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Park 'N' Hide; Growing Numbers of Builders Have Begun Placing Garages Out of View in an Effort To Bring Life Back to Neighborhoods
Los Angeles Times (02/20/00) P. K1 (Tamaki, Julie)

The garage was a prominent status symbol in post-WWII California neighborhoods, but today, builders are doing their best to conceal these structures by relocating them to the rear of the home in order to resurrect a community atmosphere. In addition to revitalizing social aspects of the neighborhood, moving the garage to the rear of the home allows builders to cluster residences and use space more efficiently. With garages in the back, many of these new homes feature porches, where neighbors can talk and socialize. Though garages are taking a backseat to design, they are still in high demand. In fact, 72 percent of homes built in the first nine months of 1999 included a garage. Many of today's garages are also larger than in the past, designed to support family-size cars as well as multiple cars, and to provide extra storage space. Tom Redwitz, a developer in Pasadena, said, "What we really want to create are timeless neighborhoods. We want trees and homes to dominate the street, not concrete and garage doors."

For Home Owners, a Lesson in Liability
Washington Post (02/22/00) P. E1 (Fleishman, Sandra)

A group of Fairfax, Va., condominium owners has filed suit against Carrdinal Place LLC, alleging that they were the victims of a bait-and-switch scam. The suit challenges the practice of brand-name builders advertising properties that are sold by limited liability companies (LLCs), which are essentially shields that protect owners from lawsuits. The plaintiffs argue that their attempts to have problems with their complex fixed under warranty were unsuccessful because the LLC designation provides protection for veteran builder Edward R. Carr against legal action. Plaintiff's lawyer Beau Brincefield Jr. said, "What most home buyers don't realize until too late is that...they usually sign a sales contract with a limited liability entity that is owned by, or affiliated with, the brand name but is a separate legal entity." Attorney Roger D. Winston, on the other hand, says that this is not an issue about the legitimacy of LLCs but rather a question of how Carrdinal Place LLC conducts business. LLCs, Winston contends, are necessary protections employed by builders to fend off frivolous lawsuits. Carr denies the allegations of fraud and misrepresentation and is seeking to have the charges dismissed.

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Some Builders See a Modular Future
Atlanta Journal and Constitution (02/08/00) P. 3D (Harte, Susan)

A growing number of supporters are plugging modular homes as the future of homebuilding. Ken Parris, president of modular builder Persimmon Homes, says modular housing saves 20 percent on labor costs and building materials. Heather McKeon, editor of Professional Builder magazine, estimates that modular homes can capture 5 percent of the overall market. Critics, though, say that modular homes are cookie-cutter models that do not attract most buyers. Furthermore, says Bob Thomas of New South Federal Savings Bank in Atlanta, because the costs are paid upfront, builders of modular homes must sell them quickly or lose money. Regardless of the prognostications, Persimmon Homes is forging ahead, investing between $3 million and $5 million in a new 135,000-square-foot plant in Wilkes County, Ga. The factory can produce four homes a day or 1,000 homes per year. Other builders, like Colony Homes, are taking advantage of pre-manufactured parts such as floors, roof trusses, and wall panels. "It depends on the buyer profile," according to Colony President Tom Bradbury. "In some markets, standardization is part of the affordability."

Gated Communities Lock Up Local Award for Land Tejas
Houston Chronicle (02/06/00) P. 8 (Bivins, Ralph)

The number of homes in gated communities in this country has increased significantly over the last 15 years, currently topping 3 million. That's the tally given in "Fortress America: Gated Communities in the United States," by Edward Blakely and Mary Gail Snyder, who say the trend feeds off of homeowners' "fear of crime" and desire to "prevent intrusion into their private domain." Tapping into these needs for security, Houston's Land Tejas Development Co. has built 1,000 homes inside gated communities since 1998 alone. The firm has found success while keeping prices at an affordable $130,000, which co-owner Al Brende says is quite a deal for a home in a gated community. Land Tejas is also progressive in its technological pursuits and is in the process of installing fiber-optic cable in its communities. For its efforts, the company was named Developer of the Year by the Greater Houston Builders Association. With all of its success in Houston, Land Tejas is planning to expand nationally, with communities under consideration for cities in the South as well as Phoenix and Atlanta.

