Beruflich Dokumente
Kultur Dokumente
builderonline.com
THE
GAME CHANGER
ISSUE
Heres
Whats New
THE NEW AMERICAN HOME: THE DREAM LIVES
January 2015
Great Homes
Start With
Great Entrances
Start with JELD-WEN
JELD-WEN is one of the worlds nest manufacturers of entry doors. From Custom or Authentic Wood, to
a full range of exceptional Fiberglass and Steel doors, JELD-WEN has an entry door to suit a wide variety of
architectural styles and applications. Whether you are building one home or several, or just undertaking a
home renovation, Start with JELD-WEN.
For more information, please visit jeld-wen.com
2015 JELD-WEN, inc. All rights reserved.
Great Interiors
Start with JELD-WEN
Interior doors can set the tone and style for an entire home. At JELD-WEN, we pride ourselves on having an
interior door to suit any style or budget. Our product line includes Custom Wood, Authentic Wood, Carved,
Molded Wood and Flush Wood Composite doors. When you want to create dramatic entrances to the rooms
in your home, Start with JELD-WEN.
For more information, please visit jeld-wen.com
Great Views
Start with JELD-WEN
If beauty is in the eye of the beholder, JELD-WEN has the ability to create some of the most beautiful views
possible. Our full range of Wood, Vinyl and Aluminum windows has something for every home or building
project. From single windows to custom arrays that are limited only by the imagination, every window project
should Start with JELD-WEN.
For more information, please visit jeld-wen.com
Great Patios
Start with JELD-WEN
Our patios and yards are places where we gather to eat, play and spend quality time together. From single
door applications to multiple and expansive full wall treatments, JELD-WEN has the products to optimize
the enjoyment of your outdoor space regardless of budget or climate. When renovating or building your new
patio, be sure to Start with JELD-WEN.
For more information, please visit jeld-wen.com
Circle no. 423
Got Dirt?
HW ad page
PREMIER CHOICE
OF CPVC PIPE AND
FIT TINGS SYSTEMS
FOR MORE THAN 50 YEARS.
V I S I T U S AT
2014 The Lubrizol Corporation, all rights reserved. All marks are the property of The Lubrizol
Corporation. The Lubrizol Corporation is a Berkshire Hathaway company.
141555
you v e h e a r d of i n t e r i o r
de cor ator s?
were th e e x terior
v e r s i o n.
M I DAM E R I CAC O M P O N E NTS.C O M
S H UT T E R S
ACC E SS O R I E S
UT I L IT Y
VE NTS
WI N D OW
GAB L E
VE NTS
D O O R
T R I M
R O O F I N G
M O U NT I N G
VE NT I L AT I O N
B LO C KS
B E F O R E O W N E R S C R E AT E A LO O K I N S I D E T H E H O M E , B U I L D E R S M U S T C R A F T A LO O K O U T S I D E .
A V A I L A B L E I N A N I N D U S T R Y- L E A D I N G A R R AY O F C O L O R S , S I Z E S A N D A R C H I T E C T U R A L S T Y L E S , M I D A M E R I C A S I D I N G A C C E S S O R I E S H E L P Y O U C R E AT E S T U N N I N G , L O N G - L A S T I N G E X T E R I O R S . P R O V I N G ,
O N C E A G A I N , T H A T M I D - A M E R I C A K N O W S T H E B U S I N E S S O F S I D I N G D E TA I L S , I N S I D E A N D O U T.
B E A U T I F U L
E X T E R I O R S
Learn more:
www.BC.com/inst13
Learn more:
www.BC.com/inst01
BC FRA
MER JU
ST GOT
A LOT MO
RE PROD
INTROD
UCTIVE:
UCING
NEXT-G
BC
ENERAT
FOR BUFRAMER B.A.
S.E. ION
SPECIFIEILDERS, ARCH
RS AND
ITECTS,
ENGINE
ERS.
OPOsitiO
THE
n 2014
NEED4AREASONS YO
NOTHER
ULL NEV
EWP SU
ER
PPLIER:
Pr
1. COM
PLETE PROD
UCT LINE
2. DEPE
NDABLE
DISTRIBUTI
ON
Learn more:
www.BC.com/inst05
3. EFFE
CTIVE TOOL
S & GUID
ANCE
4. EASY
TO DO
BUSINESS
WITH
ASTEST
SPECIF
, EASIES
Announ
IERS A
T WAY
cing BC
FOR BUI
our foo
FRAMER
r
LDERS,
Architec framing software B.A.S.E., a new
ARCHIT
ts, Specife
spe
vers
ECTS,
B.A.S.E.
rs and Eng cifcally for Bui ion of
i l
foor
i
2015 Boise Cascade Wood Products, L.L.C. BOISE CASCADE, the TREE-IN-A CIRCLE symbol, BC FRAMER, VERSA-LAM and Great products are only the beginning. are trademarks of Boise Cascade Company or its afliates.
Contents/January 2015
builderonline.com
Whats
trending online
These one-story
layouts aimed at
baby boomer buyers
emphasize comfort,
relaxed entertaining,
and outdoor
living. go.hw.net/
BD0115-plans
Start
25. Metroscape
Five markets to watch
when it comes to new
home and lot demand
34. Pulse
Industry news you need
to know about now
Wire
Features
Construction
details can prevent
or causefrozen
pipe disasters,
says BUILDER
contributor Leonard
Morse-Fortier. go.hw.
net/BD0115-pipes
Trent Bell
In Sarasota, Fla.,
high price points are
strong193% of the
growth in starts came
in price points above
$250K. go.hw.net/
BD0115-Sarasota
88. Mathematical
Master
How 30-yearold Christopher
Longsworth built a
South Florida empire
92. Family Ties
The Cowgill brothers
are the third generation
at Wichita, Kan.based
nies Homes
Landscape
165. NAHb
Chairmans letter
Frame
62. bright Green
The Edge embodies
sustainable living by
enlisting its residents
68. Packaging
Passive
adam Cohen is making
Passive for the masses
168. Crowes
economy
a look at economic
conditions from
the naHBs chief
economist
Volume 38, 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, One Thomas Circle, N.W.,
Suite 600, Washington, D.C. 20005, for the National Association of Home Builders and printed in the USA. Copyright 2015 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
J a n u a r y 2 0 15
builder 7
3D renderings
remodelers setup
materials lists
framing layouts
deck design
automatic elevations
site plans
links to QuickBooks
animations
3D panorama views on
Try SoftPlan for yourself: visit www.softplan.com or call 1-800-248-0164 for your free trial
b u i l d e r o n l i n e .c o m
Trinsic Pull-Down
Addison Single-Hole
Pilar Pull-Down
TOUCH2O TECHNOLOGY.
Five years ago, Delta Faucet revolutionized the faucet industry with the
introduction of Touch2O Technology, which allows you to start and stop
the ow of water with a simple touch. Today, this smart, customer-preferred
solution has grown to include nearly 50 styles and nishes.
Watch the Touch2O Technology video at deltafaucet.com/Touch2O.
