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The Magazine of

The National Association


of Home Builders

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

Introducing Builder Insightthe home builders


mobile business intelligence resource.
Where should I build?
Where can I find land to build on?
What should I build?

Builder Insight gives you the ability to make confident decisions


fast. Backed by the most comprehensive housing data on the market,
Builder Insight provides an easy-to-use, map-based interface to
evaluate local markets, identify opportunities, and understand
product and pricing targets.
Turn your smart phone, tablet or laptop into an unmatched,
dirt-dealing advantage.

Download a FREE sample Target Market Analysis Report.


Visit contact.metrostudy.com/builderinsight413 for details.

WEVE BEEN THE

PREMIER CHOICE
OF CPVC PIPE AND
FIT TINGS SYSTEMS
FOR MORE THAN 50 YEARS.

V I S I T U S AT

IB S 2015 BOOTH 7326


IN THE CENTRAL HALL
Lubrizol CPVC compounds continue to be the building blocks of
piping systems for the building and construction industry.
FlowGuard Gold pipe & fttings, BlazeMaster fre sprinkler
systems and Corzan pipe & fttings are the premier choice of
builders worldwide. Our high-performance brand of piping systems
offers MORE INSIDE with our industry-leading manufacturing
partners, training and technical expertise.
Visit our website to fnd a piping consultant in your area.
www.lubrizol.com/cpvc
Follow us on Twitter @LZ_CPVC Tweet about the show
#IBSVegas #CPVC

Circle no. 356

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

/ 2015 All rights reserved.


All other products, company names, brand names, trademarks and logos are the property of their respective owners.

Circle no. 279

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

Circle no. 245

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

OUR VALUE PROPOSITION 2015

MORE REASONS TO BUY YOUR EWP


FROM A BOISE CASCADE DEALER:

BETTER ENGINEERED WOOD PRODUCTS:

Boise Cascade VERSA-LAM 2.0 3100 LVL meets or exceeds


the design values of most other LVL.
Dealers stocking VERSA-LAM can more easily substitute for
project specications vs. dealers stocking weaker beams.
As one of North Americas largest plywood producers, Boise
Cascade is able to consistently source higher grade, stronger
LVL veneers.

DEPENDABLE NATIONWIDE DELIVERY:


Most complete North American distribution/delivery network.
The products you want, when and where you want them.
Regional product mixes and help with local supply issues.
Our experienced designers know 2nd-generation BC FRAMER
integrated design software.
Single-point ordering and shipping, with most products
available from either Louisiana or Oregon.

Learn more:
www.BC.com/inst13

Learn more:
www.BC.com/inst01

PROFITABLE TOOLS AND GUIDANCE:

New BC FRAMER B.A.S.E. for builders, architects, speciers


and engineers gives you the freedom to design homes the
way you want to build them.
Save time with snappable points on PDF les, reducing the
time needed to accurately input walls and beams.

BC FRA

MER JU

ST GOT

A LOT MO

RE PROD
INTROD
UCTIVE:
UCING
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BC
ENERAT
FOR BUFRAMER B.A.
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ITECTS,
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ERS.

EASY TO DO BUSINESS WITH:


Were looking for ways to say Yes.
Listening and working to always be customer-focused.
Providing access to decision makers / problem solvers.
Having experienced area managers focus on your business.
Helping build your EWP business and in turn, building ours.
Creating a successful long-term business relationship.
Learn more:
www.BC.com/inst21
Our Val
ue

OPOsitiO
THE
n 2014
NEED4AREASONS YO
NOTHER
ULL NEV
EWP SU
ER
PPLIER:
Pr

1. COM
PLETE PROD
UCT LINE
2. DEPE
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DISTRIBUTI
ON

Learn more:
www.BC.com/inst05

3. EFFE
CTIVE TOOL
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ANCE
4. EASY

TO DO

BUSINESS
WITH

ASTEST

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T WAY
cing BC
FOR BUI
our foo
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r
LDERS,
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ts, Specife
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rs and Eng cifcally for Bui ion of
i l
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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.

Circle no. 361

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

20. editors Notes

76. Aging in Place


at asher, elevators are
standard

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

80. Friends entry


Tips on reviving a
prewar-era feature: the
friends entry

38. design Trends


Lessons from 2014s
best-selling house plans

Wire

40. editors Picks


Make plans to see these
hot new products at IBS
and KBIS

85. Fast riser


Pierrette Tierney
moves from Cnn to top
of Taylor Morrisons
Bay area operation

50. Category review


Induction technology
could shake up the
kitchen status quo
56. energy Star
Industry concern
yielded an updated
version of Energy Star
Version 6.0 for windows

Features

98. Outside the bOx


This years new american Home is focused on providing
takeaways for production builders at every price point.

Construction
details can prevent
or causefrozen
pipe disasters,
says BUILDER
contributor Leonard
Morse-Fortier. go.hw.
net/BD0115-pipes

139. millennial fact Or fictiOn


BuILDEr evaluates some of the most prevalent contentions
about millennial behavior and their implications on housing.

amid rising construction costs, builders are trying to construct


affordable homes for debt-strapped entry-level buyers.

157. tarGet Practice

Trent Bell

Scaling down the home to fit an entry-level budget is difficult,


but builders can find savings with smart planning.

58. building Safety


The labor shortage is
also impacting building
safety professionals

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

166. Home innovation


research labs

68. Packaging
Passive
adam Cohen is making
Passive for the masses

146. cOre curriculum

78. On the boards


Expert land planning
brings a sense of place
to the suburbs

70. Second Chances


affordable housing
puts an urban farm at
its center

168. Crowes
economy
a look at economic
conditions from
the naHBs chief
economist

Fit & Finish


176. Housing Stats

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

Home comfort has evolved.


Insulation too.
As the industry leader, Icynene drives a cutting-edge evolution of
insulation with a comprehensive and innovative portfolio of highperformance spray foam insulation. With an impressive R-value, our
next-generation closed cell product, Icynene ProSeal, sets a new
benchmark in performance, applicability and range. Icynene spray foam
insulation - engineered and always evolving.
Learn more at: www.icynene.com
Circle no. 272

The evolution of insulation.

2015 Trex Company, Inc. All Rights Reserved.

Designed to build your business.


To add more value to the homes you build, rely on the
brand thats engineering whats next in outdoor living. For
longevity, style and performance, Make the TrexDecision
by visiting trex.com.
Circle no. 239

the magazine of the national association


of home builders

SoftPlan 2016: coming soon


I dont know how a builder survives without SoftPlan.
Jim Irvine, Builder - The Conifer Group, Portland Oregon, Past President NAHB
easy to learn & use

powerful roof design

3D renderings

remodelers setup

materials lists

kitchen & bath design

framing layouts

deck design

automatic elevations

round-trip AutoCAD files

site plans

links to QuickBooks

animations

REScheck energy calcs

John McManus, group editorial director


Jerry Ascierto, editor-in-chief
Jennifer Lash, chief content manager
Amy Albert, senior editor
Jennifer Goodman, senior editor
Les Shaver, deputy editor, enterprise
Brian Wilson, deputy art director
Allison Levy, associate art director
Lindsay Machak, associate editor
Sandra Malm, associate editor
Laura McNulty, associate editor
Kayla Devon, assistant editor
Spencer Markey, senior web producer
Katie Gloede, data journalist, radar desk
Charlotte OMalley, data projects producer, radar desk
Gillian Berenson, contributing design director
Cathy Underwood, senior director, print production
Margaret Coulter, lead production manager
Lauren Searson, ad traffic manager
Tim Bobko, promotional graphic artist
Betty Kerwin, prepress coordinator

3D panorama views on

android, PC, iPad & iPhone

Christina Lustan, group director/audience marketing


& circulation
Diana Turco, audience marketing manager
Ann Russell, reader service manager
Holly Miller, director/channel and product
marketing
Megan McCloud, senior director/creative services
Mike Bendickson, vice president/conferences & events

hanley wood media

Try SoftPlan for yourself: visit www.softplan.com or call 1-800-248-0164 for your free trial

Circle no. 237

Dave Colford, president/media


Warren Nesbitt, senior vice president/residential
construction programs
Tom Rousseau, executive vice president/
strategic marketing services
Jennifer Pearce, senior vice president/strategic
marketing services & consumer media
Sarah Welcome, senior vice president/
audience operations
Rizwan Ali, vice president/product development

published by hanley wood

Peter Goldstone, chief executive officer


Frank Anton, vice chairman
Matthew Flynn, chief financial officer
Dave Colford, president/media
Andrew Reid, president/digital
Jeanne Milbrath, president/marketing
Christopher Veator, president/metrostudy
Sheila Harris, senior vice president/marketing
Paul Mattioli, senior vice president/corporate sales
Michael Bender, vice president/general counsel
Ron Kraft, vice president/business
planning & analysis
Keith Rosenbloom, vice president/
corporate controller

editorial and advertising offices


One Thomas Circle NW, Suite 600, Washington, DC 20005
Phone: 202-452-0800; Fax: 202-785-1974
subscription inquiries and back issue orders
888-269-8410 or email: builder@omeda.com
NAHB members please call 800-368-5242 x8546
circulation customer service www.omeda.com/custsrv/bldr
statlistics Jennifer Felling, j.felling@statlistics.com;
Phone: 203-456-3339
privacy of mailing list Sometimes we share our subscriber
mailing list with reputable companies we think youll
find interesting. However, if you do not wish to be included,
please call us at 888-269-8410.
Canada Post Registration #40612608/G.S.T. number:
R-120931738. canadian return address IMEX, P.O. Box 25542,
London, ON N6C 6B2
postmaster Send address changes to Builder, P.O. Box 3494,
Northbrook, IL 60065
BUILDER occasionally will write about companies in which its parent
organization, Hanley Wood, has an investment interest. When it does,
the magazine will fully disclose that relationship.

b u i l d e r o n l i n e .c o m

Trinsic Pull-Down

FIRST OF ITS KIND.


WITH MORE CHOICES
THAN EVER.
Cassidy 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

2013 Masco Corporation of Indiana

STORIES FROM THE FIELD


Weve been there.

the magazine of the national association


of home builders

subscription inquiries and


back issue orders

Call 888-269-8410 or email: builder@omeda.com


NAHB members please call 800-368-5242 x8546

for list rentals


203-778-8700

Now we spend our time on


job sites, not on wild goose
chases.
chases.
Chuck Kreger
Operations Manager, BTAC

to order reprints

Wrights Media, Nick Iademarco


877-652-5295 ext. 102 or niademarco@wrightsmedia.com

advertising sales offices

Paul Tourbaf, group president/residential construction


phone: 202-729-3629 fax: 202-785-1974
email: ptourbaf@hanleywood.com
Edwin Kraft, national sales director
5908 Northern Court, Elkridge, MD 21075
phone: 443-445-3488 fax: 202-785-1974
email: ekraft@hanleywood.com
Norma Figueroa, account coordinator, team lead
phone: 773-824-2412 fax: 773-824-2540
email: nfigueroa@hanleywood.com
East

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

D. John Magner, York Media Services


500 Queens Quay W., Suite 101W,
Toronto, Ontario, Canada M5V 3K8
phone: 416-598-0101, ext.220 fax: 416-598-9191
email: jmagner@hanleywood.com
United Kingdom and Europe

Stuart Smith
phone: +44 (0)20 8464 5577 fax: +44 (0)20 8464 5588
email: stuart.smith@globalmediasales.co.uk

See us at booth C4265

China and Hong Kong

We used to lose over 50 man-hours per month with foremen chasing


after workers time cards. Those days are gone. I dont miss them.

We helped Bruce Thornton Air Conditioning, Inc.

TRACK THEIR WORKERS AND


LOWER PAYROLL EXPENSES

Adonis Mak
phone: +852 2838 6298
email: adonism@actintl.com.hk
Washington, D.C.

Phil Hernandez, executive director/account


management
email: phernandez@hanleywood.com
Brian Sherry, account manager (west)
email: bsherry@hanleywood.com
Ken Wilson, account manager (north)
email: kwilson@hanleywood.com
Inside Sales Account Executives
One Thomas Circle NW, Suite 600, Washington, DC 20005
phone: 202-452-0800 fax: 202-785-1974

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

Simpson Strong-Tie Company Inc. SWSB13-B

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

Circle no. 388

PERSONALIZE YOUR EXPERIENCE


VISIT US AT DESIGN & CONSTRUCTION WEEK
BOOTH C3837 CENTRAL HALL

What Can You

NAHBe?

Successful. Proftable. Respected.


You just need the right skills and knowledge.
When you participate in NAHB Education, youre connected to a network of
industry peers. Whether through in-person courses, webinars, online courses
or events, youll learn from experts in the industry, merging theory with practice
in the key areas of todays residential building industry, like Building and
Business Management, Design, Green and Sales and Marketing. For every
knowledge need, NAHB Education helps you succeed.
NAHBe the best professional you can be with solid, ongoing education.
Find a course or webinar today.

nahb.org/education
Join the Conversation.

Think
twice.

Build it once.

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Over 30 years ago, DuPont invented the house wrap weather


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HomeWrap . Today, its still the standard for superior weather
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Tyvek StuccoWrap has an engineered, grooved surface thats


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stucco facades and EIFS systems. It helps provide better water
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For your residential construction projects, be sure to install


Tyvek HomeWrap for superior performance.

DuPont Flashing for Corners, Windows and Doors

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Tyvek material plus improved water management. The unique
grooved surface promotes drainage away from the wall assembly
to provide added protection against water damage.

DuPont Tyvek DrainWrap for Enhanced Drainage

DuPont Flashing Systems are uniquely engineered to protect


vulnerable corners of windows and doors, and around penetrations,
where water is most likely to find its way into the wall.

All DuPont flashing products are durable, tough, and designed


to be installed at a wide range of temperatures and allow for
prolonged exposure to UV light. DuPont self-adhered flashing
products are 100% butyl adhesive-backed for outstanding
adhesion to most construction materials. DuPont also offers
Tyvek Fluid Applied FlashingBrush Formulation that is ideal for
recessed window openings.

Tyvek DrainWrap is a moisture barrier designed to provide


enhanced drainage in areas subject to extreme, wind-driven rain
and behind claddings such as primed wood, fiber cement siding,
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It combines the superior air and water resistance, vapor


permeability and strength of Tyvek with a vertically grooved
surface, to help channel water safely from the wall.

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Home exterior remodeling and residing projects often begin by
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DuPont Tyvek weather barrier to the discussion can bring added
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It starts with simple protection. A DuPont Tyvek weather


barrier resists air leakage and water intrusion, but is also vapor
permeable or breathable, so any moisture vapor in the wall can
escape. This can provide more protection against the potential
for wood damage and growth of mold behind new siding.

Improving water resistance and controlling air flow can


help contribute to enhanced energy efficiency and a more
comfortable, durable home.
Unrivaled, Nationwide Support That Comes with Every Roll
The DuPont Building Knowledge Center provides consultation
on proper installation techniques, wall system design, building
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DuPont is working with construction professionals to apply


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comfortable, energy-efficient homes and commercial structures.

The DuPont Building Knowledge Center is a resource for


DuPont building envelope installation and best practices.
Its a dedicated source for information about evolving building
and energy codes, sustainable building practices and air,
water and thermal management.

DuPont Tyvek Specialist Network

The Tyvek Specialist Network is a national team that will visit


your job site to help ensure the installation of Tyvek weather
barrier products for optimum performance. Schedule a visit to
your job site at weatherization.tyvek.com

Certified Installer Program


DuPont Certified Installers act as on-site DuPont weather barrier
products installation experts, able to provide installation services
to help seal the building envelope. Locate a Certified Installer,
or learn how to become one, at weatherization.tyvek.com

Remember, only DuPont Tyvek weather barrier systems come


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Contact us.
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weatherization.tyvek.com

The difference is DuPont Tyvek .

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)

National Association of Home Builders

Hot Off The Press!


2014 SINGLE-FAMILY BUILDER COMPENSATION STUDY
NAHB Economics & Housing Policy Group

The 2014 Single-Family Builder Compensation Study provides compensation and


benets data for 39 common positions at single-family home building companies.
The study is divided into two sections that present the survey ndings from two
different perspectives. Builders can use results to benchmark what they pay their
employees against current industry averages.
From BuilderBooks, 2015, 296 pp/Softcover
Item 00303
ISBN 978-086718-737-3
NAHB Member $79.95

Retail $149.95

FINANCIAL FORECASTING IN MICROSOFT EXCEL


Jeffrey Kenneth Prager

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


Jeffrey Kenneth Prager and Scott Stroud

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.

