ unlock, monitor and receive notifications of who comes and goes, and view the locks activity for ultimate peace of mind. With up to 250 user access codes, a homeowner will be able to create, temporarily disable, and delete user codes from your smartphone using the Kwikset app from anywhere there’s an Internet connection. Halo features patented SecureScreen™ technology to prevent code detection from fingerprints on the touchscreen. It is easy to install and operates on 4 AA batteries. It also features SmartKey Security™ as the back-up keyway that protects against advanced break-in techniques and allows a homeowner to re-key the lock themselves.

For more information, call 1-800-327-LOCK (5625) or visit www.Kwikset.com/Halo.

ALLIANCE SPONSOR

EMPOWER HOMEBUYERS TO KEEP TABS ON THEIR HOME ACTIVITY AND ENERGY USE Wiser Energy by Square D gives your home a voice Homeowners want to keep tabs on their home activity to ensure everything is safe and sound, and the comfort of knowing that appliances like the oven are turned off after using. Additionally, as energy costs continue to rise, homeowners are becoming more aware of their energy use and are looking for ways to reduce costs.

within their home—whether they’re smart or not—through an app. Wiser Energy installs in the home’s electrical panel and provides real-time home energy usage, notifications when devices turn on or off, and goals to track savings. Using the Square D™ version of the Sense app, homeowners can keep tabs on their home from anywhere.

Schneider Electric recently launched Wiser Energy™, a smart device that enables homeowners to monitor every appliance, HVAC system, and other devices drawing energy

“Today’s energy costs are continuing to rise, and it’s more important than ever to give homeowners control over their energy use,” said Ansul Rajgharia, Business Development

To learn more, visit se.com/us/wiser-energy

Schneider Electric. “Wiser Energy does just that by providing real-time access to energy data so homeowners can achieve peace of mind and understanding what’s happening inside their home. We are excited to make our customers’ homes safer and smarter.” Wiser Energy is also useful during a power outage. If the homeowner uses a generator or solar battery, it will continue to operate and collect information on energy use, allowing homeowners to make split-second decisions that extend the life of their energy storage.

ALLIANCE SPONSOR

VIEGA BRINGS FUNCTIONALITY AND DESIGN TO THE RESIDENTIAL MARKET A win-win for contractors and homeowners Viega PureFlow products, including fittings and PEX tubing, are faster to install than cold expansion, saving you time and money. Plus, the end user receives a superior product, so why not consider the benefits of Viega’s press technology?

highest ratings for UV and chlorine resistance according to industry standards, plus a 25-year limited warranty. With 10 percent higher burst pressures than other PEX products, Viega PureFlow provides ultimate peace of mind.

PEX tubing is flexible, so less fittings are required to connect a potable water system, and connections made with PureFlow Press fittings don’t require any curing or contraction time, as compared to other joining methods including cold expansion. PureFlow can be pressure tested immediately, so less time on the jobsite means saving on labor. Plus, Viega’s patented Smart Connect technology in PureFlow polymer fittings helps easily identify unpressed connections.

Viega also offers in-wall carriers and flush plates for a bathroom design that is space saving, visually appealing, easy to clean and simple to maintain. With Viega Flushing System Technology, the toilet tank moves behind the wall. This creates more space in the bathroom, and lifting the bowl off the floor makes cleaning a snap for the owner. Plus, a variety of standard and touchless flush plate designs bring a modern and customizable aesthetic to the bathroom.

PureFlow products also benefit the end user. Viega PureFlow PEX tubing—made from start to finish in the United States—has the

Learn more about these Viega products at viega.us/RethinkPEX and viega.us/Evolve.

TA K E A V I R T U A L T O U R Visit booth C238 at IBS LEARN MORE builderonline.com/chowa-living-in-balance #livinginbalance

BUILDER Chōwa Concept Home The BUILDER Chōwa Concept Home brings together an international design, development, and construction team to introduce technologies, best practices, and a new approach to improving society through housing to the US. Chōwa is an ancient Japanese term that represents the spirit of partnership and reflects life-balance, well-being, sustainable value, and connectedness to nature. The best-in-class home will be revealed January 2020; and is the joint collaboration and vision of Japan-based Sekisui House and its wholly-owned home building company Woodside Homes; as well as Hanley Wood’s BUILDER magazine.

Sponsors PA RTNERS

TITLE S P O N SO RS

A LLI A NCE S P O N SO RS

SU PP O RTIN G S P O NSO RS

Boral Roofing

ACPI Corporation

Kohler

Aquor Water Systems

Kwikset Square D FO UND ING S P O N SO RS

BIMAire

Viega

Datile

Zillow Group New Construction

Icynene-Lapolla

IAPMO iDevices Organized Living Panasonic Resideo Shaw Flooring

Symone Garvett P H OTO S BY

Kip Dawkins S T Y L I N G BY

Marcie Blough

T H E B U I L D E R C H ŌWA CONCEPT HOME EMPHASIZES “LIVING IN BALANCE” A N D B R I N G S JA PA N - B A S E D SEKISUI HOUSE’S PRECISION-CRAFTED CONSTRUCTION METHOD TO THE U.S

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Las Vegas BUILDERS

Sekisui House, Osaka, Japan Woodside Homes, Salt Lake City, Utah ARCHITEC T

KTGY Architecture + Planning, Irvine, Calif. INTERIOR DESIGNER

Ryan Young Interiors, National City, Calif. L ANDSCAPE DESIGNER

Summers/Murphy & Partners, Dana Point, Calif. STRUCTUR AL ENGINEER

L.R. Nelson Consulting Engineers, Las Vegas

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the united states has been known for its broad mix of cultures since its origin. From foods and traditions to languages and values, immigrants from the east and west brought their knowledge and practices to the U.S. to establish fulfilling lives for themselves, their families, and their communities. And while home building may not be the first thought that comes to mind when thinking of concepts derived from international cultures, this year’s BUILDER concept home holds the potential to alter opinions. The project brought together Japan-based housing giant Sekisui House, its wholly-owned U.S. home building enterprise Woodside Homes, based in Salt Lake City, and international architecture firm KTGY Architecture + Planning to construct a one-of-a-kind production home. The BUILDER Chōwa Concept Home aims to empower U.S. builders and their partners with a North American example and education process that showcases Sekisui’s exclusive, precision-crafted approach to residential building. “We relish the opportunity to showcase to U.S. customers the corporate cultures both of our companies hold so dear, as well as to make a physical example of our corporate maxim to ‘make home the happiest place in the world,’” says Yoshihiro Nakai, president and representative director at Sekisui House. The roughly 5,400-square-foot home sits on a 0.4-acre lot in The Ridges neighborhood within Howard Hughes Corp.’s Las Vegas master planned community of Summerlin—about a 20-minute drive from The Strip. It introduces the U.S. production market to the Sekisui House core value of “love of humanity,” which provides a holistic framework for the design and development of the concept home. In fact, the ancient Japanese term Chōwa “represents the spirit of partnership and reflects life balance, well-being, sustainable value, and connectedness to nature,” says Nakai. To create a home where owners can live in balance, U.S.-based architects at KTGY and Japanese architects from Sekisui sketched separate plans for the house that overlooks the Red Rock Canyon to the west and the downtown Las Vegas skyline on the backside. From there, the team collaborated on those designs, and then the Sekisui architects tweaked the final plan based on the structural needs for their unique prefabricated process. “It became clear that the bigger differences were the expectations, buyer needs and wants, and the varying

Although the home itself covers a large percentage of the lot, Japanese and U.S. landscape architects worked together to develop the design for the linear pool and covered outdoor living areas in the back.

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differences between what they do in Japan and what they do here in the United States,” says William Ramsey, principal at KTGY Architecture + Planning. “It involved a lot of conversations and compromises on both sides, as we both had the role of design architects.” Throughout the home, both architect teams stressed seamless indoor-outdoor connections, maximizing natural light, and clear sightlines in their plans. The “living in balance” theme also played a large role in the home’s design, with the designers trying to establish a balance between concepts such as public and private space. Another main goal was flexibility and the home’s ability to work for many families in different stages of life. Additional Americanized features—en-suite bathrooms, larger door openings, high ceilings—were added by the KTGY team to appeal to today’s typical American home buyer. The home includes four bedrooms, one being a first-level in-law suite; five-and-a-half baths; two garages; and first- and second-floor covered loggias and balconies. “This project was a true collaboration between two cultures that speak different languages and have different

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lifestyles,” says Tara Ryan, president of interior design company Ryan Young Interiors. “In order for us to be successful, it was imperative that each of us spend a tremendous amount of time listening to how the other approaches their designs so that we could create a finished product that truly reflected the ‘east meets west’ theme.” Once the open-concept plan with Japanese principles and adapted U.S. dimensions was established, the team sent it overseas to Sekisui House’s Kanto factory north of Tokyo, where structural members for the foundation, building enclosure, interior structure, and roofing system were manufactured to precise, within-millimeter accuracy and shipped in containers to the U.S. The luxury home has a post-and-beam style frame with a glulam construction and proprietary, metal-joint connection system, but it’s unlike any in North America, says Joel Abney, vice president of operations at Woodside Homes. During the planning stages, the home underwent a rigorous, pre-site engineering, design, and manufacturing process. Then, each beam and joint was manufactured to connect with exact tolerances, resulting in quick and accurate on-site assembly.