Circle no. 314
to order reprints
Paul Pettersen
112 Kingsbury Road, Garden City, NY 11530
phone: 516-536-9154 fax: 202-785-1974
email: ppettersen@hanleywood.com
Midwest
Susanna Lione
6191 N. Highway 161, Suite 500, Irving, TX 75038
phone: 972-536-6459 fax: 972-536-6301
email: slione@hanleywood.com
Southeast
Patrick Zazzara
One Thomas Circle NW, Suite 600, Washington, DC 20005
phone: 202-736-3483 fax: 202-785-1974
email: pzazzara@hanleywood.com
West
Carol Weinman
395 Del Monte Center, Suite 317, Monterey, CA 93945
phone: 831-373-6125 fax: 831-373-6069
email: cweinman@hanleywood.com
Canada
Stuart Smith
phone: +44 (0)20 8464 5577 fax: +44 (0)20 8464 5588
email: stuart.smith@globalmediasales.co.uk
Adonis Mak
phone: +852 2838 6298
email: adonism@actintl.com.hk
Washington, D.C.
Visit exaktime.com/builder
or call 1.877.572.0299
b u i l d e r o n l i n e .c o m
Solid Performance
Shear Versatility
The Strong-Wall SB shearwall is the newest addition to our shearwall family. It combines
performance high load values with versatility its trimmable in the eld. The SB wood
prefabricated shearwall is an economical solution for many applications, including narrow and
tall wall spaces and garage portals. Its available in three widths and heights up to 20 that can
be conveniently trimmed to t your job and eliminate shimming.
For a high-performance, versatile and economical wall, try the Strong-Wall SB shearwall.
Learn more by calling your local rep at 800-999-5099 or visiting strongtie.com/sb.
Circle no. 192
2015
FREEDOM
OF
PERSONALIZATION
Thermador provides world-class entertainers with The Freedom Collectiona no-holds-barred approach to personalization. Modular refrigeration
columns can stand alone, shoulder-to-shoulder, and even venture forth out of the kitchen. Turn a dining room into a wine room, an offce into a
gentlemans sanctuary or a loft into a lounge. With built-in, dual temperature and humidity controls that maintain the ideal temperature for your
favorite vintage, the bonafde entertainer has only one question to ask: Why entertain anything less?
THERMADOR.COM/STAR-PARTNER
2014 BSH HOME APPLIANCES CORPORATION. ALL RIGHTS RESERVED. 14BSHA007-04-119365-1
NAHBe?
nahb.org/education
Join the Conversation.
Think
twice.
Build it once.
in a Row.
Reside Right with Weather Protection Materials That Match
the Quality of Your Work
Home exterior remodeling and residing projects often begin by
focusing on windows, shingles, siding, and trim. But adding a
DuPont Tyvek weather barrier to the discussion can bring added
value to your job and your customers.
IMPROVE
EFFICIENCY
UP TO
40%
ON-SITE
CONSULTING
BUILT-IN
PROTECTION
Contact us.
1-800-44-Tyvek
weatherization.tyvek.com
Copyright 2014 DuPont. All rights reserved. The DuPont Oval Logo, DuPont , and all products designated with a or are trademarks or registered trademarks
of E. I. du Pont de Nemours and Company or its affiliates. (12/14)
Retail $149.95
In order to expand your business, you will need capital. Financial Forecasting in
Microsoft Excel 2010 takes you step-by-step through creating nancial forecasts
with Microsoft Excel 2010 so you can assess project feasibility, fund company cash
needs, determine nancial feasibility of a project before committing, and identify
problems before they become major. By following the guidelines presented in this
book, you will give a potential funding source the necessary information to make an
investment decision.
From BuilderBooks, 2015, 196 pp/Softcover with online les
Item 00300
ISBN 978-086718-733-5
NAHB Member $39.95
Retail $44.95
Managing Your Business with 7 Key Numbers will help you see where you stand every
day, with every job, by monitoring just 7 Key Numbers that drive all prots and cash ow,
including number of leads, sales conversion rate, and customer retention rate. Follow the
steps in this book to create a process that will let you know when costs or scheduling
deviate from the estimatein time to respond before those changes cost you money.
Order Today!
Print: BuilderBooks.com or call 800.223.2665
eBook: ebooks.builderbooks.com
ProTalkLIVE
LeadingBrands.
LeadingExperts.
LeadingThe Way Forward.
The Ply Gem booth at IBS is more than just a showcase for
products. Its a destination for building professionals looking
to gain new insights and discover the latest innovations that
will drive your business in 2015.
DesignInspiration
Check out the latest tools, color options
and outdoor living designs to help homeowners customize their home exterior.
NewProducts
Discover the latest innovations in siding,
stone, windows, roofng, trim and accents
and see how they work together.
SIDING
W I N D OWS
DOORS
S TO N E
TRIM
ROOFING
FENCE
RAILING
plygem.com
Editors Notes
THE GA ME CHA NGER ISSUE
A 2015 WISH
20 B U I L D E R
J A N U A R Y 2 0 15
WHY WE CARE
UNDERLIES ALL OF THE
DETAILS, ALL OF THE
BEHAVIOR AND
ATTITUDE, AND ALL OF
THE INTENTIONS
WITH RESPECT TO
YOUR HOME BUYER,
INVESTOR,
ASSOCIATES, AND THE
MOST IMPORTANT
CUSTOMER IN
ANYONES CAREER
IN ANY TYPE OF
ORGANIZATIONYOU.
John McManus
group editorial
director
B U I L D E R O N L I N E .C O M
IS MORE THAN
If you can imagine the ultimate living environment, our collection of handcrafted products
makes it possible. You know us for our authentic stone, and now wed like to share some of
our other passions.
To request your free Idea Book, call 800.925.1491, or visit eldoradostone.com/inspiration
Visit us at
Booth #3837
Central Hall
Lets build the perfect partnership. Sleek European design for beautiful, seamless, truly ush installation. Wall ovens
with SideOpening doors. Striking horizontal oven congurations. The quietest dishwasher brand in the U.S.* The Bosch
kitchen is designed to create an immediate impression, and add lasting value to your homes.
Learn more at boschbuilderprograms.com
2014 BSH Home Appliances. *Based on an average of sound ratings of 24" Full Size Stainless Steel Tub dishwashers on major brands websites. Major brands
dened as TraQline Top 5 Market Share brands, March 2014. 14BSHA1-04-119365-2
Circle no. 387
Start
Southern California
DallasFt. Worth
STRONGEST
DEMAND
Las
Vegas
Atlanta
San Antonio
Charlotte
NaplesFt.