Be Diligent When Making the Final Walk Through a New Home
Orange County Register Online (02/04/00) (Harder, Nick)

Conducting a final walk-through of a new home can be a challenge, but following a few simple tips can help the consumer navigate this process with ease and diplomacy. Homebuyers should record their thoughts either in writing or on tape as the builder's representative guides them through the house, and they should ask plenty of questions. All faucets, toilets, lights, and heating and cooling systems should be checked to be sure that they work. If there are disagreements between the new owner and the walk-through guide, those objections should be written on the check-off sheet before leaving. Homeowners should never sign anything that says they are satisfied with the home if they are not; otherwise, they may have no recourse at a later date. Finally, homeowners should check the warranty to see what, exactly, is covered. They should also check the length and conditions of the warranty before signing.

Bills to Be Proposed to Regulate Home Building Industry
Associated Press (02/03/00) (Stuckey, Tom)

Maryland legislators announced on Thursday that new measures will be introduced this year to protect homeowners against shady builders. Notably, the state homebuilding industry is backing the initiative for the first time. The bill will call for the creation of a builder licensing system under the domain of the attorney general's consumer protection office, which would maintain information on builders and mediate builder/buyer disputes. The attorney general's office said that it does not have the staff necessary to monitor builders in the state, but lawmakers are resolute. Larry Shaffert, president of the Maryland State Builders Association, confirmed industry support of the bill, saying that most of the group's 2,400 members do not fall into the category of unscrupulous builder. He also noted that homebuilders "tend to be judged by the lowest common denominator," and that such legislation would protect the reputation of builders on the whole.

Reforms Needed to Protect Homeowners From Builders
St. Petersburg Times (02/01/00) P. 2

When homebuilding companies are forced into bankruptcy, they often leave behind not only half-finished construction but also buyers who are uncertain about the future of their home or their finances. In some cases, the firm is convicted of theft or fraud; and clients may be able to sue. Usually, however, the buyer must accept the loss of the home and money invested into it. In Florida, where at least six residential builders have gone under in the past 10 years, the editors of the St. Petersburg Times say the state Legislature should work with lenders and prosecutors to enact improved consumer protection laws for homebuyers. This was attempted in the Home Buyer's Protection Act of 1995, but the measure was ineffective even before it was broken down further by homebuilder lobbyists. The next measure, suggest the editors, should force homebuilders to obtain performance bonds and increase their minimum asset requirements before starting a project. This approach, along with more enforcement by lending institutions of contractor bill-paying, would not only deter dishonest homebuilders from taking advantage of homebuyers but also ensure that consumers are financially protected.

Alternatives to Lumber Gain Favor in Housing
Philadelphia Inquirer (01/30/00) P. 01 (Heavens, Alan J.)

The recent International Builders Show in Dallas did not come and go without its share of controversy. The Rainforest Action Network of San Francisco interrupted the event by inflating a giant chainsaw-shaped balloon outside of the convention center, and a few members of the group even found their way inside the building to protest the practice of harvesting of old-growth forests for the construction of homes. Ironically, this year's convention showcased more environmentally friendly, alternative building materials than in recent years. The North American Steel Framing Alliance was in attendance, promoting the merits of recycled steel as a residential building material and introducing new software it created to help builders make the switch from wood to steel. The industry's 73 steel-stud manufacturers are also working to standardize steel products and win acceptance from building code authorities. Other manufacturers were touting concrete as an alternative resource for residential construction. Both steel and concrete alternatives, as well as I-joists made of composite and recycled lumber, appeal to many developers because of the price of lumber, which has doubled in the last 10 years alone. As demand for lumber increases in Asia--which competes with American builders for U.S. lumber--the prices are destined to keep rising, which will raise the cost of stick-built homes in this country. When the cost of building materials is coupled with rising mortgage rates, homeownership becomes difficult for many buyers; and housing starts, consequently, fall. Nevertheless, alternative building products are likely to remain just that-alternative--until homebuyers, rather than builders, are convinced of the merits of these products.