From BuilderBooks, 2015, 186 pp/Softcover


Item 00302
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Editors Notes
THE GA ME CHA NGER ISSUE

A 2015 WISH

As you strive for operational


excellence, you better recognize
risk for what it is

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

Peter James Field/agencyrush.com

Home builders are like other people in a lot of


ways. But in some characteristics and habits,
youre just different. And thats mostly a very
good thing.
Home builders are generous-souled, incredibly driven, and hard-working people who
want their efforts to result in lling a deep human need that often has an almost permanent
(decades-long) set of implications for use of
part of the planet. Good work means work that
lasts, stressed by the elements of nature, economic ups and downs, and incessant use.
Theres something in the DNA of a home
builderwhether its an entrepreneur working at a kitchen table, via Starbucks WiFi
hookup, out of a truck, or in an office full of
white-collared MBAsthat appears to be
comfortable with what is cognitively tough.
Risk, for instance.
Home builders take on risk both in what
they buyland, labor, materials, processes,
and productsand what they sellimproved
residential properties. Theres reward for excellence on both sides of that equation, and
theres punishment for either miscalculation
or misfortune on both sides as well.
Value varies, after all. Sometimes it all but
disappears in time, only to come roaring back.
Observers would say home builders may be
good at a lot of things, but theyre not skilled at
mapping risk into their businesses. This probably traces to a now well-known phenomenon
that people, by nature, are more optimistic
than reality warrants that they ought to be.
Home builders need to get better at putting risk where it needs to be in a business
plan. Now. That is an area of operational excellence that may have been an option in
bygone cycles, but thats no longer the case.
Risk involves taking stock of worst-case,
and worse-than-worst-case, scenarios solving
for a home builders four precious areas of
value: money, time, land, and talent. Bankers

and investors nd that home builders dont


map financial risk properly. Pro formas
smooth out across time, and pushing them
into a more distant perspective that fails to
pick up sharp, dislocating periods of volatility
that can rock or even kill a business.
Where is risk right now for home builders
a couple of dozen big public companies, hundreds of medium-sized privately held enterprises, and thousands of companies that build
in subdivisions everywhere?
Risk, as we see it, is in believing external
forces will lift you and create demand for what
youre set up to deliver.
2015 is a line-in-the-sand year for operational excellence. It means buying what you
buy brilliantly, and marketing and selling
what you sell just as ingeniously.
It means running your teams as you never
have before. It means 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.
Home builders are different. You have a fourletter word for everything. A company principal I know tells the story of recruiting a super
for one of his communities who was brimming
with charisma, attention to detail, project
management skills, business strategy and tactics, and ideas. Only thing is, he had not one
iota of jobsite experience. So, it gets to be this
fellows first day, and he calls this friend of
mine whod hired him, and says, Im nervous.
I dont know anything about what the guys are
doing, and Im supposed to manage them.
Dont worry one bit, says the principal of
one of the top 25 private home building companies in the U.S. Just yell and curse a lot and ask
them what the hell theyre doing, and that
should work like a charm.
Buying lots, hiring people, sourcing materials, building home systems, and featuring your homes with products has more risk
in it than ever. So, too, does programming,
marketing, and selling against this largely
invisible wave that everyone refers to as the
millennial buyer.
We hope this issue of BUILDER gets you
and your team focused so that you can map
risks appropriately into your model and then,
simply, overcome them. B

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

2014 Eldorado Stone, LLC

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Start

PULSE PG. 34 I DESIGN TRENDS PG. 38 I


EDITORS PICKS PG. 40 I CATEGORY REVIEW PG. 50 I
ENERGY STAR PG. 56 I BUILDING SAFETY PG. 58 I
STRONGEST DEMAND
San Antonio

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

Salt Lake City

Salt Lake City

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

Central California From October to November, new home and


2

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

Circle no. 213

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-

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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

tional pressure on builders to entice buyers to


an infill product and/or a more remote location, according to Metrostudy regional director Dennis Handler. Although future inventory is available and demand for quality lots is
high (SoCal received a lot demand score of 8 in
November), cost is weighing heavily on builders. Despite steady job growth, new-home
prices continue limits of affordability for buyers as well, keeping them out of the new-home
market and pushing them to resale.
Senior Sustainability
Albuquerque could be a come-back kid in 2015,
as two large developments should entice buyers to enter the market, and increase demand
for new homes (something that hasnt been
seen since in this market since the start of our
index). Most significant of the two is Del
Webbs Mirehaven development, an active
adult community expected to deliver 538
homes in the affordable price range of $229,900
to $304,990. Mirehaven will be Del Webbs first

age-restricted community in Albuquerque; the


company hopes it can capitalize on the attractiveness of the city to retiring baby boomers
from other states. The gated community is
nearly 300 acres, adjacent to the Petroglyph
National Monument, close to the airport, and
rich with amenitiessounds like a win.
Retirees have flocked to the Sarasota market for years, but the sheer volume of snowbirds expected to enter the market in the
coming years puts the Sarasota-Bradenton
market on our watch list. From 1954 to 1964,
the birth rate rested at 4 million annually
(compared with 3.6 million in 1950), so builders expect baby boomers to enter the market
in droves over the next five years, and expect
levels to remain high for a decade. If boomers
truly do enter the market steadily in the next
decade, the Sarasota market will be set (until
it runs out of lots, that is).
In early December, the National Association of Realtors (NAR) analyzed data in 100
metro areas with lower state taxes and sta-

ble job markets to determine which regions


are likely to see a big boost from the boomer
generation, with both Albuquerque and
Sarasota making the top 10 list. The NAR
took many metrics into account, including
201113 migration patterns, housing inventory, housing affordability, and cost of living, which bolsters the predictions of Metrostudy regional directors.
Onward and Upward
Were confident that Reno, Sacramento, Albuquerque, and Sarasota will experience notable
(and positive) change in the coming years, but
heightened demand also comes with kickback
for both builders and buyers. As builder activity
increases in these markets, it will be important
to track how demand impacts land and newhome prices as the affordable price tag, most
notably in Albuquerque and Reno, is a big draw
for potential buyers. Builders with interest in
these game-changing markets better be ready
to storm the court. charlotte omalley

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Photographer: Brent Bingham

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2014 James Hardie Building Products Inc. All Rights Reserved. AD1477 11/14

Circle no. 416

Circle no. 364

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

A Sluggish Finish for 2014 Housing Starts


There was no evidence of a strong pickup in
home construction in the final months of 2014.
According to recent Census Bureau data, housing starts in November were at a seasonally
adjusted annual rate of 1,028,000. This is 1.6
percent (8.1%) below the revised October estimate of 1,045,000 and is 7.0 percent (10.2%)
below the November 2013 rate of 1,105,000.
Single-family housing starts in November
were at a rate of 677,000; this is 5.4 percent
(8.1%) below the revised October figure of
716,000. Lot shortages are holding back production in many markets, but demand is also
to blame for the lackluster numbers.
Metrostudys outlook for 2015 is for a modest
increase in single-family starts as well as a
(smaller) increase in multifamily starts. Builders were aggressive in land and lot acquisition
in the past three years, and Metrostudys data
confirms that the number of new lots getting
developed each quarter is rising rapidly, even
in markets that were once over-lotted. This
strongly suggests an increase in housing starts
in 2015, just based on builders intentions and
lot supplies. As long as job growth continues to
increase, new-home demand will rise more
rapidly as well. brad hunter
Americans Top Unmet Housing Needs
Many Americans are living in less-thanideal houses and neighborhoods, according
to The Housing Satisfaction Gap: What
People Want, But Dont Have, a recent report
from The Demand Institute.
The survey revealed Americas top 10 unfulfilled housing needs and desires by polling more than 10,000 householdsrenters
and owners across generations and income
levelsto establish the gap between what
people think is important in a home and
what they actually have.
The biggest overarching thing is that
when it comes to their homes, there are still a
lot of things that Americans want to improve,
says Jeremy Burbank, vice president of The
Demand Institute. With over 40 million U.S.
households set to move in the next five years,
spending $7.4 trillion on home purchases,
builders have a major opportunity to create the
homes that potential buyers want.
While ownership has been down and renter households have grown, that doesnt neces-

34 b u i l d e r

J a n u a r y 2 0 15

sarily reflect a lack of interest in buying so


much as a lack of financial means. Seventyseven percent of survey respondents still view
homeownership as an excellent investment.
And the reports findings support that aspiration. Theres a desire for things like more
space, privacy, and safe neighborhoods that
are often attributed to single-family homes
and ownership, says Burbank.
The top satisfaction gap regards energy efficiency, with 71 percent of respondents ranking it as important and only 35 percent satisfied with their current homes performance.
Americans home electricity spending has increased 56 percent since 2000, so it makes sense
that people want to lower their utility costs.
This is one area where new construction
has an advantage, Burbank says, since newer
homes typically are more energy-efficient
than existing ones due to improvements in
building science and construction products.
Other top desires indicating an advantage
for new homes include houses that require
little to no renovation, updated kitchens with
modern appliances, and more storage space
key design areas for builders to focus on.
Many buyers also will be looking for homes
that are suitable for aging in place. According
to the report, 76 percent believe a home they
can stay in as they get older is important, but
only 53 percent feel that their home meets that
criteria. Among baby boomers, those who are
planning to move are interested in singlestory homes, but not necessarily in decreasing
square footage, Burbank says.
Affordability continues to be a problem in
housing as well: 26 percent of owners and 40
percent of renters spend more than 30 percent
of their income on housing expenses. The report found that approximately 1-in-5 Americans is not satisfied with the cost of their current living situation.
Theres certainly a well-documented
shortage of affordable housing, particularly
when it comes to renters, and the situation is
only getting worse, says Burbank. Singlefamily and multifamily developers should
look for innovative approaches to fill this
need and bring more affordable units into the
marketplace, he adds.
The survey finds that safety also is a concern, with 22 percent of respondents noting
they are not satisfied with the safety of their

From the blog


Myers Barnes, founder
of Kitty Hawk, N.C.
based Myers Barnes
Associates
builderonline.com

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

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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
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2014 Mercedes-Benz USA, LLC
*Excludes all options, taxes, title, registration, transportation charge and dealer prep fee.
1. Based on a comparison of the Automotive News classification of full-size commercial vans at time of
print. 2. Fuel savings estimate of up to 18% according to FTP75 testing of engine OM651 (4-Cylinder) versus
MY13 OM642 (V6). Individual mileage will vary, based on factors including vehicle load, driving style, road
conditions and fuel quality. 3. Crosswind Assist engages automatically when sensing dangerous wind gusts
at highway speeds exceeding 50 mph. Performance is limited by wind severity and available traction, which
snow, ice and other conditions can affect. Always drive carefully, consistent with conditions. Feature not
available on 3500 models.
Options shown. Not all options available in the U.S.

Start
Pulse

current home. About one-fifth, 65 percent of


whom are in non-urban areas, feel their neighborhood has become less safe in recent years; a
surprising finding, given that crime rates have
been falling since the 1990s, Burbank says.
This presents a market for improved home security systems, with an increasing number of
home owners likely to turn to advanced technology for peace of mind. laura mcnulty
Builder Expands Its Texas LEED Program
Jimmy Jacobs Homes, a Century Communities company, has committed to LEED certification for all new homes in its current and
upcoming developments. Two of the companys newest LEED-certified developments,
Reagans Overlook in Austin and Pearson Place
at Avery Ranch in Leander, were set to open in
late 2014.
The firm employed LEED standards in two
current San Antonio communities, Vintage
Oaks and The Canyons at Scenic Loop. LEEDcertified homes will save homeowners up to 40

percent on energy and water bills. The new


LEED-certified homes qualify for Jimmy Jacobs Efficiency Promise Program, which provides a two-year limited guarantee that energy
used to heat and cool the home will not exceed
a specified value. In addition, LEED-certified
homes generate higher average property values than homes without LEED certification.
Jimmy Jacobs new LEED-certified
homes use less energy and natural resources. As a result the homes create less waste
and provide a healthier environment for the
homeowner, said Justin Cox, vice president
of operations at Jimmy Jacobs Homes. We
have made a conscious decision to invest in
this program as we believe its the responsible choice that will ultimately provide the
best outcome to our homeowners.
To maintain this initiative, Jimmy Jacobs
has employed third-party LEED-certified inspectors throughout the entire home building
processfrom design to final reviewto ensure new homes are compliant with LEED

standards. Upon taking possession of the


home, each homeowner will receive a verification of their homes LEED certification.
Remaining homes under construction in
the closeout communities of Long Creek at The
Bandit in New Braunfels, The Fairways at River
Crossing in Spring Branch, and Heritage Oaks
in Georgetown will not be included in the LEED
certification but will still bear the companys
signature quality and green components.
Jimmy Jacobs has a 25-year history serving Austin and San Antonio with nine current Austin-area developments. Since its acquisition by Century Communities in September 2013, Jimmy Jacobs has expanded
rapidly in Austin. jennifer goodman
Clarification: In the article Marketing Campaign Urges Young Buyers to Say I Do to a New
Home in our December issue (p. 18), Keystone
Custom Home representatives misspoke regarding Wells Fargos role in the builders marketing program.

Give the Dryer Some Space

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.

NEW Standard Installation Model 480


22 Gauge Aluminized SteelShown Painted

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THERES
NOTHING
TOUGHER.
CASEMENT
CLOSED.

Integrity employee Larry T. at the Wood-Ultrex factory in Fargo, ND.

Were a company built on a foundation of values. An evolution of principles


established over a century ago, passed down through the Marvin family. Building
windows and doors with pride, here in America, as if theyre for our own homes.
Taking no shortcuts. Making tough windows and doors with Ultrex pultruded
fiberglass, featuring the industrys rst and only AAMA-veried 624-10 nish.
Thats Integrity.
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NEW Wood-Ultrex
Insert Replacement Casement

Visit our ALL-NEW website to see why Integritys Ultrex berglass


makes the toughest windows and doors. IntegrityWindows.com
2015 Marvin Windows and Doors. All rights reserved. Ultrex is a registered trademark of Marvin Windows and Doors

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

LESSONS FROM 2014S


BEST-SELLING HOUSE PLANS

This plan has topped the charts


for an amazing five years in a row.
Why? It perfectly embodies the
current design movements, with
an extensive lanai and fireplaceheated barbecue porch in back,
lots of kitchen space, and a twoway fireplace gracing the open
living spaces.

Outdoor living spaces reigned supreme in last years top-selling plans

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

porches, others offer screened porches, and


four even boast outdoor fireplaces. All of
these spaces are much more than afterthoughts (and lest it seem like all of this
space is away from neighborhood sight, it
should be noted that eight of the top 10 designs display front porches, too).
Other points of commonality among the
top-selling plans: master suites on the main
level (nine out of 10); at least one fireplace (all
10); and extensive kitchen counter space (all
included an island, a snack bar, or both).
aurora zeledon
Browse plans or order online at
BuilderHousePlans.com or by phone
1-800-634-4773

PLAN SHOPPERS: Which features


are of interest to you?
78%

Open
Floor Plan

64%

61%

Master
on Main

Outdoor
Living

A recent survey of house plan shoppers


reveals outdoor living spaces are one
of the top three most desired features.
Source Survey on eplans.com

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

Learn how beauty meets brawn at SterlingPlumbing.com.


Circle no. 355

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

the roofs pitch, the company says.


Hinged Hip and ridge Shingles offer
easy installation and a customizable
fit to provide a simple, professional
finish. www.plygem.com. Circle no. 3.
Booth no. C3820.
4. odl
Chain link, cubed, frosted, and clear
glass options are suitable for any
flush door and can be configured in
horizontal or vertical arrangements
in the new Spotlights doorglass
series. Three glass sizes7.5 by
7.5 inches, 12 by 12 inches and 22
by 3.5 inchescan be mixed and
matched to complement various

styles, and the low-profile PVC


frame can be painted to match any
preferred color. www.odl.com.
Circle no. 4. Booth no. C2139.
5. rev-a-shelf
The 448-OXO Organizer makes
room in a 12-inch base cabinet for
food storage containers to help
homeowners reclaim their counter
space. The custom shelves are
designed specifically to fit the
included OXO containers. Fullextension slides with Blumotion
soft-close help improve accessibility
and durability, while adjustable
rub bushings prevent side-to-side
movement and frame rubbing.
www.rev-a-shelf.com. Circle no. 5.
Booth no. n1127.

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

of weathered wood. Barnwood


and grayscale colorways are
also available. Creative Mines
masonry veneer production
uses natural pumice pozzolan to
enhance compressive strength,
minimize efflorescence, and reduce
permeability. www.creativemines.us.
Circle no. 7. Booth no. S1875
8. moistureshield
The third color in MoistureShields
Pro line, Brazilian chestnut, is
engineered for superior performance
and aesthetics. Boards come in a
variety of hues, three lengths and
two profile options, with coordinating
trim boards. The Pro line is the
companys most durable, with
moisture-resistance that allows the
boards to be installed in the ground

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

two of the breakthrough features of


the new Energy Star Tier 3-qualified
Trilogy 45 Q-Mode variable-speed
geothermal heat pump. The system
also provides dealers with 24/7
access to diagnostics, operating data,
and unit settings through an online
portal. www.climatemaster.com.
Circle no. 10. Booth no. C5943.
11. lp building products
available pre-cut in 8-, 9-, and 10-foot
heights, LP LongLength XL panels help
meet building codes in high wind and
hurricane zones. The panels can be
used for single- and multistory vertical
installations, allowing the sill plate to
connect to the upper top plate with
one panel to shift wind uplift loads and
reduce air leakage. www.lpcorp.com.
Circle no. 11. Booth no. C3811.

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

Circle no. 368

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

J a n u a r y 2 0 15

posts are unfinished and available


in more than 18 species. The firms
millwork services include custom
notching, receptacles for electrical
application, additional sanding, and
splitting, helping to ensure items
arrive ready for use without additional
lead time. www.osbornewood.com.
Circle no. 13. Booth no. n1751.
14. henry co.
The all-silicone 887 Tropi-Cool roof
coating is made to withstand extreme
heat and moisture and reflect uV
rays. Moisture-cure chemistry creates
an aggressive chemical bond with
roof decking, allowing the material
to seal thoroughly and resist ponding
water and mold growth. applied by
spray, roller, or brush, 887 Tropi-Cool
is designed to retain its reflective

properties as it ages. www.henry.com.


Circle no. 14. Booth no. C8333.
15. toto
With graceful lines and an elegantly
flared base, the Connelly faucets
single-lever options offer a timeless
aesthetic. available in polished
chrome, polished nickel, and brushed
nickel, Connelly is WaterSense labeled
for its 1.5-gpm flow, and features
forged brass valves and ceramic disc
cartridges. www.totousa.com. Circle
no. 15. Booth no. n1327.
16. panasonic
Panasonics Condensation Sensor
Plus detects hot air and humidity

based on dew point, which allows


the sensor to turn on ventilation fans
when necessary to keep moisture
from causing damage no matter the
season or climate zone. The sensor is
part of the WhisperControl collection,
which is also introducing a Preset
Countdown and Hourly Fan Timer.
www.panasonic.com. Circle no. 16.
Booth no. C5613
17. Marvin windows & doors
The ultimate Multi-Slide Door brings
the outside in with large glass surface
area and clean sight lines. Panels
stack in front of one another as the
door opens or tuck into the walls in
the pocket version, with unidirectional
and biparting configurations available.
www.marvin.com. Circle no. 17. Booth
no. C5520.

b u i l d e r o n l i n e .c o m

We create
chemistry
that lets cool
spaces love
hot places.

At BASF, we are a leader in the residential home building


industry. Our 150 years of innovative chemistry expertise is
hard at work helping to create a more sustainable future. Now,
through our BEYOND.HIGH PERFORMANCE platform, we
are further leveraging our profciency in building science to
provide consultative solutions to building professionals
throughout North America.
When a unique, holistic approach enables the construction of
more affordable, sustainable, high-performance homesno
matter where they liveits because at BASF, we create chemistry.
Visit us at www.basfbeyondhome.us to learn more.

Circle no. 437

150 years

Circle no. 297

ng
ti
a
br
Cele

13

s
ear
Y
5

DO
LESS
GET
MORE

Join us at the
Intl Builders Show
Booth C8119

you get tired of column callbacks?


What if there was an option with

need for time-consuming installs?


What would you do if you could

a complete square column that gave


you a limited lifetime warranty and

time to focus on what really matters?


Its time to do less and get more.

HB&G PermaCast Columns

Fewer parts. Faster installs. Less worry. More free time.

Fewer
callbacks
than site-built
columns

Circle no. 380

The Delight is in the Details.

Visit hbgcolumns.com
or scan to learn more!

Stay Connected
to the Industry
with Webinar Wednesdays
Get the knowledge you need to grow, profit and succeed.
With several seriesEconomics and Research, Policy and Finance, Design and
Technology, Sales and Marketing and Business Improvementyoull get smart takes
on the latest trends and techniques no matter where you are, Wednesdays from NAHB.

For the complete schedule and to register,


visit nahb.org/webinars.

MAY 1113, 2015


Turnberry Isle
Miami

TEAM FIRST
TRANSFORM, INSPIRE, AND UNLEASH VALUE LIKE NEVER BEFORE

JOIN US AT THE HOUSING INDUSTRYS PREMIER LEADERSHIP EVENT


At the 2015 Housing Leadership Summit well lift the veil on how

This conference is reserved for:

top regional and national builders seize opportunity with the power of

Strategic/executive leadership
(CEO, President, COO, CFO, SVP)
Operational/regional leadership
across disciplines including
operations, purchasing, sales,
financing and marketing
(Division President, Vice President,
General Manager, Director)

teamwork. In a Summit first, entire senior leadership teams will


offer an exclusive 360-degree multidisciplinary view on how they
achieved breakthrough results.
Learn how to upgrade operations, transform culture, heat-map fields of
opportunity, and set yourself on a course of continuous, rapid prosperity.
Reserve your place at the industrys premier networking event today!