The design direction for the home was “east meets west,” where design philosophies from Japan were melded with standard U.S. features to create a style of “simple elegance.”

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“ T H I S P R O J E C T WA S A T R U E C O L L A B O R AT I O N B E T W E E N T W O C U LT U R E S T H AT S P E A K D I F F E R E N T L A N G UAG E S A N D H AV E D I F F E R E N T L I F E S T Y L E S .”

—TARA

For the foundation, Sekisui House deployed another innovative method for foolproof execution, simplicity, and accuracy. The company uses a metal-form board foundation wall system and pre-built templates that are tuned to the exact house being designed. When the team poured the foundation, the diagonal from the right-angle southeast corner of the foundation to the right-angle northwest corner, measuring 139 feet, 4 inches, was within 3/16ths of an inch—less than 5 millimeters—accurate. “In the U.S., we tend to be much more ‘we will figure it out as we go,’ just from a cultural approach to home building,” Abney notes. “With Sekisui House, every detail is predesigned and designed to work holistically together.” On-site crews, including the framers, the concrete team, and Woodside workers, didn’t require extensive new technical skills, even if it was their first time working with the sys-

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RYAN N , PRESIDENT OF RYAN YOUNG INTERIORS

tem. The home went up in eight days, says Abney, and there were no modifications necessary during construction. With almost every part planned out in the early construction stages, the company is able to identify material waste ahead of time and plan how to recycle that waste at the end of the project. Plus, the home was designed to be resilient and last a lifetime, with the unique construction system said to allow the home to weather earthquakes upward of 7.0 on the Richter scale. “From the very beginning, we felt that this project could be an example of how Japan and the U.S. can work together to meet Sekisui’s vision of solving societal problems with housing,” Abney says. “There’s an elegance and brilliance to their simplistic approach, because if you design it properly and you have the exact dimensions, it really can save time and provide higher quality in the long run.”

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visitors to the over 5,000-square-foot concept home begin at an oversized front door with a solid warm-wood construction. Upon entrance to the foyer, users will experience the seamless indoor-outdoor connection sought by the Japanese architects. A floor-to-ceiling and wall-to-wall window looks directly out to a covered loggia in the backyard and brightens the space with sunlight. Unlike other open floor plan homes, the architects treated the entryway as its own private space. “We protected the foyer a little bit more, so you don’t immediately see into the entire house,” says William Ramsey, principal at KTGY Architecture + Planning. “As you enter, you get a transition of different entry experiences.” A porcelain tile floor was chosen for the area to balance the warmth of the wood floating stairs and the dramatic wood ceiling, says Tara Ryan, president of Ryan Young Interiors. “Then, we carried the material up the wall and added a large wood console with a really rich piece of art.”

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“ W E P R OT E C T E D T H E F OY E R A L I T T L E B I T M O R E , S O YO U D O N ’ T I M M E D I AT E LY S E E I N TO T H E E N T I R E H O U S E .” —WILLIAM

RAMSEY , PRINCIPAL AT KTGY ARCHITECTURE

PLANNING

L I V I S N P G A C E from the entryway, the floating wood stair with glass railings wraps around the focal fireplace to the double-height living room. Seamless indoor-outdoor connections were stressed again here, with expansive window walls on the room’s two main sides. On one side, swinging doors open to the pool, while the other includes large sliders to extend the living area toward the front. Natural materials, clean lines, and a sense of calmness were also instilled into the great room. The white oak wood ceilings were continued, and the interior design company selected a series of coordinating, statement light fixtures. “This is a home that is meant to be very light and airy,” says Tara Ryan, president at Ryan Young Interiors. “We didn’t want anything taking away from the wood or the view out of the expansive glass.” In the nearby formal dining area, the team incorporated a brick material called “braeburn” from Japan. It flows from its use on the home’s exterior to the main wall of the dining room, creating another element that highlights the connection between indoors and out.

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By the Numbers A BREAKDOWN OF STATISTICS AND DETAILS FROM THE CONCEPT HOME

22 shipping containers sent from Japan to the U.S.

4,766

nautical miles of Pacific Ocean crossed

180 yards of concrete for the foundation

39,000

millimeters in foundation length, 20,000 in width

8.5 days to construct the frame

5,470 square feet of living space

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S TU

SI VI TH O BO

I 5 AT 32 3 #C

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K I T C H E N

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in the kitchen, the design team chose a darker color palette with contemporary flair. A wall of flat-door cabinets in an onyx finish, waterfall edging on the spacious island, and a rectangular mosaic backsplash give the space its clean and simplistic lines—a key factor in eastern design, according to interior designer Tara Ryan. Although the Japanese favor utilizing natural materials in their home designs, the U.S. designers opted for dark quartz countertops—with subtle white veining—to provide richness without all the pattern granite offers. But, notes of Japanese culture were intertwined throughout. The chōwa principle and the “living in balance” theme are showcased by the two symmetrical cabinet and appliance walls. An adjacent breakfast nook includes a circular dining table and coordinating chairs to provide a space for informal meals, while a messy kitchen and walk-in pantry are hidden away for storage and entertaining purposes.

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Top Five Challenges EXECUTING A PROJECT SUCH AS THIS IS NOT WITHOUT CHALLENGES. ALL PARTIES INVOLVED EMBRACED “THE SPIRIT OF PARTNERSHIP” FROM THE PROJECT NAME’S DEFINITION— WITHOUT THE COLLABORATION AND FORWARD-THINKING EFFORTS OF THE CHŌWA TEAM, THIS EXAMPLE OF WHAT’S POSSIBLE IN RESIDENTIAL CONSTRUCTION WOULDN’T EXIST. HERE, THE TOP HURDLES ALONG ITS PATH TO COMPLETION:

TIMING: The genesis of the project dates back about 12 months. Before that moment, no concepts, plans, development, or designs for Chōwa existed. From pre-concept to the finished product, the project’s timeline might be regarded as a minor miracle, especially in light of some of the turmoil-filled trade dynamics currently playing out on the world political stage.

TRANSPORTATION: All of the materials were pre-built in Sekisui House’s Kanto factory, located north of Tokyo, and shipped by truck to the company’s staging warehouses in coastal Yokohama. From there, they traveled by container ship to the Long Beach port in Southern California. Sekisui House and Woodside arranged with BMC’s Las Vegas–based SelectBuild Nevada operations to receive the 22 shipping containers at the

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U.S. port and transport them to SelectBuild’s distribution node in North Las Vegas.

LANGUAGE: The Chōwa Lot 17 jobsite at Talon Ridge in Summerlin was a first-of-its-kind workplace in another way as well. Given that the foundation and framing involved technologies, products, materials, and processes brought directly from Sekisui House’s Japanese factories and operational models, the Osakabased enterprise sent a team of experts in foundations and framing to oversee, train, work with, and assure quality during these first-time processes on the project. This means that starting at 6 a.m. every morning, there were crew members working together whose first (and only) language might be English, Japanese, or Spanish. In addition to any language barriers, there also were a host of cultural differences, business practices, and workflows to

blend, integrate, and reconcile throughout the project.

MEASUREMENTS: 100% of the Sekisui House grid system for construction documentation, and all of the precision-cut materials that go into the structure from the foundation up, are developed using the metric system. Calculators to translate a 1-meter-by-1-meter grid system into inches and feet and square feet and the like were constantly in use to ensure that U.S. and Japanese crew, supervisors, architects, engineers, etc. were all on the same page.

GEOGRAPHY: Substantial time zone and geographic distance challenges—16 hours and 5,485 miles—separated key stakeholder members in the Chōwa initiative, which resulted in some long flights and late nights or early mornings, depending on one’s location.

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M A S T E R

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upstairs in the master bedroom suite, the designers created a unique, open layout for the combined bedroom and bath that also sports its own private balcony, two walk-in closets, and a dressing room. A focal wall placed in the middle of the room was added to distinguish the separate spaces. On the bedroom side, the wall was outfitted with a bamboo-panel series that uses isosceles triangles to create squares and nested geometric shapes. “We wanted to utilize a unique material that would make a statement,” says Ryan Young Interiors’ Tara Ryan. “It’s still a very clean design, but it’s textural and rich.” A book-matched porcelain slab was used on the opposite side of the wall in the master bathroom, where the glass-enclosed shower was placed. His-and-her vanities float on either side of the shower, while the freestanding tub—and mirroring book-matched slab—sits adjacent to the sinks and shower to complete the wet area.

