Trending Stories

from MAB Homefront - Winter 2022 Magazine

Membership 20 National News

WHAT IS DRIVING TRENDS? {outdoor living}

THE IMPORTANCE OF CONNECTING TO THE OUTDOORS REMAINS A TOP DESIGN CONSIDERATION

Outdoor living has been propelled to the top of home owner wish lists and, subsequently, has become a top priority for architects and design professionals focused on residential design.

Connection to the outdoors/nature and outdoor entertaining both ranked high on the top 10 list of design drivers in “The Future of Home Design,” a recent survey conducted by the New Home Trends Institute (NHTI) in collaboration with Pro Builder.

More than 300 residential architects, designers and designminded builders across the country responded to the survey with their opinions, experiences, and predictions about trends in new-home design, including styles, materials and more. The results offer insight into trends we can expect to see in home design during the next three to five years.

CONNECTING TO THE OUTDOORS

Of those surveyed, 58% said connection to the outdoors/ nature will be an important influence on their design choices in the coming years, while 45% said outdoor entertaining will also receive increased attention. Following value and cost considerations, connection to the outdoors and nature was predicted to be the largest driver of home design choices over the next three years.

HOME OWNERS SEEK MORE OUTDOOR LIVING OPTIONS

A large, green backyard once satisfied home buyers, but today’s buyer is seeking more options and flexibility in how they use outdoor spaces — just as they are for interiors. In fact, “The Future of Home Design” survey reveals that an open yard ranks low among design professionals, compared with more multifunctional options. Just 28% of respondents chose that type of space in the survey, compared with other more popular features, such as covered outdoor rooms/ open-air rooms (73%), patios (68%) and decks (55%). Expect efficiently designed outdoor spaces featuring more built-in features, such as firepits or fireplaces (73%), outdoor kitchens (68%), gazebos or pergolas (44%), pools (36%), integral package delivery solutions (22%), and spas or hot tubs (20%) — often several in the same footprint or across multiple (if smaller) outdoor living spaces serving the home. Covered outdoor rooms address the space allocation debate and also meet the need and desire for privacy. Often set up to mirror the comfort (and sometimes even the finishes) of the home’s interior, these spaces are an indooroutdoor hybrid.

CREATING PRIVACY AND COMMUNITY IN OUTDOOR LIVING SPACES

In the push-pull of dwindling lot sizes and greater outdoor living functionality, privacy and community remain strong considerations among consumers, and roof decks are emerging as an ideal solution. “The Future of Home Design” survey found that about 38% of architectural designers included roof decks in their designs more in 2020 than in 2019.

CHALLENGES SPUR CREATIVITY IN OUTDOOR LIVING DESIGN

Designing higher-density projects as demand for multifunctional outdoor spaces increases requires creative solutions. Popular solutions include:

Expansive windows and floor-to-ceiling sliding glass doors help create connection to the outdoors without requiring additional square footage indoors or out.

Meanwhile, the front porch — also a more common design feature for 53% of architectural designers in 2020 than in 2019 — is often used to promote community connection.

One thing is certain: The future of outdoor living will look different from traditional backyards as more external challenges arise, but the importance of connecting to the outdoors remains a top design consideration for designers and consumers alike.

From the Executive Directo r, JANUARY 2022

In the late 1970s and early 1980s, the U.S. economy was in a deep recession. To combat inflation, the Federal Reserve was increasing interest rates, which ultimately pushed mortgage rates over 18 percent. On March 10, 1980, Gov. Art Link established a special task force to explore financing that would make housing more affordable in North Dakota. The task force brought forth an initiated measure that would allow the state to offer tax-exempt financing. On Nov. 4, 1980, the concept was put in the hands of the people. North Dakotans voted yes, spurring the creation of a housing finance agency. Initially Bank of North Dakota was charged with acting as the state’s housing finance agency. Finally, on Feb. 4, 1982, North Dakota Housing Finance Agency (NDHFA) became a standalone state agency. Later that summer, NDHFA executed its first single and multifamily housing bond purchase contracts. Over the past four decades, more than 47,000 individuals and families have benefited from the tax-exempt financing that was approved by North Dakota voters and still offered by NDHFA today. Most of those households are first-time homebuyers. The chart below illustrates the use of NDHFA’ s FirstHome program. Since the first loans were purchased, interest rates have dropped dramatically and the number of people living in the home at the time of the purchase has trended downward as well. Most interesting is that while the size of the home has only increased 6 percent, average household income is up 163 percent and the purchase price of the home is up 263 percent.

