builder - jan 2015

Novem

ber 20

14 /// builderon

line.com

The Magazine of The National Association

of Home Builders

builderonline.com

Here’s What’s New

THE NEW AMERICAN HOME: THE DREAM LIVES

January 2015

THEGAME CHANGER

ISSUE

Great Homes

Start With

JELD-WEN is one of the world’s fi 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

Great Entrances Start with JELD-WEN®

© 2015 JELD-WEN, inc. All rights reserved.

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.


Great Interiors 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.


Great Views 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.


Great Patios Start with JELD-WEN®

Circle no. 423

HW ad page Got Dirt?

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.

Introducing Builder Insight—the home builder’s mobile business intelligence resource.

• Where should I build?

• Where can I find land to build on?

• What should I build?

© 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

Follow us on Twitter @LZ_CPVC Tweet about the show #IBSVegas #CPVC

Visit our website to fnd a piping consultant in your area.

www.lubrizol.com/cpvc

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.

W E ’ V E B E E N T H E

PREMIER CHOICEO F C P V C P I P E A N D

F I T T I N G S S Y S T E M SF O R M O R E T H A N 5 0 Y E A R S .

V I S I T U S AT

I B S 2 0 15 – B O O T H 7 3 2 6

I N T H E C E N T R A L H A L L

Circle no. 356

®/™ ©2015 All rights reserved.

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

Circle no. 279

v e r s i o n.

decorators?

we’re th e e x ter ior

you’ v e h e a r d of i n t e r i o r

M I D A M E R I C A C O M P O N E N T S . C O M

S H U T T E R S + A C C E S S O R I E S W I N D O W + D O O R T R I M M O U N T I N G B L O C K S

U T I L I T Y V E N T S G A B L E V E N T S R O O F I N G V E N T I L A T I O N

Circle no. 245

B E F O R E O W N E R S C R E A T E A L O 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 L O 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

MORE REASONS TO BUY YOUR EWP FROM A BOISE CASCADE DEALER:

OUR VALUE PROPOSITION 2015

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 specifi cations vs. dealers stocking weaker beams.• As one of North America’s largest plywood producers, Boise Cascade is able to consistently source higher grade, stronger LVL veneers.

Learn more: www.BC.com/inst21




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.

PROFITABLE TOOLS AND GUIDANCE:

• New BC FRAMER® B.A.S.E. for builders, architects, specifi ers and engineers gives you the freedom to design homes the way you want to build them. • Save time with “snappable” points on PDF fi les, reducing the time needed to accurately input walls and beams.

© 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 affi liates.

EASY TO DO BUSINESS WITH:

• We’re 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.

INTRODUCING NEXT-GENERATION

BC FRAMER® B.A.S.E.

FOR BUILDERS, ARCHITECTS,

SPECIFIERS AND ENGINEERS.

BC FRAMER® JUST GOT A LOT MORE PRODUCTIVE:

Announcing BC FRAMER® B.A.S.E., a new version of

our foor framing software specifcally for Bui

Architects, Specifers and EngiB.A.S.E. i l foor

ASTEST, EASIEST WAY FOR BUILDERS, ARCHITECTS,

SPECIFIERS A

THE 4 REASONS YOU’LL NEVER

NEED ANOTHER EWP SUPPLIER:

Our Value PrOPOsitiOn 2014

1. COMPLETE PRODUCT LINE

3. EFFECTIVE TOOLS & GUIDANCE

2. DEPENDABLE DISTRIBUTION

4. EASY TO DO BUSINESS WITH

Circle no. 361

Ja n ua ry 20 15 b u i l d e r 7 b uil d ero n l in e.co m

builderonline.com

Construction details can prevent—

or cause—frozen pipe disasters, says BUILDER

contributor Leonard Morse-Fortier. go.hw.

net/BD0115-pipes

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.

20. editor’s Notes

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

38. design Trends Lessons from 2014’s best-selling house plans

40. editor’s Picks Make plans to see these hot new products at IBS and KBIS

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

58. building Safety The labor shortage is also impacting building safety professionals

Frame

62. bright Green The Edge embodies sustainable living by enlisting its residents

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

70. Second Chances affordable housing puts an urban farm at its center

76. Aging in Place at asher, elevators are standard

78. On the boards Expert land planning brings a sense of place to the suburbs

80. Friend’s entry Tips on reviving a prewar-era feature: the friend’s entry

Wire

85. Fast riser Pierrette Tierney moves from Cnn to top of Taylor Morrison’s Bay area operation

88. Mathematical Master How 30-year-old 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 Chairman’s letter

166. Home innovation research labs

168. Crowe’s economy a look at economic conditions from the naHB’s chief economist

Fit & Finish

176. Housing Stats

What’strending online

These one-story layouts aimed at

baby boomer buyers emphasize comfort,

relaxed entertaining, and outdoor

living. go.hw.net/BD0115-plans

In Sarasota, Fla., high price points are strong—193% of the

growth in starts came in price points above

$250K. go.hw.net/BD0115-Sarasota

98.

139.

146.

Features

Outside the bOxThis year’s new american Home is focused on providing takeaways for production builders at every price point.

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

cOre curriculumamid rising construction costs, builders are trying to construct affordable homes for debt-strapped entry-level buyers.

tarGet PracticeScaling down the home to fit an entry-level budget is difficult, but builders can find savings with smart planning.

Tren

t Bel

l

Contents/January 2015

157.

As the industry leader, Icynene drives a cutting-edge evolution of

insulation with a comprehensive and innovative portfolio of high-

performance 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

Home comfort has evolved. Insulation too.

The evolution of insulation.™

Circle no. 272

Designed to build your business.

To add more value to the homes you build, rely on the

brand that’s engineering what’s next in outdoor living. For

longevity, style and performance, Make the TrexDecision™

by visiting trex.com.

© 2

015

Tre

x C

om

pan

y, In

c. A

ll R

igh

ts R

eserv

ed

.

Circle no. 239

b uil d ero n l in e.co m

the magazine of the national association of home builders

John McManus, group editorial director Jerry Ascierto, editor-in-chiefJennifer Lash, chief content managerAmy Albert, senior editorJennifer Goodman, senior editorLes Shaver, deputy editor, enterpriseBrian Wilson, deputy art directorAllison Levy, associate art directorLindsay Machak, associate editorSandra Malm, associate editorLaura McNulty, associate editorKayla Devon, assistant editorSpencer Markey, senior web producerKatie Gloede, data journalist, radar deskCharlotte O’Malley, data projects producer, radar deskGillian Berenson, contributing design director

Cathy Underwood, senior director, print productionMargaret Coulter, lead production managerLauren Searson, ad traffic managerTim Bobko, promotional graphic artistBetty Kerwin, prepress coordinator

Christina Lustan, group director/audience marketing & circulationDiana Turco, audience marketing managerAnn Russell, reader service manager

Holly Miller, director/channel and product marketingMegan McCloud, senior director/creative servicesMike Bendickson, vice president/conferences & events

hanley wood mediaDave Colford, president/mediaWarren Nesbitt, senior vice president/residential construction programsTom Rousseau, executive vice president/ strategic marketing servicesJennifer Pearce, senior vice president/strategic marketing services & consumer mediaSarah Welcome, senior vice president/ audience operationsRizwan Ali, vice president/product development

published by hanley woodPeter Goldstone, chief executive officerFrank Anton, vice chairman Matthew Flynn, chief financial officerDave Colford, president/mediaAndrew Reid, president/digitalJeanne Milbrath, president/marketingChristopher Veator, president/metrostudySheila Harris, senior vice president/marketingPaul Mattioli, senior vice president/corporate salesMichael Bender, vice president/general counselRon Kraft, vice president/business planning & analysisKeith Rosenbloom, vice president/ corporate controller

editorial and advertising officesOne Thomas Circle NW, Suite 600, Washington, DC 20005 Phone: 202-452-0800; Fax: 202-785-1974subscription inquiries and back issue orders888-269-8410 or email: [email protected] members please call 800-368-5242 x8546circulation customer service www.omeda.com/custsrv/bldrstatlistics Jennifer Felling, [email protected]; Phone: 203-456-3339privacy of mailing list Sometimes we share our subscriber mailing list with reputable companies we think you’ll 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 6B2postmaster 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.