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“ W E WA N T E D TO K E E P I T V E RY L I G H T, B U T U T I L I Z E A U N I Q U E M AT E R I A L T H AT W O U L D M A K E A S TAT E M E N T.” —TARA

RYAN , PRESIDENT OF RYAN YOUNG INTERIORS

A rectangular, glass-enclosed shower in the master bathroom separates the two floating vanities, while the book-matched porcelain slabs add drama to the space.

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S U I T E

according to ktgy principal william ramsey, one of the main goals of this project was flexibility and the home’s ability to work for families in several stages of life. “The mother-in-law or grandparent suite speaks to both cultures,” adds interior designer Tara Ryan. “It’s nice to have their own private area to retire to.” As a result, the home was constructed with first-level and second-level suites for adult children, parents, in-laws, or live-in help. The first-level suite, located adjacent to the property’s one-car garage, includes a bedroom, bathroom, walk-in closet, and its own living room. Interior design company Ryan Young developed a focal wall for the suite’s bedroom as well, with 2-inch wide wood slats stained to match the overall hardwood and spaced evenly with a dark charcoal accent paint. At night, the wall lights up and adds warm ambiance to the space. In the suite’s living room, another book-matched porcelain slab was used and expansive sliders give users access to outdoor living in the rear. “You can step out directly from the home suite outside to what feels like a private outdoor area,” says Ryan.

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“ T H E M OT H E R- I N - L AW O R G R A N D PA R E N T S U I T E S P E A K S TO B OT H C U LT U R E S .” —TARA

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“ T H E Y S AW T H I S A S A H U G E E N T E R TA I N M E N T A R E A . P E O P L E C A N B E D O W N S TA I R S A N D A L S O U P S TA I R S B E C AU S E O F T H E I N C R E D I B L E V I E W S O F L A S V E G A S A N D T H E M O U N TA I N S .” —TARA

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F L E X

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S P A C E

from the first-level home suite, visitors can utilize the elevator to rise to one of the home’s flex spaces and the second bedroom suite, which combined could also be used for extended-stay guests. Although staged as an office with floating bookshelves, the area—surrounded by exterior balconies—can be used for second-story entertaining, according to the interior design team. A built-in with large cabinet doors conceals a small wet bar. “They saw this as a huge entertainment area,” states Tara Ryan. “People can be downstairs in one of the many outdoor areas and also upstairs because of the incredible views of Las Vegas and the mountains.” The secondary, smaller flex space overlooks the doubleheight living room in the central part of the home. With the see-through glass railings continuing to the second story, owners have a clear sightline from the living room to the landing. The designers chose to create a simple seating area with two clear acrylic bubble chairs in order to not obstruct the views from the neighboring balcony.

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Take a Tour B E LO W A R E T H E AVA I L A B L E O P P O R T U N I T I E S TO S E E T H E B U I L D E R C H Ō WA C O N C E P T H O M E I N L A S V E G A S :

International Builders’ Show attendees are invited to a pre-show block party at the house from 2 p.m. to 6:30 p.m. on Monday, Jan. 20. RSVP at chowablockparty.com. The address of the home is 38 Hawkeye Lane, Las Vegas, NV 89135

The home will be open for tours Jan. 21 to Jan. 23, from 10 a.m. to 1 p.m.

The BUILDER booth (Booth C2138) at IBS will offer stations with virtual reality tours of the home.

B U I L D E R O N L I N E .C O M

Climate-appropriate vegetation was chosen to accent the linear pool and spa in the backyard. Plus, a Japanese tea house structure appears to float on the water to add a zen-like feeling.

D E I

in a balancing act of their own, the appliances, finishes, fixtures, and materials in the BUILDER Chōwa Concept Home work together to bring the vision of its architects, partners, and sponsors to life. Here are a few of the products and sponsors that made the concept home possible. For more on these firms and the home, visit builderonline.com/chowa-living-in-balance.

Sponsors PA RTNERS

A LLI A N CE S P O N SO RS

SU PP O RTIN G S P O N SO RS

BUILDER

Boral Roofing

ACPI Corp.

Sekisui House

Kohler

Woodside Homes

Kwikset

Aquor Water Systems

KTGY Architecture + Planning

Square D by Schneider Electric

TITLE S P O NSO RS

Viega

Delos Living FO UND ING S P O NSO RS

BMC Daikin North America

Zillow Group New Construction

BIMAire

DalTile IAPMO Icynene-Lapolla iDevices Organized Living Panasonic Resideo Shaw Flooring Wayne Dalton

Monogram

100 B U I L D E R

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Products 01 ACP I CO R P.

Design-Craft Cabinetry myacpicabinets.com 02 BORA L RO OF IN G

Saxony 900 Slate boralroof.com 03 DAI K IN

VRV LIFE daikincomfort.com 04 DALT IL E

Delegate Porcelain Pavers daltile.com

05 D ELOS

DARWIN Circadian Lighting delos.com 06 M ON O GR AM

Smart Built-In Oven monogram.com 07 I CYN E N E-L A PO L L A

Classic Ultra Select icynene.com 08 I DEVIC E S

Instinct idevices.com 09 KOHL ER

Sensate Kitchen Faucet kohler.com 1 0 K WI KSE T

Halo Smart Lock kwikset.com 1 1 ORGA N IZ E D L IVI N G

Classica organizedliving.com 1 2 PANAS O NI C

Cosmos System panasonic.com 1 3 RESID EO

Buoy Water Controller buoy.ai 1 4 SHAW F LO O R IN G

Kingston Oak shawfloors.com 1 5 VIEGA

Visign 100 Flush Plate viega.us

BUILDERONLINE.COM

JANUARY 2020

B U I L D E R 101

Market Monitor

Primarily using data and insight from Hanley Wood’s Metrostudy and Meyers Research, the BUILDER staff takes a deep dive into the state of housing in six of the nation’s top metropolitan areas for new-home construction: Dallas-Fort Worth, Denver, Miami, Phoenix, Seattle, and Washington, D.C., which includes its surrounding Maryland and Virginia suburbs. Each of these active housing markets appear within the top 20 on our 2019 Local Leaders list, which highlights the 50 largest new-home markets in the U.S., ranked by closings. The following reports offer some insight as to how each of these markets will fare in 2020. Each one is chock-full of data, from the number of quarterly starts and closings in third quarter 2019 to median new-home prices and available lots. One thing that is consistent across all six of these areas is job growth, which is a positive economic sign. However, it comes as no surprise that housing affordability is still a major pain point for some of the markets in this group. Read on to see how regional directors in these areas think their markets will fare in 2020.

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Mary Salmonsen, Scott Sowers, and Symone Garvett ILLUSTRATIONS BY

Jason Schneider

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DALLAS

Builders have started 33,572 homes over the past four quarters in Dallas-Fort Worth, 9,515 of which were started in the third quarter of 2019, according to Metrostudy’s executive summary for Q3 2019. Quarterly starts are up 10.7% from the previous quarter and up 6.2% year over year. The market has closed 32,657 homes in the past 12 months, up 2.7% year over year. Total inventory has fallen to 12,894 units, or 7.5 months of supply. The annualized vacant developed lot count is up 5.8% from last year for a total of 59,772 lots. Over 12,300 new lots were delivered in the third quarter, the highest number since the second quarter of 2006. Over the past 12 months, 62% of the new lots delivered are for homes priced under $350,000. Annual job growth rose by 3.2% year over year through Q3 2019, according to Metrostudy, and the unemployment rate has been below 4% for 31 months. In DFW, financial and professional services account for 25.4% of job growth annually. Metrostudy regional director Paige Shipp attributes the area’s explosive growth to myriad major corporate relocations, as well as many smaller companies taking root. As those firms have come, their employment bases—often from the West Coast—have followed.

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The median new-home price in DFW was $329,200 in Q3 2019; the median resale price was $265,000. The price difference between new and resale homes has narrowed in recent years, down to 25.4% in Q3 2019 from 48.5% in 2015. Shipp says market factors have driven median prices up in the past 15 years, noting that “we were building 60,000 houses a year in 2005, [and] our median new-home price was sub-$200,000. During the prerecession we were getting maybe 3% price appreciation year over year just because we had so much supply of affordable homes.” During the recession, new-home and lot development slowed. As the recovery started and buyer demand began to rise, Shipp reports that builders began to push prices higher to stem the tide of demand. When demand didn’t slow, builders pushed prices until 2015, when the labor shortage took its toll on a recovering development cycle. The market’s affordable product has shifted into what Shipp calls a “new affordable” price range, with a median sales price roughly $100,000 higher than it once was. In response, builders are adjusting their development and site planning strategies. For example, where 60-foot lots are the historic norm in Dallas, new affordable product is arriving on 30- and 40-foot lots. While Shipp expects consistent market performance in coming years from communities approved and planned today, she thinks a tightening regulatory situation may hamper future growth. Many of DFW’s 212 municipal councils have placed development restrictions within their bounds, such as minimum lot sizes and material restrictions, although new state laws have restricted some of this activity. “Developers are having a tough time getting deals approved from cities because they don’t want to have smaller lots,” she says. “But if your market demand is not for high home prices, developers will have a hard time getting a lot of these deals in. For the next two years, I think we’ll be fine from a regional standpoint. After that, I get nervous about where we’re headed.”—m.s.