Myers
DenverColorado Springs
San Diego
Seattle
DallasFt. Worth
Austin
South Florida
Southern California
9
Houston
RaleighDurham
Las Vegas
NaplesFt. Myers
San Diego
Austin
South Florida
Houston
Atlanta
SarasotaCharlotte
Bradenton
DenverColorado Springs
Seattle
Nashville
SarasotaBradenton
RaleighDurham
Twin Cities
Reno
Northern California
Boise
Philadelphia
Suburban Maryland
Tampa
Chicago
St. George
Mesquite
Reno
Indianapolis
Twin
Cities
Jacksonville
Nashville
Northern California
New Jersey
New York suburbs
Northern Virginia
Boise
Philadelphia
Suburban Maryland
Tampa
St. George
Mesquite
Indianapolis
Albuquerque
Jacksonville
The Triad
Central Florida
Chicago
LO
TD
ND
Central California
A
EM
New Jersey
New York suburbs
Northern Virginia
PhoenixTucson
HO
ND
A
EM
building lot demand levels changed marginally, resting at an average score of 5 and 6, respectively, on our 10-point scale. A typical
seasonal slowdown has affected many markets, and buyer traffic is expected to increase
PhoenixTucson
TD
O
L
after the holiday season. Some regional directors report weakening demand due to pricing
growth, which may continue to have an adverse effect on new-home demand in the
coming months (most significantly in the
San Diego, Las Vegas, Houston, Salt Lake City,
Nicolas Rapp
WEAKEST
DEMAND
Rio Grande Valley
MA
ANTICIPATING CHANGE
Central Florida
Albuquerque
Demand in these five markets could look a lot different in the future
M
The Triad E D
E
HO
ME
DE
B U I L D E R O N L I N E .C O M
MA
J A N U A R Y 2 0 15
ND
BUILDER 25
ND
Start
M ET R O S CA P E
Visit us at
NAHB Booth #C8333
Denver, and Jacksonville, Fla., markets).
While there are no major changes to report
at the macro level in November, regional directors from the five markets highlighted in our
infographic identify significant game-changing advantages or impediments that could
have a lasting impact on building and purchasing activity for years to come.
Economic Overhaul
Demand in Reno has been fairly mediocre
compared with Metrostudys other markets,
averaging a score of 7 for new-home demand,
and 5 for new building lots over the past eight
months. In early September, it was announced
that Reno would be the site for Teslas gigantic,
$5 billion gigafactory, expected to be completed in 2017. The effect the gigafactory will have
on the regions economy will be tremendous.
More than 22,000 jobs are expected to be created by the factory6,500 directly from Tesla,
and an additional 16,000 in the region indirectly. A tax break bill requires that half of the
factorys permanent employees be Nevada
residents, as well as half of the construction
workers tasked with building the structure.
Empty housing left over from when the real
estate bubble burst will fill, and demand for
new housing will likely increase ten-fold.
A Lot (and a Lack of) Lots
In Sacramento (included in the Northern
California market), the government finally
will release its hold on a building moratorium
in the Natomas, possibly as soon as September 2015. Federal flood protection authorities
put the moratorium into effect in 2008, throttling any potential housing growth and putting 7,000 acres of land in gridlock. The North
Natomas were the fastest-growing area in the
city before the ban went into effect, due to its
proximity to jobs downtown and fairly affordable price tag for homes. According to city
officials, about 25 percent of land zoned for
residential use (enough for as many as 8,000
homes), and 90 percent of land zoned for commercial use is still undeveloped. Builders are
champing at the bit to start developing in the
area, and only good things can be expected
once the shackles come off.
Things arent so sunny in the Southern
California market, however, where lot shortages are coming to a head and putting addi-
Subscribe Now
omeda.com/bldr 888.269.8410
B U I L D E R O N L I N E .C O M
Start
M et r o s ca p e
Diamond Spas
Custom Stainless Steel & Copper Aquatic Products
Residential Commercial
Luxury Custom Baths Shower Pans Kitchen and Bath Sinks
Spas Swimming Pools Swim Spas Cold Plunge Pools Water Features
Build to Client Specifications Sustainable Sophisticated
Diamond
S P A S
www.abcsupply.com
Your Competitive
Edge
Craft inspiring
neighborhoods with
lasting character. Youll
enrich the lives that
are lived there.
Siding
Trim
2014 James Hardie Building Products Inc. All Rights Reserved. AD1477 11/14
Build a Better
You With NAHB's
Online Courses
Now you can take a course whenever and wherever you want.
Whether you're working toward an NAHB professional designation or
need in-depth knowledge on a specic industry topic, our online courses
are designed to meet your needs and accommodate your schedule.
Certied New Home Sales Professional
Customer Service
Basics of Building
Effective Marketing on a Shoestring Budget
For more information, visit
nahb.org/elearning
Start
Pulse
34 b u i l d e r
J a n u a r y 2 0 15
StatS thiS
Month in hoMe
Building
76%
of respondents to
a housing satisfaction
survey say they believe
a home they can grow
old in is important,
however, only 56 percent
feel their home meets
that criteria
40M+
households in the
U.S. are set to move
in the next five years,
spending an estimated
$7.4 trillion on home
purchases
71%
of respondents rank
energy efficiency as
important, which
is not surprising as
Americans electricity
spending has increased
56 percent since 2000
Source The Demand
Institutes The
Housing Satisfaction
Gap: What People
Want, But Dont Have
There is no real
mystery to identifying
a person who would be
a great salesperson.
Brian Tracy, a leadership
and management
consultant, professes
the SWan formula.
When considering a
new hire, try grading the
person on these criteria:
S = Smart Does your
prospect have the
capacity to identify
opportunities,
process information,
and communicate
effectively?
W = Works hard Can
you sense the level of
commitment to seeing
the job through to
closure versus calling it
a day at 5 p.m.?
A = Ambition To
be successful, a
salesperson must be a
self-starter. While you
can (and should) provide
ongoing motivation, you
need an individual with
the ambition it takes to
work independently.
N = Nice you should
seek professionals who
are friendly, moral, and
ethical. Their actions
reflect you and your
business; ensure you
wont be tainted by
unseemly behaviors and
actions. and dont be
swayed by experience,
which is nothing without
demonstrated results.
If you find someone
who scores high with
the SWan formula,
make an offer. This is a
person who possesses
the attitude of a
successful salesperson.
and remember: Hire for
attitude, not for skill.
b u i l d e r o n l i n e .c o m
Starting At:
$38,270*
2500 Crew Van 144", Low Roof, 4-Cylinder
With room for five, the Mercedes-Benz Sprinter Crew Van has room for everything and
everyonefeaturing Best-In-Class cargo room, payload and interior standing height as well
as a 'x' load floor that offers abundant room for plywood, sheetrock and other materials.
The Sprinters standard turbo diesel engine delivers up to % greater fuel efficiency, while
standard Crosswind Assist helps keep your vehicle on course in strong winds. To discover
better ways to build your business, visit mbsprinterusa.com.
Start
Pulse
Room to Breathe
Today, you can place the dryer fush to the wall
without crushing the exhaust hose or otherwise
restricting airfow. Install the Dryerbox for safer,
roomier and more effcient homes.
888-443-7937
www.Dryerbox.com
THERES
NOTHING
TOUGHER.
CASEMENT
CLOSED.
Start
D E S IG N T R E N D S
Plan #HWB1750001
Square Footage 2,091
Bonus Space 349 sq. ft.
Bedrooms 3
Bathrooms 2
Dimensions 78- 9 x 71- 5
Foundation Slab (Crawlspace and
basement foundations available for
an additional fee)
5-SET $995
8-SET $1,145
Repro $1,245
CAD $1,995
PDF $1,245
It can be difficult to draw sweeping conclusions about new design trends from sales
data of house planspopular plans tend to
stay popular, and it takes time for new designs to catch on with consumers. While
thats typically the case on an annual basis
for our best-selling plans, there was a bit of
turnover in 2014, with four new plans pushing their way to the top. (Interestingly, the
new plans tended to be smaller, with an average square footage of 1,980 square feet
compared with 3,160 square feet for those
they displaced).