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

“I don’t know how a builder survives without SoftPlan.”

Jim Irvine, Builder - The Conifer Group, Portland Oregon, Past President NAHB

SoftPlan 2016: coming soon

easy to learn & use

3D renderings

materials lists

framing layouts

automatic elevations

site plans

animations

powerful roof design

remodeler’s setup

kitchen & bath design

deck design

round-trip AutoCAD® files

links to QuickBooks®

REScheck™ energy calcs

3D panorama views on

android, PC, iPad & iPhone

Circle no. 237

© 2013 Masco Corporation of Indiana

FIRST OF ITS KIND.

WITH MORE CHOICES

THAN EVER.

Five years ago, Delta® Faucet revolutionized the faucet industry with the

introduction of Touch2O Technology, which allows you to start and stop

the fl ow of water with a simple touch. Today, this smart, customer-preferred

solution has grown to include nearly 50 styles and fi nishes.

Watch the Touch2O Technology video at deltafaucet.com/Touch2O.

TOUCH2O® TECHNOLOGY.

Trinsic™ Pull-Down

Pilar®

Pull-DownAddison®

Single-HoleCassidy™

Pull-Down

Circle no. 314


the magazine of the national association of home builders

subscription inquiries and back issue ordersCall 888-269-8410 or email: [email protected] members please call 800-368-5242 x8546for list rentals203-778-8700to order reprintsWright’s Media, Nick Iademarco877-652-5295 ext. 102 or [email protected]

advertising sales officesPaul Tourbaf, group president/residential constructionphone: 202-729-3629 fax: 202-785-1974email: [email protected] Kraft, national sales director5908 Northern Court, Elkridge, MD 21075phone: 443-445-3488 fax: 202-785-1974email: [email protected] Figueroa, account coordinator, team leadphone: 773-824-2412 fax: 773-824-2540email: [email protected]

EastPaul Pettersen112 Kingsbury Road, Garden City, NY 11530phone: 516-536-9154 fax: 202-785-1974email: [email protected]

MidwestSusanna Lione6191 N. Highway 161, Suite 500, Irving, TX 75038phone: 972-536-6459 fax: 972-536-6301email: [email protected]

SoutheastPatrick ZazzaraOne Thomas Circle NW, Suite 600, Washington, DC 20005phone: 202-736-3483 fax: 202-785-1974email: [email protected]

WestCarol Weinman395 Del Monte Center, Suite 317, Monterey, CA 93945phone: 831-373-6125 fax: 831-373-6069email: [email protected]

CanadaD. John Magner, York Media Services500 Queens Quay W., Suite 101W, Toronto, Ontario, Canada M5V 3K8phone: 416-598-0101, ext.220 fax: 416-598-9191email: [email protected]

United Kingdom and EuropeStuart Smithphone: +44 (0)20 8464 5577 fax: +44 (0)20 8464 5588 email: [email protected]

China and Hong KongAdonis Makphone: +852 2838 6298 email: [email protected]

Washington, D.C. Phil Hernandez, executive director/account managementemail: [email protected] Sherry, account manager (west)email: [email protected] Wilson, account manager (north)email: [email protected] Sales Account Executives One Thomas Circle NW, Suite 600, Washington, DC 20005phone: 202-452-0800 fax: 202-785-1974

“Now we spend our time on job sites, not on wild goose chases.”chases.Chuck KregerOperations Manager, BTAC

Visit exaktime.com/builder or call 1.877.572.0299

TRACK THEIR WORKERS ANDLOWER PAYROLL EXPENSES

We helped Bruce Thornton Air Conditioning, Inc.

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

after workers’ time cards. Those days are gone. I don’t miss them.”

See us at booth C4265

STORIES FROM THE FIELDWe’ve been there.

Solid Performance Shear Versatility

© 2015 Simpson Strong-Tie Company Inc. SWSB13-B

The Strong-Wall® SB shearwall is the newest addition to our shearwall family. It combines

performance – high load values – with versatility – it’s trimmable in the fi eld. The SB wood

prefabricated shearwall is an economical solution for many applications, including narrow and

tall wall spaces and garage portals. It’s available in three widths and heights up to 20´ that can

be conveniently trimmed to fi 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

FREEDOMOF PERSONALIZATION

Thermador provides world-class entertainers with The Freedom® Collection—a 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 off ce into a

gentleman’s 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 bonaf de 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, you’re connected to a network of

industry peers. Whether through in-person courses, webinars, online courses

or events, you’ll learn from experts in the industry, merging theory with practice

in the key areas of today’s 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.With Builder Magazine’s Top-Rated Weather Barrier. 17 Years in

Tyvek® HomeWrap®, the Original House WrapOver 30 years ago, DuPont invented the house wrap weather barrier category with the introduction of DuPont™ Tyvek® HomeWrap®. Today, it’s still the standard for superior weather protection for residential construction. In fact, Tyvek® HomeWrap® has a unique, non-woven structure that provides exceptional air and bulk water holdout, while allowing moisture vapor to escape from the wall system.

For your residential construction projects, be sure to install Tyvek® HomeWrap® for superior performance.

DuPont™ Flashing for Corners, Windows and Doors

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 Flashing—Brush Formulation that is ideal for recessed window openings.

DuPont™ Tyvek® StuccoWrap® for Exterior Stucco Facades

Tyvek® StuccoWrap® has an engineered, grooved surface that’s designed to provide an improved drainage plane behind stucco facades and EIFS systems. It helps provide better water management and allows the scratch-coat to cure more efficiently and be less susceptible to cracking which helps to promote both better performing wall systems and stronger facades.

Tyvek® StuccoWrap® delivers the unique properties of DuPont™ 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

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, and foam board applied over flat substrates.

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.

in a Row.

Reside Right with Weather Protection Materials That Match the Quality of Your Work

Home exterior remodeling and residing projects often begin by focusing on windows, shingles, siding, and trim. But adding a DuPont™ Tyvek® weather barrier to the discussion can bring added value to your job and your customers.

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 codes, improving energy efficiency and more.

DuPont is working with construction professionals to apply innovative building science to the challenges of creating durable, comfortable, energy-efficient homes and commercial structures.

The DuPont™ Building Knowledge Center is a resource for DuPont™ building envelope installation and best practices. It’s 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 with the level of support you need to achieve the best protection from the weather.

The difference is DuPont™ Tyvek®.

The difference is DuPont™ Tyvek®.

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Things You Should Know About Weather Barrier Products

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UP TO

40% BUILT-IN PROTECTION

DuPont™ Tyvek® Specialists provide the latest updates on building codes, on-site consulting and training on DuPont™ weatherization products to help you make sure your residential construction jobs get done right.