For program details and to register, visit

register.housingleadershipsummit.com
CHARTER SPONSOR

TITLE SPONSORS

GOLD SPONSORS

SILVER SPONSORS

Start
cat e g o ry r e v i e w

1. The Splurge

Magnetic
appeal

Fast, safe, and efficient, induction


technology has the potential to
shake up the kitchen status quo

Using electromagnetic energy, induction


technology is a different way to cook; unlike
gas or electric, the heat source is not the cooktop, but the cooking vessel itself. Electric currents pass through copper coils underneath
the cooktops surface, creating a magnetic
field that heats the pan upon contact.
It may sound futuristic, but induction has
been used successfully for decades in Europe
and Asia. As options have become more widely

50 b u i l d e r

J a n u a r y 2 0 15

available, its gaining ground in the U.S. as


well, currently accounting for about 15 percent
of cooktop sales, says Brian McWaters, brand
general manager for GE Appliances.
Many industry experts are passionate
about the technology, touting its performance, usability, and design benefits. Induction is definitely the way of the future, says
Nadia Subaran, senior designer and co-founder of Bethesda, Md.based Aidan Design.
Premium Performance
For decades, the cooktop debate has pitted gas
versus electric, each option with its own pros
and cons. Now, however, more homeowners
are realizing there might be a way to get the
best of bothand builders should take note.
We describe induction as the performance benefits of gas in an electric configuration. One of the big benefits of gas that
people like is the responsiveness and instantaneous reaction; that is what you get with

For the serious home chef, the 36-inch


Masterpiece Series Freedom Induction
cooktop from Thermador uses 48
3-inch induction coils to deliver more
usable surface area. It features
automatic cookware detection, a
4,600-watt PowerBoost, a 6.5-inch
color touchscreen control panel, and
an antioverflow system. MSrP: $5,400.
www.thermador.com. Circle no. 18.
2. The STeal
The GE Profile Series 36-inch
induction cooktop is only a few
hundred dollars more than the series
36-inch radiant electric cooktops. The
five-burner cooktop includes the firms
most powerful element, at 3,700
watts, along with safety features such
as a child lock and pan presence
sensor. MSrP: $1,900. www.
geappliances.com. Circle no. 19.
3. The STand-alone
The Kenmore Elite Freestanding
Induction range provides a full
appliance upgrade. The 30-inch
cooking surface offers pan size
detection and precision temperature
controls, while the 6.1 cubic foot
capacity oven uses convection
technology. MSrP: $1,999.99. www.
kenmore.com. Circle no. 20.

b u i l d e r o n l i n e .c o m

Ultimate Sliding French Door and Transom (IZ rated),


Bronze Exterior AAMA 2605 fnish,
Nobilus Solid Bronze door handle

Builder: Michael K. Walker & Associates Inc.


Architect: Guy Peterson Offce for Architecture Inc.

OUR ATTENTION TO DETAIL


G O E S W E L L B E Y O N D O U R P R O D U C T.
Our knowledgeable dealers provide personal attention and individual solutions for each of your projects, because we know that every job counts.
This level of service, combined with four generations of product innovation, and high-quality windows and doors,
means peace of mind at every stage in your project. At Marvin, every detail makes a difference.

Experience the Marvin difference at MARVINWINDOWS.COM

Circle no. 185


2015 Marvin Windows and Doors. All rights reserved. Registered trademark of Marvin Windows and Doors.

An insulation innovation thats


a breath of fresh air
Now you can get industry-leading DuPont Tyvek HomeWrap combined with a blanket of insulation.
Te result is a weather barrier that helps protect the home from air and water and delivers an R-5
insulation value. And because Tyvek TermaWrap R5.0 is breathable, it allows any moisture that may
get inside the wall to dry and escape to the outside, helping to prevent accumulation of water in the wall
and reducing the chance for water damage and mold.

Breathe easier. With Tyvek ThermaWrap R5.0

Learn more at www.thermawrapR5.tyvek.com


Circle no. 342
Copyright 2014 DuPont. All rights reserved. The DuPont Oval Logo, DuPont , Tyvek , HomeWrap and ThermaWrap
are trademarks or registered trademarks of E.I. du Pont de Nemours and Company or its afliates.

INTRODUCING
DUPONT TYVEK
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Cat e g o ry r e v i e w

induction as well, McWaters says.


Larissa Taboryski, culinary director at
Brisbane, Calif.based Purcell Murray Co.,
agrees. The performance of induction is one
of the most spectacular things about it. Its
the responsiveness that really sets it apart.
Induction heats up much faster than
other elements, reducing cooking times.
Cooling happens quickly as well, which
means residual warmth wont continue to
cook food after the unit has been turned off.
Advanced controls also allow for greater
precision when adjusting temperatures. You
have almost infinite control. You can get
down to decimal points of what expectation
you have of heat, says Lori Wood, director of
product management at Kenmore.
Also notable is the technologys energy efficiencyinduction cooktops experience
only 5 percent to 10 percent heat loss, as opposed to about 45 percent for gas.
Its also very energy efficient because you
are cooking for half the time, adds Sara de la
Hera, vice president of marketing and sales
for New Jerseybased appliance company
Fagor America.
Reduced heat loss into the kitchen means
a more comfortable cooking experience, especially in small kitchens or hot climates.
And induction excels in cleanability and
safetythere are no baked-on spills to scrub
and no heating element to leave on. Those
features have made it particularly popular
among those with young children or those
who are aging in place.
Modern Appeal
While powerful, these units are sleek and low
profile, which can be a big selling point, says
Zach Elkin, director of brand marketing at
appliance manufacturer Thermador. Some
consumers are looking for the appliance to
disappear. The frameless induction is very
integrated into the countertop.
Subaran says she sees a desire for an understated aesthetic with many of her clients
as well. Weve seen a real lean toward more
modern detailing in kitchens, and as a
whole, people are leaning toward cleaner
lines and simpler details.
In addition, induction can be a space saver
in a room where space often is at a premium,
says Mick De Giulio, principal of Chicago-

b u i l d e r o n l i n e .c o m

based de Giulio Kitchen Design. It has a flush


design. It can be set into countertops, and it
can second as a countertop work surface.
Another benefit is the minimal ventilation requirement, Subaran says. Large gas
ranges, which have a high BTU output, require high-CFM range hoods that often necessitate the introduction of make-up air.
Thats not an issue with induction, which
means induction cooktops can be placed
nearly anywhere in the kitchen, allowing
for greater design flexibility, says Taboryski.
Ventilation makes it challenging to put a
gas cooktop in an island. Induction offers a
terrific alternative.
Overcoming Barriers
One long-standing hurdle to inductions
widespread adoption has been its price point,
but as more manufacturers enter the market,
that is becoming a thing of the past.
Now, the main priority is education, says
De Giulio. At first, people need to have a little
more explanation about what induction is
and what its benefits might be. Once people
hear the benefits, they are almost 100 percent
on board.
A challenge still remains in persuading
people to embrace an unfamiliar technology
and new controls. People are very apprehensive about changing the way they cook,
Wood says, adding that induction doesnt
really require you to change the way you
cook; it enhances the way you cook.
Some consumers also may be unsure
about what cookware they can use, a problem
that is easily solved by testing with a refrigerator magnet: if it sticks to the bottom of the
pan, the pan will work for induction.
Though initially slow to take off, the
technology is now expanding quickly in the
U.S., putting lingering doubts about its appeal to rest.
Induction is clearly our fastest growing
segment, Elkin says. Weve had tremendous growth over the past five to six years.
De la Hera echoes that sentiment, noting
that sales of induction keep growing by at
least 25 percent each year.
As the increasing sales indicate, feedback
has overwhelmingly been positive. Once you
have induction, you will never go back,
Wood says. laura mcnulty

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Wall-To-Wall Solutions
2013 CertainTeed Gypsum

Visit us at
IBS Booth
#C2127

Our drywall not only makes homes look better,


we make them sound, breathe and feel better.
CertainTeed Gypsum offers a wide range of drywall and nishing
solutions that will help make your homes stand out from the
competition. From the most sustainable wall and ceilings systems
in the industry to actively improving air quality and reducing noise

800-233-8990 www.certainteed.com
ROOFING SIDING TRIM DECKING RAILING FENCE
GYPSUM CEILINGS INSULATION

Circle no. 250

levels, you can Be Certain our innovative wall-to-wall solutions will


add value to every room in your homes. Thats good for your
homebuyers and good for your business.

ADVERTISEMENT

PARTICIPATING LEVEL SPONSOR

CERTAINTEED GYPSUM: HIGH-PERFORMANCE WALLS


AND CEILINGS FOR BETTER-SELLING HOMES
People spend about 90% of their time indoors. As the industry
focuses more on tighter building envelopes, the elimination
of contaminants is more critical. Even when using responsible
materials during construction, volatile organic compounds (VOCs)
such as formaldehyde pose a persistent threat. Did you know that
formaldehyde, the most common VOC found indoors, can enter a
home through products like engineered wood furniture, carpeting,
treated fabrics, and cleaning materials? This potentially harmful
VOC can circulate throughout the home and affect the air we
breathe. The installation of AirRenew, along with good indoor air
quality design and proper ventilation, provides an effective strategy
to reduce the exposure to formaldehyde.
AirRenew Essential Indoor Air Quality Drywall is the first-ofits-kind, patent-pending wallboard that actively contributes to a
homes indoor air quality by permanently removing formaldehyde.
AirRenew converts formaldehyde into an inert compound that
remains safely within the board, and will continue to work even
through multiple coats of water-based acrylic and epoxy paints or
breathable wallpapers. It installs and finishes like regular drywall,
contains up to 99% total recycled content, and can be recycled
after renovation. Specifying AirRenew differentiates a sustainablydesigned and built home, and is a smart long-term investment for
you and your buyers.
To learn more about how CertainTeeds AirRenew Essential IAQ Drywall
is part of CertainTeeds Wall-to-Wall Solutions program and a smart
choice for a sustainable home, visit: www.CertainTeed.com/AirRenew.

Circle no. 154

For more information on all of CertainTeeds innovative products


visit certainteed.com or call 1-800-233-8990.

Start
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.

Northern North-Central South-Central Southern

EnErgy Star vErSion 6.0


BEginS rollout
The cost-effectiveness of high-efficiency products is among
the window industrys chief concerns. By Lauren Hunter

Willingness to listen to industry concerns has


yielded an updated version of Energy Star Version 6.0 requirements that, at one point, had
the potential to significantly cut the number
of units eligible for the program.
According to the Window and Door Manufacturers Association (WDMA), early drafts
of Energy Star Version 6.0, which rolls out
this month, put such stringent U-factor and
solar heat gain coefficients (SHGC) into effect
that it could have resulted in Energy Star
products reaching a market share of less
than 50 percent, compared with the 80 percent market share Energy Star windows currently have.
Especially in the northern zones, which
represent such a large area, we were concerned that the cost of the product would
become so cost-prohibitive for consumers

56 b u i l d e r

J a n u a r y 2 0 15

that they wouldnt buy Energy Star products,


and they wouldnt have anywhere to turn,
explains Jeff Inks, vice president of code and
regulatory affairs for WDMA.
Kevin Vilhaur, engineering manager at
Tacoma, Wash.based Milgard, agrees. Its
difficult to get a customer to purchase an Energy Star product thats more expensive if
theres no justification, he says. Some people
may buy them because they want to be environmentally conscious, but if they cant see
the energy savings, its much more difficult.
Inks says the WDMA and the industry are
generally supportive of where the requirements are now. In back-and-forth discussions with the EPA, the WDMA asked for
substantiation of data the agency used to support U-factor and SHGC changes to determine
that the new values would be cost-effective

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

THE NEW PPG PAINTS

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COMING SOON, ONE NATIONAL STORES NETWORK


The PPG PITTSBURGH PAINTS, PPG PORTER PAINTS and GLIDDEN PROFESSIONAL Stores are being combined to
form the new PPG PAINTS. As a national network of PPG Paints Stores, we will serve you better with a broad assortment
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and Glidden Professional are registered trademarks of PPG Architectural Coatings, Inc.

Circle no. 217

Start
BU I L DI NG SA F ET Y

MASS
RETIREMENT
LOOMING

A recent survey shows the


labor shortage is also impacting
building safety professionals

A survey conducted by the National Institute


of Building Sciences (NIBS) for the International Code Council (ICC) reveals a mass exodus of building safety professionals over the
next several years. In fact, 80 percent of respondents plan to retire within the next 15
years, with 30 percent planning to hang it up
in the next five years.
The survey also revealed only 15.6 percent
of code officials are under the age of 45; more
than half (57 percent) of respondents work in
departments with nine or less employees;
and most building safety professionals hold
many job functions, from plan review to
building inspection, making their roles more
crucial and harder for departments to fill.
We anecdotally picked up comments

about people getting ready to retire or looking


ahead to retirement and then a few months
ago, about 6 months ago or so, we started hearing more about state and local governments
having a more challenging time hiring building safe professionals, says Dominic Sims,
CEO of ICC. Thats when we decided to look
into this a little bit deeper and try to learn a
little bit more about whats going on so we
could help the industry begin to prepare for
significant change.
Another problem, according to Sims, is the
amount of code officials who were let go during the recession but are not returning to the
trade as things look up, which is a problem
across the entire building industry.
A Pressing Need
The survey also identified that building code
officials come with varying education and experience levels, providing multiple paths of
entry into the profession: 35 percent of respondents had earned a bachelors degree or higher,
23 percent had an associates degree, 16 percent
attended technical or vocational school, and 25
percent had only a high school diploma.
These survey results highlight the critical need for high schools, vocational schools,
and colleges to develop programs that train
and educate our next generation of code officials, says Ryan Meres, senior code compliance specialist of Institute for Market Trans-

Age of Respondents
18 to 24
25 to 34

Plans to leave the


building regulatory profession

0.1%

Less than 5 years:


31%

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+

formation. The safety, sustainability, and


energy efficiency of our current and future
building stock depend on it.
The ICC has started to encourage more
people to enter the building safety industry
by starting high school technical programs
and by reaching out to veterans, as well as
building trade professionals who are looking
for a change, since 46 percent of surveyed
code officials indicated starting out that way.
However, Maureen Guttman, president of
Building Codes Assistance Project (BCAP),
says thats only one part of the solution. Municipalities cant afford to pay a professional
who really has the qualifications to do the
work, she says.
She also expresses concern for the understaffing or nonexistence of code enforcement
in several jurisdictions across the U.S., noting
that a lack of checks and balances for the building industry could have a grave impact.
I think offering really specific degree programs, certification programs that show a viable career path is going to help, says Guttman. But the other half of the equation is
making enough of a case to the policymakers,
to the city managers and mayors and councils,
that building code enforcement is a very, very,
very important part of what a city government
is obligated to do, and in fact, they need to invest the appropriate resources into it to do it
properly. kayla devon

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Circle no. 221

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Frame

Bright Green Pg. 62 I Packaging Passive Pg. 68 I


Second Chances Pg. 70 I Aging In Place Pg. 76 I
On the Boards Pg. 78 I Friends Entry Pg. 80 I

Game
chanGers

Dror Baldinger

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

J a n u a r y 2 0 15

builder 61

62 b u i l d e r

J a n u a r y 2 0 15

Architect Prellwitz
Chilinski Associates,
Cambridge, Mass.
developer The Mount
Vernon Co., Boston

builder Cranshaw
Construction, Newton,
Mass.
Structural engineer
Roome & Guarracino,
Somerville, Mass.

new building, The Edge, a 79-unit residence.


Targeted at urban professionals who want to
be within walking distance of Bostons public transportation system in order to get
downtown quickly, The Edge answers the
citys need for reasonably priced, quality
rentals that are also transit-friendly. The
four-story, $17.4 million building was fully
leased before construction even began. The
industrial-style, contemporary faade has

civil engineer Nitsch


Engineering, Boston
landscape Architect
UBLA/Ulrich Bachand
Landscape Architecture
LLC, Wenham, Mass.

living Space 700


square feet to 950
square feet
rent $1,925 to $3,175
per month
lot Size 1.22 acres

Zalmag metal panels that avoid corrosion,


steel doors, full-height windows, angular
rainscreens, and mix of materials in an area
characterized by pre-1940s housing as well as
low-cost student dwellings sporting traditional brick and stucco faades.
The Edge offers even more to attract young
professional tenants. Layouts were designed
in the popular open loft-style plan with
10-foot-high ceilings. To improve occupancy,

Left: Design East/The Creative Companies


Realty; Right: Warren Jagger Photography

The Green District is the largest privately


funded multifamily community in Allston,
Mass., with planned occupancy of more than
500 in what eventually will be eight distinct
buildings. Five of those structures are existing buildings that date from the 1940s to the
1970s and have been retrofitted for energy efficiency with reflective roofs and super-insulated windows. Three are brand-new.
This year, the project gained its second

Project The Edge,


Allston, Mass.

Frame
B r ig h t g r e e n

innovator

The Pledge aT The edge


renting here or at or any of The Green
Districts seven other buildings
involves signing a Green Declaration,
which is enforced by honor code, says
developer Bruce Percelay, chairman
of The Mount Vernon Co., who
worked in collaboration with Bostons
Department of the Environment to
craft the agreement. Do residents
balk? no, says Percelay, the tenants
know about this going in. a poll of
residents showed that for 56
percent, signing an eco-wise pledge
was a main incentive to rent there
because it inspired confidence that
they were signing on with a good
landlord. For the remaining 44
percent, amenities such as bike
storage, Zipcar stations, filtered
water stations on every floor and in
common areas, free yoga classes,
and proximity to transit were the main
attractions.
The Green Declaration contains
11 provisions, including using cleaning
products from an approved list,
promoting a clean neighborhood, and
using best efforts to minimize water
usage. all residents are given a printed
guide with hints on saving on water,
heat, and air conditioning, as well
as tips on recycling and composting
(theres an organic waste bin on site;
its contents are carted offsite for
compost). For residents of the three
new buildings, which are metered,
savings show up in lower utility
bills. Older buildings pose an added
challenge. Its hard to make people
environmentally conscious when
things arent metered, says Percelay.
Enlisting the tenants helps. By
assisting renters with best practices,
the hope is to cut down on operating
expensessavings that the developer
pledges to pass on to tenants in the
Green Declaration at the end of the
calendar year. Amy Albert

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 63

v
v

WH

UP

UP
UP

WH

WH

VAN

WH

WH

WH

DN

FIRST FLOOR PLAN


N

20

64 b u i l d e r

J a n u a r y 2 0 15

can personalize their units.


To further deliver what an eco-conscious
cohort expects, residents of The Edge sign a
Green Declaration (see sidebar). Common
areas answer the need for sociability; amenity spaces include a fitness center that
opens through big glass garage-style doors to
a barbecue patio and putting green. To lessen

upkeep and pare down costs, dry grasses


were planted that require minimal irrigation. Additional green features that helped
The Edge gain LEED Platinum certification
include solar roof panels, Icyenene insulation, an electric car charging station, and
bicycle storage that accommodates two bikes
per unit. barbara ballinger

Plan: Courtesy Prellwitz Chilinski; Photo:


Warren Jagger Photography

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

Green Within reach


Loft-style glazing helps give The Edge its industrial contemporary vibe;
the exterior finishesmasonry, wood, and metal-panel skinwork in concert
to make the building feel more human in scale and play well with the street. With
lively common areas, a fitness center, and renters in all 79 one-and two-bedroom
apartments, the strategy seems to be hitting the high notes. all units were fully
leased on opening day, and theres about a three-month wait to get in.