Homeowners May Net Millions in Stucco Suit
Raleigh News and Observer (01/31/00) P. B1 (Jarvis, Craig)

Synthetic stucco manufacturers may have to pay out tens of millions of dollars to thousands of North Carolina residents whose homes were damaged by faux stucco called exterior insulation finish systems (EIFS). The material is blamed for trapping moisture against the walls and rotting them; however, EIFS manufacturers place the blame on the builders and subcontractors. Individual homeowners whose homes suffered structural damage can expect to receive payments of between $15,000 and $18,000. Homeowners who contracted for or bought a single- or two-family house or townhouse with synthetic stucco made by Parex Inc., Sto Corp., W.R. Bonsal Co., Continental Stucco Products Inc., or Dryvit Systems Inc. since Sept. 18, 1996, are covered by the settlement.

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Pros, Cons of Buying a Model Home
Miami Herald Online (01/23/00)

Buying a homebuilder's model has its advantages and disadvantages. The benefits of buying the model include having a professionally decorated interior, mature landscaping, and many of the extras and upgrades that the company offers. On the other hand, a builder's model will show some signs of wear and tear. For instance, the carpets may be matted, the paint faded, and the mattresses of inferior quality. Furthermore, because most builders do not consider a model to be a new home, they most likely will not offer the same warranties as a new home. For this reason, buyers of model homes should sign a written agreement stipulating what warranties are included; and buyers should also make sure what furnished items in the home actually are included in the sale.

New Kitchen Appliances: You Talkin' to Me?
Wall Street Journal (01/21/00) P. W10 (Fletcher, June)

Appliance manufacturers have been rushing to introduce new "smart" home products designed to communicate with each other or with an outside person or source. Some operate by voice-recognition, while others are based on an Internet connection. While doubters wonder if homeowners are truly interested in ovens that speak and other newfangled inventions, manufacturers are betting that they will eventually. Some new products, including several refrigerator and oven models, were introduced at the recent International Builders Show in Dallas. While some of the technologies were especially popular, it is clear that more progress must be made to make new smart appliances completely efficient and practical to the typical homeowner.

Houston-Area New Home Sales Fall Below 1998, Survey Reports
Houston Chronicle Online (01/19/00) (Buggs, Shannon)

CDS Market Research reports that new-home sales in Houston fell by 1.7 percent last month compared to sales in December 1998. For all of 1999, new-home sales decreased 9.6 percent from 1998's record 11,720 sales. Analysts expected last year's numbers to be comparatively depressed because buyers in 1998 took advantage of low interest rates and depleted the inventory of available homes, leaving 1999 builders and buyers at a loss. As a result, many would-be new homebuyers renewed their rental agreements, made additions to their existing homes, or opted to purchase a resale home. Despite the lower sales numbers in 1999, analysts are optimistic about the 2000 market: the economy is strong, interest rates are relatively low, and job growth in the Houston area is holding steady at 3 percent. "The year 2000 is shaping up to look a lot like 1997, and 1997 was a pretty good year," said Ted C. Jones, chief economist for Stewart Title Guaranty.

Home Automation Comes of Age as Builders Gather
National Mortgage News (01/10/00) Vol. 24, No. 17; P. 6 (Sichelman, Lew)

The trade magazine Building Products has tallied consumer responses to determine the 150 most sought-after home products, which it reports on in its most recent issue. Every area of the home is represented in this collection; but most of the frequently named products are part of the automation/whole house wiring line of products, which integrate the controls of a home's environment, security, and communication network into a single system. The highly popular FutureSmart Networks, for example, connects cable TV, phone, fax, and the Internet with audio, home theater, security, heating and air conditioning, and lighting systems. Homeowners also expressed an interest in entertainment systems that are integrated and adaptable. Channel Plus All-In-One by Multiplex Technology, which drew more consumer interest than any similar product, can send signals to five different TVs anywhere in the house. Also popular among homeowners are upscale appliances, like pro-style ranges and convection ovens, as well as an ergonomic toilet that has a built in warmer and an automatic fan. Finally, modular homes--which are assembled in a factory and then transported to the building site--are generating a lot of attention from the building community. Modular housing now accounts for fully 8 percent of all new home construction.