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)

Hot Off The Press!

National Association of Home Builders

Order Today!Print: BuilderBooks.com or call 800.223.2665

eBook: ebooks.builderbooks.com

NAHB Economics & Housing Policy Group

The 2014 Single-Family Builder Compensation Study provides compensation and

benefits data for 39 common positions at single-family home building companies.

The study is divided into two sections that present the survey findings from two

different perspectives. Builders can use results to benchmark what they pay their

employees against current industry averages.

From BuilderBooks, 2015, 296 pp/SoftcoverItem 00303 ISBN 978-086718-737-3

NAHB Member $79.95 Retail $149.95

2014 SINGLE-FAMILY BUILDER COMPENSATION STUDY

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 profits and cash flow,

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 estimate—in time to respond before those changes cost you money.

From BuilderBooks, 2015, 186 pp/Softcover Item 00302 ISBN 978-086718-735-9


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 financial forecasts

with Microsoft Excel 2010 so you can assess project feasibility, fund company cash

needs, determine financial 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 files

Item 00300 ISBN 978-086718-733-5


FINANCIAL FORECASTING IN MICROSOFT EXCEL ®

®

®

Beautiful spaces for the backyard.

S ID ING W INDOWS DOORS STON E TR IM ROOFING FENCE RA IL ING plygem.com

NewProducts

DesignInspiration

Discover the latest innovations in siding,

stone, windows, roofng, trim and accents

and see how they work together.

Check out the latest tools, color options

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owners customize their home exterior.

Now that one of the biggest names in

windows has joined the Ply Gem family,

come fnd the solution that’s right for you.

ProTalkLIVEHear from national builders and leading

experts on Millennial Buying Habits,

Home Design, Building Trends and more.

LeadingBrands.

LeadingExperts.

LeadingThe Way Forward.

Visit us at IBS Booth C3820 January 20-22 I Las Vegas

The Ply Gem booth at IBS is more than just a showcase for

products. It’s a destination for building professionals looking

to gain new insights and discover the latest innovations that

will drive your business in 2015.

Circle no. 310

20 B U I L D E R JA N UA RY 20 15 BUILDERONLINE.COM

John McManusgroup editorial director

Peter James Field/agencyrush.com

A 2015 WISHAs you strive for operational excellence, you better recognize risk for what it is

Home builders are like other people in a lot of ways. But in some characteristics and habits, you’re just different. And that’s mostly a very good thing.

Home builders are generous-souled, in-credibly driven, and hard-working people who want their efforts to result in filling a deep hu-man 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, eco-nomic ups and downs, and incessant use.

There’s something in the DNA of a home builder—whether it’s an entrepreneur work-ing at a kitchen table, via Starbucks WiFi hookup, out of a truck, or in an office full of white-collared MBAs—that appears to be comfortable with what is cognitively tough. Risk, for instance.

Home builders take on risk both in what they buy—land, labor, materials, processes, and products—and what they sell—improved residential properties. There’s reward for ex-cellence on both sides of that equation, and there’s 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 they’re not skilled at mapping risk into their businesses. This prob-ably 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 put-ting risk where it needs to be in a business plan. Now. That is an area of operational ex-cellence that may have been an option in bygone cycles, but that’s 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 find that home builders don’t 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, hun-dreds of medium-sized privately held enter-prises, 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 you’re set up to deliver.

2015 is a line-in-the-sand year for opera-tional 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 atti-tude, and all of the intentions with respect to your home buyer, investor, associates, and the most important customer in anyone’s ca-reer in any type of organization—you.

Home builders are different. You have a four-letter word for everything. A company princi-pal 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 tac-tics, and ideas. Only thing is, he had not one iota of jobsite experience. So, it gets to be this fellow’s first day, and he calls this friend of mine who’d hired him, and says, “I’m nervous. I don’t know anything about what the guys are doing, and I’m supposed to manage them.”

“Don’t worry one bit,” says the principal of one of the top 25 private home building compa-nies in the U.S. “Just yell and curse a lot and ask them what the hell they’re doing, and that should work like a charm.”

Buying lots, hiring people, sourcing ma-terials, building home systems, and featur-ing 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

“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

ANYONE’S CAREER IN ANY TYPE OF

ORGANIZATION —YOU.

T H E G A M E C H A N G E R I S S U E

Editor’s Notes

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Albuquerque

LOT DEMAND

Northern California

Reno

Sarasota-Bradenton

Southern California

HOME DEMAND

WEAKESTDEMAND

STRONGEST DEMAND

Salt Lake City

New Jersey–New York suburbs

Central California

Northern Virginia

Central Florida

Boise

Jacksonville

ChicagoIndianapolis

The Triad

Phoenix–Tucson

Rio Grande Valley

PhiladelphiaSuburban MarylandTampa

Nashville

Austin

San Antonio

South Florida

Atlanta

Denver–Colorado SpringsSeattle

Charlotte

St. George–Mesquite

Twin Cities

San DiegoNaples–Ft. Myers

Dallas–Ft. WorthLas Vegas

Houston

Raleigh–Durham

3

4 5

6

5

6

7

8

9

Albuquerque

LOT DEMAND

Northern California

Reno

Sarasota-Bradenton

Southern California

HOME DEMAND

STRONGEST DEMAND

Salt Lake City

New Jersey–New York suburbs

Central California

Northern Virginia

Central Florida

Boise

Jacksonville

ChicagoIndianapolis

The Triad

Phoenix–Tucson

PhiladelphiaSuburban MarylandTampa

Nashville

Austin

San Antonio

South Florida

Atlanta

Denver–Colorado SpringsSeattle

Charlotte

St. George–Mesquite

Twin Cities

San DiegoNaples–Ft. Myers

Dallas–Ft. WorthLas Vegas

Houston

Raleigh–Durham

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PULSE P G . 3 4 I DESIGN TRENDS P G . 3 8 IEDITOR’S PICKS P G . 4 0 I CATEGORY REVIEW P G . 5 0 I

ENERGY STAR P G . 5 6 I BUILDING SAFETY P G . 5 8 I

ANTICIPATING CHANGEDemand in these five markets could look a lot different in the future

From October to November, new home and building lot demand levels changed margin-ally, resting at an average score of 5 and 6, re-spectively, on our 10-point scale. A typical seasonal slowdown has a� ected many mar-kets, and buyer tra� c is expected to increase

after the holiday season. Some regional direc-tors report weakening demand due to pricing growth, which may continue to have an ad-verse effect on new-home demand in the coming months (most signifi cantly in the San Diego, Las Vegas, Houston, Salt Lake City,

Circle no. 213

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Denver, and Jacksonville, Fla., markets). While there are no major changes to report

at the macro level in November, regional direc-tors from the fi ve markets highlighted in our infographic identify signifi cant game-chang-ing advantages or impediments that could have a lasting impact on building and pur-chasing activity for years to come.

Economic OverhaulDemand in Reno has been fairly mediocre compared with Metrostudy’s 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 Tesla’s gigantic, $5 billion gigafactory, expected to be complet-ed in 2017. The e� ect the gigafactory will have on the region’s economy will be tremendous. More than 22,000 jobs are expected to be cre-ated by the factory—6,500 directly from Tesla, and an additional 16,000 in the region indi-rectly. A tax break bill requires that half of the factory’s 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 fi ll, and demand for new housing will likely increase ten-fold.