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 65

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END-USERS & BUILDING REGULATORS

IAPMO R&T Product Listings and IAPMO Uniform ES offer evaluation reports that give inspectors and other officials the confidence of
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These independent third party review and evaluation of the


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Circle no. 157

For more information, visit www.iapmort.org, www.uniform-es.org


or call 909-472-4100.

Circle no. 251

Frame
Pac k agi ng Pa s si v e

68 b u i l d e r

J a n u a r y 2 0 15

Project Size 1,808


square feet

location Thaxton, Va.

lot Size 20 acres

architect/designer/
builder/Passive House
consultant Structures
Design/Build, Roanoke,
Va.

Price $145 per square


foot

A Kit of PArts
No TraiNiNg required
Cohens Passive package includes the elements to
build a fully insulated foundation and shell. On-site
advice from his staff makes specialized training
superfluous. Heavily insulated and air-sealed
foundations are key. Cohen has developed modular
components that are cost-competitive with
poured-in-place foundations. The system is so
simple that if you can set a wall panel, we can show
you how to set a panel in an airtight way, he says.

Courtesy Structures Design/Build

Passive House may not yet be a household


name in the U.S., but the European-born, ultraenergy-efficient approach to building is
making inroads here, and some of the credit
must go to Adam Cohen. Founder of Roanoke,
Va.based Structures Design/Build and one of
the countrys first Certified Passive House
Consultants, the architect teaches the Passive House Institute US course for builders,
the curriculum for which he co-wrote. But
his goal is to do more than train 180 new Passive House builders a year.
Its to change the way we build, he says. To
speed up the adoption process, Cohen has developed a modular design/build system aimed at
making Passive House accessible to any builderno training requiredand at a cost thats
competitive with conventional construction.
Cohen combined software-based architectural design with panelized construction to
make a simple snap-together system. An architect or designer creates a design using a set
of modules: wall panels in 2-foot-length increments and with two plate-height options;
building corners; six windows that can be
ganged in varied ways; and three door types.
Limiting the design palette greatly reduces
costs, making it ideal for multifamily and production work, Cohen says.
Once a design is finalized, components are
fabricated at the two factories with which Cohen has contracted. Wall panels consist of a
2x4 frame, insulated, sheathed, air-sealed, and
covered with 6 inches of additional rigid insulation. To produce a building envelope that
will meet the Passive House standard of 0.6 air
changes per hour at 50 Pa of pressure, panels
are joined on site with an expanding foam gasket (for vertical connections) and liquid-applied sealant (for horizontal joints).
When fully deployed, Cohen says, the system allows any competent builder to construct
houses that meet the highest standards of energy efficiency and indoor air quality.
Cohen and his crew finished their first factory-fabricated project this past spring. Three
more are scheduled for completion early this
year, and Cohen plans to market the system to
architects and builders later in the year. We
needed to do it because people were afraid of
[Passive House], he says. This takes away a lot
of the uncertainty. bruce d. snider

ProjecT Specht
Residence

delivery included
Parts are delivered to the site. The package
includes superenergy-efficient tilt-turn windows
from Ireland but omits conventional materials, such
as floor framing and roof trusses, which can be
sourced locally. all we do is the specialized Passive
House stuff, Cohen says. Everything you can buy
off the shelf, you buy off the shelf. The system,
he adds, is modular, repeatable, standardized, and
simple. and theres no special training required.

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 69

70 b u i l d e r

J a n u a r y 2 0 15

rehab that would house the formerly homeless


and those exiting the prison system.
Landon Bone Baker Architects, Heartlands
design partner, gutted and rehabbed the building. Its existing 160 rooms were pared down to
five stories of 89 micro-units that include full
kitchens and baths. Chickens are part of the
deal; residents can volunteer in the quarteracre urban farm, gathering eggs, cooking in
the kitchen lab, and learning about nutrition

from one of Heartlands supportive services


partners, which occupy the first-floor offices.
The landmark building got a new lease on
life, too. The front lobbys existing tile was restored, along with intricate plasterwork in the
original historic lobby, now used as a community room. Energy upgrades will see it through
the next phase. These include a 13-well geothermal system, an eight-panel solar thermal
array supplying 60 percent of the domestic hot

Shane Welch

Harvest Commons, a formerly derelict Art Deco


hotel on Chicagos Near West Side, is a testament to developments power to transform
buildings and their residents. The 1930 hotel
was a bad seeda source of crime, drug dealing, and prostitution. We took it over after it
had sat vacant for six years, says Hume An,
director of real estate development for nonprofit
developer Heartland Housing. Our vision was
to do an environmentally sustainable historic

Project Harvest
Commons
location Chicago
developer Heartland
Housing, Chicago

Architect Landon Bone


Baker Architects,
Chicago
builder Linn Mathes,
Chicago

Frame
S E c o n d c h a nc E S

The Funding dance

These days, affordable housing


projects go through a complex set of
funding steps to become a reality, and
Harvest Commons was no exception.
Heartland Housings real estate
development director Hume an
describes how the financing pieces fit
together on this $23 million project:
We bought the property for $1
and then got an affordable tax credit
based on donated propertiesthe
donation is the difference between
the appraised value and the amount
we paid, an says. The company then
sold those tax credits to investors
for 87 cents on the dollar, raising
$11.76 million.
Other money came from Illinois
Housing Development authority lowincome tax credits ($1.08 million),
and, because it is a historically
significant building, historic tax
credits to the tune of $2.68 million.
Heartland Housing also received
$3.88 million in tax increment
financing from the city, and a small
energy efficiency grant of $182,000
from the state. Other capital sources
came from federal energy tax credit
equity ($30,000), seller financing of
$2.34 million, $123,000 in a general
partner capital contribution, and a
deferred developer fee of $224,000.
Its pretty complicated, but on
almost all of our projects, we dont
use any of our own capital, an says.

water needs, and plants covering half the roof.


The architects also spruced up the faades
ochre-orange brick and terra cotta. In the nonhistoric parts of the building, we tried to come
up with a more modern material, so we layered
fiber-cement cladding sheets over the brick and
bumped out some bays, says Landon Bone
Baker principal Jeff Bone. The ground floor as
it relates to the garden is greenified with the
new [green-and-white-striped] material.

b u i l d e r o n l i n e .c o m

A butterfly-roof pavilion will host garden


parties and art openings, and worktables can
hold harvested beets and rutabagas. (In its first
season, the gardens produced more than 1,000
servings of vegetables and eggs, with 11 percent resident participation.) There are future
plans for a farm stand; a big gate opens up and
the community can come in, Bone says. Not
bad for a building once known for decay and
despair. cheryl weber, leed ap

J a n u a r y 2 0 15

builder 71

SeedS of Change

72 b u i l d e r

J a n u a r y 2 0 15

Shane Welch

Harvest Commons, a hub of creativity and refuge, embodies green living in


several ways: reuse of a landmark building, a solar-thermal hot water system,
super insulation, and geothermal heating and cooling. Whats more, the project
is centered around an urban farm (including a flock of six chickens to supply
eggs). Through on-site agriculture, classes in the demonstration kitchen,
and a cafe, residents learn about healthy eating and gain life skills.

Frame
S E c o n d c h a nc E S

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 73

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do so with EcoVent, a solution to a
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Circle no. 212

Frame
Agi ng i n Pl Ac e

ElEvator Pitch

architect robert Hidey offers these


planning tips for elevators:
1. Multi-directional With a shaft

size of 64 inches by 54 inches,


elevators dont take up much
space, but builders do have to
find an appropriate location to
serve three floors and work the
circulation around it. Hidey
recommends models that can open
on three sides. Its a huge benefit,
he says. Maybe on the ground
floor you enter on the south side,
and exit on the west side on the
second floor.

2. Accessible Mechanicals for

low-speed elevators need only


a 3-foot-by-3-foot closet near the
elevator, and the shaft overruns
are short. ashers elevators have
three stops and can carry up
to 900 pounds. The equipment
is accessed from a door in the
garage.

3. Convertible Builders who offer

elevators as upgrades often will


insert stacked linen closets
that can be converted to a shaft
immediately or in the future.

J a n u a r y 2 0 15

ers with discretionary income.


Given todays more vertical homes on
smaller lots, elevators are a lot like universal
design: they appeal not just to homeowners
with bad knees but to anyone temporarily on
the blinknot to mention families toting
kids and furniture from floor to floor.
The elevator appeals to the needs of a
discretionary buyer and a mature buyer,
says Asher architect Robert Hidey, principal
of Hidey Architects in Irvine, Calif. Anyone

Jim Doyle

76 b u i l d e r

Private residential elevators typically are


associated with posh Central Park apartments and upscale age-restricted communities, not production homes targeting mixed
ages and demographics. But Los Angeles
based KB Home stepped out of the box, so to
speak, to put them into every Asher model at
Playa Vista, a master planned community in
LA. In doing so, the builder acknowledged
the graying of America by offering something different than an in-law suite to buy-

would appreciate the ability to step into an


elevator and go up three flights to the bedroom. He adds, Elevators were going to be
an option, but then KB Home chose to make
them standard to define their product from
anyone else in this immediate market.
Elevators arent the only drawing card.
Given the narrow infill lots, a 21-foot-wideby-50-foot-deep building footprint, and an
8-foot side yard, the houses bend near their
center, resulting in greater wall surface un-

b u i l d e r o n l i n e .c o m

interrupted by adjacent dwellings. On the


main level, theyre canted between the
kitchen and dining/living room. The land
plan has two conditions: one with houses
fronting a street, and the other where they
face a greenbelt walkway. If you rotate it,
there is also a greater perceived distance between buildings that are opposite, either
across the street or across a paseo, Hidey
explains. You fill out that additional length
of wall with as much glass as possible to

Project Asher
location Los Angeles
builder KB Home, Los
Angeles

Architect Robert Hidey


Architects, Irvine, Calif.
land Planner B3
Architects, Santa
Barbara, Calif.

bring in more daylight.


The homes, which range from 2,400
square feet to 2,800 square feet and start
around $1.7 million, aim to attract upscale
homeowners with balconies, tiled showers,
and solid core interior doors. One plan offers
three bedrooms on the top floor and the possibility of a fourth bedroom on the ground
level. Some buyers will appreciate, too, that
one option is left off the tablewhether to
take the elevator. cheryl weber, leed ap

J a n u a r y 2 0 15

builder 77

Project Emerson
Green
location Devens, Mass.

Architect Union Studio


Architecture &
Community Design,
Providence, R.I.

78 b u i l d e r

J a n u a r y 2 0 15

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

Dan Gainsboro and Don Powers are one of the


countrys most innovative land planning
teams, known for award-winning traditional
neighborhood developments that foster social
interaction, lessen dependence on cars, and
alleviate the sense of isolation found in many
traditional suburbs. Next up for their New Urbanist placemaking is the site of a decommissioned Army base in central Massachusetts.
The Emerson Green community is part of
the transformation of Fort Devens, which

developer NOW
Communities, Concord,
Mass.

Frame
O n t h e B Oa r d s

A SenSe of PlAce

noW communities unique approach


to land planning minimizes the use of
cars, supports walkable streets, and
encourages a sense of community.
These pocket neighborhoods of
dense clusters of cottage-style
houses take up less land but require
a special approach to siting. Here are
some of the methods Gainsboro and
Powers employ in their projects:
1. Nested houses To ensure
residents privacy, houses nest
together with the open side of one
house facing the closed,
windowless side of the next.
2. layered spaces The careful use
of layered public-to-private areas
defines personal boundaries, from
the open common area to the front
porch and into the house. Within
the home, the layering continues
with active spaces in front and
private spaces in back and above.
3. Cars are hidden Parking areas are
placed away from the homes in
common areas or alley-loaded
garages that are screened from
the street.

the development is located at the nexus of


tech, academia, and industry, which will
make targeting a specific buyer profile difficult, Gainsboro says.
We are working hard to understand our
market and come up with a very aggressive
pricing structure that is competitive for the
different economic demographics well be
selling to, Gainsboro adds. It boils down to
creating an awareness of what the community is about.

b u i l d e r o n l i n e .c o m

Two messages the team will focus on are


the communitys commitment to superior
energy efficiencynearly net zeroand its
location in the sought-after Harvard School
District. Groundbreaking is planned for summer and phase one11 homes and six townhouseswill be complete by the end of the
year for buyers who are ready for something
different. The idea is about living deliberately and having quality over quantity,
Gainsboro says. jennifer goodman

4. Cottage scale The houses are


one-and-a-half stories to limit their
impact on the surrounding
neighborhood. a small house can
feel and function large when there
is ample light and adequate
storage space, says Gainsboro.
5. individuality because the houses
are close together and similarly
designed, noW communities
makes sure each one is slightly
different from its neighbors in style
and color. residents create their
own landscaping, which also helps
set each unit apart.

J a n u a r y 2 0 15

builder 79

Frame
f r i e n d s e n t ry

Moderate-density, walkable communities


are in demand. Tired of being dependent on
cars, buyers also seem to long for the informal exchanges between neighbors that occur when people are out walking along the
street. Looking at communities designed
before World War II, its easy to see why they
were more walkable than much of what gets
developed today. Older communities had
wider sidewalks, closer lots, and they were
closer to downtown. From designs of that
era, we can learn how to bring back charm
and a neighborly feeling.
As recently as the 1950s, the garage was
set in the back of the lot, sometimes detached. Most houses had a front door facing
the street, as well as a back door or side door
for entry to the house from the garage or
driveway. The front of the house often included a usable porch that became both the
prime outdoor space and an inviting place
for visitors, as discussed in a recent article
about front porch design in the September
issue of BUILDER.
In those prewar designs, a homes back or
side doors typically became the informal
way to enter the home. Although a little too
familiar for use by first-time visitors, this
was the door that neighbors and close
friends used, and it came to be known as the
friends entry.
But in postwar designs, the garage became
attached to the house. This, in turn, eliminated the side doors, and even back doors, as
entryways. The back door became the access to
the more private rear patio or porchnot easily available since the garage was now blocking rear yard access. What often has happened

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/

architects in Philadelphia. The firm specializes in residential


design and planning and has completed projects in 20 states
and Canada, from luxury custom homes to high-density urban
infill and affordable housing.

80 b u i l d e r

J a n u a r y 2 0 15

ProJect Friends Entry


Plan
Project size 2,800
square feet to 3,800
square feet
lot size Typically, 7,500
to 10,000 square feet,
but lot can be as small as
5,000 squre feet

bath

Direct access from


transitional space to the
kitchen is ideal for hauling
groceries from the car.

The transitional space


in this plan is designed
so that a back door easily
can be added, allowing
access to the yard as
well as the garage and
the street.

deck/Patio

Direct access from the


garage is convenient.

Kitchen
Guest room
breakfast

Garage
drop

dining
living

Foyer

In the friends entry are


features such as
benches, countertops,
cubbies, and a drop-zone
area that help the space
be high-functioning
as well as welcoming.

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

The addition of a friends


entry creates an
entryway thats less
formal than the front
doorintentionally
meant as an entrance
to the house for friends,
neighbors, and casual
drop-ins.

J a n u a r y 2 0 15

builder 81

At the end of the day, were both building


the same thing: a satised customer.
With expert local service at more than 3,900 convenient locations, color design services and innovative
products that save time and money, Sherwin-Williams is the coating supplier with the resources and
expertise to customize solutions for you. So you can stay focused on building for others.
For fewer callbacks and more happy homebuyers, call 800-524-5979 to have a representative contact
you or visit sherwin-williams.com/home-builders.
Circle no. 376

2014 The Sherwin-Williams Company

connections that go
far beyond the cable.
Partner with us, and your residents wont be the only ones smiling.
our most obvious connection is with your residentsproviding them with the innovative services that have
made time Warner cable an industry leader. but our most important connection is with you. to keep it
strong, we make your schedule our schedule and deliver marketing assistance that help you fill vacancies
faster. We only succeed when you do.
to learn more about the benefits of partnering with us, contact dan oconnell at 212.420.4816
or email daniel.oconnell@twcable.com
Circle no. 268

twc.com/communitysolutions
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.

Wire

MatheMatical Master Pg. 88 I


FaMily ties Pg. 92 I

The FasT
Track

Taylor Morrisons Pierrette Tierney


got her start in home building
operations by helping out a friend
By Les Shaver

Mathew Scott

In 2004, when Pierrette Tierney was studying


journalism at the University of Southern
California, she had visions of producing longform, cutting-edge stories for television. Now,
10 years later, shes running all land and
home building operations for a public builder
in one of the most challenging real estate
markets in the country.
How did Tierney go from working at CNN
and working alongside Christiane Amanpour
to becoming Taylor Morrisons vice president
of operations in the Bay Area, which is a semi-

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 85

Wire
FA ST R i S e R

independent operation in the builders Northern California division?


It started with helping out a friend.
As Tierney was working on her masters,
she also helped a recruiter friend set up interviews for Pulte. At the time I had no interest
in real estate, or so I thought, she says.
Soon enough, Tierneys friend turned took
aim at the aspiring journalist. I listened to
the recruiting pitch and I decided to interview, Tierney says. I got the job and moved
to Las Vegas a couple of weeks later.
Things didnt start off especially well. On
Tierneys first day in the sales department in
2004, Pulte started to cut its prices. I stepped
into new-home sales during the first day of
the crash, she recalls.
Though it wasnt the easiest time to start
in home building, Tierney learned a lotparticularly how to work with buyers and navigate through issues to close a deal. Her success brought more opportunities as she
quickly ascended up the chain to general
sales manager in Vegas. We were big and
there were a lot of growth opportunities, she
says. Having just graduated from school, I
was very opportunistic and entrepreneurial
and driven to create a career path.
Tierneys division president, Steve Wethor
(currently president of the west region for
Taylor Morrison), eventually moved to Phoenix, and she went along as a vice president of
sales and marketing. There, she quickly distinguished herself to Charlie Enochs, who
replaced Wethor as president of the companys Phoenix operations.
When Pierrette was in sales leadership,
she always took a business first approach to
her decision making, Enochs says. When I
say business first, I mean that she looked
beyond the sales function and evaluated the
impact of her decisions on all parts of the
business. This is a rare quality to find in sales
leadership and it made her transition much
easier as she moved in to operations.
Despite a challenging market in Phoenix,
it was a very collegial environment. For instance, when the land division was looking at
a piece of dirt to acquire, it worked with the
sales and construction departments. I think
its pretty telling that our construction team
loved Pierrette as much as the sales team did,
Enochs says.

86 b u i l d e r

J a n u a r y 2 0 15

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

trying to maximize what you put on the site.