BY THE NUMBERS POPULATION

7.5 million 2019 LOCAL LEADERS RANK

No. 1 ANNUAL JOB GROWTH

3.2% Q3 19 ANNUAL STARTS

33,572 Q3 19 ANNUAL CLOSINGS

32,657 MEDIAN SALES PRICE

$329,000 AVERAGE RENTAL RATE

$1,071 (Fort Worth); $1,207 (Dallas)

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MIAMI Things in south Florida are trending warmer as shown by the latest stats, starting out with the economy’s biggest engine—jobs growth. According to Metrostudy, the Miami metro area gained 29,100 jobs over the past 12 months, at an annual growth rate of 2.4%. This beats the national rate of 1.4% growth year over year. Quarterly starts increased 77% to 864, and quarterly closings increased 68% to 685 from the previous quarter. Quarterly starts were up 33% year over year, with quarterly closings up 18% year over year. The annual starts rate increased 10% to 2,418, while the annual closings rate decreased 2% to 2,343 from the third quarter of 2018. Three Lennar communities—Aqua Bella, Isola, and Via Ventura—held the No. 2, 3, and 4 positions for the most starts in Southern Florida, with 353, 283, and 212 starts, respectively. The one community ahead of them was Tradition, located in St. Lucie, which is over 130 miles north of Miami and is serviced by a number of builders. Inventory for the area has stabilized with Metrostudy reporting a 9.4-month supply in Miami-Dade County, up from the 8.9-month supply observed in the previous quarter. For reference, nine months of supply is considered normal. Things are also looking better for land, as the supply of vacant developed lots has increased 7% from the previous quarter. There are now 2,578 parcels, or a 13month supply. The previous 12 months of lot deliveries totaled 3,184. Future lot inventory decreased 5% from the previous quarter, but increased 6% year over year to 21,017, a 104-month supply.

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Compared to other land-rich markets across the country, Florida’s land supply is ultimately constrained, which could turn into a benefit if the economy slides into a recession. “The scarcity of land in Palm Beach, Broward, and Miami-Dade will likely help buffer this portion of the market from any recessionary winds that may blow in the future,” notes David Cobb, Metrostudy regional director for Florida. “Moreover, the cost of land in this submarket provides a barrier to entry from would-be home builders located elsewhere.” The luxury condo market in Miami has softened up, and, according to RealPage, the effects of condo conversions in the mid-2000s may finally start to dissipate as the quantity of rental property is on the rise. In Q3 2019 Miami’s stock of apartments reached an all-time high of over 297,000 units. In 2008, there were less than 270,000. Tenant retention and occupancy levels are both high in Miami, and rent increases are on par with the national average of about 35%. Monthly rates are higher, $1,672 as compared with $1,416 nationally. The bad news is, Miami is currently No. 1 for median rent-to-income level with a 28.8% ratio, making it less affordable. More product is being added to the mix, and will spike to nearly 9,000 new units being delivered early in 2020. Apartment sales prices are similar to the national average at $196,000. —s.s.

POPULATION

ANNUAL JOB GROWTH

Q3 19 ANNUAL CLOSINGS

AVERAGE RENTAL RATE

6.2 million

2.4%

8,466

$1,672

2019 LOCAL LEADERS RANK

Q3 19 ANNUAL STARTS

MEDIAN SALES PRICE

No. 12

8,991

$381,545

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BY THE NUMBERS POPULATION

4.9 million 2019 LOCAL LEADERS RANK

No. 4 ANNUAL JOB GROWTH

2.7% Q3 19 ANNUAL STARTS

20,697 Q3 19 ANNUAL CLOSINGS

19,070 MEDIAN SALES PRICE

$295,000 AVERAGE RENTAL RATE

PHOENIX

$1,163

Things are hot in the Sun Belt, as conditions on the ground in Phoenix show strong job growth combined with increases in both housing starts and closings. The results of Metrostudy’s Q3 2019 analysis show that employment growth is 2.7%, which easily beats the national number of 1.4%. There’s more good news for Phoenix in the form of wage and salary year-over-year growth, coming in at 3.8%; the U.S. as a whole is at 3%. The third quarter was especially kind to beginnings and endings, as starts were up 15% from Q2 2019 and 3.9% higher than the same quarter a year ago. The pace of quarterly closings was also 10.5% higher in Q3 2019 over the same quarter last year. There were 5,195 single-family and townhome closings observed in the third quarter, as compared with 4,700 in Q3 2018. That number was also up from the second quarter of this year, when there were 4,952 closings. “The steady retreat of interest rates has clearly brought back the demand as it has substantially helped bring the market back to a more normal range of affordability, especially benefiting the entry-level buyers that make up a large part of the overall buyer pool,” according to Metrostudy’s report. Despite the wide open spaces of the American Southwest, the inventory of buildable land in the Phoenix metro is somewhat constrained. Metrostudy tracks vacant developed lots and is reporting a 3.1% decline from last quarter and a 5.1% drop from a year ago. Current vacant developed lots supply is 52% of what it was near its peak 10 years ago in Q3 2009. The truly distressing news out of Phoenix is a dramatic rise in rents. Data from RealPage put Phoenix in the No. 1 position for rent growth in the U.S. at 8.2%. Las Vegas and Greensboro, N.C., are Nos. 2 and 3, respectively. Even more disturbing is the rate of acceleration, which has been picking up speed since 2018. Since 2010, Phoenix rents are up 48.2% as compared with the national average of 35.9%. The bad news has to be taken with the realization that Phoenix, even with climbing rents, is still one of the most affordable places to live in the U.S. Its $1,163 average rent per month is still under the national average of $1,416. “Phoenix has had some of the highest job and income growth of any market over the past few years, but it’s true that it still hasn’t been able to keep pace with the rise in housing costs,” says Ryan Brault, Metrostudy’s regional director for Phoenix. “It is important to keep in mind that Phoenix is still affordable relative to a lot of places, especially California, which is our next-door neighbor. So much of the in-migration Phoenix has seen has come from that state and is helping to drive continued demand for housing in this market.”—s.s.

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WASHINGTON, D.C. 106 B U I L D E R

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BY THE NUMBERS POPULATION

6.3 million 2019 LOCAL LEADERS RANK

No. 7 ANNUAL JOB GROWTH

1.2% (Northern VA); 1.5% (MD) Q3 19 ANNUAL STARTS

8,696 (Northern VA); 10,973 (MD) Q3 19 ANNUAL CLOSINGS

8,599 (Northern VA); 11,256 (MD, DC) MEDIAN SALES PRICE

$443,000 (MD); $523,000 (Northern VA) AVERAGE RENTAL RATE

$1,821

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In the District of Columbia, limited land supply means new single-family construction is largely restricted to redevelopment by homeowners and investors, says Ben Sage, Metrostudy regional director for the MidAtlantic. The nation’s capital has zero vacant developed lots on record, according to Metrostudy data. As a result, the area’s home builders have made their mark within subdivisions in Northern Virginia and Maryland, which Metrostudy tracks separately. RealPage notes that D.C.’s population and job bases have both expanded substantially in this cycle, with a population change of 613,587 from 2010 to 2018 and 354,000 new jobs. Unemployment sits below the national average at 3.2%, while median income is above the national average at $105,000. In the Maryland market, which includes Baltimore and its surrounding counties but excludes much of the Eastern Shore, there were 10,973 new-home starts for the year ending in Q3 2019—up less than 1% from one year ago. Despite this, builders are reporting 37% increases in per-subdivision sales. The median price of a new home in the Maryland market was $443,000 in Q3 2019 and has remained about level in the past few quarters. The overall inventory of vacant developed lots was 10,585 in Q3 2019, down 14% from the prior year. Prince George’s is the top county for new-home starts in Q3 2019 at 2,068, followed by Anne Arundel County at 1,840. School capacity issues and new regulations in some Maryland counties are expected to stem the flow of home construction moving forward. Both Montgomery and Anne Arundel counties have restricted the development and construction of subdivisions in the near future. “What that’s going to do is further limit supply, raise prices even further, and it’ll push growth, which is already expanded a bit into the likes of Frederick County, even more so,” Sage says. Home starts in Northern Virginia numbered 8,696 in the year ending in Q3 2019, and the overall inventory of vacant devel-