A Lot (and a Lack of) LotsIn Sacramento (included in the Northern California market), the government fi nally will release its hold on a building moratorium in the Natomas, possibly as soon as Septem-ber 2015. Federal fl ood protection authorities put the moratorium into e� ect in 2008, throt-tling any potential housing growth and put-ting 7,000 acres of land in gridlock. The North Natomas were the fastest-growing area in the city before the ban went into e� ect, due to its proximity to jobs downtown and fairly af-fordable price tag for homes. According to city o� cials, about 25 percent of land zoned for residential use (enough for as many as 8,000 homes), and 90 percent of land zoned for com-mercial 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 o� .

Things aren’t so sunny in the Southern California market, however, where lot short-ages are coming to a head and putting “addi-

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tional pressure on builders to entice buyers to an infill product and/or a more remote loca-tion,” according to Metrostudy regional direc-tor Dennis Handler. Although future inven-tory is available and demand for quality lots is high (SoCal received a lot demand score of 8 in November), cost is weighing heavily on build-ers. Despite steady job growth, new-home prices continue limits of affordability for buy-ers as well, keeping them out of the new-home market and pushing them to resale.

Senior SustainabilityAlbuquerque could be a come-back kid in 2015, as two large developments should entice buy-ers to enter the market, and increase demand for new homes (something that hasn’t been seen since in this market since the start of our index). Most significant of the two is Del Webb’s 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 Webb’s first

age-restricted community in Albuquerque; the company hopes it can capitalize on the attrac-tiveness 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 amenities—sounds like a win.

Retirees have flocked to the Sarasota mar-ket for years, but the sheer volume of snow-birds 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 build-ers 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 Associa-tion 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 2011–13 migration patterns, housing inven-tory, housing affordability, and cost of liv-ing, which bolsters the predictions of Me-trostudy regional directors.

Onward and UpwardWe’re confident that Reno, Sacramento, Albu-querque, 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 new-home 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 o’malley

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34 b u i l d e r Ja n ua ry 20 15 b uil d ero n l in e.co m

builderonline.com

From the blogMyers Barnes, founder of Kitty Hawk, N.C.–based Myers Barnes Associates

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 won’t be tainted by unseemly behaviors and actions. and don’t 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.

of respondents rank energy efficiency as

important, which is not surprising as

Americans’ electricity spending has increased 56 percent since 2000

Source The Demand Institute’s “The

Housing Satisfaction Gap: What People

Want, But Don’t Have”

households in the U.S. are set to move in the next five years,

spending an estimated $7.4 trillion on home

purchases

StatS thiS Month in hoMe

Building

A Sluggish Finish for 2014 Housing StartsThere was no evidence of a strong pickup in home construction in the final months of 2014. According to recent Census Bureau data, hous-ing 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 esti-mate 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 pro-duction in many markets, but demand is also to blame for the lackluster numbers.

Metrostudy’s outlook for 2015 is for a modest increase in single-family starts as well as a (smaller) increase in multifamily starts. Build-ers were aggressive in land and lot acquisition in the past three years, and Metrostudy’s 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 NeedsMany Americans are living in less-than-ideal houses and neighborhoods, according to “The Housing Satisfaction Gap: What People Want, But Don’t Have,” a recent report from The Demand Institute.

The survey revealed America’s top 10 un-fulfilled housing needs and desires by poll-ing more than 10,000 households—renters and owners across generations and income levels—to 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 rent-er households have grown, that doesn’t neces-

sarily reflect a lack of interest in buying so much as a lack of financial means. Seventy-seven percent of survey respondents still view homeownership as an excellent investment. And the report’s findings support that aspira-tion. “There’s 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 ef-ficiency, with 71 percent of respondents rank-ing it as important and only 35 percent satis-fied with their current home’s performance. Americans’ home electricity spending has in-creased 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 single-story 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 re-port found that approximately 1-in-5 Ameri-cans is not satisfied with the cost of their cur-rent living situation.

“There’s certainly a well-documented shortage of affordable housing, particularly when it comes to renters, and the situation is only getting worse,” says Burbank. Single-family 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 con-cern, with 22 percent of respondents noting they are not satisfied with the safety of their

Pu l se

Start

40M+

71%

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

76%

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percent on energy and water bills. The new LEED-certified homes qualify for Jimmy Ja-cobs Efficiency Promise Program, which pro-vides 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 val-ues than homes without LEED certification.

“Jimmy Jacobs’ new LEED-certified homes use less energy and natural resourc-es. 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 it’s the respon-sible choice that will ultimately provide the best outcome to our homeowners.”

To maintain this initiative, Jimmy Jacobs has employed third-party LEED-certified in-spectors throughout the entire home building process—from design to final review—to en-sure new homes are compliant with LEED

current home. About one-fifth, 65 percent of whom are in non-urban areas, feel their neigh-borhood 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 se-curity systems, with an increasing number of home owners likely to turn to advanced tech-nology for peace of mind. — laura mcnulty

Builder Expands Its Texas LEED ProgramJimmy Jacobs Homes, a Century Communi-ties company, has committed to LEED certifi-cation for all new homes in its current and upcoming developments. Two of the compa-ny’s newest LEED-certified developments, Reagan’s 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. LEED-certified homes will save homeowners up to 40

standards. Upon taking possession of the home, each homeowner will receive a verifica-tion of their home’s 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 company’s signature quality and green components.

Jimmy Jacobs has a 25-year history serv-ing Austin and San Antonio with nine cur-rent Austin-area developments. Since its ac-quisition by Century Communities in Sep-tember 2013, Jimmy Jacobs has expanded rapidly in Austin. — jennifer goodman

Clarification: In the article “Marketing Cam-paign Urges Young Buyers to Say ‘I Do’ to a New Home” in our December issue (p. 18), Keystone Custom Home representatives misspoke re-garding Wells Fargo’s role in the builder’s mar-keting program.

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38 B U I L D E R JA N UA RY 20 15 B UIL D ERO N L IN E.CO M

LESSONS FROM 2014’S BEST-SELLING HOUSE PLANSOutdoor living spaces reigned supreme in last year’s top-selling plans

porches, others o� er screened porches, and four even boast outdoor fireplaces. All of these spaces are much more than after-thoughts (and lest it seem like all of this space is away from neighborhood sight, it should be noted that eight of the top 10 de-signs 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 fi replace (all 10); and extensive kitchen counter space (all included an island, a snack bar, or both). — aurora zeledon

It can be di� cult to draw sweeping conclu-sions about new design trends from sales data of house plans—popular plans tend to stay popular, and it takes time for new de-signs to catch on with consumers. While that’s typically the case on an annual basis for our best-selling plans, there was a bit of turnover in 2014, with four new plans push-ing their way to the top. (Interestingly, the new plans tended to be smaller, with an av-erage 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 2014’s best-selling house plans? Most strikingly, all of them boast impressive outdoor living spaces. Some include grilling

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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 fireplace-heated barbecue porch in back, lots of kitchen space, and a two-way fireplace gracing the open living spaces.

DE SIGN T R E N D S

Start

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

PLAN SHOPPERS: Which features are of interest to you?

7 8 %6 4 % 6 1 %

O p e n F l o o r P l a n

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O u t d o o r L i v i n g

Learn how beauty meets brawn at SterlingPlumbing.com. Circle no. 355


the final countdownIBS and KBIS 2015 are just days away; make plans to see these hot new products Edited by Laura Mcnulty and Lauren Hunter

e ditor’s pic k s

Start

1. KalamazooGive your next outdoor kitchen a feature they can’t resist. Kalamazoo Outdoor Gourmet’s 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.