Buyers in the Bay Area are comfortable
with smaller lots and attached homes, but
they have a lot of preferences that separate
them from the rest of the country. We incorporate some technology and a lot of energyefficient components to the home, Tierney
says. Even little things go a long way, like
USB ports in outlets in kitchens and electric
car dedicated outlets.
The buyer demographics also are different
with international owners spilling into the
Bay Area from all around the globe. The way
we have to educate sales team about working
with different buyers and different cultures
and how to best serve them is something
weve put a lot of time, effort, research, and
training into, she says.
Future Plans
If Tierney can continue to grow the Bay Area
operation, it soon could become its own division. That would be a career culmination of
sorts for her. My vision was always that I
would be a division president, she says. But I
dont know that I have the feeling that I need
to get there tomorrow. Its not a bad thing to sit
in a position, get comfortable, and have time
under your belt before taking the next step.
When she is ready to take the next step,
Enochs thinks Tierney will be successful.
Pierrette has tremendous business acumen
combined with a comfortable leadership
style that, in turn, make people want to follow her, he says.
At Taylor Morrison, Tierney currently
works for Sheryl Palmer, one of the few female CEOs in home building.
For a young female in this business, its
inspiring to see someone like her at top of
the company, she says.
Would Tierney want to one day follow in
her footsteps? The former journalist sidesteps
the question for the time being. Im not in a
huge hurry to be CEO tomorrow, she says. B

b u i l d e r o n l i n e .c o m

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Circle no. 276

Wire
M at h e M at ica l M a st e r

Age Is Just
A Number

Christopher Longsworth has built


a South Florida empire and hes
only 30 years old

Christopher Longsworths age may be


deceitful.
The 30-year-old looks like any young
professional just starting a career. But
Longsworth is far from a beginner: His rsum boasts accomplishments that many
professionals may never see in a lifetime.
As a teenager growing up in South Florida, he dreamed of success as an NFL allstar. But those dreams were shattered
when he was injured. He then turned his
attention to learning from his mother, a
mortgage broker.
I think it was my moms way of keeping
me on a straight path, Longsworth recalls,
adding that he was curious how people
could afford houses and cars and everything else. So I started going to her work
after school.
Since math had always come easy to
Longsworth, the process of putting together loan packages seemed effortless to the
high school student.
I liked the fact that I was making money at such a young age, he says. I think
thats what really got me started. Its not
like I sat there and said Oh my God, I love
real estate, I cant wait to get home and put
together a loan package.
And making money was exactly what he
did. By 2002, Longsworth had made enough
cash to launch his company, Pompano
Beach, Fla.based Invesca Development
Group. Today, his empire of various businesseswhich includes a shooting range
and a school for disabled childrenis worth
about $500 million.

88 b u i l d e r

J a n u a r y 2 0 15

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

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M at h e M at ica l M a st e r

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community in Pompano Beach. The project,


Koi Residences and Marina, will feature
townhomes, lofts, and two high-rises of either condos or apartments, depending on the
market demand.
Buying the land was easy about three and
a half years ago. Longsworth found it just as
the recovery began to gain steam and purchased it as a distressed asset. Originally, he
says he eyed the property with the idea to
flip it and sell it.
As time went by, we saw how unique it
could be, he recalls. Theyre putting a tremendous amount of money into Pompano
Beach. Its almost like youve bought something in downtown Fort Lauderdale before it
became Fort Lauderdale.
Once the Invesca team decided to move on
the development, Longsworth hit the ground
running to make it happen.
Koi has taken years of planning, he says.
There have been a lot of negotiations. Its not
easy to put a marina into a community like
this. Theres a reason a marina of this size has
not been put in a master planned community. I see why.
The company went through a lot of headaches to get the marina approved, as well as
the rezoning and approval for 350 units of
housing and retail space.
The residents in the neighborhood were
concerned, Longsworth says. Because
when the [economic] crash happened, there
were projects that were left unfinished. You
had all these residents and theyre looking
across the street and its a construction site.
Everybody in the city wanted to make sure
we were responsible.
From the get-go, Longsworth gained the
support and trust of the community by personally meeting with each and every neighbor surrounding the developmentsomething he strongly believes in and tries to do
for all of his projects.
Longsworths hard work paid off as the Koi
project broke ground in July. The first phase,
which includes the marina and 50 waterfront
townhouses, is slated for completion by early
this year, and the second phase of 62 live/work
lofts will follow suit. Longsworth says he and
his team hope to initiate the projects third
phasetwo residential high-risesby the end
of 2015. lindsay machak

www.TBFDealer.com
Circle no. 299

b u i l d e r o n l i n e .c o m

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Circle no. 282

/ 2014 Gladiator. All rights reserved. 12/14. GGW17864. Form No. GG140052A

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working on projects or entertaining, Gladiator brands versatile
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Wire
Fa m i ly T i e s

As we trAnsition to the next generAtion,


we mAy hAve to Alter the compAny to fit
our skillset. - nick cowgill

The NexT GeNeraTioN


The Cowgill brothers look together toward the future

92 b u i l d e r

J a n u a r y 2 0 15

50 years in April, the two grew up sweeping


floors after school and talking about the trade
around the dinner table. Building their own
homes meant walking the process from start to
finisha challenge Nick recalls favorably: Being a home builder means using my skills in
different ways: design, sales, operations. There
are always new opportunities for growth.
Today, Curtis is the companys marketing
and IT manager, and Nick is the operational
manager, though their roles often color outside title lines. As they expand into leadership roles, the brothers are preparing as if

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

theyll be running the company one day.


Nies Homes expected to close 65 custombuilt homes in 2014its highest volume to
dateand in 2013, its staff more than doubled,
from eight employees to 19. In light of this
growth, the Cowgills are focused on transferring knowledge from veteran employees to
the next generation.
Theres an incredible amount of industry
experience here, says Nick, noting that hes
grateful for those who have worked with his
familys business for more than a quarter-century. Using technology, he is working to translate that knowledge into processes that could
be scaled up in the future.
Heading the in-house advisory board is
79-year-old company founder Clifford Nies, who
still comes to work each day. Curtis is working
with Clifford to impart his wisdom to younger
staff: Clifford has always done an incredibly
good job of balancing concerns for the economy
with how much we put out there, Curtis says.
Learning his reasoning is important.
Bucking the reputation of swashbuckling
millennials, Curtis is humble. He envisions
how his role will evolve. The company that
Clifford created and our mother, Cherie, helped
to carry on is one that people want to be a part
of, he says. It doesnt make sense for us to
come into a 50-year-old company and say, This
is how were going to do things.
Nick and Curtis are strikingly like-minded
regarding the companys future. Before considering expansion, they see room for operational
improvement and perhaps a transition to a
semi-custom model.
As we transition to the next generation,
we may have to alter the company to fit our
skillset, Nick says. But theres no doubt Nies
will continue the tradition of focusing on exceptional product and services.
Curtis is optimistic about whats to come.
My hope would be in another 50 years our
grandkids would throw us a 100-year anniversary party like we did for Clifford this
year. sandra malm

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at www.jeld-wen.com.

See JELD-WEN interior doors in The New American Home at IBS 2015.
To learn more about our full product offering, visit our booth #C6131 &
#C6137 or go online at www.jeld-wen.com.

Circle no. 158

GREAT

INTERIORS
START WITH JELD-WEN

Bring beauty into every room with JELD-WEN interior doors. Select
from a variety of classic designs, or create your own. Choose from
Carved, Molded, Authentic Wood Stile & Rail, or IWP Custom
Wood. No matter what your style preference, JELD-WEN has an
interior door that will match your discerning taste, and make your
house a home.
Circle no. 318

See all of our window and door products at IBS 2015 (booth #C6131 & C6137) or at www.jeld-wen.com.

Outside the Box

The 2015 New American Home takes a practical design approach but doesnt leave
out the Las Vegasinspired bling

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the new american home

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

efore breaking ground, the team


of pros working to design and
construct this years New
American Home gave themselves a challenge: Instead of
creating a one-off custom showpiece, they wanted to explore
how much of the technology,
sustainability, and design
trends that the show home is
known for they could pack into
a production-style dwelling.
Although it exudes the luxuriousness of a custom dwelling,
the desert contemporarywhich
will be open for tours during the 2015 International Builders Show in Las Vegaswas designed for buyers across a range of price
points. In fact, once the show is over, it will
serve as the model for a collection of 36 production homes in the Sky Terrace community
that design/build firm Blue Heron calls predesigned custom. These houses, with price
tags from $750,000, allow customers to choose
from select floor plans and finish options. Although Blue Heron also is known for its custom projectsit has built two other New
American Homesfounder/owner Tyler Jones
wanted to show off what can be done on a
practical scale this year.
The whole idea was to make sure the architects and builders who see this home realize you dont have to have a $5 million custom
home to utilize all the latest and greatest
methods and innovative design concepts, he
says. All of that stuff can fit together into a
predesigned package, making it a lot more
economically viable and attainable, and more
efficient to design and build.
The project team started with a relatively
compact floor plan compared with other iterations of the 32-year-old show home program, sponsored by the NAHB and BUILDER.

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At just under 5,900 square feet, the home is


efficiently laid out to encompass a spacious
living area, four bedrooms (including a separate guest casita), and plenty of flashy entertaining spaces. The Blue Heron design team
focused on integrating rather than segregating spaces, Jones says. For example, the
kitchen, breakfast nook, dining area, and
great room share one open space that also
connects to the backyard pool area and central courtyard.
The second-level wine bar and rooftop sky
loft are sited to perfectly capture breathtaking views of the Las Vegas strip and nearby
mountains. We spend as much time designing the outside living spaces as we do the interiors, says Jones. We know that people
love it and respond to it.
Inside, Blue Heron interior design consultant Miquel Hutton used off-the-shelf products and materials in innovative ways to
provide extra pizzazz without breaking the
bank. For example, wood-look floor and wall
tiles provide a warm, organic feel; inexpensive backlighting adds sophistication to the
bars stone countertops; and a luxurious freestanding tub in the master bathroom is filled
by a faucet in the ceiling. Just because this is
a production-style community doesnt mean
we cant apply some amazing materials and
really craft an individual design for each one
of our clients, Hutton says.
In addition, the 2015 model will be the first
in the New American Home lineup to achieve
net zero electrical usage, thanks to a superior
insulation package, passive solar design, LED
light fixtures, Energy Star appliances, and an
15 kW photovoltaic array. Planners anticipate
it will achieve the highest levels of certification from the National Green Building Standard and LEED for Homes programs.
Show attendees undoubtedly will end the
tour wondering how Blue Heron crammed so
many amenities into a home thats replicable
and economically accessible to middle-class
buyers. Jones says it wouldnt have been possible without the integrated design/build collaboration that is at the heart of each of the
firms projects. With architectural, interior
design, and construction professionals in one
office, the team was able to leverage the expertise of each specialty from day one.
The only way youre going to include
new technology and complicated concepts
that require outside-the-box thinking is
massive and very, very tightly scripted coordination, he says. B

project The New


American Home
location Henderson,
Nev.
Size 5,891 square feet
(including casita);
bedrooms: 4; bathrooms:
4; powder rooms: 2
builder Blue Heron
Construction, Las Vegas
arcHitect Blue Heron
Architecture, Las Vegas
interior deSigner
Blue Heron Interiors, Las
Vegas
landScape
deSigner Sage Design
Studios, Las Vegas
green building
conSultant/Verifier
Two Trails, Sarasota, Fla.
tecHnology
integrator Eagle
Sentry, Las Vegas
producer NAHB,
Washington, D.C.
taSk force
cHairman C.W.
Edwards, Marietta, Ga.
media partner
BUILDER, Washington

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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b u i l d e r 10 1

Gathering Spaces The first


floor offers openness among
the kitchen, living, and dining
room that facilitates access
to views and daylighting
from outdoors. The floating
stairway with steel stringers
appears to be made of stepped
boxes suspended in mid-air.
It doesnt look like it should
be able to hold itself up, says
designer Miquel Hutton.

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b u i l d e r 10 3

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Hot Spot The kitchen is the


undisputed focal point of the
main living space, as a location
for entertaining, relaxing, or
serious cooking. It is equipped
with two islands, state-of-theart appliances and vent hood
from Bosch, a Kohler faucet
and sink, and countertops
made of DuPont Zodiaq quartz
and Walker Zanger Calacata
Carrara marble.

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b u i l d e r 10 5

double duty In Blue Herons


customizable floor plans, this
second-level space can be
an office and closet or it can
become a more crowd-pleasing
spot: a sensuous loft bar
and wine room that features
breathtaking views of the Las
Vegas strip. The fully stocked
kitchen area with ice maker,
microwave drawer, beverage
center, and dishwasher makes
pouring drinks, serving food,
and cleaning up easy.

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b u i l d e r 10 7

We spend as much time designing the


outside living spaces as we do the interiors ...
people respond to it. Tyler Jones, Blue Heron founder/owner

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b u i l d e r 10 9

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Down Time Although its an


entertainers dream house, the
2015 New American Home
makes room for quiet time, too.
To give the owners a place to
relax, the second-floor master
bedroom is set off from the
public area by a catwalk. Inside,
a pony wall divides the expansive
sleeping area from an intimate
raised sitting room.

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b u i l D e r 111

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Spa Inspired With sedate,


neutral-colored walls and
vanities and warm woodlook travertine flooring, the
437-square-foot master
bathroom provides a serene
escape. Kohler products rule
the day: Leaf vessel sinks,
brushed bronze fixtures, San
Souci touchless toilet, and
the main attraction, an Escale
BubbleMassage freestanding
tub. His-and-hers TVs are
installed behind the mirrors.

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b u I l d e r 113

desert Oasis The line between


indoors and out is blurred by
several clever design tricks.
Sierra Pacific sliding pocket
doors recede into the walls to
create doorways up to 26 feet
wide, and Walker Zanger flooring
extends from interior rooms to
the courtyard, up to the edge of
the pool. The materials weve
used tie the spaces together,
Miquel Hutton says. The idea
is to draw people out to those
areas using those materials to
make it look seamless.

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b u i l d e r 115

TNAH projecT TeAm


Project Team (Left to right) Miquel Hutton, Blue Heron; Drew Smith, Two Trails Consulting;
Tucker Bernard, naHB; Ted Mahoney, Task Force Vice Chairman; Tyler Jones, Blue Heron;
Warren nesbitt, BuILDEr magazine; Kris Barber, Blue Heron; Chris Myers, Blue Heron. not
pictured: Chuck Edwards, Task Force Chairman, and Christopher McLarty, naHB.

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b u i l d e r o n l i n e .c o m

ADVERTISEMENT

FOUNDING LEVEL SPONSOR

LETS BUILD THE PERFECT PARTNERSHIP


Bosch home appliances is known as the definitive European kitchen
brand. Bosch recently expanded upon its design leadership and
recognition in dishwashers with the introduction of a full kitchen
suite that showcases the sleek, modern European design that has
become synonymous with Bosch.
The new Bosch kitchen offers flush installation that works in harmony
with modern and transitional kitchens. With this new line, Bosch
integrates the clean aesthetics of European kitchen design with
the demands of the U.S. consumers, offering unique options such as
the first steam convection oven for the mass premium market. The
new line also features SideOpening wall ovens and FlexInduction
cooktops that break the boundaries of traditional cooktop burners
to accommodate a variety of griddles, pots and pans sizes.
The New American Home will provide a look inside the new Bosch
kitchen with products including:
the 24" Benchmark Custom Panel Dishwasher which operates at a
quiet 39 dBA
the 30" Benchmark Double Wall Oven with Left SideOpening
Doors and built-in flush installation (ADA compatible) that offers
better ergonomic access to the wall oven cavity
the 30" Benchmark Speed Microwave Oven which pairs the cooking
qualities of a conventional oven with the speed of microwave
technology
the 36" Benchmark Gas Cooktop that features a powerful 20,000
BTU dual-stacked center burner designed to allow for a faster boil
time and the flexibility to cook on high heat or simmer

Circle no. 159

the 36" Benchmark Glass Canopy Chimney Hood that comes with
an internal 600 CFM blower to remove steam, odors and grease
without adding distracting noise

Builder Contact:
Bob Eustice | CAPS, National Builder Sales ManagerBosch, Thermador and Gaggenau
Cell: 702-321-2908, Email: bob.eustice@bshg.com
Learn more at boschbuilderprograms.com.

Products from tNAH


1. dupont surfaces
Durable, high-performance
and nonporous, Zodiaq quartz
surfaces provide the look of
natural stone and resist stains,
mold, and bacteria with no
sealing required. available
in a variety of colors and
designs, Zodiaq can be used for
countertops, wall cladding, and
backsplashes. www.dupont.
com. Circle no. 21.
2. greenedge supply (a
division of 84 lumber)
Incorporating 54 Jinko

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JKM285P-72 solar modules,


two Fronius IG Plus inverters,
and a customizable Ironridge
rail-based racking solution, the
homes custom-designed 15.39
kW solar array was designed
to help attain net-zero energy
usage. www.84lumber.com.
Circle no. 22.
3. lamps plus
The Lazara Burst 13-inch-wide
crystal pendant light is designed
for a bold and contemporary

aesthetic, with clear crystals


extending from the fixtures
center and a polished chrome
finish. The light includes 10
feet of adjustable cord. www.
lampsplus.com. Circle no. 23.
4. broan-nutone
The QT Series of ventilation
fans is Energy Star qualified and
operates quietly and efficiently.
The companys Sensaire
technology detects increased
moisture at the ceiling and turns
the fan on automatically to
fight humidity and prevent mold

growth; fan sensitivity can be


adjusted for optimal operation.
www.broan.com. Circle no. 24.
5. jeld-wen
Jeld-Wens Carved Wood
Composite interior doors are
available in more than 100
designs to provide a customized
look for any home. Panel options
include smooth surface, custom
carvings, and applied moulding.
The doors come primed and
ready to paint with a limited fiveyear warranty. www.jeld-wen.
com. Circle no. 25.

b u i l d e r o n l i n e .c o m

Build bold.

TM

Cant remember
the last time
he apologized.

Homeowners are unabashedly


choosing to express themselves.
Inside, outside, left side and right
side. They have their own take on
visual drama, depth and power
and they want their homes
to wear it. Its what inspires our
unapologetically evocative
Portsmouth Shake & Shingles
siding and every other one of our
exteriors with character.

Visit us at booth #C2631.


2015 Royal Building Products

royalbuildingproducts.com

Circle no. 300

10

6. garaventa lift
Specifically designed for private
residences, the Elvoron Home
Mr In-Line Drive home elevator
uses a 2hp electric motor and
saves space with no machine
room required. a hydraulic drive
system elevator option also is
available. www.garaventalift.
com. Circle no. 27.
7. bosch
thermotechnology
With multiple installation and
venting options, gas tankless
condensing water heaters are

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versatile and high efficiency.


Therm and Greentherm
models are both low nOx
compliant, Energy Star rated,
and meet 2015 DOE water
heater standards. www.
boschheatingandcooling.com.
Circle no. 28.

sturdy storage option for


various hand and power tools,
offering multiple drawer sizes
and configurations. reversible
heavy-duty casters allow the
unit to be easily repositioned.
www.gladiatorgarageworks.com.
Circle no. 29.

8. gladiator garage
works
With welded steel double-wall
construction, the 41-inch
12-drawer roll-away is a

9. certainteed
By removing formaldehyde from
the air, airrenew Essential
Indoor air Quality Gypsum Board
works to improve indoor air
quality. airrenew cleans indoor
air for up to 75 years and is

installed, finished, and recycled


like regular drywall. www.
certainteed.com. Circle no. 30.
10. trane
as part of a ductless heating
and cooling system, the 4TXM6
outdoor heat pump can be
connected to two to five ductless
HVaC units, depending on the
indoor model. Each zone is
controlled separately, allowing for
improved efficiency and comfort.
www.trane.com. Circle no. 31.