oped lots was 13,722. Loudoun County is the most active area in Northern Virginia, with 2,414 new starts for the year ending Q3 2019, down 10% from the prior year. Metrostudy observed 1,083 finished new housing units on the ground in September, up 15% from one year ago but down from the previous quarter. The median price of a new home was $523,000, down from one year ago but generally flat since 2017. The coming of Amazon’s HQ2 to Virginia has already had a pronounced effect on the submarket surrounding the area that has been dubbed National Landing, which encompasses Crystal City, the eastern portion of Pentagon City, and the northern portion of Potomac Yard. Listings for resale homes in Arlington and Alexandria have fallen 53% over the year ending in September 2019, compared with a 25% drop across Northern Virginia and a 30% drop in Fairfax and Prince William counties. “There is a lot of speculation,” Sage says. “I wouldn’t necessarily call it a bubble forming since we have a huge employment base coming. There’s going to be 25,000 jobs, but they’re going to be spread out over 12 years. But it’s still going to be a huge job base, and that place is going to be transformed. For every 1.2 Amazon jobs, a related job will be created, according to George Mason.” Amazon effect aside, Sage expects that builders will need to look for “creative ways and creative ideas” to draw out consumers who are less willing to live in the suburbs, given the area’s long commute times. “It’ll probably involve more density, perhaps smaller homes to reach the affordability levels for consumers more willing to go out into the suburbs,” Sage says. “I haven’t given up on the suburbs, but I think the next expansion, instead of being driven by single-family and townhomes, which has historically been the case here, I think we’re going to see some attempts at density to help meet affordability and location desirability of the next generation of homeowners.”—m.s.

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DENVER 108 B U I L D E R

In the Mile High City, residential construction continues to hit new peaks, with high annual job growth, a low unemployment rate, and several builders shifting their product to meet the influx of buyers looking for homes at attainable prices. Denver-based employers have added an estimated 29,200 jobs over the past year ending in September—down from 36,600 the previous year—for a 1.7% annual growth rate, according to Metrostudy. But although the job growth has slowed compared with a few years ago, announcements for business relocations and expansions— including retail giant Amazon’s decision to grow its Denver Tech Hub with a new office downtown—continue at a steady pace. As a result, the city’s job base remains strong across sectors, especially in technology, finance, manufacturing, and energy, and the unemployment rate remains low at 2.6%, down from 3.3% in August 2018. “With a steady, healthy local economy, low interest rates, tight resale inventory, and new communities opening up, newhome sales contracts are starting to pick up again after last year’s slowdown,” says John Covert, Metrostudy senior regional director, in Denver’s Q3 2019 executive summary. “Sales contracts for the last five months, May through September, are up following sharp declines in nine of the previous 11 months.” Builders started 3,437 homes in Q3 19, up 4% from 3,314 in Q3 18. Annual starts, on the other hand, will continue to show declines due to the slowdown that started last summer and carried into the first quarter of 2019. As of Q3 19, there were 11,538 annual home starts in Denver, an 11% decline from 12,966 in Q3 18. With high home prices and tight lot supply, Denver builders are shifting to smaller, more affordable product as new communities—such as Sky Ranch, Harmony, Aurora Highlands, Green Valley Ranch East, Painted Prairie, Reunion, and others along the E-470 corridor and surrounding the Denver International Airport—come online and accelerate detached home starts in 2020. Covert also mentions it’s worth noting that some of the demand for housing has been pushing north into the southwest Weld County submarket. Although the county isn’t technically considered part of the Denver metro area, the tri-town area of Frederick/Firestone/ Dacono is being strongly influenced by

JANUARY 2020

nearby Boulder and Denver. As for closings, builders secured 3,118 homes in Q3 19, a number that remains basically unchanged from the 3,115 homes closed in Q3 18. Current data also shows 12,357 annual closings in Q3 19, a 6% year-over-year increase and the 30th consecutive quarter for annual percentage increases. But moving forward, housing analysts expect closings may decline in the coming months due to recent declines in starts. Of the Q3 19 starts and closings, only one product type experienced gains over the year—condominiums. Condo starts for the quarter, and annually, are at their highest levels since 2007. According to Metrostudy Q3 19 data, quarter starts were 517, a 324% change from 122 in Q3 18, and annual starts were 1,337, a 35% change from Q3 18’s 993. “Looking forward, we think 2020 is going to be a strong year because of the shift the builders and developers have made to smaller product,” says Joe Hemmelgarn, senior consultant at Metrostudy. “Now, our caveat is the elections. We just don’t know what effect the political environment will have, but I think if we weather that, it will be a good year for building.”—s.g.

BY THE NUMBERS POPULATION

2.9 million 2019 LOCAL LEADERS RANK

No. 10 ANNUAL JOB GROWTH

1.7% Q3 19 ANNUAL STARTS

11,538 Q3 19 ANNUAL CLOSINGS

12,357 MEDIAN SALES PRICE

$450,000 AVERAGE RENTAL RATE

$1,542

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SEATTLE With technology giants such as Facebook, Amazon, and Apple continuing to expand in the Seattle metropolitan region, growth in the six-county Puget Sound area, encompassing King, Kitsap, Pierce, Skagit, Snohomish, and Thurston counties, remains strong, according to Q3 Metrostudy data. As of Q3 2019, over 68,000 jobs were added for the year, with the majority of those jobs being created in King County with 43,965 and Snohomish County with 15,095. Year-over-year job growth shows the six counties adding 88,384 jobs, which increased the job growth rate to 3.8% for the second consecutive quarter. “The tech sector continues to see strong employment growth numbers with Amazon, Facebook, and Expedia advertising more than 21,000 jobs,” says Todd Britsch, Metrostudy regional director for the area. “There is over 8 million square feet of office space with leases already signed or owned between Facebook and Amazon coming online in 2022 and 2023. Apple will also become a presence in Seattle over the next few years, adding 2,000 jobs to the new Seattle campus.” With strong job growth, the total number of existing home listings continues to decline. September 2019 saw a 22% decline in active listings when compared with September 2018. On the other hand, pending sales are up 19%, with Snohomish County leading with a 32% increase year over year and King County with a 22% increase year over year. The resale months of supply still nears historic lows with most of the Puget Sound dipping under the twomonth supply mark. Of the core six, Thurston County has the least supply at

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1.4 months and the lowest average days on the market at 21 days. As for new-home sales, Q2 2019 was the best second quarter for detached new construction sales volume since 2006, says Britsch. Just over 2,000 sales were reported in Q2 2019, a 20% year-over-year increase from 1,672 in Q2 2018, and Q3 2019 continues the hot streak with volume up 30% year over year with 1,590 sales. Unsold spec inventory has fallen to manageable numbers and now averages at a four-month supply. The average median sales price in the Seattle metro soars above the U.S. median home value of $231,700. From Q2 2017 to Q4 2018, the average median sales price for the area increased 20% and reached $587,167; as of Q3 2019, it had decreased 3% to 568,000. “The market is doing quite well across the board,” continues Britsch. “Sales are up 35% in the higher price areas—with the exception of downtown Seattle where the attached sales are down 27% and West Seattle sales are down 6%.” Housing analysts predict the area will see continued job growth and good inmigration through 2025. Even with a possible looming recession, Britsch believes “Washington state should skip right over the top” due to the high forecast job growth for the coming years.—s.g.

POPULATION

ANNUAL JOB GROWTH

Q3 19 ANNUAL CLOSINGS

AVERAGE RENTAL RATE

3.9 million

3.8%

7,485

$1,864

2019 LOCAL LEADERS RANK

Q3 19 ANNUAL STARTS

MEDIAN SALES PRICE

No. 19

9,592

$568,000

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SCOTT SOWERS Illustrations by

JASON FORD

The hot-button issues that dominate discussions of the U.S. housing industry make up a short list of the usual suspects: loosening zoning regulations, boosting affordability, eliminating homelessness, and increasing density. What recent policies have found success, and how can builders get involved?

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Affordable Housing Bond Columbus, Ohio

housing-related policy often incites the nimbys and excites the activists while keeping municipalities on edge trying to come up with workable solutions. the good news for builders and developers in relation to policymaking is that there are organizations at work on behalf of the industry—such as nahb, habitat for humanity, and local home building associations— that are identifying, championing, and lobbying for the plans, provisions, bills, and laws designed to help housing. here, we look at six initiatives from the past year that impact builders and developers and aim to benefit the housing industry.

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One of the big questions about building more affordable housing typically is ‘Who is going to pay for it?’ Developers and builders continue to be squeezed from all sides by land development costs, the labor shortage, the entitlement process, and tariffs. Tax credits, subsidies, and Opportunity Zones are designed to help fill in the gaps that will provide the foundation for more affordable homes. But in central Ohio, money needed to jump-start affordability came from the taxpayers in terms of a ballot issue passed in May that approved the city of Columbus to sell $1.03 billion in bonds. Most of the funds will be used to finance infrastructure projects, with $50 million earmarked for affordable housing efforts. According to Columbus Business First, “The bulk of the municipal bonds overwhelmingly approved [recently] go toward public works: roads, water and sewer lines, police stations, parks, bike paths. City government already has well-oiled administrative machines for those types of projects.” The Mid-Ohio Regional Planning Commission is still figuring out how and where to spend the affordable housing money. It has issued a request for proposals in support of its efforts to “foster a housing market where every household with a full-time wage earner can obtain housing in the private market, and to effectively supplement the market where we cannot achieve that goal.”