1 2

3 4

2. danzeSince it’s 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. PlyGemPlyGem roofing’s 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 roof’s 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. odlChain 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 sizes—7.5 by 7.5 inches, 12 by 12 inches and 22 by 3.5 inches—can 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-shelfThe 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. Full-extension 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.

5


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6. weather shieldThe 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 minesMonsoon Craft Board Form is handcast from boards that expose natural woodgrain; the 6-inch-by-36-inch planks have the look

6 7 8

9

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. moistureshieldThe third color in MoistureShield’s 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 company’s 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-wenTo 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. climatemasterOn-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 productsavailable 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.

10 11

An Everyday MasterpieceThe beauty of art; the quality of Caesarstone

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12. fascoThe 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 maker’s Scrail collated fasteners, and releases completely as part of the tool’s new jam-clearing system. www.fascoamerica.com. Circle no. 12. Booth no. C8549.

13. osborne wood productsSquare turned posts offer contemporary and transitional style to woodworking projects. Kitchen island

12 13 14

15

posts are unfinished and available in more than 18 species. The firm’s 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. totoWith graceful lines and an elegantly flared base, the Connelly faucet’s 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. panasonicPanasonic’s 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 & doorsThe 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.

16 17

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Magnetic appealFast, safe, and efficient, induction technology has the potential to shake up the kitchen status quo

available, it’s 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 perfor-mance, usability, and design benefits. “Induc-tion is definitely the way of the future,” says Nadia Subaran, senior designer and co-found-er of Bethesda, Md.–based Aidan Design.

Premium PerformanceFor 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 both—and builders should take note.

“We describe induction as the perfor-mance benefits of gas in an electric configu-ration. One of the big benefits of gas that people like is the responsiveness and instan-taneous reaction; that is what you get with

Using electromagnetic energy, induction technology is a different way to cook; unlike gas or electric, the heat source is not the cook-top, but the cooking vessel itself. Electric cur-rents pass through copper coils underneath the cooktop’s 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

1. The SplurgeFor 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 STealThe 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 firm’s 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-aloneThe 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.

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

Builder: Michael K. Walker & Associates Inc.

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Cat e g ory r e v i e w

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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. It’s 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 won’t 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 technology’s energy ef-ficiency—induction cooktops experience only 5 percent to 10 percent heat loss, as op-posed to about 45 percent for gas.

“It’s 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 Jersey–based appliance company Fagor America.

Reduced heat loss into the kitchen means a more comfortable cooking experience, es-pecially in small kitchens or hot climates. And induction excels in cleanability and safety—there 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 un-derstated aesthetic with many of her clients as well. “We’ve 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-

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 ventila-tion requirement, Subaran says. Large gas ranges, which have a high BTU output, re-quire high-CFM range hoods that often ne-cessitate the introduction of make-up air. That’s 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 BarriersOne long-standing hurdle to induction’s 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 apprehen-sive about changing the way they cook,” Wood says, adding that induction “doesn’t 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 refrig-erator 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 ap-peal to rest.

“Induction is clearly our fastest growing segment,” Elkin says. “We’ve had tremen-dous 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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StartE n E r gy Sta r

EnErgy Star vErSion 6.0 BEginS rolloutThe cost-effectiveness of high-efficiency products is among the window industry’s chief concerns. By Lauren Hunter

that they wouldn’t buy Energy Star products, and they wouldn’t 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. “It’s difficult to get a customer to purchase an En-ergy Star product that’s more expensive if there’s no justification,” he says. “Some people may buy them because they want to be envi-ronmentally conscious, but if they can’t see the energy savings, it’s much more difficult.”

Inks says the WDMA and the industry are “generally supportive of where the require-ments are now.” In back-and-forth discus-sions with the EPA, the WDMA asked for substantiation of data the agency used to sup-port U-factor and SHGC changes to determine that the new values would be cost-effective

Willingness to listen to industry concerns has yielded an updated version of Energy Star Ver-sion 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 Man-ufacturers 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 per-cent market share Energy Star windows cur-rently have.

“Especially in the northern zones, which represent such a large area, we were con-cerned that the cost of the product would become so cost-prohibitive for consumers

within the time frame allotted for manufac-turers to meet the new criteria.

“We’re at a point now where products and homes are becoming so efficient that we’re 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 ad-justed the implementation date for the north-ern zone by a full year to Jan. 1, 2016. The U-factor requirement for the north central region also was increased to 0.3 rather than 0.29.

Manufacturer ResponseDespite frustrations with the process, manu-facturers say they’re prepared to meet the timeline for Version 6.0, though the phased rollout causes some concerns.

“We’ll see criteria in 2015 for three regions that’s different from the northern region, where performance levels are getting more ag-gressive,” says Christine Marvin, director of marketing for Warroad, Minn.–based Marvin Windows & Doors. “The solutions manufac-turers come up with for the first phase won’t 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 EPA’s 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 achiev-ing 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 they’re working closely with their dealers—and with builders and their buyers down the line—to ensure selecting the right window for the project. “We have all the data in our quote system so our dealers know if a product doesn’t qualify,” Marvin says. Taking advantage of that information will be useful to builders no matter what code they’re following. B

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Circle no. 217


Plans to leave the building regulatory profession

Age of Respondents

MASS RETIREMENT LOOMINGA recent survey shows the labor shortage is also impacting building safety professionals

StartBU I L DI NG SA F ET Y

formation. “The safety, sustainability, and energy e� ciency 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 o� cials indicated starting out that way.

However, Maureen Guttman, president of Building Codes Assistance Project (BCAP), says that’s only one part of the solution. “Mu-nicipalities can’t a� ord to pay a professional who really has the qualifi cations to do the work,” she says.

She also expresses concern for the under-sta� ng or nonexistence of code enforcement in several jurisdictions across the U.S., noting that a lack of checks and balances for the build-ing industry could have a grave impact.

“I think o� ering really specifi c degree pro-grams, certifi cation programs that show a vi-able career path is going to help,” says Gutt-man. “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 in-vest the appropriate resources into it to do it properly.” — kayla devon

A survey conducted by the National Institute of Building Sciences (NIBS) for the Interna-tional Code Council (ICC) reveals a ‘mass exo-dus’ of building safety professionals over the next several years. In fact, 80 percent of re-spondents plan to retire within the next 15 years, with 30 percent planning to hang it up in the next fi ve years.

The survey also revealed only 15.6 percent of code o� cials 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 fi ll.

“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 hear-ing more about state and local governments having a more challenging time hiring build-ing safe professionals,” says Dominic Sims, CEO of ICC. “That’s when we decided to look into this a little bit deeper and try to learn a little bit more about what’s going on so we could help the industry begin to prepare for signifi cant change.”

Another problem, according to Sims, is the amount of code o� cials who were let go dur-ing the recession but are not returning to the trade as things look up, which is a problem across the entire building industry.

A Pressing NeedThe survey also identifi ed that building code o� cials come with varying education and ex-perience levels, providing multiple paths of entry into the profession: 35 percent of respon-dents had earned a bachelor’s degree or higher, 23 percent had an associate’s degree, 16 percent attended technical or vocational school, and 25 percent had only a high school diploma.