Ten Things Your Home Builder Won't Tell You
SmartMoney (01/00) Vol. 9, No. 1; P. 121 (Noland, Terrance)

Most builders are scrupulous businessmen; however, there are some things that they may be reluctant to divulge to buyers. One problem is that homes are often built on unstable or expansive ground, which can cause the house to rip at the seams or even fall victim to landslides. The recent housing boom has also encouraged many builders to cut corners and perform shoddy work, like neglecting to seal the roof and ignoring basic building codes. Something else that most builders will not reveal is that neither the city nor the state strictly regulates their business. In fact, 21 states have no regulations at all. Builders often will try to slip slip-shod work past inspectors, or worse, claim that their in-house inspector will catch the problems. Homeowners should always have their home inspected by a professional of their choosing--not just for code compliance but also for quality construction. Like the inspections, the warranties that many builders offer often do not carry much weight, providing little more than a false sense of security. Another problem new homeowners may encounter is that the builder disappears once construction is finished. Many homeowners also unwittingly sign off on their right to sue the builder in the event of any problem. Usually, the word used is "arbitration" rather than more obvious language. Additionally, homeowners may find that their new home does not resemble the model home. Builders employ an arsenal of tricks to make the model home look better, bigger, and brighter than the reconstructed product. For example, one builder furnished a model home with scaled-down furniture to make the rooms appear more spacious. Builders often will low-ball the estimate for light fixtures to keep the price of a home down. When it is time to install them, though, the builder will hit the buyer up for two to three times that amount for the fixtures they want. Finally, builders may tell a buyer that he or she is purchasing an exclusive, one-of-a-kind model. They should not be surprised to discover the same exact model just around the corner.

Fannie to Detail Automatic Underwriting Criteria
American Banker (01/18/00) P. 32

Fannie Mae is planning to introduce an updated version of its Desktop Underwriter system that gives lenders a full disclosure of the criteria used in rejecting or approving loans. Fannie Mae Chairman Franklin D. Raines made the announcement at a National Association of Home Builders convention, and said the new rule was designed to give lenders more feedback on loan applications. According to Raines, Fannie Mae uses 14 factors to evaluate loans, the most important being the amount of equity in the home, the borrower's credit history, and the borrower's liquid reserves. None of these factors involve race, gender, or any other factor prohibited by fair lending laws. Raines' speech also called for an online "mortgage consumer bill of rights" that allows home buyers to determine the costs of obtaining a mortgage.

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Home-Builder Gets Industry's First ISO 9001
Crain's Detroit Business (01/03/00) Vol. 16, No. 1; P. 4 (Smith, Jennette)

Delcor Homes of Milford, Mich., recently became the nation's first homebuilder to receive ISO 9001 certification. The announcement was confirmed by Doyle Barnes, account executive for ISO NSF-International Strategic Registrations Ltd. Delcor President Phil McCafferty says the certification cost about $150,000 but that the price will be offset by the company's ability to improve efficiency and reduce new-home defects. McCafferty also says he hopes the designation will eventually become commonplace for homebuilders. At the same time, Barnes noted that the certification could ease the frustration of homebuyers while helping Delcor sell its homes to auto industry employees--many of whom may be familiar with ISO compliance.

Brink's Home Security Announces Expanded Service for Home Builders
Business Wire (01/11/00)

Brink's Home Security's National Builder Operations Group said it has expanded its services to include more low-voltage and home security products. The purpose of the expansion is to give homebuilders a one-stop option for installing these types of systems in their new homes. New products from Brink's include home theater and sound systems, structured wiring and intercoms, and phone/cable wiring. Each new system can be installed by a certified Brink's Installation Quality technician. The new security and low-voltage offerings will be showcased by Brink's at the International Builder Show kicking off on Friday in Dallas.