“This is a work in progress,” says E.J. Thomas, chairman of the Affordable Housing Alliance of Central Ohio. “The grant money that will be part of the process will help fill in the gaps so builders and investors can make the deal happen with a rate of return that will attract them.” He adds that additional input from the industry is crucial for success. “We’re making the city aware of what would be helpful to the industry,” he says. Columbus is in the midst of a population boom and is leery about falling into the same housing shortage hole as the coastal cities. According to the Affordable Housing Alliance of Central Ohio, at least 54,000 of Franklin County’s lowest-income households spend more than half of their income on housing. The region is expected to add 1 million people, a 50% increase, by 2050, which will raise the stakes even higher. Thomas says builders need to team up, spending less time on the jobsite and more time in the conference room. “We want to pull them out of the trenches to work with us so we can upstream their issues,” he says. “If we want to stimulate more construction, we need to make it easier to get shovels in the ground.”

Affordability Unlocked Austin, Texas

Texas has one of the fastest growing populations in the U.S. According to the Census Bureau, it has added over 170,000 people

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POLICY PLAYS

from 2010 to 2018, making it No. 1 one for inbound migration. While land shortage is not an issue in the Lone Star State, population growth is still pushing up home prices and raising concerns about affordability. In May, Austin’s City Council acknowledged these issues by a p p r o v i n g “A f f o r d a b i l i t y Unlocked,” which began as a concept proposed for the city’s Fourth District. According to C u r b e d-Au st i n, t he p ol ic y requires that “as a baseline, 50% of housing in a new development must be affordable. That means rentals must be priced for families earning 60% or less of median family income for the area, with some required at 50% of MFI. Home-buying prices must be affordable at 80% of MFI and below.” To add density, setbacks and minimum lot sizes were reduced and accessible-parking requirements were brought up to current code. According to the new rules, any multifamily dwellings that are demolished must be replaced with as many affordable units and as many bedrooms as there were in the existing building. Greg Anderson, director of community affairs for Habitat for Humanity in Austin, says the changes were way overdue and believes more are needed. “Our land development code was written the same year Michael Jordan was drafted into the NBA, and that’s a real problem,” he says. Even though Anderson thinks the recent moves are steps in the right direction, it’s not a perfect solution for all market segments—especially market-rate builders. “We want a mode shift— we want more people out of single-occupancy vehicles, we want people next to transit, we want better air quality. We want

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“OUR LAND DEVELOPMENT CODE WAS WRITTEN THE SAME YEAR MICHAEL JORDAN WAS DRAFTED INTO THE NBA, AND THAT’S A REAL PROBLEM.” walkability and smaller homes that a broader amount of people can afford.” Anderson also believes the only way to combat the NIMBYs is by getting just as involved as they are. “It ’s tou g h b e c au s e t he NIMBYs do a really good job of painting architects, developers, landscape architects, and engineers with a broad brush of evil,” he notes. “They like to say we’re ‘just trying to make money off the neighborhoods,’ so you don’t

have the right people at the table. They are essentially pulling up the ladder of opportunity for their grandchildren.”

Minneapolis 2040 Minneapolis

The city of Minneapolis has grown 11% since 2010, and is now home to 425,000 people. The 83,000 new households in the region are

trying to squeeze into 63,000 new homes, and the city is still trying to correct the effects of redlining, which date from the 1930s and was designed to keep investment out of minority neighborhoods. To get the city back on track, the Metropolitan Council drafted and unveiled a new comprehensive plan in 2018 known as Minneapolis 2040. Not everybody was initially on board with the idea, and the policy created strange bedfellows as liberal housing advocates found themselves on the same side

B U I L D E R O N L I N E .C O M

of the fence as the for-profit world of building and development. According to Politico, the main policy of the plan “called for increased housing density citywide and an end to singlefamily zoning.” The early draft of the policy allowed four-unit buildings everywhere in the city. Larger apartment and condominium buildings could be built closer to downtown and along public transit routes. The new rules would apply to renovation and new construction by subdividing houses, building additions, allowing new construction on vacant lots, and teardowns. Opposition sprang up, and the provision allowing four-unit buildings eventually was reduced to three. The plan was approved by the City Council in October, but the local building community remains skeptical. “The plan is 1,100 pages with 150 policies and 20 goals,” says Monte Mraz, vice president of W. Gohman Construction and active member of the Builders Association of Minnesota. “We don’t know yet how it will work or if it will work. It was put into policy this fall, and we are dealing with it. We want to sit and summit with the people who wrote it.” Mraz believes a lot of the policies put in place were not actively discussed with the local homebuilding community and puts the blame on both sides. “We should be in the rooms when they’re making these decisions,” he says. “We weren’t invited, but we didn’t ask to be invited either. So now we’re in a situation where we have to figure out how we’re going to help.” As a builder who’s also involved in advocacy, Mraz believes it behooves anybody with skin in the game to get involved early. “They should all be joining their HBA because we’re going to be the first

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ones to develop a business plan to make this work to succeed at achieving the goal,” he says. “I look forward to the opportunity.”

Zoning Text Amendment 19-01

Montgomery County, Md.

Like many other places in the U.S., the Washington, D.C. area is in the midst of a housing crunch. In 2010, the population of the metro area was about 5.6 million people; today it’s 6.3 million. The megalopolis includes the District of Columbia and the surrounding counties in suburban Maryland and Northern Virginia. More than 1 million people live in Montgomery County, Md.—a number that’s gone up by over 8% since 2010. In June, school overcrowding led to a one-year halt on residential construction covering an area equal to about 12% of the county’s land area. Transportation and school impact taxes were also hiked to cover shortfalls in infrastructure spending. The housing shortage pressure eventually found its way to the County Council, which voted unanimously in July to amend its zoning laws to make it easier to build accessory dwelling units in three county residential zones. According to Bethesda Magazine, “The zoning change will allow the apartments as attached and detached structures in zones where the minimum lot size is 6,000 to 20,000 square feet. Detached ADUs must be limited to 10% of the lot area and no larger than 1,200 square feet. Attached ADUs must be no larger than 1,200 square feet. If the footprint of the principal structure is greater than 1,200 square feet, an ADU

may occupy the basement or cellar of that structure without a square footage limit. ADU owners also must provide a parking space, except for structures within 1 mile of a Metro, MARC, or future Purple Line light rail station.” John Paukstis, president and CEO of Habitat for Humanity for Metro Maryland, says, “It costs anywhere from $130,000 to $150,000 to build one of these—it’s basically a small house. We’re part of the [Maryland Building Industry Association] and the builders supported this bill, because they saw the benefits just like we did.” Although granny f lats are drops in the housing crisis bucket, the opportunity offered by a growing ADU market can’t be ignored. To spread the word, Paukstis and his crew have been barnstorming the county by holding information sessions with the public. Their sessions typically include presentations from market-rate builders, Fannie Mae, and local banks. For builders looking to get involved in policy matters, Paukstis says, “Go to the BIA, or in our case, the Montgomery Housing Alliance. We meet once a month to advocate for policies like increasing the Housing Initiative Fund.”

House Bill 2001 Oregon

Although the addition of 60,000 people to Portland’s population since 2010 seems impressive, Oregon’s fastest-growing cities include Happy Valley, a suburb of Portland that’s grown 46% since 2010, and Bend and Wilsonville, which are both up 23%. In an attempt to stave off the housing roller coaster rides experienced by West Coast neighbors in Seattle

DO YOU CARE ABOUT HOUSING POLICY? NAHB chairman Greg Ugalde talks with BUILDER about housing policy. Why should builders be interested in housing policy? Home builders should be deeply interested and engaged in housing policy and the development process to succeed in their businesses and provide the best product to their customers. Housing policy affects all areas of the residential construction industry, but policy can also become burdensome when the voices of those most affected are not heard. Was NAHB integral/supportive to any big policy victories in 2019? President Donald Trump has been clear that he wants to reduce the regulatory burden on U.S. businesses. We were pleased with the signing of an executive order to establish the White House Council on Eliminating Regulatory Barriers to Affordable Housing. We also saw tangible progress in other areas, like the definition of waters in the Clean Water Act, the Endangered Species Act, and the Clean Power Plan. What policy initiatives are priorities for NAHB? Our highest priority is housing affordability. NAHB will continue to prioritize policy initiatives to roll back burdensome regulations and code rules that drive up the cost of building and, in turn, housing. We will pursue policies that protect the best interests of American families. Another priority is workforce development. We need to show young people that a career in the building trades can be rewarding. How can builders be more active in policy decisions? If anyone who works in the housing industry is not yet a member of their local home builders association, then that should be the first step. We encourage members to be engaged in their local policy and political processes. At the federal level, NAHB has committees and councils that address housing finance, workplace safety, and other pieces of the regulatory puzzle.