So what sweeping conclusions can we
draw from 2014s best-selling house plans?
Most strikingly, all of them boast impressive
outdoor living spaces. Some include grilling
38 B U I L D E R
J A N U A R Y 2 0 15
Open
Floor Plan
64%
61%
Master
on Main
Outdoor
Living
B U I L D E R O N L I N E .C O M
Start
e di t o r s pic k s
the final
countdown
IBS and KBIS 2015 are just
days away; make plans to see
these hot new products
Edited by Laura Mcnulty
and Lauren Hunter
1. Kalamazoo
Give your next outdoor kitchen a
feature they cant resist. Kalamazoo
Outdoor Gourmets newest artisan
Fire Pizza Oven is a built-in version
with the same capabilities of the
previous countertop oven. Two
independent burners deliver up to
800 F so neopolitan-style pizza can
bake in less than three minutes. The
oven also can accommodate breads,
meat, and fish. Handmade in the
uSa, the Built-In artisan Fire Pizza
Oven uses natural gas or liquid
propane. www.kalamazoogourmet.
com. Circle no. 1. Booth no. n3008.
40 b u i l d e r
J a n u a r y 2 0 15
2. danze
Since its activated by infrared sensor
technology, users can operate the
Danze Digital faucet hands-free. aC
hard-wired and DC battery-operated
versions are available, with task
lighting on the end of the spout also
included in the aC version. The digital
technology is featured in two new
streamlined design profiles, both
offered in chrome or stainless steel
finishes. www.danze.com. Circle no.
2. Booth no. n1917.
3. PlyGem
PlyGem roofings newest shingle,
the Hinged Hip and ridge, uses
durable butyl tape to create a
flexible living hinge, which ensures
a more authentic look than a typical
one-piece ridge cap, regardless of
b u i l d e r o n l i n e .c o m
Start
e di t o r s pic k s
10
11
6. weather shield
The Contemporary Collection
features narrow profile frames and
sashes for a modern style with more
exposed glass. Direct set corner,
crank and push-out casement,
awning, and direct set windows,
and narrow-stile hinged patio doors
are available in seven interior wood
choices and an expanded palette of
exterior colors. www.weathershield.
com. Circle no. 6. Booth no. C4243.
7. creative mines
Monsoon Craft Board Form is
handcast from boards that expose
natural woodgrain; the 6-inchby-36-inch planks have the look
42 b u i l d e r
J a n u a r y 2 0 15
or underwater. www.moistureshield.
com. Circle no. 8. Booth no. C8706.
9. jeld-wen
To connect indoor and outdoor living
spaces or as a window between
rooms, the new Custom Wood
Folding Window folds to the side in an
accordion style to enable open design
concepts. Offered in eight wood
varieties, two 24-inch-wide systems
can be used to create a maximum
opening of 48 inches. www.jeld-wen.
com. Circle no. 9. Booth no. C6131.
10. climatemaster
On-demand hot water generation and
industry-leading efficiency ratings are
b u i l d e r o n l i n e .c o m
An Everyday Masterpiece
The beauty of art; the quality of Caesarstone
New Calacatta Nuvo
www.caesarstoneus.com
14CA054-14-119363-1
Start
e di t o r s pic k s
12
13
14
15
16
17
12. fasco
The F58 Strip nailer is designed to
save time without sacrificing finish.
The patent-pending design provides
improved ergonomics and tool
balance. The magazine features two
insertion points and different loading
systems for concrete pins, nails, and
the makers Scrail collated fasteners,
and releases completely as part
of the tools new jam-clearing system.
www.fascoamerica.com. Circle no.
12. Booth no. C8549.
13. osborne wood products
Square turned posts offer
contemporary and transitional style to
woodworking projects. Kitchen island
44 b u i l d e r
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b u i l d e r o n l i n e .c o m
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E n E r gy Sta r
within the time frame allotted for manufacturers to meet the new criteria.
Were at a point now where products and
homes are becoming so efficient that were
really pushing the limits, Inks says. Not the
limits of where the technology can go, but of
how quickly we can get there. It takes time.
To address concerns, the EPA ultimately adjusted the implementation date for the northern zone by a full year to Jan. 1, 2016. The Ufactor requirement for the north central region
also was increased to 0.3 rather than 0.29.
56 b u i l d e r
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Manufacturer Response
Despite frustrations with the process, manufacturers say theyre prepared to meet the
timeline for Version 6.0, though the phased
rollout causes some concerns.
Well see criteria in 2015 for three regions
thats different from the northern region,
where performance levels are getting more aggressive, says Christine Marvin, director of
marketing for Warroad, Minn.based Marvin
Windows & Doors. The solutions manufacturers come up with for the first phase wont
necessarily translate for the second phase.
Both Marvin Windows and Milgard report
that their product lines have been updated to
the point where the brands will be able to meet
northern 2016 criteria at the time of the 2015
rollout for the three other regions (see the map
for the EPAs regional breakdown). Iowa-based
Pella Corp. also says the vast majority of its
product lines will be Energy Star compliant.
Some product lines have very little or
nothing to change to reach the new criteria,
while others did take some level of effort, says
Kevin Gaul, acting director of industry and
regulatory affairs for Pella. In many cases,
both Gaul and Marvin say glazing options
make the difference when it comes to achieving a given energy standard. At Milgard, some
changes to frame materials and the addition of
foam inserts helped product lines meet goals.
Across the board, manufacturers say
theyre working closely with their dealers
and with builders and their buyers down the
lineto ensure selecting the right window for
the project. We have all the data in our quote
system so our dealers know if a product doesnt
qualify, Marvin says. Taking advantage of
that information will be useful to builders no
matter what code theyre following. B
b u i l d e r o n l i n e .c o m
TM
2014 PPG Industries, Inc. PPG Paints is a trademark of PPG Industries Ohio, Inc. PPG Pittsburgh Paints, PPG Porter Paints,
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BU I L DI NG SA F ET Y
MASS
RETIREMENT
LOOMING
Age of Respondents
18 to 24
25 to 34
0.1%
3.3%
35 to 44
16-25 years:
14%
28.8%
55 to 64
45.6%
0.9%
5%
10%
J A N U A R Y 2 0 15
15%
20%
25%
30%
35%
40%
45%
5 to 15 years:
51%
36-45 years
or more:
0%
B U I L D E R O N L I N E .C O M
Source: NIBS
58 B U I L D E R
46 years
or more:
0%
9%
65 to 74
0%
26 to 35 years:
4%
12.3%
45 to 54
75+
Sewer anywhere
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Exhibit #C1815
Send us the topo map for your next challenging project. Well show you how an E/One system can make your project viable
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Call, or visit us online.
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responding to market
conditions, the projects that
follow are transforming the
face of residential design
b u i l d e r o n l i n e .c o m
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builder 61
62 b u i l d e r
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Architect Prellwitz
Chilinski Associates,
Cambridge, Mass.
developer The Mount
Vernon Co., Boston
builder Cranshaw
Construction, Newton,
Mass.