“These survey results highlight the criti-cal need for high schools, vocational schools, and colleges to develop programs that train and educate our next generation of code o� -cials,” says Ryan Meres, senior code compli-ance specialist of Institute for Market Trans-

Source: N

IBS

5 to 15 years:51%

Less than 5 years:31%

26 to 35 years:4%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

46 years or more:0%

36-45 years or more:0%

16-25 years:14%

0.1%

3.3%

12.3%

28.8%

45.6%

9%

0.9%

18 to 24

25 to 34

35 to 44

45 to 54

55 to 64

65 to 74

75+

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Circle no. 200

Ja n ua ry 20 15 b u i l d e r 6 1 b uil d ero n l in e.co m

Frame Bright Green P g . 6 2 I Packaging Passive P g . 6 8 ISecond Chances P g . 7 0 I Aging In Place P g . 7 6 I

On the Boards P g . 7 8 I Friend’s Entry P g . 8 0 I

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Game chanGers

responding to market conditions, the projects that

follow are transforming the face of residential design

62 b u i l d e r Ja n ua ry 20 15

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 exist-ing buildings that date from the 1940s to the 1970s and have been retrofitted for energy ef-ficiency with reflective roofs and super-insu-lated windows. Three are brand-new.

This year, the project gained its second

new building, The Edge, a 79-unit residence. Targeted at urban professionals who want to be within walking distance of Boston’s pub-lic transportation system in order to get downtown quickly, The Edge answers the city’s 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 façade has

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 tradi-tional brick and stucco façades.

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,

1 Project The Edge, Allston, Mass.Architect Prellwitz Chilinski Associates, Cambridge, Mass.developer The Mount Vernon Co., Boston

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

civil engineer Nitsch Engineering, Bostonlandscape Architect UBLA/Ulrich Bachand Landscape Architecture LLC, Wenham, Mass.

living Space 700 square feet to 950 square feetrent $1,925 to $3,175 per monthlot Size 1.22 acres

Left: Design E

ast/The Creative C

ompanies

Realty; R

ight: Warren Jagger Photography


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innovator

Br igh t gr e e n

The Pledge aT The edgerenting here or at or any of The Green District’s 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 Boston’s 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 (there’s 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. “It’s hard to make people environmentally conscious when things aren’t metered,” says Percelay. “Enlisting the tenants helps.” By assisting renters with best practices, the hope is to cut down on operating expenses—savings that the developer pledges to pass on to tenants in the Green Declaration at the end of the calendar year. — Amy Albert


Plan: Courtesy Prellw

itz Chilinski; Photo:

Warren Jagger Photography

architects Prellwitz Chilinski Associates re-searched 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 ten-ants—who like to lay out their spaces in a variety of ways—want to visualize how they

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; ame-nity 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 irriga-tion. Additional green features that helped The Edge gain LEED Platinum certification include solar roof panels, Icyenene insula-tion, an electric car charging station, and bicycle storage that accommodates two bikes per unit. — barbara ballinger

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Green Within reachLoft-style glazing helps give The Edge its industrial contemporary vibe; the exterior finishes—masonry, wood, and metal-panel skin—work 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 there’s about a three-month wait to get in.

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Circle no. 157

Circle no. 251


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No TraiNiNg requiredCohen’s 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.

Pac k agi ng Pa s si v e

A Kit of PArts

2 ProjecT Specht Residencelocation Thaxton, Va.architect/designer/builder/Passive House consultant Structures Design/Build, Roanoke, Va.

Project Size 1,808 square feetlot Size 20 acresPrice $145 per square foot

Courtesy S

tructures Design/B

uild

Passive House may not yet be a household name in the U.S., but the European-born, ul-tra–energy-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 country’s first Certified Passive House Consultants, the architect teaches the Pas-sive House Institute US course for builders, the curriculum for which he co-wrote. But his goal is to do more than train 180 new Pas-sive House builders a year.

“It’s to change the way we build,” he says. To speed up the adoption process, Cohen has devel-oped a modular design/build system aimed at making Passive House accessible to any build-er—no training required—and at a cost that’s competitive with conventional construction.

Cohen combined software-based architec-tural design with panelized construction to make a “simple snap-together system.” An ar-chitect or designer creates a design using a set of modules: wall panels in 2-foot-length incre-ments 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 pro-duction work, Cohen says.

Once a design is finalized, components are fabricated at the two factories with which Co-hen has contracted. Wall panels consist of a 2x4 frame, insulated, sheathed, air-sealed, and covered with 6 inches of additional rigid insu-lation. 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 gas-ket (for vertical connections) and liquid-ap-plied sealant (for horizontal joints).

When fully deployed, Cohen says, the sys-tem allows any competent builder to construct houses that meet the highest standards of en-ergy efficiency and indoor air quality.

Cohen and his crew finished their first fac-tory-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


delivery includedParts are delivered to the site. The package includes super–energy-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 there’s no special training required.”


from one of Heartland’s supportive services partners, which occupy the first-floor offices.

The landmark building got a new lease on life, too. The front lobby’s existing tile was re-stored, along with intricate plasterwork in the original historic lobby, now used as a commu-nity room. Energy upgrades will see it through the next phase. These include a 13-well geo-thermal system, an eight-panel solar thermal array supplying 60 percent of the domestic hot

Harvest Commons, a formerly derelict Art Deco hotel on Chicago’s Near West Side, is a testa-ment to development’s power to transform buildings and their residents. The 1930 hotel was a bad seed—a source of crime, drug deal-ing, 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

rehab that would house the formerly homeless and those exiting the prison system.”

Landon Bone Baker Architects, Heartland’s design partner, gutted and rehabbed the build-ing. 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 quarter-acre urban farm, gathering eggs, cooking in the kitchen lab, and learning about nutrition

Shane W

elch


FrameSE c on d ch a ncE 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 Housing’s 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 properties—the 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 low-income 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.

“It’s pretty complicated, but on almost all of our projects, we don’t use any of our own capital,” an says.

water needs, and plants covering half the roof.The architects also spruced up the façade’s

ochre-orange brick and terra cotta. “In the non-historic 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.”

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 per-cent 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

3 Project Harvest Commonslocation Chicagodeveloper Heartland Housing, Chicago

Architect Landon Bone Baker Architects, Chicagobuilder Linn Mathes, Chicago


Shane W

elch

SeedS of ChangeHarvest 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. What’s 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.


FrameSE c on d ch a ncE S

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Circle no. 212


Private residential elevators typically are associated with posh Central Park apart-ments and upscale age-restricted communi-ties, 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 some-thing different than an in-law suite to buy-

ers with discretionary income.Given today’s 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 blink—not 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

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 don’t 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. “It’s 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. asher’s 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.

Jim D

oyle

FrameAgi ng i n Pl Ace


would appreciate the ability to step into an elevator and go up three flights to the bed-room.” 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 aren’t the only drawing card. Given the narrow infill lots, a 21-foot-wide-by-50-foot-deep building footprint, and an 8-foot side yard, the houses bend near their center, resulting in greater wall surface un-

interrupted by adjacent dwellings. On the main level, they’re 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 be-tween 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

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 pos-sibility of a fourth bedroom on the ground level. Some buyers will appreciate, too, that one option is left off the table—whether to take the elevator. — cheryl weber, leed ap

4 Project Asherlocation Los Angelesbuilder KB Home, Los Angeles

Architect Robert Hidey Architects, Irvine, Calif.land Planner B3 Architects, Santa Barbara, Calif.


5 Project Emerson Greenlocation Devens, Mass.

Architect Union Studio Architecture & Community Design, Providence, R.I.

developer NOW Communities, Concord, Mass.