= Powered by Natural Gas

ADVERTISEMENT

By cutting waste and making smart


decisions about energy, Jagoe Homes
achieves competitive HERS ratings at
affordable price points.

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.

When Jagoe Homes talks about its Energy Smart


homes program, the builder could mention a number
of achievements. Jagoe could call attention to the Energy Star Leadership
in Housing Award it has received for three consecutive years, or the extensive
focus the builder puts on air sealing and other time-intensive techniques used
for energy-efcient construction.
But mostly, says Scott Jagoe, co-owner
of the Owensboro, Kentuckybased
builder, Jagoe Homes talks about
value to the homeowner. It really
comes down to, Whats it going to
cost me a month to heat and cool
the house? What are my energy bills
going to be?
In addition to gas space heating and water
heating, Jagoe offers gas cooktops, replaces,
clothes dryers, and outdoor stubs as standard
or options on all of its homes.

The concept of value applies whether


the builder is selling $150,000 starter
homes or more-customized $600,000
move-up offerings. Across the
spectrum, Jagoe has achieved average HERS Index scores of 64 by cutting
waste, using the savings to improve construction techniques, and making
intelligent choices about energy source.

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

11. bosch home appliances


new chimney wall and island
hoods come with an internal
600 CFM blower; the Energy
Star models 300 CFM blower
uses less energy while removing
steam and odors. The hoods
include an LCD display and a
filter to capture grease. www.
bosch-home.com. Circle no. 32.
12. liftmaster
Operating on MyQ technology,
the LiftMaster 8557 can be
controlled from any location and
sends a smartphone alert when

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the garage door opens or closes.


a steel reinforced belt helps lift
heavy doors. www.liftmaster.
com. Circle no. 33.
13. baldwin hardware
The Square reserve Levers
angular form delivers modern
style. The lever can be paired with
any reserve collection rose and
is offered in nickel, bronze, and
chrome finishes. www.baldwin
hardware.com. Circle no. 34.

14. clopay
Suitable for garage or patio
doors, the avante collection
combines a thick aluminum frame
and insulated glass panels for a
modern style. Many glass styles,
glazing options, frame colors,
and sizes are available. www.
clopaydoor.com. Circle no. 35.
15. bayer materialscience
Bayseal OC open-cell
polyurethane foam creates a
complete air barrier system,
filling voids during installation.
Fit for walls, attics, ceilings, and

floors, it adds an r-value of 3.7


per inch. www.materialscience.
bayer.com. Circle no. 36.
16. kohler generators
The 20rESa standby generator
uses Powerboost technology
for premium starting power.
Electronic speed control
responds to varying demand,
and digital voltage regulation
protects equipment. www.
kohlerpower.com. Circle no. 37.

= Powered by Natural Gas

ADVERTISEMENT

lighting

Kichler Opens Up Possibilities With


New LED Lighting And Ceiling Fans
Kichler was again ranked #1 in Quality
by the readers of BUILDER Magazine for
superior customer service, on-time deliveries
and product innovation. One of the biggest
strengths of Kichler has been product
developmentand their 2014 release
features a wide assortment of new interior
and exterior LED products. Plus, Kichler
will have their largest ceiling fan release in
company historymore than 30 brand-new
designs in 2014.
Most builders know the Kichler brand stands
for high quality decorative lighting. What
they may not know is that decorative only
represents about half of Kichlers business.
The majority of Kichlers business comes from
other productsceiling fans, LED tape and
architectural lighting, under cabinet systems,
landscape and floodlighting.

Whole Home LED Solutions

In 2014, Kichler continues to expand its


industry-leading LED offering with a series of
new decorative flushmounts, mini pendants,
and exterior sconces. Jeff Dross, director
of industry trends, sees great potential in
LED mini pendants because they hit on two
trendsenergy efficiency and non-traditional
lighting. Not only will these provide the right
punch of light over multi-level kitchen islands,
they are increasingly being used to flank
bathroom mirrors. Another big opportunity
for builders is the use of LED tape for task
lighting in kitchens or a splash of uplighting
in coves, tray ceilings and decorative niches.
Indirect lighting is increasing in popularity
and as the cost of LED continues to fall the
opportunities for accent and task lighting
will expand. Few things enhance high-end
countertops or architectural features better
than quality lighting to draw attention to it.

Quality

What You Need


When You Need It

Managing such a wide breadth of product


may seem like a challenge to some, but
David Pamer, vice president of sales, sees
only opportunity. As a single source partner
with expertise in so many areasinterior and
exterior lighting; LED task and accent lighting;
ceiling fans, hallways and entryways
Kichler brings great efficiencies and ease
of doing business. More importantly our
ability to ship all those types of products ontime, with reliability, greatly enhances that
partnership. To ensure on-time shipments,
Kichler leverages a deep distribution system
with three distribution centers located
strategically across the countryensuring
most deliveries in three days or less. Our
distribution network, extensive inventory
and knowledgeable support staff keeps your
projects on time and on-budget.

For more information call 1-888-659-8809 or visit www.Kichler.com.


Circle no. 163

8
17

18

19

20

21

17. progress lighting


using 13 watts of input power,
the P8071 recessed LED
provides 825 lumen output,
comparable to a 65-watt
incandescent lamp. The fixture
is equipped with an Edison
base adaptor and quick link for
easy installation in standard
incandescent cans. www.
progresslighting.com.
Circle no. 38.

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18. behr
Marquee Exterior paint and
primer features advanced
dirt resistance, uV protection
technology to prevent fading,
and a mildew-resistant finish.
The paint resists rain as early
as 60 minutes after application.
www.behr.com. Circle no. 39.
19. hart & cooley
The rH45 aluminum return air
grille, 45 degree fixed blade air
distribution solution features
face bars permanently fixed into
a sturdy aluminum frame at a

45-degree angle. The grille is


available in a bright white or satin
anodized finish and various sizes.
www.hartandcooley.com. Circle
no. 40.
20. sierra pacific
90 Corner Pocketing Multi-Slide
doors open from the corner and
slide into the wall to transition
between indoor and outdoor
living spaces. The doors use
aluminum-clad or wood exteriors

and all wood interiors, with


various finish options available.
www.sierrapacificwindows.com.
Circle no. 41.
21. kohler
Drawing design inspiration from
asian Zen gardens, the Toobi
single-hole bathroom sink faucet
has a modern aesthetic with
polished edges. The faucet is
offered in polished chrome and
brushed nickel finishes and is
WaterSense certified, with a 1.5
gpm maximum flow rate. www.
kohler.com. Circle no. 42.

b u i l d e r o n l i n e .c o m

ADVERTISEMENT

SUPPORTING LEVEL SPONSOR

TRANE TRUCOMFORT SYSTEMS: OUR QUIETEST


AND MOST PRECISE COMFORT EXPERIENCE
Trane, a brand of Ingersoll Rand (NYSE: IR),
is putting home comfort on cruise control
with its newest innovation: the TruComfort
Variable Speed Systems. These stateof-the-art systems featured in The New
American Home deliver precise comfort by
running at the exact speed necessary to
keep your home comfortable. By lowering
output capacity and operating speed, they
provide efficient and consistent comfort.
Additionally, TruComfort heat pumps are
able to slow fan speeds down as outdoor
temperatures drop to reduce cold spots
and use of supplemental heat. Whats more,
sound levels are as low as an impressive
54dB on the heat pump systems for quiet
comfort all day long.

Circle no. 152

Featuring a Comfort-Link II Communicating


Control Board with refrigerant-cooled
inverter, Trane TruComfort consistently
optimizes its run speed, often at lower
outputs, to provide continuous comfort within
a half degree of the targeted temperature.
This eliminates uncomfortable temperature
swings and provides energy efficient, quiet
operation. TruComfort variable speed
technology works seamlessly with Tranes
ComfortLink II Control and provides zone-tozone control for optimal comfort throughout

For more information on Tranes full line of HVAC systems,


visit www.trane.com/residential or call 903-581-3200.

the home. And because its a Trane,


consumers know theyre getting the most
reliable HVAC product on the market.
For over 100 years, Trane has built a
legacy of providing comfort systems like
no other, featuring uncompromising quality,
innovation, and reliability. When it comes
to heating and cooling homes, people view
Trane as having the most reliable equipment
among HVAC brands.* That legacy lives
on today with Tranes TruComfort Variable
Speed systems.
Trane solutions optimize indoor environments with a broad portfolio of energy
efficient heating, ventilation, and air
conditioning systems; parts support; and
advanced controls.
*Ingersoll Marketing Insights, Trane Claim Consumer Survey,
September 2014

TNAH SpoNSorS

The New AmericAN home


2015 SpoNSorS
ANd coNTribuTorS
NAhb leAdiNG SupplierS
couNcilSpoNSorS
Products supplied by the
members of the Leading
Suppliers Council of the naHB
are selected by the project
team to meet the needs of the
program and reflect the latest in
technology and style.
*American Gas Association
(natural gas services and
support)
*bayer materialScience llc
(spray foam insulation and foam
roofing)
*bosch Thermotechnology
(tankless water heaters)
*broan-NuTone llc (wholehome ventilation, central
vacuum)
*bosch Appliances (Thermador
kitchen appliances and Bosch
laundry appliances)
*certainTeed corp. (drywall and
supplies)
*dupont building innovations
(Corian and Zodiaq surfacing)
*Garaventa lift (elevator and
installation)
*Gladiator Garage works
(garage storage system)
*Green edge Supply, a division
of 84 lumber (solar panels)
*Kingspan insulation
(weatherization products
including flashing, sheeting, and
air barrier material)

*Kohler/Kohler power
Systems (tubs, sinks, lavatory,
faucets, bath hardware, and
standby generator)

oTher SpoNSorS ANd


coNTribuTorS

*lift master (chamberlain)


(garage door opener)

Anthony & Sylvan pools


(pool installation)

*progress lighting (interior,


exterior, and landscape light
fixtures)
*Sierra pacific windows
(windows, exterior doors, and
glass door/window systems)
*Trane (HVaC system and ErV)
NAhb leAdiNG SupplierS
couNcilcoNTribuTorS
eaton electrical (subpanels,
panels, and breakers)
General motors (Volt electric
vehicle)
hearth, patio & barbecue
Association (members fire
products from Heat & Glo, Town
and Country, rH Peterson, and
napoleon)
heat & Glo/hearth & home
Technologies (fireplace)
in-Sink-erator (disposers,
instant hot/cold water)
mohawk (wood floors and
carpet)
pacific energy Fireplace
products (fireplace)
rh peterson (outdoor kitchen
and grill)
Southwest Gas corp. (natural
gas filling station)

Absolute closets and


cabinetry (closet systems)

Arizona Stone & Architectural


products (Coronado stone)
*baldwin/Kwikset (door
hardware)

*Jeld-weN (interior doors)


*lamps plus inc. (installed light
fixtures)
mAc roofing (roofing
installation)
Next level (door and trim
installation)
on Guard Fire (sprinkler
installation)

*behr paint (paints/coatings)

pegasus marble (labor for


exterior stone materials)

canyon plumbing (plumbing


installation and parts)

powerhouSe plastering
(stucco installation)

*clopay (garage door)

Quality carpentry (pocket door


automation installation)

coronado Stone (exterior stone


products)

Questar (GMC Sierra truck)

crestron (home automation


control system)

Sierra Air conditioning (HVaC


installation)

custom Specialties (fireplaces,


installation, and fire features)

Simpson Strong-Tie (fasteners)

del Grosso Flooring and


cabinets (cabinetry and
countertop fabrication and
installation)
desert Truss (trusses)
design concrete of Nevada
(hardscape materials)
dhe electric (electrical
services)
doors in motion (motors for
sliding doors)
dryvit Systems (synthetic
stucco)
eagle Sentry (system
integrator)

Sunrise carpentry (framing


and lumber)
Sunstate companies
(landscaping)
TS paint and drywall (labor for
drywall, tape, and paint)
Thomas & betts (outlets and
switches)
walker Zanger (tile, slabs, and
marble materials)
*watts water Technologies
(PEX piping, control box,
pipe and sprinklers for fire
suppression)
*Sponsoring partners of the 2015 New
American Home

ecoN Appliances (appliance


installation)
executive cabinetry (cabinets)
Green Form construction
(solar panels)
hankin Specialty elevators
(elevator installation)
*hart & cooley (HVaC diffusers)
*iApmo (plumbing education
and training)
Jd Stairs (ironworks, railings,
and stair installation)

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

Circle no. 269

ADVERTISEMENT

TITLE LEVEL SPONSOR

KOHLER BRINGS INNOVATIVE TECHNOLOGY


TO THE HOME

Smartphones, tablets, MP3 players, wearable technology


consumers are rushing to embrace technology in their lives and in
their homes. High-tech products found in unexpected places in the
home can be a critical differentiator and competitive advantage. In
the kitchen and bathroom, Kohler delivers leading-edge technology
homeowners appreciate.
TOUCHLESS TECHNOLOGY IN THE BATHROOM

The sleek, one-piece San Souci toilet is equipped with touchless


technology, which all germaphobes will love. The PureFresh toilet
seat from Kohler contains a deodorizing system that utilizes a
carbon filter to neutralize odorous air, as well as a night light. An
integrated fan, activated when the user sits on the seat, directs
the filtered air over a scent pack located within the system and
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The shower becomes a customizable retreat by incorporating music


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or the Moxie rainhead + wireless speaker.
TOUCHLESS TECHNOLOGY IN THE KITCHEN

The Sensate faucet brings touchless technology into the kitchen,


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and germs throughout the kitchen. Response technology makes
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handor an object such as a pan or kitchen utensilis all thats
needed to turn Sensate on or off.

Circle no. 156

For more information about these and more innovative products from Kohler,
visit www.us.kohler.com/us/.

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Discover yours at KOHLER.com.


Circle no. 384

See us in

Las Vegas!
January 20-22, 2015 | Booth #C5526

International Builders Show | Convention Center | Las Vegas, Nevada


Meet TV Celebrities
and Home Improvement
Experts
Check Out New
Flooring Innovations
See a variety of the
HOTTEST fooring trends
Norm Abram

Tom Silva

Nicole Curtis

Vanilla Ice

Booth #C5526
Circle no. 184

Visit the Lumber Liquidators ProSales booth to see live demonstrations


and learn more about our exclusive fooring programs.
Builder Project Assistance
Trade Exclusive Products & Programs

Business Line of Credit


(House Account)

Sample Programs

Full Warranties

Volume Discounts

Sales opportunities nationwide

Schedule of Events
Tuesday, January 20th

10-11am Installation Demonstration


1-3pm Norm Abram & Tom Silva (This Old House)

Wednesday, January 21st

10-12pm Nicole Curtis (Rehab Addict)


1-3pm Vanilla Ice

Thursday, January 22nd

10-11am Installation Demonstration

3:30-4:30pm Installation Demonstration

3:30-4:30pm Installation Demonstration

1-2pm

Installation Demonstration

For more information contact your ProSales Sales Representative


at 800-274-2360 or prosales@lumberliquidators.com

#IBSVegaS

IBS 2015

all homes

start here

Start your 2015 off right @ iBS!


The 2015 International Builders Show is happening in Las
Vegas This month! in the next few pages get a sneak peak and see
some of the highlights attendees will see, hear and experience.
Not registered? its not too late! Register by January 17 to avoid
onsite pricing.

see you in Vegas!


january 20-22 || Las Vegas || BuildersShow.com

Why IBs 2015?


see WhaT We haVe PlaNNeD FoR yoU!
Attending the 2015 NAHB International Builders Show (iBs) is your first step to getting the tools
you need to improve your business. At iBs youll access an array of opportunities that benefit every
aspect of your business and give you the edge over your competition, plus youll be able to mix in
some fun with your colleagues.

Business-Building opportunities await you, dont miss out on:

1
2

More than 1,300 manufacturers and suppliers in over 500,000 square


feet of exhibits IBs is by far the building industrys biggest event!
Design & Construction Week as a founding partner of Design &
Construction Week, IBs not only gives you access to one amazing
exhibit floor, you also get access to the four other exhibit floors of
Design & Construction Week Kitchen & Bath Industry show, the
Las Vegas Market (home dcor & furnishings) and the International
surface event.
IBs offers more than 100 IBS education sessions in 10 tracks. the
value of an IBs full registration is evident in the speaker ratings at
an all-time high and the number of attendees getting an IBs full
registration increasing 40% over the past two years. the message is
clear IBs education is in demand and if you arent taking advantage,
then youre missing out!

4
5

6
7
8
9
10

IBS Centrals your one-stop-shop to focus on questions and issues


unique to your niche market. an IBs badge gives you access to all six
IBs Centrals 50+ Lifestyle, Custom Building, Design, Multifamily,
remodelers and sales.
High Performance Building Zone (HPBZ) a live demo stage featuring
interactive construction demos showcasing the latest methods, tips and
tricks used in high performance building. Led by top building science
experts, youll see first-hand, the best practices for improving efficiency
in all areas of the home at the 2015 hPBZ.
awards Ceremonies IBs is a great place to rub elbows with the
best of the best in the building industry and is home to many awards
ceremonies and events.
Networking the entire building industry will be at IBs, giving you the
opportunity to connect with thousands of industry professionals in one
location.
IBS Spike Concert this spectacular closing event, sponsored by Geico,
will have you rockin at a private concert by the iconic trio ZZ tOP!
Incredible Value IBs is the one place where you can get all the tools
you need to build your business in 3 days without breaking the bank.
all work and no play not the case at IBs! the 2015 show will be in
fabulous Las Vegas so youll have tons to see and do.

#IBSVegaS

The NeW ameRIcaN


home 2015

CertIfICatIoNS to Be VerIfIeD
Net Zero
National Green Building Standard - Emerald
US DOE Energy Star certified
US DOE Builders Challenge qualified
Build America Program
US EPA Indoor airPLUS Qualified
Southern Nevada Green Building Partnership
Water Smart Home program (SNWA/ SNHBA)
Progress Energy Home Advantage Program

The 33rd edition of the New American home is built to showcase


the latest technology in the home building industry. it is a collection
of ideas for the industry to take awayin large pieces, or bit-by
bitand put into homes at any price point across the country.
For 2015, the 5,891 sq. ft. home will demonstrate how the most
cutting-edge building technology, products and materials can be
integrated into a production community. There has always been a
requirement in the industry to consider that new home buyers are
looking for an experience that allows them to make a production
floor plan feel like a unique custom home built specifically for them.
Designed and built by Blue heron, the 2015 New American home
was created as a production floor plan to be sold and built with
various structural and finish options. The home is as breathtaking
and sophisticated as any true custom home.

Come aND See for yourSelf!


Complimentary Tickets Distributed Daily
Dont miss out! ALL registered attendees of the international Builders show, the Kitchen & Bath industry show and the
international Windows Coverings Expo are welcome! Tickets are available on a first-come, first-served basis. For the
best chance of getting tickets, visit the booth early on the day that you want to take the tour.
Pick up complimentary shuttle bus tickets at The New American home booth C - 30 located in the Central Concourse
of the Las Vegas Convention Center.