Structural engineer
Roome & Guarracino,
Somerville, Mass.
Frame
B r ig h t g r e e n
innovator
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builder 63
v
v
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UP
UP
UP
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WH
VAN
WH
WH
WH
DN
20
64 b u i l d e r
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architects Prellwitz Chilinski Associates researched how young urban residents prefer to
live. They discovered that it was important to
keep the kitchen/living/dining areas as open
as possible for maximum flexibility because
during the leasing process prospective tenantswho like to lay out their spaces in a
variety of wayswant to visualize how they
Frame
B r ig h t g r e e n
b u i l d e r o n l i n e .c o m
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builder 65
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68 b u i l d e r
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architect/designer/
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consultant Structures
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builder 69
70 b u i l d e r
J a n u a r y 2 0 15
Shane Welch
Project Harvest
Commons
location Chicago
developer Heartland
Housing, Chicago
Frame
S E c o n d c h a nc E S
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builder 71
SeedS of Change
72 b u i l d e r
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Shane Welch
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builder 73
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J a n u a r y 2 0 15
builder 77
Project Emerson
Green
location Devens, Mass.
78 b u i l d e r
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closed in 1996. The 4,400-acre site is being repurposed as a lively mixed-use development
that already includes offices, a community college, and golf course. Still on the boards, NOW
Communities $35 million residential phase
will encompass 40 single-family homes, 40
townhouses, and 40 rental apartments. Designed by Powers firm, the site plan incorporates the bases original street grids to create a
new 35-acre residential community of centrally sited houses surrounded by green space.
The compact single-family homesdesigned in the spirit of architect Sarah Susankas Not So Big House principleswill range
in size from 1,500 square feet to 2,000 square
feet and be priced from $200,000 to $400,000.
Open floor plans will allow interior spaces to
serve multiple purposes, explains Gainsboro,
NOW Communities CEO, with well-detailed
finishes designed to be durable and healthy.
Central to Boston, Providence, R.I.,
Worcester, Mass., and several small towns,
Union Studio
developer NOW
Communities, Concord,
Mass.
Frame
O n t h e B Oa r d s
A SenSe of PlAce
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builder 79
Frame
f r i e n d s e n t ry
as a result is that the informal entrance becomes a path through the garage, right past
lawn mowers, trash cans, etc.
Weve suggested bringing back the friends
entry in several new designs by adding a link
space between the garage and the house. This
can work in different ways based on garage
locations, but for the most common frontloaded garage simply insert a connector room
between the garage and the house and place
a door in front. This becomes a closer door
than the more formal front door and is perfect
for a friends entry.
The connector space between the house
and garage also is a great location for a popular
new interior spacethe drop zonefor closets,
hooks, benches, cubbies, and counters needed
upon entry to the house. This location historically was a mudroom or a place to keep dirty
shoes and clothes close the washing machine.
That connector space often still functions as
the laundry room, although increasingly the
laundry has migrated to the second floor to be
more convenient to the bedrooms.
Whatever the function of the connector
space, it needs to be a gracious way for
friends to enter the home. Adding windows
and glass in the door is helpful. As shown in
our floor plan, a back door can be incorporated and direct access to the garage through
this transitional space also works well for
the homeowners. We recommend the
friends entry space to be wide enough
roughly 8 feetfor counters and benches on
both sides of the door plus a walkway. On the
front elevation, a small covered porch invites friends walking by to enter and be
greeted without formalities.
Guest expert
James Wentling is founding principal of James Wentling/
80 b u i l d e r
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bath
deck/Patio
Kitchen
Guest room
breakfast
Garage
drop
dining
living
Foyer
Porch
A traditional element on
the elevation, the front
door is the formal entry
to the house.
b u i l d e r o n l i n e .c o m
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builder 81
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Partner with us, and your residents wont be the only ones smiling.
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2014 time Warner cable inc. all rights reserved, time Warner cable and the eye/ear logo are trademarks of time Warner inc., used under license.
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The FasT
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Mathew Scott
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builder 85
Wire
FA ST R i S e R
86 b u i l d e r
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Its not a bad thIng to sIt In a posItIon, get comfortable, and have tIme under your
belt before takIng the next step.
That kind of environment helped Tierney
grow, and it assisted others as well.
That Phoenix Taylor Morrison division
spawned off five other division presidents,
Tierney says. To be surrounded by those
people was fantastic.
In January 2013, Taylor Morrison gave Tierney the opportunity to move the Bay Area as
vice president of sales and marketing for its
Northern California division. With two children and family in the Bay Area and the companys growth potential in that part of the
state, making the move was a no-brainer.
Moving Into Operations
While Phoenix might have been a 101 course
in home building operations, Tierney is getting her masters in the challenging Bay Area
division after taking over operations in January 2014. Moving into this operations role has
been the biggest challenge of my career, she
says. I have so much to learn. The construction and land part of the business is far more
complicated than I anticipated, particularly
since I am new to the Bay Area market.
To get up to speed, Tierney turned to her
journalism trainingnetworking and asking
lots of questions about things, like land, to
speed up her learning curve. I think you need
to go into it with a humble attitude and be reliant on your team of experts in those fields
where you know you are weak, she says.
In the land-constrained Bay Area, builders
need as many solutions as they can find. Taylor
Morrison bought good land positions during
the downturn and continues to harvest those,
doubling its business from 2013 to 2014. But to
keep growing, the builder needs more dirt.
Its far more complicated [than Vegas and
Phoenix], Tierney says. The majority of
what were doing is infill. Youre not going out
and buying a nice piece of clean land and
grading it and its good to go. Every project
here has to go through a thorough development process. Each site is so small and youre
b u i l d e r o n l i n e .c o m
C A R P E T W O O D L A M I N AT E
TILE RESILIENT
Visit us at the NAHB International Builder Show from January 20-22, 2015 Booth #C8637
Wire
M at h e M at ica l M a st e r
Age Is Just
A Number
88 b u i l d e r
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Josh Ritchie
Playing Koi
One of Longsworths recent endeavors includes a $120 million, 26-acre master planned
b u i L d e r o n L i n e .C o m
ONE-MAN
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FROM THE
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2015 Huber Engineered Woods LLC, ZIP System, the accompanying ZIP System logo and design and AdvanTech are trademarks of Huber
Engineered Woods LLC. Huber is a registered trademark of J.M. Huber Corporation. Huber Engineered Woods products are covered by various
patents. See ZIPsystem.com/patents for details. HUB 13629 11/2014
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12:48 PM
Wire
M at h e M at ica l M a st e r
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www.TBFDealer.com
Circle no. 299
b u i l d e r o n l i n e .c o m
EXPLORE THE
POTENTIAL
/ 2014 Gladiator. All rights reserved. 12/14. GGW17864. Form No. GG140052A
Whether your customers use the garage for parking the cars,
working on projects or entertaining, Gladiator brands versatile
products help them make the most of it, while making
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Fa m i ly T i e s
92 b u i l d e r
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b u i l d e r o n l i n e .c o m
Ryan Hendrix
Its doubtful anyone at Ozark Adventist Academy had a senior project like brothers Curtis
Cowgill, 30, and Nick Cowgill, 27. Each was
given the opportunity to design, price, build,
and sell a house during their senior year of
high school. The money you make is yours to
keep, recalls Nick. It gave us an overall idea
of what it takes to build a house and whether it
was something we wanted to pursue.