Experimental Homes Haunt Owners: HUD Will Study Greenfair Woes
Sacramento Bee Online (01/09/00) (Chiu, Yvonne)

After years of complaining unsuccessfully about deteriorating conditions, homeowners in the Greenfair community of Sacramento, Calif., may finally receive assistance from the Department of Housing and Urban Development (HUD). The agency will conduct a structural analysis of hundreds of homes in the neighborhood, after years of lobbying from the Greenfair Homeowners for Better Living Conditions. According to the group, the homes were originally built in 1972 under a program known as "Operation Breakthrough" that was designed to show how homes could be built inexpensively in a factory. About 402 homes and apartments were constructed using fiberglass-reinforced plastic and cellulose honeycomb in the walls and ceilings. New residents immediately began complaining of leaks, but no action was taken. Since then, the problems have continued; but current homeowners are having difficulty taking any action on their own because they do not have the original warranty and cannot find the builders. In the meantime, the homes' property values have plummeted, and residents have problems selling them. The HUD study of the homes could begin in about a month, and most families are hoping the department will fund repairs or buy their homes.

Houston-Area Home Builders Foresee Another Strong Year
Houston Chronicle Online (01/07/00) (Bivins, Ralph)

The new-home market in the Houston metropolitan area may decline slightly this year due to higher mortgage rates; but, overall, homebuilders should expect a strong year. An increase in mortgage rates is expected to affect consumer confidence and trigger a drop in new-home sales, according to Mike Inselmann, a construction consultant for American Metro Study. Housing starts are also expected to fall to 22,500 from about 23,000 in 1999. New-home prices should also increase, as homebuilders suffering from shortages of labor, lots, and materials pass the costs on to buyers. Last year, new-home prices rose about 9 percent, with an average price of $192,000 in the fall of 1999. Despite these factors, the Houston housing market should be strengthened by a booming job market and oil industry. In addition, the short supply of resale homes on the market should help to boost the new-home sector.

New-Home Sales Fell 7 Percent in November as Higher Interest Rates Cooled Market
Wall Street Journal (01/07/00) P. A2 (Lueck, Sarah)

The Commerce Department reports that sales of new homes declined in November, falling 7 percent from October and 12 percent from November 1998. According to National Association of Home Builders chief economist David Seiders, new-home sales figures are still strong but have lost some momentum from earlier in the year. While sales ebbed, the median price of a new house rose 5.3 percent to $167,400 in November. The climbing home prices were attributed to the strength of luxury-home sales, as sales of units priced at greater than $200,000 accounted for 35 percent of the overall sales market in November. According to Toll Brothers executive Joel Rassman, wealthy homebuyers are not as quickly affected by a rise in mortgage rates as less wealthy buyers. The downward trend in sales of new homes was evident nationwide--including in the Northeast, where the numbers were down by 31.5 percent.

Spare Tree! A Wooded Lot Is Money in the Bank
Orlando Sentinel (01/02/00) P. J5 (Sichelman, Lew)

The presence of trees, as well as overall landscaping quality, is one of the most desired features in new and existing homes, according to the National Association of Home Builders (NAHB). In fact, says the trade group, almost two-thirds of new-home buyers consider wooded lots as essential and are willing to pay more for them. The trend is also true for existing homes, with a survey by Clemson University indicating that properties with "excellent" landscaping are likely to sell up to 7 percent higher than homes with "good" landscaping. At the same time, trees and quality landscaping can provide additional benefits beyond aesthetics--including less noise and reduced heating and air conditioning costs. Despite these advantages, landscaping experts warn that planting the wrong type of trees, or planting trees in improper areas, can result in higher costs as well as foundation and pavement cracking. Before planting trees, landscapers recommend that homeowners determine the best type of trees for their climate and plant them far enough from the home and other obstacles.

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Production Home Building Differs Greatly From Custom Building
Dayton Daily News (12/19/99) P. 5F (Cummings, James)

Production builders such as Inverness Group, Ryland Homes, and Ryan Homes are hard at work putting up new houses in the Dayton and Cincinnati areas of Ohio. They first attract customers by building a few model homes, which the sales representatives use to show and work out of; and when a customer decides to purchase a home, the builder subcontracts to have it erected. The construction process moves like clockwork, with each week denoting a new phase of construction and company managers keeping a close eye on both quality and progress. Typically, production homes are standard models; but buyers do have some options, such as sliding doors, an island in the kitchen, or an addition to the front of the home. Production builders rely heavily on the work of their subcontractors, which are the literal and figural nuts and bolts of the operation; a rotating schedule of subcontractors, similar to an assembly line, allows production builders to crank out hundreds of units per year. By contrast, custom builders may build only five to 20 high-end homes annually that cost $350,000 and up. Custom builders will use subcontracted workers as well, but the head of a custom builder will spend more time onsite and with customers. Also, a custom builder may only build a specific model once; while production builders know their company's house plans like the backs of their own hands.