Today, more than 75 percent of NDHFA’s borrowers receive purchase assistance – first-time buyers, special needs households, and households who just need help to buy again. Receiving down payment and closing cost assistance helps buyers achieve homeownership sooner and it frees up their available funds for necessities like home improvements and the purchase of their first lawn mower.One of the greatest hurdles first-time homebuyers face is covering down payment and loan closing costs. Through a grant from the Federal Home Loan Bank, NDHFA first offered purchase assistance to lowerincome borrowers in 1990. The homeownership division began offering down payment and closing cost assistance to all the agency’s first-time homebuyers in 1997. To ensure the best customer service possible, NDHFA began servicing its own loans in 1991. The majority of the more than 11,000 loans in NDHFA’s portfolio today are its own. The agency also services loans for the Bank of North Dakota and for local nonprofit housing providers, helping the latter increase their lending capacity. Keeping NDHFA ’s servicing local makes life easier and contributes to the success of the agency’s homeowners. While I only focused on the agency’s first-time homebuyers program, I encourage you to visit our history webpage www.ndhfa.org/index.php/history/ to see how the agency has been actively involved in all aspect of affordable housing.

Finally, I want to thank all our housing partners who have evolved and grown with us to shape the many programs that help to ensure the availability of affordable housing for every North Dakotan. —Dave Flohr, NDHFA Executive Director

KAYLA PULVERMACHER

NDAB CEO I’ve attended many conferences and conventions throughout my career and years as a member organization volunteer myself. Some big, some small; some well-organized and some a circus. Sometimes you leave these events asking yourself, “what the heck was that?” and “was that worth my time?”

Members that have yet to engage in National Association of Homebuilders (NAHB) work should be confident that their time would be well spent at the International Builders Show. For those who are unfamiliar, this event combines both a high-level expo with product launches and displays, educational sessions, and homebuilder trends, with NAHB committee sessions, member education, and business meetings. It’s a great way to help support and shape the housing industry across the united states. This year alone, IBS welcomed more than 70,000 industry professionals. Over 50% of those participating were first-

time attendees.

The trade show exhibit hall included more than 800 exhibitors and gave attendees a unique opportunity to immerse themselves into innovative and technology-driven displays. For example, Kohler, a company known for its kitchen and bathroom products, had running water throughout its displays. Kitchenaid, an appliance brand, had a giant stand mixer that was at least 6 feet tall. Attendance at the business meetings is a vital role of those who become delegates and are extremely informative for those members that observe. Several proposed resolutions, dealing with organizational structure, membership, and were discussed thoroughly, and ultimately didn’t did not pass because they didn’t receive the required number of votes. This was a clear sign that members who attend play a significant part in how the organization moves forward. Not everything the show has to offer is focused on work; NAHB knows how to have fun, too! Magic Johnson was on hand to welcome participants to IBS and Trace Adkins closed the week with a concert. Next year, and for several years after, IBS will be hosted in Las Vegas, Nevada. And as an effort to continue the housing industry’ s strong presence through collaboration, The Kitchen and Bath Industry Show and the National Hardware Show have partnered with the International Builders Show to expand Design and Construction week. This move has the potential to add another 25,000 industry professionals to the mix. Collaboration, networking, and advocating are the highlight of this experience. I hope to see you in Vegas, January 31-February 2, 2023!

Sincerely,

Kayla Pulvermacher NDAB CEO

LUMBER

BUILDING MATERIALS

OPEN 7:30 AM TO 5:30 PM MON-FRI 8 AM TO 1 PM SAT

CHALLENGES WE FACED IN 2021 | SKILLED LABOR SHORTAGE

Source: NAHBnow.com

A skilled and capable workforce is vital to meeting our nation’ s housing demands and addressing the skilled labor shortage was one of NAHB’s top priorities this year. A survey for the October NAHB/Well Fargo Housing Market Index (HMI) revealed that more than half (55%) of single-family builders reported a shortage of labor across 16 home-building trades. And according to the Home Builders Institute’ s (HBI’s) Construction Labor Market Report the lack of skilled construction labor is a key limiting factor for improving housing inventory and affordability. Lawmakers have taken notice and are poised to act. A working draft of the Build Back Better plan includes funding investments for career technical education as well as funding for JobCorps and Youthbuild. NAHB supports efforts to provide additional funding for these programs because such support will help provide good jobs for new workers and help address labor shortages in various industries including residential construction. NAHB members and council leaders hosted a wide range of high -energy, hands-on programming in 2021 to inspire the next generation of residential construction industry professionals. Members of the NAHB Professional Women in Building (PWB) Council hosted summer camps filled with construction activities and participated in numerous Build My Future events. Consistent outreach by industry members across the country is making an impact, as the number of women in the industry edges higher. State and local home builders associations made significant inroads with schools and strengthened their relationships with workforce development partners this year. For example, members from the Dallas BA began guest lecturing at the local community college and The Home Builders Association of TriCities provided scholarships to help students buy tools and clothes for a new job. The Madison Area Builders Association (MABA) partnered with their local Boys and Girls Club and participated in a groundbreaking ceremony for a new worldclass skilled trades center expected to reach nearly 3,000 students. Throughout 2021, NAHB’s workforce development team provided resources and facilitated discussions in-person and online to connect members to the information they need to attract interest in the skilled trades. This year, updated statespecific salary data was made available for HBAs and members to promote the value of pursuing a skilled trades career in their local areas. A variety of new promotional materials were also added to NAHB’ s Careers in Construction Toolkit such as brochures, flyers, social media images and event ideas. Looking ahead to 2022, NAHB will continue to address the industry’s labor shortage in full force next year by working with members, HBAs, HBI and other partners.