The Cowgill brothers already knew something about home building. As the third generation at Wichita, Kan.based Nies Homes, a
family-owned custom builder that celebrated
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Check out the home in person during the International Builders Show
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See all of our window and door products at IBS 2015 (booth #C6131 & C6137) or at www.jeld-wen.com.
The 2015 New American Home takes a practical design approach but doesnt leave
out the Las Vegasinspired bling
98 b u i l d e r
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by J en n i f er G oodm a n /
PHoTo Gr a PHS by T r enT bel l
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builder 99
100 b u i l d e r
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Master
bedroom
Sitting
room
Kitchen
Great room
Master bath
dining
room
entry
entertainment
Space
Media room
Wine room
Casita
Garage
bedroom 2
bedroom 3
Casita loft
Garage
N
First Floor
Second Floor
layout This years floor plan, one of the most compact in the show homes history,
was designed to facilitate a relaxed, casual lifestyle. Public and private areas
share a common denominator: access to the outdoors via decks, patios, porches,
a central courtyard, and a rooftop deck (not shown).
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118 b u i l d e r
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With multiple installation and
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120 b u i l d e r
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ADVERTISEMENT
Jagoe Homes builds about 300 homes a year in southern Indiana and
western and central Kentucky. The company used to offer an all-electric
option, but now builds virtually all of its homes with natural gas appliances.
Getting Lean
Jagoe began looking for ways to operate more efciently in 2008, when the
builder saw potentially costly changes to the energy code on the horizon.
We undertook some lean initiatives and looked at all the areas we could
take waste out of the house, Jagoe says.
The builder took those savings and revamped or upgraded a number of its
installation and construction techniques, working with trade partners to improve
air and duct sealing, for instance. Jagoe also looked at opportunities to upgrade to
more energy-efcient appliances and equipment fueled by natural gas. We can
achieve a better HERS rating with gas appliances than we can through all-electric
or a heat pump, Jagoe says.
Gas tankless water heaters, for example, are now standard in every Jagoe home.
In addition to reducing energy use by heating water on demand, the tankless
units have entirely eliminated callbacks from homeowners who run out of hot water.
Thats a win-win for everybody, Jagoe says. Years ago, those used to be options,
but through lean savings, we were able to make those standard.
Similarly, customers prefer the warmer air delivery of gas furnaces, and the
high-efciency systems make it possible to cost-effectively achieve consistently
low HERS ratings, Jagoe says. Going all-electric would require him to compensate
with a higher-cost option like SIPs or LEDs to achieve the same score.
While Jagoe could have applied the savings he created to countertop or ooring
choices, investing in efciency allows the builder to set reasonable expectations for
what homeowners will spend to operate their homes, differentiating Jagoe Homes
from resale options. If youre applying those dollars toward something that saves
energy, Jagoe says, homeowners are going to continue to get value out of it
long term.
Natural gas is a clean, safe, and affordable energy choice for builders to
deliver energy-efcient homes for their customers. Find out more about what
natural gas has to offer. Visit the American Natural Gas Exhibition at Booth
C2615 at the International Builders Show, Jan. 2022, 2015, in Las Vegas.
Circle no. 151
12
13
11
14
16
15
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14. clopay
Suitable for garage or patio
doors, the avante collection
combines a thick aluminum frame
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Bayseal OC open-cell
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124 b u i l d e r
J a n u a r y 2 0 15
18. behr
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primer features advanced
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The paint resists rain as early
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126 b u i l d e r
J a n u a r y 2 0 15
b u i l d e r o n l i n e .c o m
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Circle no. 184
Sample Programs
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housing matters
Millennial
Home Buyer
Fact or Fiction:
7 Potentially
Deadly Myths
About Gen Y
and Housing
by k ay l a devon, li n dsay m ach a k,
& l au r a mcn u lt y
/ i l lust r ations by Ja m e s ben n
b u i l d e r o n l i n e .c o m
J a n u a r y 2 0 15
b u i l d e r 13 9
Millennials Carry
Historically High
Student Debt Levels
False
True
140 b u i l d e r
J a n u a r y 2 0 15
True
Millennials Want to
Maintain Geographic
Flexibility
False
True
b u i l d e r o n l i n e .c o m
While the apartment industry wants to believe that the majority of Gen Y will be forever renters by choice, experts simply
dont agree.
Credit, affordability, and financial woes
seem to be the largest road blocks to homeownership for this cohort, but some millennials simply dont want to buyyet.
Mollie Carmichael, a principal at John
Burns Real Estate Consulting, says the way
millennials were raised is playing into their
delayed decision-making. This is a group
that doesnt have as many rules as their parents, she says. To get married by the time
theyre 24 isnt their goal. To have two to
three children isnt the plan, to get married
first and then have childrennot necessarily their rules.
And when comparing millennials to
their parents (who often are baby boomers),
the interest in homeownership has been delayed, but its still there.
Carmichael predicts 2019 will be when the
majority of the millennial generation will become most interested in buying homes.
Im seeing that buyer settle down at age
30 to 31 versus their parents at 24 to 26, she
explains. As I start to look at consumer insights, I look at interest and when they want
to buy. With Gen Y, thats at 30 and older.
True
J a n u a r y 2 0 15
b u i l d e r 141
Millennials Form
Households In
Different Ways From
Past Generations
False
True
142 b u i l d e r
Millennials Will
Pay A Premium For
Green And Tech
Features
J a n u a r y 2 0 15
False
Millennials Want
To Stay In Urban,
Walkable Areas
False
True
True
a sense of style.
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Entry-LEvEL Economics
Core Curriculum
Since the recession, the economics of entry-level housing have fallen apart. But without ways to reduce
development costs to a price that this vital market can afford, builders will continue to fail the test.
146 b u i l d e r
J a n u a r y 2 0 15
by L e s sh av er
b u i l d e r o n l i n e .c o m
ince the start of his career at Indianapolisbased CP Morgan, Todd Anderson has built
homes for the entry-level market. He developed a great deal of pride in providing an affordable dwelling to meet the most basic
needs for people without great means.
Something thats near and dear to my heart
is trying to keep housing affordable, he says.
As a result, it wasnt a surprise that the
entry-level market was at the core of his strategy when he started Challenger Homes in
2008 with some distressed lots he bought from
a developer. But over the past couple of years,
Andersons finding it harder and harder to hit
that price point. Even if you have a heart for
it, it almost feels like youre being forced out of
the [entry-level] segment, he says.
Rising land, entitlement, materials, and
labor costs have made it hard to build a home
that the debt-strapped, savings-poor entrylevel buyer can afford. Though there have been
glimmers of hopemost notably the reported
success of Fort Worth, Texasbased D.R. Hortons entry-level Express Homes and the continued growth of The Woodlands, Texasbased
LGI Homesmany builders have found more
profit and safety by migrating to the more expensive rungs of the new-home market.