Southeast Journal: Home Designer Pitches Whole New (But Old) Look
Dow Jones News (12/21/99) (Terhune, Chad)

Custom home designer Lew Oliver is writing a book that he hopes will change the face of residential real estate. Oliver's book eschews trite, cookie-cutter stock home plans in favor of carefully crafted and original homes based on 1920s-era designs. The homes resemble what many baby boomers will recognize as the style of houses that their grandparents occupied, with simple lines that highlight natural woodwork, brick, or stone. Most of Oliver's designs feature two stories, four bedrooms, a fireplace, a small front porch, and a garage inconspicuously placed in the back. Unlike most of today's homes, the emphasis is on quality--not quantity. Oliver's vision will get plenty of exposure, as his design has been chosen by the National Association of Home Builders to be built and showcased at its annual trade show. Industry observers say that Oliver's designs are beautiful, but it remains to be seen if they will set a new trend in residential construction.

Tech-Savvy Selling
Builder (12/99) Vol. 22, No. 16; P. 36 (Evans, R. E. Blake)

A recent study by HomeGain.com shows that an increasing number of consumers value technology in today's housing market. The study found that 85 percent of those surveyed thought that the traditional process of buying a home was inefficient. HomeGain's study also found that many consumers are dissatisfied with traditional real estate methods, citing the exorbitant amount of time and energy involved with the process. "People are changing how they interact with the real estate industry," said Bradley Inman, founder and CEO of HomeGain.com. "We've confirmed that those who use this new technology increasingly are getting the customers."

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Amenities Can Make the Difference in a New Home
Philadelphia Inquirer (11/28/99) P. N1 (Heavens, Alan J.)

New-home buyers and homeowners who are remodeling tend to focus mostly on kitchens and bathrooms--a fact that builders should recognize in their design and marketing techniques, according to Mary Jo Peterson. A design consultant, Peterson recently offered some growing trends in kitchen and bathroom design at the Remodelers Show in Philadelphia. In the kitchen, she noted, the biggest focus today is on light, appliances, and specific built-in features. In particular, appliances must look professional and state-of-the-art, while also being functional and flexible. The appliances must also be less noisy, time-saving, and provide better water and food quality. Regarding specific building materials, molding and trim are used more in kitchens, said Peterson; and counters can be laminate or mixed with laminate and wood or stone. Vinyl flooring is still the most frequent choice, and kitchen lighting involves maximizing the amount of natural light. In the bathroom, Peterson pointed out that today's homebuyers and remodelers are looking for separate tubs and showers, two lavatories, vanity sinks, and makeup centers. There is also a movement to provide more furniture-like features in bathrooms.

'Smart' Homes That React
Baltimore Sun (11/07/99) P. 1J (Schneider, Martin)

The National Science Foundation (NSF) has announced a $1.5 million grant program designed to encourage research into making homes smarter in many areas, especially safety. The specific areas of research will not be announced until next year, when the grants arrive and are awarded; however, one idea that is reportedly on the drawing board is for safety sensors that identify and respond to a medical emergency in the home. According to Priscilla Nelson, director of NSF's civil and mechanical division, researchers also hope to create technology to improve the quality, durability, energy efficiency, affordability, and environmental performance of a home. Some researchers may even start with the actual framing of the house as a means of safety protection. Another goal of the program, according to John Blair--communications director for the Partnership for Advancing Technologies in Housing (PATH)--is to encourage more home builders to use newer products to improve their homes. PATH--which will receive the NSF grants--is President Clinton's program that aims to shave one-fifth off the cost of new housing, to chop maintenance costs in half, and to reduce the environmental impact and energy use of new housing by 50 percent.