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POLICY PLAYS

and San Francisco, the state made national headlines by passing House Bill 2001 on June 30, the last day of the legislative session. The new law was touted as a death knell for single-family zoning in the state. The bill affects cities with over 10,000 residents by requiring them to allow duplexes on all residential lots. Municipalities with a population of over 25,000 must also allow triplexes, quads, and townhomes by right. Smaller communities are exempt from these residential zoning requirements. Oregon has been promoting density since 1980 when it required its cities to establish an Urban Growth Boundary to contain sprawl while setting aside land for farming and the timber industry. The states of Washington and Tennessee have similar restrictions.

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Shannon Vilhauer, executive director for Habitat for Humanity of Oregon, says, “Urban Growth Boundaries for Oregon communities of all sizes add to the importance of increasing density as a strategy for accommodating growth. Measure 2001 is largely based on local zoning measures that numerous central Oregon builders, realtors, and for-profit developers worked to promote as a way to maximize a variety of housing options for growing communities.” Vilhauer pins the credit for success of the measure on receptive legislators and participation in the process from the local home building industry. It helps to have builders working on the inside. “Oregon is fortunate to have a strong home builders association presence at both the local and

state level,” she says. Oregon legislators on both sides of the aisle work hard to provide direct access for their constituents. Several of these legislators have a professional background in construction, real estate, and development. Policy decisions are always strongest when community members with relevant experience weigh in on the conversation.”

Housing First Riverside, Calif.

On any given night in America over half a million people are considered homeless, and 1.4 million people will spend time in a homeless shelter during the year. Counting the homeless is not an easy or a precise job. According to HUD, the numbers have been falling since 2010, but started to tick up from 2016 to 2018. The problem is more pronounced in heavily populated states, with California, Texas, Washington, and Oregon leading the pack. Since developers and builders actually create and improve housing, the buck can stop or start with them, but local governments usually are in charge of the purse strings. Charity organizations help fill the gap, and as the problem refuses to vanish new models are rising to the surface. Housing First is a homeless assistance approach that prioritizes permanent housing. The concept behind the effort is to get people into homes as soon as possible as opposed to working on health or social issues that may be contributing to the problem. The model hinges on homes getting built in the right locations, which raises the question of who is going to pay for it. The problem

was recently resolved in Riverside, Calif., as taxpayers stepped up to the plate by approving funding for 10 400-square-foot transitional homes, each complete with a full bath, a washer/dryer, a kitchenette, and a front porch, that will be built just north of downtown Riverside. Habitat for Humanity Riverside is in charge of the construction. “The city of Riverside got us into it,” says Kathy Michalak, executive director for Habitat for Humanity Riverside. “They reached out to us because we partner with them on a lot of things in the community. One thing we can do really well is mobilize volunteers to get homes built pretty quickly, once we have funding in place.” Michalak’s crews intend to build the homes at Habitat’s local headquarters and then truck them to the site—located near vital support services—for assembly. She sees homelessness as something that transcends a number of development scenarios. “Homelessness in California has become a quality of life issue for everybody—if you’re a developer and you’re trying to do workforce housing or higher-end housing, if the community has a homeless issue, it’s an issue for everybody,” she says. She also believes that homelessness and housing affordability problems present opportunities for builders and developers interested in stretching beyond their normal niches. “One of the things we’re looking to do is partner up more with affordable housing developers,” she says. “My guess is most forprofit developers don’t want to get involved with the logistics around finding and qualifying lowerincome households, and that’s what affordable housing developers do every day.” B

B U I L D E R O N L I N E .C O M

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NAHB CHAIRMAN’S LETTER

More Work to be Done NAHB’s advocacy saw results in 2019, but housing needs more support b y GR E G UG A L D E , N A H B C H A I R M A N OF T H E B OA R D

Courtesy NAHB

appy new year! as my time as nahb chairman comes to a close, I want to reflect on a few major accomplishments our association experienced this past year. Housing affordability was my top priority during my tenure as chairman. I was pleased when President Donald Trump signed an executive order in June that cites the need to cut costly regulations and creates a White House Council on Eliminating Regulatory Barriers to Affordable Housing. I attended the White House signing ceremony and thanked the president for taking a leading role to help resolve the nation’s affordability crisis and for making housing a national priority. That same month, the U.S. Environmental Protection Agency finalized its repeal of a 2015 greenhouse gas rule for power plants and adopted new regulation in its place that does not adversely affect the housing industry. A huge victory for our members came as the U.S. Supreme Court in June reversed a long-standing land use decision that made it nearly impossible for property owners to bring a Fifth Amendment takings claim in federal court. In Knick v. Township of Scott, the Supreme Court ruled that a property owner has “an actionable Fifth Amendment takings claim when the government takes his property without paying for it.” In October, the U.S. EPA and Army Corps of Engineers repealed the 2015 waters of the U.S. rule, providing consistency among all 50 states and making the federal permitting process more predictable and affordable. The rule had been subject to legal challenges that halted its implementation, culminating in a decision by the U.S. District Court for Georgia that

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found the substance of the rule violated the Clean Water Act. The Georgia court remanded the rule back to the agencies to fix it. In November, NAHB sponsored the first “Building the Dream” town hall in partnership with The Hill, a Washington, D.C.–based media group. The town hall took place in Minneapolis and was the first in a series of events and videos intended to engage with housing advocates and educate the public in advance of the 2020 election. Two more town halls will follow, complemented by editorial news features emphasizing housing affordability topics such as outdated zoning policies, excessively burdensome regulations, and the need to develop the workforce of the future. During this critical election cycle, we want to make sure policymakers understand the

barriers to affordability and hear about new ways to take on the challenge. We will continue to focus efforts on affordability via additional channels, including building up a skilled workforce through our affiliate the Home Builders Institute and our student chapters. And we will continue to educate members of Congress— and policymakers at the state and local level— about the costs of excessive regulations. Our advocacy in 2019 saw real results, but our work on these issues will continue until the dream of safe, decent, affordable housing for every American becomes a reality. There is no single solution to the challenges facing our industry, but I know our association is in good hands. Thank you for your support over the past year—it was a dream come true to serve NAHB and the industry I love.

SAFETY FIRST AT IBS 2020 After a successful debut in 2019, the IBS Jobsite Safety Zone is not only returning to the International Builders’ Show in 2020, but also nearly doubling in size to accommodate interest from exhibitors and attendees. The IBS Jobsite Safety Zone began as a partnership between NAHB’s safety sponsor, Builders Mutual Insurance Co., and the Job-Site Safety Institute to showcase the latest workplace safety solutions with daily microlearning presentations and exhibitors specializing in cutting-edge construction safety products.

IBS 2020 attendees again will be able to “Ask the Safety Pro,” where nationally recognized construction safety experts will be available to answer questions. The SAFE Awards will be presented once again in the Safety Zone. New for 2020 are safety product showcases—short demonstrations of general and specialty safety products— from 9 a.m. to 3 p.m. daily. The Safety Zone, an extension of the Safety 365 campaign to provide resources to keepw construction workers safe, will be located in the North Hall of the Las Vegas Convention

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NAHB HOME INNOVATION

Certification Milestone Home Innovation celebrates 200,000 NGBS Green Certified Homes by HOME INNOVATION RESEARCH LABS

t the end of 2019, home innovation research labs reached and surpassed the 200,000th NGBS (National Green Building Standard) Green Certified home. The project that tipped the ticker over 200,000 was the Mission Lofts community in Riverside, Calif., which is made up of both apartments and townhomes. The project was built and developed by REALM, a new-comer to the NGBS Green program, and the NGBS Green Verifier was Moe Fakih of VCA Green in Orange, Calif. This significant milestone provides a perfect opportunity to reflect on what a game-changer the NGBS rating system has been for both builders and consumers over its 10-year history. For builders, it has provided an accessible and practical national standard to define and measure green homes. It has created a rigorous yet affordable choice for third-party certification. And, because of the standard’s flexibility on the points a builder can select to adapt to local market needs, it has helped builders of all types and sizes provide comprehensively green homes to mainstream buyers across the country. With the introduction of the 2020 NGBS, the certification will also be opened to mixed use buildings of all sizes.