As builders, were all kind of scratching
our heads, Anderson says. I think a lot of the
builders in our market have kind of abandoned
that first-time buyer because the margins are
so much higher at that next tier. Why are we
beating our brains in for $10,000 to $20,000 of
gross profit when our overhead is running
above that on a per-house basis? Why do I do
that? I do that because its a noble cause.
But not every builder sees the entry-level
market as a calling. That segment used to represent about 50 percent of the business for
Chris Cates, co-owner of Fayetteville, N.C.
based Caviness & Cates Communities. Now,
its about 20 percent of the builders business
as the companys average sales price has
moved from less than $200,000 to more than
$260,000 for move-up and retiree buyers.
Other builders have turned to those segments
as well. Those [the upper level buyers] are the
people who are withstanding the price in-
J a n u a r y 2 0 15
b u i l d e r 147
Atlanta
First-time buyers make
up 29% of home buyers
in the Atlanta region
unemployment rate
7.6%
Median Household
income $56,009
Economic Pressures
With the days of lax underwriting and 103 percent loans a long-faded memory, the new reality is that the much of the starter-home segment faces an uphill battle to secure a loan. The
reasons are long and, at this point, have been
repeated ad nauseam. The recession left many
148 b u i l d e r
J a n u a r y 2 0 15
Chicago
First-time buyers make
up 36% of home buyers
in the Chicago region
unemployment rate
8%
Median Household
income $53,172
Median New Home
Closing Price $306,900
Average Home Cost Per
Square Foot $219
FHA loan limit
$365,700
Top Area builders
Catering to FirstTime buyers D.R.
Horton, The Ryland
Group, PulteGroup
b u i l d e r o n l i n e .c o m
J a n u a r y 2 0 15
b u i l d e r 14 9
Houston
First-time buyers make
up 30% of home buyers
in the Houston region
unemployment rate
5.8%
Median Household
income $52,242
Median New Home
Closing Price $191,900
Average Home Cost Per
Square Foot $90
FHA loan limit
$295,550
Top Area builders
Catering to First-Time
buyers Lennar, Perry
Homes, D.R. Horton
150 b u i l d e r
J a n u a r y 2 0 15
b u i l d e r o n l i n e .c o m
San Francisco
First-time buyers make
up 36% of home buyers
in the San Francisco
region
Median Household
income $74,559
unemployment rate
5.1%
J a n u a r y 2 0 15
b u i l d e r 15 1
St. Louis
First-time buyers make
up 37% of home buyers
in the St. Louis region
unemployment rate
8.9%
Median Household
income $33,770
152 b u i l d e r
J a n u a r y 2 0 15
b u i l d e r o n l i n e .c o m
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b u i l d e r o n l i n e .c o m
J a n u a r y 2 0 15
b u i l d e r 15 7
Strategic SavingS
158 b u i l d e r
J a n u a r y 2 0 15
Roofs
With a top-down approach, Cusato contends that builders can save a lot of money.
A lot of times houses get off target because people have started with a floor plan and
they have to put a lid on it, she says. The volumes dont add up. The result of that is the tail
wagging the dog. Instead, you design from a
roof down.
Designing from the floor plan up and forgetting about the roof plan until the end of the
design process introduces issues that all have
one thing in commonthey add cost. It makes
the drawing process difficult and it can be complicated to build. It also creates the opportunity
for leaking and failures over time, and these
bulky roofs arent very attractive, either.
The result is a very heavy hat [roof] with
lots of gables or a giant hip roof with the little
ridge on top, Cusato says. That is the result of
a floor plan that wasnt thought out.
Larger roofs also produce another problem
b u i l d e r o n l i n e .c o m
Kitchens
When architects design entry level in expensive markets, theyre often dealing
with space constraints. One way to attack
that is with open floor plans.
Unfinished BedRooms
J a n u a r y 2 0 15
b u i l d e r 15 9
nahbcontracts.com
24/7 Access. Convenient. Affordable.
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track-changes technology
custom templates
online collaboration
www.livinghomes.net info@livinghomes.net
Circle no. 295
2014 Living Communities, LLC. LivingHomes is a registered trademark of Living Communities, LLC. All other trademarks are trademarks or copyrights of their respective companies.
contact.metrostudy.com/
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Landscape
Significant
Strides in 2014
As my term as NAHBs
Chairman of the Board
draws to a close, Im proud to
report that we made great
progress in 2014 with significant legislative, regulatory,
and legal victories that will help strengthen
the housing market in the year ahead.
At all levels of the federation, we fought for
two key pieces of legislation that ultimately
became law. The Farm Bill allowed more than
900 communities nationwide to retain their
status as rural areas where residents have access to important rural housing programs; the
Homeowner Flood Insurance Affordability Act
rolled back the costly consequences of the Biggert-Waters Flood Insurance Reform Act of
2012. Members at the local and state levels initially brought both of these issues to our attention, and then worked closely with the national
office to shepherd the bills through Congress.
Our members also engaged in coordinated
grassroots efforts to support housing finance
reform legislation and a bill to prevent expansion of federal authority under the Clean Water
Act. Both bills gained traction and likely will
be debated again in the 114th Congress.
In a victory for the NAHB, the Supreme
Court ruled that the EPA does not have the authority to require multifamily and commer-
b u i l d e r o n l i n e .c o m
Nahb briefs
labor by
the Numbers
122K
Over the past
year, residential
construction
employment has
grown by 122,000
16,700
Home builders and
remodelers added
16,700 jobs to the
economy in November
Source NAHB Eye on
Housing blog; Bureau
of Labor Statistics
data
code changes
In a big win for NAHB
and the home buyers
we represent, the
International Code
Council (ICC) has taken
a significant step
forward in ensuring
that code change
proposals come with
price tags.
In a recent press
release announcing
the opening of the
2015/2016/2017
code development
cycle, the ICC also
announced that
it will require all
advocates to include
the costs associated
with any proposals
introduced along with
the paybacks, where
appropriate.
Its exactly what
NAHB chairman-elect
Tom Woods asked for
when he addressed the
ICC board in September
and called on code
change proponents to
provide quantitative
information regarding
the magnitude of the
expected increase in
construction costs.
In a statement
lauding the ICC ruling
on cost estimates,
NAHB chairman Kevin
Kelly said, NAHB
commends the ICC
for approving this
landmark ruling that
will require all code
change proposals to
include cost estimates.
By acknowledging that
costs are an important
factor in determining
the merit of code
J a n u a r y 2 0 15
b u i l d e r 16 5
LANDSCAPE
Home Innovation
Research Labs
Recipe for a
Green Home
166 b u i l d e r
J a n u a r y 2 0 15
insulation
by the
numbers
90%
In new homes built 20
years ago, 90 percent
of cavity insulation
installed was fiberglass
batt or loose fill
2012
The share of spray
foam insulation nearly
quadrupled to 11
percent of the market
in 2012; in 2013, it fell
to 8 percent
Source: Home
Innovation Research
Labs
b u i l d e r o n l i n e .c o m
LANDSCAPE
Optimistic
OutlOOk
all signs point toward growth
in the residential construction
industry for 2015
168 b u i l d e r
J a n u a r y 2 0 15
David Crowe
chief economist,
nahb
dcrowe@nahb.com
The new year either will see the housing sector break out in a traditional, solid recovery or
it will see another mundane nudge forward.