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New-Home Prices Catapult to a Record
Wall Street Journal (11/01/99) P. A2 (Bodipo-Memba, Alejandro; Tejada, Carlos)

Average prices for new homes increased to a record level in September, but a large slowdown in new-home sales suggests that the housing market may be slowing. The average new-home price rose 2.3 percent to a peak of $192,400 in September from August and was up 7.8 percent from September of last year, according to the Commerce Department. Several home builders said the steep price increase was due to higher sales of luxury homes. While home prices were on the rise, new-home sales fell 12.8 percent last month, representing the sharpest decline since early 1994 and a much larger drop than anticipated by economists. National Association of Home Builders chief economist David Seiders attributed the slowdown in home sales to several factors, including higher mortgage rates, a dropoff in the stock market and consumer confidence, and the effects of Hurricane Floyd in some regions. Some home builders say the market retreat will only be temporary. Meanwhile, new-home sales fell in all regions of the country, including a 14.2-percent drop in the South and a 14.8-percent decline in the West.

Under Fire
Builder (10/99) Vol. 22, No. 13; P. 228 (Power, Matthew)

New building standards and technologies have reduced the odds of serious fires in many homes, according to research from the National Association of Home Builders (NAHB). Still, the debate between home builders and fire inspection officials over whether today's homes are truly fire-proof continues. One central issue is the use of metal plate-connected (MPC) truss and I-joist structural systems. NAHB and the Wood Truss Council of America defend this type of framework, arguing that the risk of structural failure and injury is minimal. While fire safety researcher and author Francis Brannigan concedes that such lightweight building materials usually have gypsum at the bottom to check fires that burn up from below, he says a danger still exists. Laminate countertops and the many other synthetics found in modern housing can melt down during a fire, burning through the floor and allowing flames to enter the open voids. The fire can spread horizontally in the floor void as a result, making the home vulnerable to collapse once the metal gussets and braces fail. Manufacturers, meanwhile, insist that failure is only likely in the presence of an extremely narrow heat zone that Robert H. White of the Forest Products Laboratory says "is unlikely in real fires." Despite the test results, fire inspectors argue that actual fire conditions are difficult to predict or to replicate in the lab. Meanwhile, firefighters warn that the open floor plans common in today's homes also present a risk of fire. To minimize the risk, there are several steps that home builders can follow. Most importantly, builders should meet or exceed firestop requirements and also add safety features to the home, including smoke alarms and sprinkler systems.

Boom for Builders
Wall Street Journal (10/22/99) P. W12

A recent survey by Builder Magazine identifies the home-building companies with the widest revenue gains from 1996 through last year. The biggest jump was reported by New York-based ALH Holdings, whose revenue skyrocketed 1,233 percent during the study period. ALH was followed by Stadler Custom Homes of Austin, which logged an increase of 795 percent; Astoria Homes of Las Vegas, which saw its revenue climb 700 percent; and Brookwood Homebuilders of Charlotte, N.C., which reported a 673-percent rise in revenue. Other builders in the top 10--all with revenue increases of at least 400 percent during the time frame--were Aspen Homes Development of Ogden, Utah; Pacific Century Homes of Temecula, Calif.; Reineke Construction of Harrisonburg, Va.; Sotherby Homes of Plano, Texas; Western Pacific Housing of El Segundo, Calif.; and Hunter Blair Homes of Alpharetta, Ga.

A Special Room for a New Home
Philadelphia Inquirer (10/17/99) P. N1 (Heavens, Alan J.)

A growing number of home buyers in various regions of the country are designating certain rooms in their homes to serve unique purposes. The function assigned to the extra room depends on the geographic region and the homeowner; and while not all of these room varieties will ultimately catch on, some could emerge as standard features in a home. Home builder Toll Brothers currently offers at least 15 different options of "special rooms" ranging from expansive sun rooms to formal conservatories to greenhouses. Some builders also offer bonus rooms, which are spaces that can be used for any purpose the homeowner chooses--such as a guest room, child playroom, home office, exercise room, or storage room. If special rooms do not become popular, they can still be offered as an option. But if they do catch on, they may eventually become a standard feature and even replace other standard rooms. The type of room will also vary depending on the region. According to Professional Builder magazine, Northeast residents tend to prefer formal rooms separate from recreational rooms; while families in the Midwest favor comfortable living rather than formality.