Due to the rigor of the NGBS, it has also provided consumers a level of confidence that they are getting an independently verified healthy and more comfortable home. All NGBS Green Certified homes, apartments, and participating builders and remodelers can be found on NGBS.com, Home Innovation Research Lab’s consumer-facing website. In the coming months, various high points of the journey to 200,000 NGBS Green Certified homes will be featured on the site, along with an overview of the new options available with the introduction of the 2020 standard. NGBS Green has become a green certification program of choice for the residential construction industry. If you’re not currently building homes to be NGBS Green Certified, now is a perfect time to start—with 200,000-plus homes already certified, you won’t have the uncertainty of being the first to do it. Whatever type of home you build and wherever you build it, NGBS Green has a certification for it. Find out more about the certification program and process by visiting HomeInnovation.com/NGBSGreen.

NGBS GREEN CERTIFICATION ACTIVITY BY YEAR Single-Family Home

Multifamily

40,000

Year-over-year growth

35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Source: Home Innovation Research Labs

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NAHB ECONOMY

Trade War Impacts More international trade will expand rental and for-sale housing demand in markets dependent on exports or imports b y ROB E RT D I E T Z , N A H B C H I E F E C O N OM I S T

mong the improving prospects for 2020 is the probability for the resolution of trade disputes that held back economic growth in 2018 and 2019. As I wrote this column, the revised NAFTA agreement, the U.S. Mexico Canada Agreement, was said to be close to tripartite agreement. This is good news for U.S. and global economic growth. For housing markets, more international trade will expand rental and for-sale housing demand in markets highly connected to sectors dependent on exports or imports. It was time for some major trade agreements to be revised. NAFTA had been adopted before the rise of the technology sector and evolutions in the global auto supply chain. And China has been abusing intellectual property rights for decades. These challenges worked against the general growth benefits that trade creates. The concern among many economists, including myself, was that antitrade advocates would seek to use tariffs (taxes) on trade as permanent policy rather than temporary tools for negotiation purposes. Since the publication of The Wealth of Nations in 1776 by Adam Smith,

SINGLE-FAMILY CONSTRUCTION: NAHB HBGI

4th Quarter Moving Average Growth Rate

Manufacturing Areas

Non-Manufacturing Areas

15%

10%

-5% 2016

2017

2018

Source: NAHB Home Building Geography Index

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2019

it has been understood that trade promotes growth. Taxes, regulations, and restrictions on trade and commerce accomplish the opposite. The direct impacts of trade wars include higher costs for good and services, such as imported building materials. In 2018, tariffs on Canadian softwood lumber had a significant effect on lumber prices in the U.S. However, the indirect effects of trade conflict include a weakening of regional economic health. For example, reductions in export volume and prices for corns and soybeans have had negative consequences in many agricultural areas of the nation. As exports weakened and input costs rose, the U.S. manufacturing sector weakened and came close to recession over the past two years. Home building in areas of the U.S. with concentrations of manufacturing employment felt this slowdown. The NAHB Home Building Geography Index, a measure of various regional construction indicators, shows this effect clearly. Single-family construction growth rates in markets with concentrations of manufacturing employment were outpacing the rest of the U.S. until late 2017. After that, manufacturing areas realized slower single-family construction growth rates. These markets have seen declines in single-family construction for all of 2019, performing twice as badly as the rest of the nation. As economists have revised 2020 growth prospects higher and revised down recession probabilities, many economic indicators are positive: consumer spending and confidence is high, unemployment remains low, and inflation is tame. Resolution of ongoing trade disputes would add to this list of solid indicators and boost regional economies and housing markets in U.S. areas connected to international trade.

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builderonline.com serves the information needs of residential construction professionals with breaking industry news, local housing data, provocative Web-first lists, industry blogs, product reviews, house plans, education & training and so much more.

Live Online: Convenient Learning for Busy Professionals Want new skills to grow your business, but you don’t have time to be away from the job site? Try NAHB’s live, webinar-based courses. This flexible learning method can take place in your home or office and requires only two hours a week over three consecutive weeks. Like our in-person courses, online sessions are taught by industry professionals who engage you in the content with your peers. This format also counts toward continuing education (CE) credits for NAHB's professional designations.

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Special Advertising Section – Builder’s Best Resources/Classifieds The Magazine of The National Association of Home Builders

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AD Index Advertiser

PG number

URL

ABC Supply Company

www.abcsupply.com

ACPI

www.acpicorp.com

AdvanTech

www.AdvanTechAGame.com

Allura by Elementia

Aquor Water Systems

www.AquorWaterSystems.com

Better Home Products

38-39

www.betterhomeproducts.com

BMC

www.BuildWithBMC.com

Boral Roofing

www.BoralRoof.com

Bosch Appliances

www.bosch-home.com/us

Bradford White

www.bwforthepro.com

BRK Brands, Inc.

www.brkelectronics.com

Builder Chowa Concept Home

www.builderonline.com/chowa-living-in-balance

Builder House Plans

www.BuilderHousePlans.com

Builder Newsletter

www.builderonline.com

Builder Website

122

www.builderonline.com

Chief Architect

C2-1

www.chiefarchitect.com/FreeTrial

CPS, Inc.

www.cpsusa.com

Cultured Stone

www.culturedstone.com

Daikin

www.daikincomfort.com/go/vrvlife/

Daltile

www.DALTILE.com/XTERIORS

Delos

www.delos.com/

Dryerbox

www.Dryerbox.com

DryerWallVent

www.DryerWallVent.com/NEW

Eldorado Stone

www.eldoradostone.com

Environment One

115

www.allterrainsewer.com

Ferguson

119

www.fergusonshowrooms.com

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AD Index continued Form-A-Drain PLUS

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Fortress Building Products

www.FortressBP.com

GEICO

www.geico.com/business

Georgia-Pacific

www.gpforcefield.com

Henry Company

www.henry.com

Hyphen Solutions

www.HYPHENSOLUTIONS.com

IAPMO

www.UNIFORM-ES.org

ICC

www.icc.com/distributor

iDevices

www.iDevicesinc.com

Jamsill

www.jamsill.com

JELD-WEN Windows & Doors

Kohler

www.kohler.com/protoolbox

KOVA Products

www.kovaproducts.com

Kwikset

www.Kwikset.com/Halo

LiftMaster

www.LiftMaster.com/video-for-builder

LP SmartSide

www.LPCorp.com/ExpertFinish

LP Structural Solutions

Belly Band, 23, 25, 27, 29 www.LPCorp.com/StructuralSolutions

Marvin Windows and Doors

www.marvin.com/products

Marvin Windows and Doors

51, 53

www.marvin.com/modern

MiTek

NAHB

www.BUILDERSSHOW.com/Drive

NAHB

www.nahb.org/join

NAHB

www.BuilderBooks.com

NAHB

121

www.nahb.org/gm

NAHB

123

www.elearning.nahb.org/live-online-courses

NAHB

124

www.HousingEconomics.com

Napoleon

www.napoleon.com

National Ready Mixed Concrete Association 47

www.BuildWithStrength.com

Norbord

www.NORBORD.com/DURASTRAND

ProVia

116

www.provia.com/endure

Royal Building Products

www.CELECT.RoyalBuildingProducts.com

Salsbury Industries

www.mailboxes.com

Samsung

2-3

www.samsung.com/builder

Schneider Electric

www.se.com/us/wiser-energy

SES Foam

www.SESFoam.com

Sierra Pacific Windows

32a-d

www.SierraPacificWindows.com

SoftPlan

www.softplan.com

Tamlyn

www.tamlyn.com

Trane

30-31

www.trane.com/builders

Trane RunTru

www.RUNTRUHVAC.com

TYPAR

www.TYPARTOUGH.com

Viega

www.viega.us/RethinkPEX

Western Window Systems

www.westernvolumeprogram.com

YellaWood

www.YellaWood.com

ZIP System by Huber Engineered Woods

www.ZIPRevolution.com

B U I L D E R O N L I N E .C O M

www.viega.us/Evolve

B U I L D E R 12 7

LAST DETAIL

Utility, Unleashed b y S Y MO N E G A RV E T T

ucked away behind the messy kitchen and a short walk down the hall from the two-car garage entry, the first-floor laundry room in the Las Vegas–based BUILDER Chōwa Concept Home continues the core theme of “living in balance”— derived from the project’s Japan-based builder Sekisui House— by establishing a border between inside and outside. Since indoor etiquette in Japan requires inhabitants to take their shoes off when entering a home, the designers from Sekisui House, Woodside Homes, KTGY Architecture + Planning, and Ryan Young

Interiors put special emphasis on the traditionally overlooked room. “We wanted to continue the overall design, keep it simple, and add beautiful materials, so you didn’t feel a departure from the rest of the home,” says Tara Ryan, president of Ryan Young. Apart from the standard laundry features, a raised pet washing station was added to the utility room to ensure pets have clean feet going into the home as well. Upper and lower cabinetry allows users to store exterior items, such as shoes, jackets, and hats, and ample counter space provides functional areas to fold laundry.

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B U I L D E R O N L I N E .C O M

Kip Dawkins

VIEW THE HOME Find additional images and information on the design and construction of the concept home at builderonline.com/chowa-living-in-balance.

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