It doesnt take a Ph.D. in economics to know
that. Unfortunately, any economist with two
hands can list forces for both outcomes. But
the scale is heavily tipped toward more
growth in single-family construction in 2015
than any of the recovery years to date.
Economic forecasts come with the drivers
most likely to dominate and the concerns
that could cause a diversion. The primary
driver behind a promising 2015 for singlefamily construction and sales is that we are
due. New and existing home sales have advanced since their trough in 2011, but at a
relatively slow rate given the depth of the collapse. When the final numbers are in, 2014
new-home sales will still be only half their
normal level without accounting for all of the
pent-up demand.
Healthy housing demand has been the primary missing link in this recovery, and the
modest employment gains from 2010 to early
2014 were the leading cause behind the slowto-return demand. The slow economic recovery diminished households comfort and ability to purchase a home. But as the economy
finds its footing as monthly employment
gains provide security that job losses and income stagnation have faded, and as home
values continue to rise, those hesitant households will be back in the market.
Existing home sellers are the primary customers for new homes. Turnover in existing
homes has begun to pick up and more of the
sales are occupant to occupant rather than lien
holder to investor. For 2015, new-home sales
will depend upon those trade-up buyers for
most of the market. The first-time home buyer
will continue to suffer from poor access to
credit, slow income gains, and difficulty accumulating a down payment. Their entry will
drive an even stronger market in 2016.
But no good news arrives without caution.
The headwinds that will continue to frustrate
a full recovery remain credit, land, and labor.
Building material price increases have frustrated builders over the past two years and
some annoyances will linger but a slower international economy will relieve the worst of
the price pressures suffered recently.
Credit remains the primary demand deflator. Mortgage underwriting standards have
been unreasonably tight as the housing finance industry struggles to determine the
boundaries that keep them out of jail and
court. New laws and regulations and greater
threats of court actions have made fines and
reputational losses a greater concern than
credit risks. Some recent federal pronouncements suggest modest relief is coming, but
true clarity wont arrive until Congress passes
housing finance reform legislation.
That leaves some supply difficulties in
amassing sufficient land and workers to build
the homes demanded. Both conditions vary
widely, but land and lot shortages may be the
most dangerous. Builder and developer access
to credit, particularly for land acquisition and
development, has been the most difficult to
resolve. Even if access improves, the time
needed to bring raw land to finished lot takes
years. A recent NAHB survey of developers
found over 1 million lots in the pipeline, but
that number must grow if the recovery is to
track expected demand.
Beyond the most immediate forces that
have kept the housing sector from moving at
a faster pace, the risks to a housing recovery
are the same as the risks to the rest of economy. The world economy weakened in 2014 and
if the expected turnaround doesnt occur in
2015, demand will weaken and housing will
suffer along with other sectors.
One reason behind an optimistic economic
forecast is that energy prices have fallen. But if
oil prices rise, then consumer spending will
shift back to energy expenditures. No economic model can envision the black swan that slips
in without warning. Unpredictable events
aside, all systems are aligned for the best improvement in year-to-year housing growth
since the boom. B
b u i l d e r o n l i n e .c o m
Compass Collection
STYLE THAT
WORKS
FERGUSON.COM
AD Index
Advertiser
PG number
RS number
Advertiser
PG number
RS number
ABC Supply
29
257
Eldorado Stone
21
288
AdvanTech
60
200
Electrolux
C6
207
121
151
Endura
26
213
BASF
45
437
Environment One
59
221
Boise Cascade
361
ExakTime
12
---
Bosch
Fantech
171
284
CaesarStone
43
368
Ferguson
169
198
Calculated Industries
10
---
Geico
48a-b*
---
Centipede Tool
153
435
Gladiator by Whirlpool
91
282
CertainTeed Saint-Gobain
HB&G
47
380
Chief Architect
24
354
Henry
27
316
ClimateMaster
46
297
49
---
Clopay
143
393
IAPMO
66-67
157, 251
C5
231
Icynene
272
35
216
Integrity by
Danver
154
432
Delta Faucet
11
314
James Hardie
30-31
416
82
197
Jamsill
90
357
Diamond Spas
28
399
C2-4
Dryerbox
36
274
DuPont Surfaces
136-137
155, 363
16a-d
---
52, 53
342
170 B U I L D E R
J A N U A R Y 2 0 15
296
C2a-C2c
423
96-97
158, 318
B U I L D E R O N L I N E .C O M
MARKETING
www.NKBA.org/Join
Lockhart
DESIGNER Janerr
Photo: Brandon
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or come to the
NKBA Booth #N2163
for an application.
Circle no. 431
fantech.net
AD Index
Advertiser
PG number
RS number
Advertiser
PG number
RS number
Johns Manville
135
373
PPG Paints
57
217
Kichler
123
163
119
300
Kohler
128-129
156, 384
Sherwin-Williams
83
376
Kwikset
41
---
Sierra Pacific
144-145
153, 395
LivingHomes
162
295
Simpson Strong-Tie
13
192
LP Building Products
32a-b
---
SoftPlan
10
237
Lumber Liquidators
130
184
Sterling by Kohler
39
355
Make It Right
32
364
Tamlyn
167
436
51
185
---
Metrostudy
C2d, 163*
---
164
203
163*
301
356
MiTek
138
238
245
Mohawk
87
276
Thermador
14-15
388
NAHB
16, 17, 33
---
Timberlake Cabinetry
156
196
84
268
127
269
90
299
NKBA
171
431
Trane
125
152
Norbord
19
264
Trex
239
438
Whirlpool
2-3
279
89
242
172 B U I L D E R
J A N U A R Y 2 0 15
ZIP System by
74-75
160, 212
18
310
93
255
B U I L D E R O N L I N E .C O M
outdoorrooms.com
Congratulations
TO HANLEY WOODS JESSE H. NEAL AWARD WINNERS
2014 WINNERS
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REMODELING
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POOL & SPA NEWS
Classifieds
174 B U I L D E R
J A N U A R Y 2 0 15
S P EC I A L A DV E R T I S I N G S EC T I O N
F O R M O R E P R O D U C T I N F O, P L E A S E G O T O W W W. B U I L D E R O N L I N E . C O M
Classifieds
S P EC I A L A DV E R T I S I N G S EC T I O N
FOR INFORMATION
on how to be a
part of the next
BUILDER MAGAZINE
special advertising
section,contact
Ken Wilson
202.452.0800
F O R M O R E P R O D U C T I N F O, P L E A S E G O T O W W W. B U I L D E R O N L I N E . C O M
J A N U A R Y 2 0 15
B U I L D E R 175
68%
of Americans feel
4.8M
$971
job openings
on Oct. 31
billion in total
construction activity in
the U.S. for October
458K
5.5%
39% 12-month
increase in
new homes
sold in October
of consumers
say its a good
time to sell
a house
21K 31%
of homeowners
specialty trade
contractor
jobs added in
November
Freddie Mac
176 b u i l d e r
J a n u a r y 2 0 15
70%
of adults are unaware
of down payment
assistance programs
NeighborWorks America
b u i l d e r o n l i n e .c o m
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Circle no. 207