Dan Gainsboro and Don Powers are one of the country’s 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 Ur-banist placemaking is the site of a decommis-sioned Army base in central Massachusetts.

The Emerson Green community is part of the transformation of Fort Devens, which

closed in 1996. The 4,400-acre site is being re-purposed as a lively mixed-use development that already includes offices, a community col-lege, 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. De-signed by Powers’ firm, the site plan incorpo-rates the base’s original street grids to create a new 35-acre residential community of cen-trally sited houses surrounded by green space.

The compact single-family homes—de-signed in the spirit of architect Sarah Susan-ka’s Not So Big House principles—will 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 S

tudio


FrameOn t h e BOa r d s

the development is located at the nexus of tech, academia, and industry, which will make targeting a specific buyer profile diffi-cult, 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 we’ll be selling to,” Gainsboro adds. “It boils down to creating an awareness of what the commu-nity is about.”

Two messages the team will focus on are the community’s commitment to superior energy efficiency—nearly net zero—and its location in the sought-after Harvard School District. Groundbreaking is planned for sum-mer and phase one—11 homes and six town-houses—will be complete by the end of the year for buyers who are ready for something different. “The idea is about living deliber-ately and having quality over quantity,” Gainsboro says. — jennifer goodman

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.

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.


Framef 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 infor-mal exchanges between neighbors that oc-cur when people are out walking along the street. Looking at communities designed before World War II, it’s 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 de-tached. 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 in-cluded 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 home’s 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 friend’s entry.

But in postwar designs, the garage became attached to the house. This, in turn, elimi-nated the side doors, and even back doors, as entryways. The back door became the access to the more private rear patio or porch—not eas-ily available since the garage was now block-ing rear yard access. What often has happened

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.

as a result is that the informal entrance be-comes a path through the garage, right past lawn mowers, trash cans, etc.

We’ve suggested bringing back the friend’s 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 front-loaded 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 friend’s entry.

The connector space between the house and garage also is a great location for a popular new interior space—the drop zone—for closets, hooks, benches, cubbies, and counters needed upon entry to the house. This location histori-cally 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 incorpo-rated and direct access to the garage through this transitional space also works well for the homeowners. We recommend the friend’s entry space to be wide enough—roughly 8 feet—for counters and benches on both sides of the door plus a walkway. On the front elevation, a small covered porch in-vites friends walking by to enter and be greeted without formalities.

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

6 ProJect Friend’s Entry PlanProject size 2,800 square feet to 3,800 square feetlot size Typically, 7,500 to 10,000 square feet, but lot can be as small as 5,000 squre feet

bath


The addition of a friend’s entry creates an entryway that’s less formal than the front door—intentionally meant as an entrance to the house for friends, neighbors, and casual drop-ins.

Direct access from the garage is convenient.

A traditional element on the elevation, the front door is the formal entry to the house.

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.

In the friend’s entry are features such as benches, countertops, cubbies, and a drop-zone area that help the space be high-functioning as well as welcoming.

Guest room

Kitchen

breakfast

living Foyer

dining

drop

Garage

deck/Patio

Porch

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Circle no. 376

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Circle no. 268


WireM

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The FasT TrackTaylor Morrison’s Pierrette Tierney got her start in home building operations by helping out a friend By Les Shaver

MatheMatical Master P g . 8 8 IFaMily ties P g . 9 2 I

In 2004, when Pierrette Tierney was studying journalism at the University of Southern California, she had visions of producing long-form, cutting-edge stories for television. Now, 10 years later, she’s 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 Morrison’s vice president of operations in the Bay Area, which is a semi-


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 Tier-ney the opportunity to move the Bay Area as vice president of sales and marketing for its Northern California division. With two chil-dren and family in the Bay Area and the com-pany’s growth potential in that part of the state, making the move was a no-brainer.

Moving Into OperationsWhile Phoenix might have been a 101 course in home building operations, Tierney is get-ting her master’s in the challenging Bay Area division after taking over operations in Janu-ary 2014. “Moving into this operations role has been the biggest challenge of my career,” she says. “I have so much to learn. The construc-tion 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 training—networking 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 reli-ant 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.

“It’s far more complicated [than Vegas and Phoenix],” Tierney says. “The majority of what we’re doing is infill. You’re not going out and buying a nice piece of clean land and grading it and it’s good to go. Every project here has to go through a thorough develop-ment process. Each site is so small and you’re

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 incor-porate some technology and a lot of energy-efficient 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 we’ve put a lot of time, effort, research, and training into,” she says.

Future PlansIf Tierney can continue to grow the Bay Area operation, it soon could become its own divi-sion. 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 don’t know that I have the feeling that I need to get there tomorrow. It’s 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 fol-low her,” he says.

At Taylor Morrison, Tierney currently works for Sheryl Palmer, one of the few fe-male CEOs in home building.

“For a young female in this business, it’s 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. “I’m not in a huge hurry to be CEO tomorrow,” she says. B

FA ST R iSe R

Wire

“It’s not a bad thIng to sIt In a posItIon, get comfortable, and have tIme under your belt before takIng the next step.”

independent operation in the builder’s North-ern California division?

It started with helping out a friend.As Tierney was working on her master’s,

she also helped a recruiter friend set up inter-views for Pulte. “At the time I had no interest in real estate, or so I thought,” she says.

Soon enough, Tierney’s friend turned took aim at the aspiring journalist. “I listened to the recruiting pitch and I decided to inter-view,” Tierney says. “I got the job and moved to Las Vegas a couple of weeks later.”

Things didn’t start off especially well. On Tierney’s 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 wasn’t the easiest time to start in home building, Tierney learned a lot—par-ticularly how to work with buyers and navi-gate through issues to close a deal. Her suc-cess 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.”

Tierney’s division president, Steve Wethor (currently president of the west region for Taylor Morrison), eventually moved to Phoe-nix, and she went along as a vice president of sales and marketing. There, she quickly dis-tinguished herself to Charlie Enochs, who replaced Wethor as president of the compa-ny’s 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 in-stance, when the land division was looking at a piece of dirt to acquire, it worked with the sales and construction departments. “I think it’s pretty telling that our construction team loved Pierrette as much as the sales team did,” Enochs says.

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

Age Is Just A NumberChristopher Longsworth has built a South Florida empire and he’s only 30 years old

Christopher Longsworth’s 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 ré-sumé boasts accomplishments that many professionals may never see in a lifetime.

As a teenager growing up in South Flor-ida, he dreamed of success as an NFL all-star. 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 mom’s way of keeping me on a straight path,” Longsworth recalls, adding that he “was curious how people could afford houses and cars and every-thing else. So I started going to her work after school.”

Since math had always come easy to Longsworth, the process of putting togeth-er loan packages seemed effortless to the high school student.

“I liked the fact that I was making mon-ey at such a young age,” he says. “I think that’s what really got me started. It’s not like I sat there and said ‘Oh my God, I love real estate, I can’t 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 busi-nesses—which includes a shooting range and a school for disabled children—is worth about $500 million.

Playing KoiOne of Longsworth’s recent endeavors in-cludes a $120 million, 26-acre master planned

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community in Pompano Beach. The project, Koi Residences and Marina, will feature townhomes, lofts, and two high-rises of ei-ther 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 pur-chased 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. “They’re putting a tre-mendous amount of money into Pompano Beach. It’s almost like you’ve bought some-thing 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. It’s not easy to put a marina into a community like this. There’s a reason a marina of this size has not been put in a master planned communi-ty. I see why.”