More Than
Products.
Commitment
to Your Success.
No matter what your vision of business success, it takes more
than the right products. Which is why Johns Manville is more than
a supplier. In addition to the industrys most comprehensive product
portfolio, we deliver the personal relationships, consultative support
and exibility you need to run your business, your way.
Thats the JM Advantage / www.jm.com/insulation

Circle no. 373

Try JMs Energy Performance Calculator at IBS Booth C6513

2015 Johns Manville. All Rights Reserved.

Calculate the HERS ratings your homes can achieve.

ADVERTISEMENT

SUPPORTING LEVEL SPONSOR

THE COLORS OF DUPONT CORIAN AND ZODIAQ

BE DAZZELED, BE INSPIRED, AND BE READY FOR WHATS NEXT!

DuPont Zodiaq quartz surface is the perfect match for TNAH


2015: functional, but stunning and sophisticated as well. From the
kitchen and baths to the loft bar and wine room, Zodiaq provides
beauty and practicality. Zodiaq is made with quartz crystals making
it extremely scratch-resistant. And, unlike other materials, you never
have to seal, polish or recondition the surface to maintain its luster.
NEXT: COLORS AND PATTERNS DRIVEN FORWARD

The new SURFACE Collection unites DuPont Corian solid surface


and Zodiaq quartz surface in a master offering of color, pattern
and design. This expansive view offers the unique perspective of
seeing not only the broad range of colors, but seeing them in the
context of hue.
29 new colors and patterns join an already design-rich array to
propel your environments to their next inspired dcor. The collection
begins with subtle hues of FILTERED, which softly represent ones
desire for calm and escape. The introductions then move into the
lush, ambient world of DEEP colors, which indulge and luxuriate.
Finally, the CATALYST palette is sparked by new bold patterns and
solid colors, which tease the eye with bold aesthetics.
Making selections and coordinating with other Corian solid
surface and Zodiaq quartz surface materials is made simpler with
the easy to navigate range. Beginning with warm whites and moving
through the entire collection to end with cool whites, you realize the
full breadth of stunning patterns, exciting colors and endless design
inspirations offered with The Surface Collection.

Circle no. 155

For more information, visit www.surfaces.dupont.com


or call 1-800-426-7426.

Circle no. 363

Need A Better Building Process?

BEGIN WITH BETTER TECHNOLOGY

When it comes to your structural framing, there is a better way.


MiTek combines industry-leading 3D structural framing software, innovative
connection solutions and time-tested prefabrication technology all proven
to boost the performance of your business.
MiTeks new Builder Products Division is designed to support your success.
Featuring SAPPHIRE software options, and integrated connecting solutions
through USP Structural Connectors and Hardy Frame Shear Wall System,
they support your LBM supply team to help make it all happen. You realize a
buildable, optimized, code-compliant structure that goes in faster, and right
the rst time.

START HERE
Learn more at our IBS Show Booth C3015
Visit us at MiTekBuilderProducts.com/BuilderMagazine
Explore Buildability at BuildabilityNow.com/BuilderMagazine

Circle no. 238

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

Much attention has been paid to skyrocketing


college costs, with many positing that the
resultant accumulation of unprecedented
student loan debtnow totaling more than $1
trillionmakes homeownership unaffordable for millennials.
This generation carries more college debt
than the ones before. Data from the Federal
Reserve Bank of New York shows the share of
25-year-olds with student debt increased from
25 percent in 2003 to 43 percent in 2012, and
their average balance nearly doubled. According to The Project on Student Debt, 2008 graduates from nonprofit four-year colleges had an
average of around $24,600 in student loans.
Compare that with the average debt of approximately $15,000 (adjusted for inflation) for
Gen Xs 1993 graduates.
For many, the weight of student debt impacts buying choices: In a 2012 Rutgers University survey of recent graduates, 40 percent of
respondents cited student loan debt as a reason
theyve delayed major purchases like a home.
Historically, while student loan debt can be an
impediment, it has not been a showstopper.
Record-high student loan debt makes it
very hard to save, says Zillow senior economist
Skylar Olsen. Were seeing more and more
FHA loans, more down payments under 20 percent. Because mortgage rates remain low, payments remain affordable even after private
mortgage insurance is included, she adds.
That affordable mortgage payment could be
a major demand driver as rents continue to
increase, especially for those who are dedicating large portions of their monthly budget to
student loan repayment. When you crunch
the numbers, it will be a better economic decision to buy as opposed to rent, Olsen says.

140 b u i l d e r

J a n u a r y 2 0 15

Millennials Cant Afford Down Payments


at Todays Standards
False

Its hard for millennials to save money. In fact,


most are mired in debt with an average savings
rate of -2 percent, according to Moodys Analytics. However, according to Moodys chief economist Mark Zandi, theyre not behaving any
differently than the generations before them.
If anything, theyve actually saved more.
Their saving rate has been higher; probably in
terms of dollars they have not saved as much
just because their incomes have been lower in
the tough economy, but I dont know that
theyre behaving any differently, he says.
Most millennials were just entering the job
market during the recession, with an unemployment rate for recent graduates with a
bachelors or advanced degree aged 20 to 29 hitting 17.6 percent in 2009, according to the Bureau of Labor Statistics. Students who graduate
into a recession can expect to earn a 10 percent
lower wage after a decade of work than they
would have earned in a strong economy, according to a 2009 Yale University study.
Then there are the student loans and skyrocketing rents. Nationally, half of all renters
are spending more than 30 percent of their
income on housing, up from 38 percent in
2000, according to Harvards Joint Center for
Housing Studies. Also, Freddie Mac found 50
percent of renters who plan to continue rent-

True

ing in the next three years cited the inability


to afford a down payment as a factor.
Freddie Mac and Fannie Mae recently set
new terms for allowing as little as 3 percent
down for first-time buyers. This brings a down
payment on the median new-home price of
$305,000 to only $9,150. That will attract more
millennials, but with an average of only $3,000
in nonretirement savings, according to the Demand Institute, its still out of reach for some.
It might be too soon to tell if millennials can
afford a down payment, anyway. The older end
of the group is reaching the average home buying age, but the younger end is just entering
college. Its a little premature, I think, to worry
or to conclude that millennials wont have the
financial resources necessary to buy homes
when they get into their late 30s, Zandi says.

Millennials Want to
Maintain Geographic
Flexibility
False

True

Sharise Kent, a millennial career coach based in


Laurel, Md., has been working with Gen Y for
more than 15 yearsfrom high school, through
college, and now as they explore the workforce.
She says the No. 1 reason why millennials want
flexibility is because of their careers and the
environment of the workforce.
You have a lot of underemployed college
grads, Kent says of Gen Y. But if youre looking
for a job across the U.S., there are way more jobs
than if youre looking in just a particular city.
The scarcity of jobs has left millennials
competing with one another, and being able
to pack up and go when an opportunity
comes is an advantage. If youre tied into a
home, it makes it harder to take the next opportunity, Kent says. With the competition for jobs with recent grads, the ability to
be mobile is restricted when you have a
home to sell or rent out.
And young Americans arent just looking
for any jobthey want the right one. Millennials want to be passionate about their career
and, depending on the field, that may or may
not be available in their city, Kent says, adding that the generations preferences and attitudes toward careers varies by age. The
younger part of the generation will put in
time at the bottom of a company while older
millennials seek more of a work/life balance.
And while most millennials are dedicated,
their attitudes are tainted to be less loyal to
their employers than previous generations
because of the recession.
They have a fierce determination to find
that balance that gives them life experiences,
Kent says. They dont live to work, they work
to live. Theyre looking to live life, not just
climb the corporate ladder.

b u i l d e r o n l i n e .c o m

Millennials Dont Want to Own a Home


False

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

The desire to own a home is completely


different from having the ability to actually
buy one. About 62 percent of renters from the
ages of 25 to 34 indicated they will continue
to live in rental housing for the next three
years because they cannot afford a down
payment for a mortgage, according to a recent Freddie Mac survey.
Those in the millennial generation eventually will go through the same life stages as
previous generations, but it just may take
them a little longer.
It is the American dream to own a
home, Carmichael says. People associate
success with owning a home, and millennials are no different. If Im not getting married or having children, then there is no
urgency to buy a home. And until I do, the
urgency isnt there.

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

Many millennials want the typical household


with a spouse and kids. They just dont want it
yet. As of 2013, the average age of marriage is 27
for women and 29 for men, compared with 20
and 23, respectively, in 1950. Even more so, Census data shows todays 18 to 34 year olds are
more educated, more poor, and more unemployed than 18 to 34 year olds were 30 years ago.
More educated people often get married later in
life. Likewise, wealth positively impacts household formation. Since millennials have struggled to save in this economy of high
unemployment, staggering rents, and surmounting student debt, most resort to living
with their parents because they havent felt
stable enough to form a household.
That doesnt mean they dont plan to in the
near future, though. According to the Demand
Institutes Millennials and Their Homes report, 34 percent of those currently unmarried
plan to marry in the next five years, and 19
percent of those without children today plan
to have children in the next five years. By 2018,
there should be 8.3 million new households
formed, a 38.4 percent increase since 2013.
The ball is already rolling in that direction.
The number of millennials living with their
parents peaked at 36.2 percent in 2012, according to Trulia, and has been declining slightly
over the past two years. Since household formation levels are still stagnating, many millennials are possibly now in the transition period of
gaining independence from their parents, but
still saving money by living with other adults.
All the adults who are living with other
adults for affordability reasons will start
looking to become their own household,
Olsen says.

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

Over the past few years the share of 20-year-olds


living in cities has increased, but so has the
share of 20-year-olds living in suburban and
rural areas. Since the Gen Y population is much
larger than Gen X, as more millennials reach
their 20s, the increase is only natural.
While there are studies, like a Nielsen survey saying 62 percent of millennials currently
prefer to live in an urban setting, Wendell Cox,
an urban planner, says reports of millennials
flocking to cities have been exaggerated. In
context of the total millennial population, it is
small, he says, noting that cities have experienced population growth, but only in their
downtown areas (considered within 2 miles of
city hall). Areas 3 to 5 miles outside of city hall
have experienced a population decrease, often
leveling out the downtown growth, he adds.
The problem with predicting millennials
future preferences for living in urban areas off
of their current preferences is that the majority of millennials are in their 20s, an age when
most are single and not yet thinking of settling down. An urban lifestyle suits them right
now, but as they grow up, get married, and
have kids, other preferences like good school
districts likely will take priority.
Its a wonderful life, but when that first kid
comes along that 40th floor balcony is not acceptable, says Cox.
A survey from the Demand Institute supports this outlook, noting that 48 percent of
Gen Yers will look to the suburbs to purchase
a home.

True

In general, millennials place more importance


on being environmentally friendly and technologically connected than previous generations,
and they want their homes to reflect that.
A Better Homes and Garden Real Estate (BHGRE) survey of 18 to 35 year olds found that 84
percent of respondents believe updated technology is a home essential. Fifty-six percent
ranked home technology capabilities as more
important than curb appeal. And when it
comes to a homes environmental impact, Gen
Y is the most concerned, says Jeremy Burbank,
vice president of The Demand Institute.
But cost is one of the largest factors for
younger buyers when choosing a home, and
even if millennials are interested in premium
upgrades, most simply cant afford them.
The Demand Institute sees interest in additions that help consumers reduce their energy
usage. Similarly, respondents to BHGREs survey named their most sought-after home technology features as an energy-efficient washer
and dryer (57 percent), a security system (48
percent), and a smart thermostat (44 percent).
As such, builders should be selective about
the products they include, favoring those that
most millennials can (and will) pay for. Thinking small could work for the homes fundamental design, too; more than any other age group,
Gen Y has indicated a willingness to part with
square footage to gain better performance.
Even without extra upgrades, builders can
gain a green advantage just by promoting the
virtues of new construction. One important
thing to note is that newer homes in general,
all else equal, do tend to be more energy efficient, Burbank says. I think thats an important benefit to communicate.

See why builders love Avante


doors at bit.ly/AvanteVideo.

Clopay Avante Collection

a sense of style.
Circle no. 393

Set your homes apart by offering Clopays stylish line of garage doors to new home
buyers in your market. In addition to its award-winning, innovative products, Clopay
stands behind you with sophisticated visualizer tools, a powerful consumer marketing
campaign and unprecedented customer support.
To nd a Clopay dealer in your area, visit clopaydoor.com today.
Made in the U.S.A. 2015 Clopay Building Products Company, Inc., a Griffon company.

See us at the
NAHB International Builders Show
Booth #C1062

ADVERTISEMENT

FOUNDING LEVEL SPONSOR

SIERRA PACIFIC WINDOWS AND DOORS


Value is the cornerstone of our philosophy at Sierra Pacific Windows.
As a premiere manufacturer of top quality wood and aluminum
clad-wood windows and doors, we are proud to stand behind our
products with a commitment that is unparalleled in the industry.
Whether your project is residential or commercial, new construction
or remodel, we have the product quality, design flexibility, service
and expertise to complete your vision. Additionally, all Sierra Pacific
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STATELY MOVING WALLS OF GLASS

Sierra Pacifics Specialty Doors and Windows are significant


architectural elements of The New American Home 2015. Sierra
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securely; or to disappear into hidden pockets; connecting living
spaces by eliminating walls.
Many of these doors are automated, so you can enjoy unobstructed
views at the touch of a button. The main wall of the Great Room is
composed of an eight panel Multi-Slide Pocketing Door that parts from
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Large fixed windows flood the home with ambient sunlight, reducing
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With a multitude of sizes and options, Sierra Pacific
Specialty Products deliver exciting design possibilities!

Circle no. 153

For more information on these products as well as our full line of windows
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Circle no. 395

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

Courtesy: Challenger Homes

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

FHA loan limit


$320,850

Median New Home


Closing Price $292,800

Top Area builders


Catering to First-Time
buyers D.R. Horton,
Peachtree Communities,
Ashton Woods

Average Home Cost Per


Square Foot $156

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

millennials without work and now, as they


secure jobs, their wages are low, their savings
are shot, and their debt loads are high. Even in
good times, thats not a great recipe for securing a loan. But coming out of the worst financial crisis since the Great Depression, those
potential buyers struggle to meet Federal Housing Administration (FHA) loan limits, are susceptible to interest rate increases, and are sensitive to high housing costs. (See sidebars for
information on these data points for five metropolitan areas, provided by research from our
BUILDER 100 and Local Leaders lists and the
National Association of Realtors.)
Builders see these issues first hand. We
have demand, Cates says. Were just having
a difficult time getting people qualified in
anything south of $200,000.
Not surprisingly, the percentage of entrylevel buyers has plummeted. A recent National Association of Realtors (NAR) survey

found the share of first-time buyers fell last


year to its lowest point in nearly three decades. The long-term average in this survey,
dating back to 1981, shows that 40 percent of
home purchases are traditionally from firsttime buyers. In 2014, the share of first-time
buyers dropped to 33 percent, representing
the lowest share since 1987.
Lawrence Yun, NARs chief economist, says
there are many obstacles young adults endure
on their path to homeownership. Rising rents
and repaying student loan debt makes saving
for a down payment more difficult, especially
for young adults whove experienced limited
job prospects and flat wage growth since entering the workforce, he says. Adding more
bumps in the road is that those finally in a
position to buy have had to overcome low inventory levels in their price range, competition from investors, tight credit conditions,
and high mortgage insurance premiums.

Left: istock.com/trekandshoot; right: Mel Ashar

creases, says Brad Hunter, chief economist for


Metrostudy, the research arm for BUILDERs
parent company, Hanley Wood. Builders are
pushing this market because they have to pay
more for land and lots.
With issues on both the supply and demand side, builders are finding that its hard to
absorb extra lot costs and still make homes
more affordable to entry-level buyers. Though
there are tricks to add density and reduce costs
per door to help make housing affordable to
this underserved segment, nothing really will
change until economic conditions improve.

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

Left: Christoph Gielen; right: istock.com/Lingbeek

But even if the route to buying were more


clear, the supply side has stymied builders
who are trying to produce a low-cost home.
After suffering through the last downturn, a
lot of builders would prefer to build a cushion
rather than skate by on razor-thin margins.
As a builder, you really dont like to extend
your lot price past 20 percent of the sales price
of the homes, says Matt Riley, director of
sales and marketing at Raleigh, N.C.based
Royal Oaks Building Group. When you do, it
starts to get more risky and may lead to less
profit on each house.
Five years ago, Cates says buying and developing a lot in Fayetteville, a big entry level
market for him, would have cost about
$25,000. That number has since mushroomed
to about $40,000. Our issue gets down to lot
costs, Cates says. Its so hard to get lot costs
down to where we can build an entry-level
product that makes a good margin. We can do
it in places, but the demand has to be there.
Right now the demand is not there.
The culprit behind these price increases,
according to Cates, are local requirements
that force him to convert stormwater ponds
to permanent ponds and requests to bond
things like street lights, sidewalks, landscaping, and retention ponds.
What we dont have anymore is entry-level
costs because of all of the regulations that we
have, Cates says. The days of developing an
entry-level home for $25,000 are over. Now, its
$50,000. You cant build a $175,000 home on a
$50,000 lot. The numbers dont work.
And thats before localities, often driven
by neighborhood groups, start specifying materials. You get in [to a development] and
they say we dont want vinyl, you have to do
HardiePlank, Riley says. That adds $12,000.
Anderson was able to hit the $175,000 to
$225,000 sweet spot from 2008 through 2011
because of the discounted lots he acquired.
Before the downturn, that dirt sold for as high
as $50,000 to $60,000, but Anderson was able to
buy the lots for $30,000 to $35,000 during the
recession. The replacement lots today are back
to the $50,000 to $60,000 range.
Thats kind of what has driven that affordability out, Anderson says. Its the dirt
cost, development costs going up, and entitlement costs associated with that is all part of
it, he says. Now, trades who were operating
at break even in the downturn to keep doors
open want to get paid. Its kind a perfect
storm of unaffordability.
Creative Solutions
When dealing with land and entitlements,
theres really only so much that a builder can

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

FHA loan limit


$625,500

unemployment rate
5.1%

Median New Home


Closing Price $815,200
Average Home Cost Per
Square Foot $788

Top builders Catering


to First-Time buyers
Shea Homes, Meritage
Homes, Standard Pacific

do. If you arent sitting on distressed land from


five years ago, the only real solution is to find
cheaper land. In order to build affordable
homes, you do have to go out a little bit further,
generally speaking, says Rick Carruthers, executive vice president and Atlanta division
president at Century Communities and former
CEO at Peachtree Communities, which built
entry-level product in the Atlanta market.
But trekking beyond the suburbs is riskier
for builders and an anathema to smart
growth advocates concerned about traffic
congestion and quality of life. Another way to
fight increased land costs is to build higher
density, if the locality permits it.
In one community in Castle Rock, Colo.,
Andersons lot costs were around $50,000 and
fees pushed things up to about $100,000. Suddenly, detached homes in that community
would come in at about $400,000 to $450,000.
So he decided to pass on that opportunity.
Instead, he found an infill site and built

townhomes that sold for $179,900 to $225,000.