REDUCING 3 TYPES OF CONSTRUCTION WASTE TO INCREASE HOME BUILDER PROFIT

Waste in home building is a much broader term than most home builders think. Here’s how builders can take stock of all forms of waste throughout the construction process to achieve greater profitability In today’s economic climate, it’s vital for home builders to keep waste to a minimum so they can receive the highest profit on their homes. However, most builders struggle with understanding exactly where the waste is coming from and how to reduce it. This article contains an array of simple solutions you can easily put into practice to effectively mitigate the cost of waste and improve the profitability of your homes. What Is Waste? 3 Types of Waste in Home Building

Many builders view waste as a term confined only to what is thrown away. That simply is not the case. In reality, waste is a much broader term that defines any material that is above and beyond the minimum required amount to complete a project task. Because this definition can apply to so many aspects of the home building process, it’s helpful to look at waste from the perspective of three distinct categories: required waste, visible waste, and hidden waste. By fully understanding where these three types of waste come from, we can create comprehensive, informed plans to help minimize waste in constructing our homes. 1. Required Waste

Required waste is the material that is above the minimum amount required for the completion of the task but is suggested for the best result. Studs are an excellent example of required waste. It’s essential to order extra studs in order to compensate for faulty studs. Accounting for extra tile for perimeter cuts is another area that will often result in required waste. While this kind of waste is altogether unavoidable, there are many ways you can cut down on the overall amount so you are making the most efficient use of your materials, time, and money. Planning is key to saving money on the jobsite. If you’re able to lay out exactly how much material you’ll need to get each room completed, you’ll be able to cut down on unnecessary waste. WASTE REDUCTION BEGINS AT CONCEPT AND ENDS AT CLOSING. | For example, tile waste can be easily reduced by using a flooring layout that takes cuts and case sizes into consideration to help determine the lowest amount of tile you’ll need to successfully finish each room. Your plans should be clear and comprehensive. When creating scopes of work, make sure you define your specific policies for allowable damage to materials and expectations on cuts. Document the percentages of materials that are allocated for damages, miscuts, and mistakes, and be sure to communicate them to your trade partners. Lack of specificity puts you on the hook and increases the likelihood of error. Always be sure to document your plans and make them easily accessible to everybody involved in the construction process. 2. Visible Waste

Of the three types of waste, this is the easiest to identify. Visible waste is often what comes to mind when we think about waste. Materials placed in dumpsters, left lying around the jobsite, or hauled off by trade partners can be placed in this category. However, unlike the other categories, visible waste is unique in the sense that it goes beyond the cost of excess material. In addition to paying for the material being wasted, you’re also paying for its disposal and, in many cases, for the labor to install it. Similar to required waste, reducing visible waste starts with careful planning and clear communication. If you properly and strategically plan your material use, excessive visible waste can easily be avoided. You should always avoid flat waste factors on items that have waste built into them. For example, when estimating drywall or exterior trim, it’s important to take into consideration how to most efficiently use leftover materials from cuts that have already been made. After this has been accounted for, you can estimate a more accurate waste factor percentage.

After the plan has been put into place, it’s essential to discuss the estimating standards and how they lend themselves to a lower waste factor with your trade partners. Make sure trades understand how the calculations were made so they can follow the guidelines that were put into place. Without these conversations, the house plans are meaningless. To most effectively reduce waste, you must make sure you clearly communicate your expectations. 3. Hidden Waste

This category of waste is often forgotten and therefore left unaddressed. Hidden waste includes everything found between layers of surfaces including sheathing, drywall, framing materials, etc. Because it can’t be seen, hidden waste is rarely considered by home builders when attempting to reduce overall waste. However, with the proper guidance, reducing hidden waste is simple and extremely beneficial to efficient material use. As with required and visible waste, you will find success in reducing hidden waste’s impact in your scopes. It’s important to use scopes to address common areas of hidden waste such as studs and framing. It is vital to use specific language and clearly define your expectations for all material use. Take studs, for example. Vague language, like the term “three-stud corner” can omit essential details that can lead to two unnecessary additional studs per corner. A small miscommunication such as this can have a massive impact on how the home is built and result in an abundance of unnecessary hidden waste. Taking the time to carefully map out the measurements and details of your framing plan can also lead to a significant reduction in hidden waste. Changing the placement of your windows, doors, and closets by as little as 1 or 2 inches could maximize your framing opportunity and cut down excessive material use. After the plans have been created, it’s essential to communicate with your trade partners so they understand how and why each step has been put into place. What’s Next for Home Builder Waste Reduction? Waste reduction in the home building process begins at concept and ends at closing. It is maintained by diligence, communication, and careful planning. Good plans, good details, and good scopes of work will go a long way in helping you use your materials as efficiently as possible.

Article taken from ProBuilder.com