What Happened To Residential Construction In Our Country?

Hi Folks,

   Welcome back !

   As you may be aware, late last week the May 2011 figures for New Residential Construction were released, and we'd like to take a look at these figures today, which are broken down into 3 components; Building Permits, Housing Starts, and Housing Completions.

   Building Permits for privately-owned housing units were up 8.7% from April, and 5.2% above May 2010, while Single-family authorizations were 2.5% above April. Housing Starts for privately-owned housing was up 3.5% from April, but down 3.4% from May 2010, with single-family housing starts 3.7% above April. The last piece of the equation was Housing Completions, with Privately-owned Up 0.4% from April, but down 22.5% from May 2010.

   "Perhaps my type of perspective on these numbers is interesting", says Bo Hammond, VP of Sales for the Coastal Lumber Company, which supplies raw material for housing attributes, mouldings, flooring, and cabinetry, and advises that his perspective is from a "practical sense".

   Hammond says that we are, "overbuilt from a residential construction standpoint, and the allure of home ownership has faded for those wage earners who historically would have been buying their first house and starting families." He continues to say that the affect on jobs of the recent recession has, "fundamentally changed the perspective of the emerging generation that are getting out of school and deciding to live at home, rent, get married, etc."

   Hammond says that uncertainty in jobs, home values, and financial security has essentially "tabled a normal progression that would encourage behavior that would have building permits and residential construction increasing.", but says, "In lieu of this, remodeling and multi-family construction have been the larger positive influences, but those combined are volatile and don't have the ability to impact GDP like healthy residential construction had 5-7 years ago."

   "I would just reinforce that the market for new homes is extremely competitive right now. This is a great time to buy due to the affordability of homes and interest rates.", says Michael F. Dillon, Jr., Executive Director of the Builders Association of Northern Nevada, who also reminds us that, "Homeowners will still receive a great tax incentive to buy a home and build equity."

   What do you think of the recent numbers? What would you attribute the huge dip on Building completions from just one year ago? We'd love to hear your take on things.

Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

TAGS: #residentialconstruction #remodeling #taxincentive

The Home Building Process, Part 2 of 3

Good Morning,


   Today, we will be covering part 2 of our 3-part series on the Home-building process. In part 1, this past Wednesday, we took a look at the process from the first meeting between a future property-owner, the building company and general contractor. For a different perspective, now we will look at some additional tips from both a property manager and from an interior designer.

   From the angle of a property manager, we spoke with Blake Appleby, President of Cornerstone Property Management, Inc. in Colorado, who has almost two decades of experience managing large mountain homes, and he provided some additional pointers to be aware of during and after the process.

   Primarily, Appleby states that it is important to give consideration to where snow or rain will shed from the roof, to avoid snow, ice, or rain shedding on entry ways, decks, in front of garage doors or other areas that might interfere with basic usage of the home, as it can result in, "snow removal nightmares and added expense." He also reminds us that, "Complex roof designs can lead to ice build up and subsequent roof leaks in winter months."

   In addition, Appleby suggests using climate appropriate building materials on the exterior home, which will also save time and money (taking into consideration the, "temperature fluctuations, amounts of moisture, harmful direct sunlight and any other factors that might cause the exterior to deteriorate more quickly than normal."), and additionally, to install a leak detection system.

   As far as the interior of the home, he suggests keeping the use of technology as simple as possible, and while the latest gadgets are "impressive in the showroom", home integration can be very complex. Appleby suggests to, "stick with simple dial thermostats for climate control.", and to avoid computer controlled lighting.

   In keeping with the interior of the home, we spoke with Jo-Ann Capelaci, an interior designer with Colours & Concepts Interior Design, in California. Capelaci recommends that you, "Ensure that the interior design reflects the style of the outside of the home.", and to select all interior finishes, i.e. flooring, tile, cabinets, paint, etc, and to "produce a book to include all specifications". She suggests doing this before construction begins, if possible.

   Additionally, Capelaci suggests preparing the flooring plan, tile floor plans and elevations, electrical and lighting plan and furniture plan, select the furniture, window treatments, lighting and accessories, and to prepare the budget for these items and purchase them so that when construction is complete, these items are all ready. She suggests to, "enlist the help of a design professional, even if it is to confirm your choices and make recommendations.", since, "Designers truly do see things in a different way and assist clients to do things they might not have even known were possible"

   In closing, Appleby added another fantastic tip - To make sure that you "have records of the make and model of boilers, HVAC units and any other critical components in the home.", because if you need a service call, this can limit the amount of time with no heat, hot water etc. Additionally, Appleby adds that it is important to keep up with "basic preventative maintenance", such as cleaning gutters, dryer vents, changing HVAC filters and having your heating and cooling systems serviced once a year.

   We hope these tips have been helpful. Tune in on Monday for the final part of this 3-part series, where we will speak with some people who have gone through the actual process of building their own home, which will provide a very unique perspective for those of you interested in doing so.

Have a Great Weekend, and Happy Rent-to-Owning !