What were doing to preserve that value
proposition in our market is by looking at
attached or high density so we can spread
the cost of land and entitlements over more
units and get that per door of the finished lot
with fees to where its less as a percentage,
Anderson says.
Anderson also has effectively increased
density by utilizing coving instead of the standard gridiron planning techniques. With the
curved streets and cul-de-sacs in coving, he
can save 25 percent to 30 percent. At The Trails
at Forest Meadows in Colorado Springs, coving
earned him 312 lots, instead of the 279 he would
have gotten with gridiron. It also reduced development costs by 25 percent.
Some builders have found cooperation in
communities where theyre building more
affordable homes. We call it constructive
engagement, Anderson says. We get together with the city people, the water people, with

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

Median New Home


Closing Price $235,400
Average Home Cost Per
Square Foot $144
FHA loan limit
$271,050

152 b u i l d e r

J a n u a r y 2 0 15

can enjoy some efficiency.


Well build 350 homes, Riley says. Because were buying a better volume, youll get
better pricing.
But for smaller builders, getting those efficiencies is a challenge. If youre a smaller
builder doing 100 houses or less and you dont
have that buying power, it makes it even
more challenging, Riley says.
Growth Potential
Ultimately, despite whatever tricks builders
can employ to bring their cost per door down,
the only thing that will really pick up the
entry-level market is a buyers ability to qualify for a loan and make payments. Until then,
builders expect to resales dominate the starter-home market.
The existing houses have taken over the
entry-level market, Cates says. Thats where
the sales are now. Thats where you can get a

three bedroom, 1,500-square-foot ranch in a


decent school district for $120,000. Where we
build, its $190,000 in a cotton field. The existing market is where the entry level is for the
next several years.
But Carruthers says hes starting to see
some hopeful signs that things are changing. Weve seen improvement in the availability of credit pretty steadily in the last
few years, he says.
With Fannie, Freddie Mac, and the FHA
evaluating policies that affect buyers ability
to make down payments, the hope is that
2015 will get better.
Weve seen improvements in the market, Carruthers says. If you look at the
pyramid of what people can afford, the lower
price ranges have a lot more people that are
capable of buying, particularly now that
some of the credit constraints have eased up
a little bit. B

b u i l d e r o n l i n e .c o m

flickr.com/modot_stl_photos

the sanitary people and ask, What can we do


to lower the fees? he says. What are you
kicking up against that is causing you to increase the fees?
In some cases, the localities will cooperate. In Fountain, Colo., the city was charging
as much as $6,500 per lot in water acquisition
fees in preparation for a new water plant, in
addition to a $30,000 tap fee. We worked with
them constructively to come with water conversation techniques on a typical 5,500 single
family lot, Anderson says. If we can reduce
that turf area with some drought-tolerant
plant material, we can reduce that fee from
$6,500 to $3,500. In a neighborhood of 600
lots, that is quite a savings.
Its no secret that two of the builders most
effective at entry-level product are publics.
That volume gives the efficiency with labor
and materials costs to produce a lower cost
home. Riley says that even smaller Royal Oak

Top builders Catering


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McBride & Son Homes,
PulteGroup, Payne
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Circle no. 196

Target Practice: Five Places


to Find Savings
Building the entry-level home isnt easy, but architects identify five places
where builders can cut costsand places where they cant
by l e s s h av e r / i l lust r at ion s by Pet e suc h e s k i

n the surface, it seems like building a


house to meet the price requirements
of the entry-level buyer would be a
game of subtraction. Take a move-up
home, pull back on the square footage,
cabinetry, and flooring, scale down
some finishes, and voil, you have the
entry-level home.
But thats not how many architects and
builders who still work in the entry-level market view things. While there are some builders out there who produce a bare-bones home
without basics like appliances, many architects contend that the best way to attack entry-level is to build up to the price point.
You have to say, What can I put into this
house to make it terrific at the price point that
I want to sell it at, not, What do I have to take
out of it to get it down, says Elise Platt, president of New York-based strategic planning and
marketing consulting firm E.A. Platt & Co.
To start that process, Marianne Cusato, a
Miami-based designer, says architects and
builders need to start with the must haves.

b u i l d e r o n l i n e .c o m

Rather than eliminating elements to


make a home more affordable, I would start
with a list of items that are most important,
Cusato says. Ceiling heights and windows
matter because these elements make a space
livable. If Im designing a small home, I start
with 9-foot ceilings and 5-foot, 6-inch windows. If I can get those two things, I know the
character of space is fantastic.
Platt prioritizes things that cant be removed. You cant sacrifice light, she says.
My edict is always give them what they cant
go back and fix. They cant go back later and fix
windows. They cant go back and fix a nice
staircase and entrance. But they can go back
and put hardware in or granite countertops.
But some builders contend that the millennial segmenttodays primary entry-level
buying marketdoesnt necessarily want to
give up granite countertops and the nicer finishes with which theyve grown accustomed.
Its hard, says Matt Riley, director of
sales and marketing at Raleigh, N.C.based
Royal Oaks Building Group. The expectation

of what a customer thinks should be in a


house at that entry-level price point is kind
of crazy. The expectation of the buyer has
gone up significantly.
He blames one culprit. I think a lot of that
has to do with people being used to the features
in newer apartment complexes, Riley says.
But just because its hard to design the entry-level home doesnt mean its a lost cause. It
will become the bread and butter of housing
stock, Cusato says. Entry-level homes serve a
crucial demographic, which makes it even
more important to build homes that are livable
and not just seen as a disposable item the
owner moves away from as soon as possible.
Getting there is hard, though. To produce
an affordable, entry-level home, architects
and builders must apply creative solutions to
seemingly insurmountable problems like
rising land costs, burdensome entitlement
fees, and unrealistic millennial tastes. Here
are five places architects say money can be
saved with conventional and highly adventurous approaches.

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

poRches and exteRioR


components

Cusato is a strict adherent to the tenant


that the simplest solution is usually the best
solution. In itself, simplicity can be beautiful, she says.
On the exterior of a home, simplicity isnt
just beautifulit can save money, especially if
you eliminate gratuitous design features
that look bad and add cost. The window boxes
and the 3-foot porch add no value, she says.
Its only a drag. When you add in all of these
extra things you lose authenticity. Youre trying to make it look great, but youre actually
making it look worse.
Even features that typically are considered
nice may not be necessary on an affordable
home. If youre going to do a beautiful bay window, go for it, Cusato says. But the reality is if
youre doing affordable housing, there is probably not the budget to get the details right.
Cusato also suggests cutting bay windows
on the garage, small shutters, small patches of
stone and brick, and turrets. But she has a special disdain for small porches. Its better to
have a nice door surround than a porch thats
3 feet because a porch thats 3 feet is a joke, she
says. If you have a front porch, make sure its
8 feet or take it off.
Others agree. Decorative porches are aesthetic and very costly, says Nick Lehnert,
executive director of Irvine, Calif.based
KTGY Group.

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

that might have a long-term impact on the


entry-level buyers wallet. A larger room
means theres more room for air to sit in the
attic, resulting in a huge volume of hot sir
sitting above the house in hot months and
cold air in the winter months, Cusato says.
If you insulate at the ceiling, your mechanical systems have to compensate for an enormous volume of air in these large attics.
Thats why its easier to start the design
with the roof. If you can keep the floor plan
simple and straightforward then youre able
to have a roof that is easy to build, efficient to
maintain, and looks great, Cusato says.

Kitchens

When youre looking to cut costs, the


kitchen is always a good place to start.
The biggest costs are kitchen and
baths, Lehnert says. You can do things to
minimize costs in the kitchen.
Cutting back on the size of the kitchen
means going with smaller cabinets and countertops. And, with the right design, small
kitchens can still be very nice.
While theres debate about how much millennials really want to give up, some architects make the case that builders can save
money on kitchen features and still attract
entry-level buyers. In that marketplace
theres not one human who cares about the
brand of their sink, Platt says.
Cusato is a fan of Formica instead of more
expensive countertops, and when mixing it
with a good overmount sink, it can be a solid, cost-effective alternative to the granite
millennials are said to prefer. The problem
with Formica has been the sinks have always been really gross so everything is kind
of cheap, she says. Formica is amazing.
They have great new product lines. I love
them. Kolher offers an overmount sink that
has a flat edge rather than the conventional
raised profile. This allows you to sweep
crumbs directly into the sink similar to an
undermounted sink.
Ultimately, countertops and other kitchen
finishes can be upgraded later. The finishes
need to be clean and simple, then update as
you can, Cusato says.

open flooR plans

When architects design entry level in expensive markets, theyre often dealing
with space constraints. One way to attack
that is with open floor plans.

Not only are open floor plans en vogue, but


they also eliminate hallways, which in turn
saves on drywall, trim, and other materials.
Open living helps because its annoying to
spend square feet in a hallway, Platt says.
Now you dont have to do that and people have
come to expect open living plans.
Cusato agrees. Why waste space just for
circulation? she says. Then the trick becomes, how do you keep it private? Youre
looking to make sure that if you minimize,
then within how the space is designed, you
make sure bedrooms are separated by closets
so you have sound insulation between them.
John Thatch, principal and director of
design at the Pleasanton, Calif.based architectural and planning firm Dahlin Group,
has found other ways to add flexibility to
open spaces. We started looking at doing
barn doors and looking at different ways to
take this [open] plan and use it in more
ways, he says.
But Cusato warns builders: Dont open
things up too much, she says. A lot of those
floor plans got so large that you cant have a
private conversation. The difficult balance to
thread here is saving money at a point where
you still make the home lovable and livable.

Unfinished BedRooms

When Bill Warwick thinks about aging


in place, hes not talking about seniors
housing. A principal with Philadelphiabased BartonPartners Architects Planners,
Warwick thinks builders and architects can
build a cost-effective house that entry-level
buyers can grow into as their needs change,
while also cutting costs.
His idea: Build the home, but leave some
bedrooms and other spaces unfinished. Warwick envisions a bedroom (and even bathrooms) with rough mechanical duct work
devoid of paint, fixtures, flooring, trim, and
finished closets. Its a raw, unfinished
space, he explains.
But its also less up-front cost to the buyer.
Its all of the other stuffpainting, finishing,
carpetingthat adds more cost, he says.
And, for a childless couple in their late
20s, theres no need to pay for the extra bedrooms to be finished. Realistically, they
dont have to finish out the additional bedrooms until they have a need for it and start
having kids, Warwick says. Its a way to get
someone in a home that doesnt need all of
that space today. In three years, they may
need it. B

J a n u a r y 2 0 15

b u i l d e r 15 9

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News From Housings Ground Zero /// Edited by Jennifer Lash

Landscape

NAHB Chairmans Letter

Significant
Strides in 2014

as Kevin Kellys term as naHB


chairman comes to an end,
he reflects on the associations
progress over the past year

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

cial builders to obtain costly pre-construction


permits for greenhouse gasses emitted from
the buildings they construct.
The NAHB introduced new programs and
services and improved existing ones in 2014. In
March, we held our first in-district legislative
conference, Bringing Housing Home. Because the House of Representatives was in recess during the spring board meeting, members
met with their representatives in their home
districts. It was a great success and laid the
foundation for similar events in the future.
Our new website will be unveiled at the
International Builders Show (IBS) this month
and will provide current, relevant content on
housing and the association. We also launched
a news blog, NAHBNow.com, and a news digest, Housing Headlines, to give members the
latest industry information.
Another item on deck is our new Field Representative Program, which will place staff
experts in five regions across the U.S. to help
HBAs and members better leverage NAHBs
offerings. We also implemented an orientation
program for new association Executive Officers to familiarize them with NAHBs many
products and resources to help ensure members get full value from their membership.
The NAHB Board of Directors also voted to
require only two board meetings per year
starting in 2016, which will save the NAHB $1
million or more annually in the future.
2014 also marked the first time we co-located
IBS with the Kitchen and Bath Industry Show
(KBIS). Building on that success, we are now
partnering with four shows: KBIS; Las Vegas
Market; the International Surface Event; and
the International Window Coverings Expo.
These are some examples of how NAHB
members work togetherand how the federation works for membersto create the best
business environment for housing. Ive enjoyed
leading the NAHB through such an eventful,
productive year. I thank you for the opportunity to serve as your chairman. kevin
kelly, nahb chairman of the board

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

The nGBS Bronze Cookbook


provides a streamlined path
to green for builders

A truly high-performance, green home is not


always easy for builders to design and construct, and there are always additional costs
involved compared with building a codeminimum home. There are innumerable
regulations and codes, specs for hundreds of
products, and the need for dozens of subcontractors in the construction of a typical
home. Doing something new, especially if it
is fundamentally different and unfamiliar,
comes with risk.
So where does a builder who wants to
build a better, greener home start? Using the
National Green Building Standard (NGBS)
and Home Innovations NGBS Green Certification can make the process easier and more
affordable. The NGBSdesigned specifically
for residential constructionwas conceived
to make green building more accessible to all
builders. As an ICC I-Code, the NGBS is written in code language so that the green building practices can be easily understood by
everyone involved in the construction process: designers; architects; builders; carpenters; HVAC contractors; insulation installers;
plumbers; and electricians. This helps to
eliminate, or at least reduce, communication
and implementation issues.
The NGBS establishes a minimum performance baseline by mandating those building
practices considered critical to a homes functioning. NGBS-compliant homes and multifamily buildings, for example, must include
a water-resistive barrier to manage moisture.
Bathrooms must be vented to the outdoors.
Ducts in unconditioned spaces must be insulated to meet at least a minimum level. And,
building owners must be provided with a list
of the green building attributes included in

166 b u i l d e r

J a n u a r y 2 0 15

the building. Once the mandatory practices


have been met, the NGBS offers numerous additional point-based options so builders can
select the green building practices, products,
and technologies that make the most sense
for their climate, geography, construction
type, and cost considerations.
While liberating to more experienced
green builders, the numerous options of
green building practices within the NGBS
(totaling more than 1,100 points) can seem
daunting to the uninitiated. How does
someone approaching the NGBS for the first
time decide what practices are the most
cost-effective? Or the most relevant to prospective home buyers and renters? In an effort to help new green builders overcome
this challenge, Home Innovation created
the NGBS Bronze Cookbook.
The concept behind this green building
roadmap is simpleit allows builders to see
which practices are most commonly incorporated into NGBS Green Certified homes.
Home Innovation developed the Bronze
Cookbook by reviewing every NGBS Green
Verification Report for homes and multifamily buildings that have attained NGBS Green
Certification. Based on that review, we prepopulated an Excel-based scoring spreadsheet with the most commonly used
practices to achieve Bronze-level NGBS Green
Certification. Given the widespread use of
these specific practices nationally, a new-togreen builder can assume they represent the
most cost-effective and relevant green practices for residential construction.
By identifying cost-effective green practices, the Bronze Cookbook can save builders
time and money by streamlining what can
otherwise be a complex and extensive decision-making process. But the cookbook is
just one way to help figure out how to attain
NGBS Green Certificationthe NGBS offers
innumerable combinations of green building practices for a home to attain Bronze or
any other level certification. Home Innovation always encourages builders to strategically select the most appropriate green
practices for their projects based on their
individual objectives and market drivers.
For more information and assistance in
starting on your path to building NGBS Green
Certified homes, visit www.homeinnovation.
com/NGBSBronzeCookbook.

insulation
by the
numbers

change proposals, this


will make the building
codes process more
cost-effective and
affordable.
For more about
the ICC and the code
development process,
NAHBs code toolkit
includes suggested
amendments to make
the latest versions of
the 2015 family of ICC
codes more affordable
and practical. NAHB
members must log into
nahb.org to download
and view the toolkit.
loan limits

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

The Federal Housing


Finance Agency (FHFA)
has announced that the
maximum conforming
loan limits for
mortgages acquired by
Fannie Mae and Freddie
Mac in 2015 will remain
at $417,000 for oneunit properties in most
of the country. The loan
limits are established
under the terms of the
Housing and Economic
Recovery Act of
2008 (HERA) and are
calculated each year.
HERA sets
maximum loan limits as
a function of median
home values. In 46
counties loan limits
will rise because those
counties experienced
increases in local home
values. These metro
areas include Baltimore,
Boston, Denver,
Seattle, San Diego,
and Nashville, Tenn.
Although other
counties experienced
home value increases
in 2014, after other
elements of the
HERA formula were
accounted for the
local-area limits were
left unchanged. A list
of the 2015 maximum
conforming loan limits
for all counties and
county-equivalent
areas in the country can
be found at fhfa.gov.

b u i l d e r o n l i n e .c o m

Circle no. 436

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

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 the economy.

David Crowe
chief economist,
nahb
dcrowe@nahb.com

Peter James Field/agencyrush.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

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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

American Gas Association

121

151

Endura

26

213

BASF

45

437

Environment One

59

221

Boise Cascade

361

ExakTime

12

---

Bosch

22-23, 117 387, 159

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

54-55, 155 250, 154, 392

HB&G

47

380

Chief Architect

24

354

Henry

27

316

ClimateMaster

46

297

Housing Leadership Summit

49

---

Clopay

143

393

IAPMO

66-67

157, 251

Cummins Power Generation

C5

231

Icynene

272

Daimler Vans USA, LLC

35

216

Integrity by

Danver

154

432

Delta Faucet

11

314

James Hardie

30-31

416

Diablo by Freud America

82

197

Jamsill

90

357

Diamond Spas

28

399

JELD-WEN Windows & Doors

C2-4

Dryerbox

36

274

DuPont Surfaces

136-137

155, 363

DuPont Tyvek ThermaWrap

16a-d

---

52, 53

342

170 B U I L D E R

J A N U A R Y 2 0 15

Marvin Windows and Doors 37

296

C2a-C2c

423

96-97

158, 318

*Issue mailed in regional editions.


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

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Circle no. 284

AD Index

Advertiser

PG number

RS number

Advertiser

PG number

RS number

Johns Manville

135

373

PPG Paints

57

217

Kichler

123

163

Royal Building Products

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

Marvin Windows and Doors

51

185

The 2015 New American Home 94-95

---

Metrostudy

C2d, 163*

---

The Chamberlain Group

164

203

Milgard Windows & Doors

163*

301

The Lubrizol Corporation

356

MiTek

138

238

The Tapco Group / Mid America 4-5

245

Mohawk

87

276

Thermador

14-15

388

NAHB

16, 17, 33

---

Timberlake Cabinetry

156

196

Time Warner Cable

84

268

48, 160, 161 --Nissan

127

269

Total Basement Finishing

90

299

NKBA

171

431

Trane

125

152

Norbord

19

264

Trex

239

438

Whirlpool

2-3

279

89

242

Outdoor GreatRoom Company 173


Panasonic Eco Solutions
North America
Ply Gem
PPG Industries

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

Huber Engineered Woods

*Issue mailed in regional editions.


Advertisers: To update your listing, contact Lauren Searson at 202.736.3461 or
send an email to lsearson@hanleywood.com

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

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Circle no. 438

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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

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J A N U A R Y 2 0 15

B U I L D E R 175

Fit & Finish


T h e ga m e c h a ng e r i s s u e

68%
of Americans feel

4.8M

$971

its a good time to buy


a house

job openings
on Oct. 31

billion in total
construction activity in
the U.S. for October

Fannie Mae November Housing Survey

Bureau of Labor Statistics

U.S. Census Bureau

458K

5.5%
39% 12-month
increase in

new homes
sold in October

of consumers
say its a good
time to sell
a house

median existing home


price from October

U.S. Department of Housing and Urban Development

Fannie Mae November Housing Survey

National Association of Realtors

21K 31%
of homeowners

specialty trade
contractor
jobs added in
November

are living payday


to payday

Bureau of Labor Statistics

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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