New Home Market Firm
Crain's Chicago Business (10/04/99-10/10/99) Vol. 20, No. 40; P. 12 (Bullard, Stan)

Despite rising interest rates, the home building and new-home purchase market in the Cleveland metropolitan area appears to be performing well. After a slight market slowdown near the middle of the summer, home-buying activity bounced back in September and looks favorable for October as well. According to Donald Bennett, president of the Home Builders Association of Greater Cleveland and Suburban Counties, higher interest rates have only caused the housing market to drop slightly to less-frantic levels. While the number of casual home viewers is down, he adds, prospective home buyers remain active. Bennett also noted that mortgage rates are still relatively low when compared to historic levels. Other home builders, including Pulte Homes Ohio, are reporting increased sales volume as consumers use their financial and stock market gains to invest in a home.

HomeBuilder.com Increases Homes Viewed From 6 to 15 Million
PRNewswire (10/14/99)

HomeBuilder.com, the official site of the National Association of Home Builders (NAHB) and a member of the HomeStore.com family of real estate Web sites, reports that it has doubled its database of builders to 14,500 and increased the number of homes viewed per month from 6 million to 15 million since its debut last year. Visitors to HomeBuilder.com can view more than 120,000 new homes, plans, and models from builders across the country. Convenient features like virtual tours, community information, and builder searches have contributed to the site's success. So far, HomeBuilder.com has provided builders with 180,000 customer leads. "By partnering with HomeBuilder.com, builders can reach online customers from literally anywhere in the world," says NAHB President Charlie Ruma. "This is a tremendous value to both consumers and builders."

Houston New Home Starts May Drop 20 Percent
Houston Chronicle (01/06/99) P. 1C (Bivins, Ralph)

Housing forecasters in Houston indicate that this year's market for new homes may decline significantly. Housing starts could fall as much as 20 percent in 1999 from the past year, due to declines in job growth and energy industry layoffs, according to American Metro/Study President Mike Inselmann. The market should still be strong next year, but it will likely pale in comparison to 1998, which reported record figures, said Inselmann. But some other housing industry leaders disagreed with the forecasts. Dan Bawden, president of the Greater Houston Builders Association, said starts should fall only 5 percent as builders try to catch up with last year's high inventory of homes that were sold but not yet built because of shortages in labor and materials. University of Houston economist Barton Smith adds that a slumping job market will hurt housing in Houston, but low mortgage rates and high apartment rental rates will still keep the housing market strong. The market for existing homes is also expected to remain strong.

Texas Outpaces Rest of Nation in Residential Building
Dallas Morning News (12/25/98) (Brown, Steve)

Atlanta continues to lead the nation in residential building permits through the first 10 months of 1998, but Texas appears to be the big winner in new housing markets this year. The state leads both Florida and California in residential building, with more than 134,000 permits taken out by builders to start homes, apartments, and condominiums, according to U.S. Housing Markets. Home building permits in the state are up 27 percents from a year ago through October. Dallas is the second hottest market in the country behind Atlanta with some 42,000 permits, a 38 percent increase from a year ago. More than 77,000 of the permits in the state were taken out in Dallas and Houston.

Pros and Cons for Both Old and New Homes
Washington Times--Home Guide (12/04/98) P. F1 (Paris, Ellen)

With an especially strong real estate market in the Washington, D.C., metropolitan area, local home buyers have a number of options, most notably the choice of buying a new or existing home. Each type of home has its own advantages and disadvantages. The biggest appeal of new homes is simply that they are new and clean. New home buyers have more options when designing the home, including floor type, room location, and spaciousness. But there are risks involved in buying a new home. Home values may vary in the neighborhood, and because the purchase of a new home takes longer than an existing home, the buyer should lock in a low interest rate early in case rates eventually rise. In addition, buyers of new homes should make sure they plan to live in the home for a long time, or at least until all the homes in the development have been completed and sold. There are other options to consider, including the sales contract, which typically favor the builder, and the reputation of the builder, which buyers can check by interviewing homeowners who have previously worked with the builder. Buyers of existing homes don't have as many options, but they do have the advantage of proven character and qualities in many local homes, particularly older models. In addition, home buyers looking for one-story homes would be better off looking for an existing home.

This page was last updated on 06/26/00.