The company went through a lot of head-aches 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 they’re looking across the street and it’s 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 per-sonally meeting with each and every neigh-bor surrounding the development—some-thing he strongly believes in and tries to do for all of his projects.

Longsworth’s 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 project’s third phase—two residential high-rises—by the end of 2015. — lindsay machak

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“As we trAnsition to the next generAtion, we mAy hAve to Alter the compAny to fit

our skillset.” - nick cowgill

The NexT GeNeraTioNThe Cowgill brothers look together toward the future

they’ll be running the company one day. Nies Homes expected to close 65 custom-

built homes in 2014—its highest volume to date—and in 2013, its staff more than doubled, from eight employees to 19. In light of this growth, the Cowgills are focused on transfer-ring knowledge from veteran employees to the next generation.

“There’s an incredible amount of industry experience here,” says Nick, noting that he’s grateful for those who have worked with his family’s business for more than a quarter-cen-tury. Using technology, he is working to trans-late 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 doesn’t make sense for us to come into a 50-year-old company and say, ‘This is how we’re going to do things.’”

Nick and Curtis are strikingly like-minded regarding the company’s future. Before consid-ering 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 there’s no doubt Nies will continue the tradition of focusing on ex-ceptional product and services.

Curtis is optimistic about what’s to come. “My hope would be in another 50 years our grandkids would throw us a 100-year anni-versary party like we did for Clifford this year.” — sandra malm

It’s doubtful anyone at Ozark Adventist Acad-emy 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 some-thing about home building. As the third gen-eration at Wichita, Kan.–based Nies Homes, a family-owned custom builder that celebrated

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 finish—a challenge Nick recalls favorably: “Be-ing a home builder means using my skills in different ways: design, sales, operations. There are always new opportunities for growth.”

Today, Curtis is the company’s marketing and IT manager, and Nick is the operational manager, though their roles often color out-side title lines. As they expand into leader-ship roles, the brothers are preparing as if

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Circle no. 318


Outside the BoxThe 2015 New American Home takes a practical design approach but doesn’t leave out the Las Vegas–inspired bling


t h e n e w a m e r i c a n h o m e

by J en n i fer Goodm a n / PHoToGr a PHS by Tr enT bell


Before breaking ground, the team of pros working to design and construct this year’s New American Home gave them-selves a challenge: Instead of creating a one-off custom show-piece, 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 luxu-riousness of a custom dwelling, the desert contemporary—which

will be open for tours during the 2015 Interna-tional Builders’ Show in Las Vegas—was de-signed 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 pro-duction homes in the Sky Terrace community that design/build firm Blue Heron calls “pre-designed custom.” These houses, with price tags from $750,000, allow customers to choose from select floor plans and finish options. Al-though Blue Heron also is known for its cus-tom projects—it has built two other New American Homes—founder/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 ar-chitects and builders who see this home real-ize you don’t 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 it-erations of the 32-year-old show home pro-gram, sponsored by the NAHB and BUILDER.

At just under 5,900 square feet, the home is efficiently laid out to encompass a spacious living area, four bedrooms (including a sepa-rate guest casita), and plenty of flashy enter-taining spaces. The Blue Heron design team focused on integrating rather than segregat-ing 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 cen-tral courtyard.

The second-level wine bar and rooftop sky loft are sited to perfectly capture breathtak-ing views of the Las Vegas strip and nearby mountains. “We spend as much time design-ing the outside living spaces as we do the in-teriors,” says Jones. “We know that people love it and respond to it.”

Inside, Blue Heron interior design consul-tant Miquel Hutton used off-the-shelf prod-ucts 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; inexpen-sive backlighting adds sophistication to the bar’s stone countertops; and a luxurious free-standing tub in the master bathroom is filled by a faucet in the ceiling. “Just because this is a production-style community doesn’t mean we can’t 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 certifica-tion from the National Green Building Stan-dard and LEED for Homes programs.

Show attendees undoubtedly will end the tour wondering how Blue Heron crammed so many amenities into a home that’s replicable and economically accessible to middle-class buyers. Jones says it wouldn’t have been pos-sible without the integrated design/build col-laboration that is at the heart of each of the firm’s projects. With architectural, interior design, and construction professionals in one office, the team was able to leverage the exper-tise of each specialty from day one.

“The only way you’re going to include new technology and complicated concepts that require outside-the-box thinking is massive and very, very tightly scripted co-ordination,” he says. B

project The New American Homelocation Henderson, Nev.Size 5,891 square feet (including casita); bedrooms: 4; bathrooms: 4; powder rooms: 2 builder Blue Heron Construction, Las VegasarcHitect Blue Heron Architecture, Las Vegasinterior deSigner Blue Heron Interiors, Las VegaslandScape deSigner Sage Design Studios, Las Vegasgreen building conSultant/Verifier Two Trails, Sarasota, Fla.tecHnology integrator Eagle Sentry, Las Vegasproducer NAHB, Washington, D.C.taSk force cHairman C.W. Edwards, Marietta, Ga.media partner BUILDER, Washington


Great room

Media room

Garage

Casita

First Floor Second Floor

layout This year’s floor plan, one of the most compact in the show home’s 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).

Kitchen

dining room

Garage

Master bedroom

entertainment Space

Wine room

bedroom 2 bedroom 3

Master bath

N↖

entry

Casita loft

Sitting room


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 doesn’t look like it should

be able to hold itself up,” says designer Miquel Hutton.

b uil d ero n l in e.co m Ja n ua ry 20 15 b u i l d e r 10 3


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-the-art appliances and vent hood from Bosch, a Kohler faucet and sink, and countertops

made of DuPont Zodiaq quartz and Walker Zanger Calacata

Carrara marble.

Ja n ua ry 20 15 b u i l d e r 10 5


double duty In Blue Heron’s 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.

b uil d ero n l in e.co m Ja n ua ry 20 15 b u i l d e r 107


“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

b uil d ero n l in e.co m Ja n ua ry 20 15 b u i l d e r 10 9


Down Time Although it’s an entertainer’s 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.

JA N uA ry 20 15 b u i l D e r 111


Spa Inspired With sedate, neutral-colored walls and vanities and warm wood-

look 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.

Ja n ua ry 20 15 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 we’ve 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.”

b uil d ero n l in e.co m Ja n ua ry 20 15 b u i l d e r 115


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.

TNAH projecT TeAm

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Circle no. 159


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JKM285P-72 solar modules, two Fronius IG Plus inverters, and a customizable Ironridge rail-based racking solution, the home’s 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 fixture’s 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 company’s 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-Wen’s 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 five-year warranty. www.jeld-wen.com. Circle no. 25.

Products from tNAH

1 23

4 5

Can’t rememberthe last timehe apologized.

© 2015 Royal Building Products

Build bold.TM

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. It’s what inspires our unapologetically evocative Portsmouth™ Shake & Shingles siding and every other one of our exteriors with character.

Visit us at booth #C2631. royalbuildingproducts.com

Circle no. 300


6. garaventa liftSpecifically 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

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.

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

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.

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. traneas 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

6 7 8

9 10

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-effi cient construction.

But mostly, says Scott Jagoe, co-owner

of the Owensboro, Kentucky–based

builder, Jagoe Homes talks about

value to the homeowner. “It really

comes down to, ‘What’s it going to

cost me a month to heat and cool

the house? What are my energy bills

going to be?’”

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 effi ciently 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-effi cient 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.

“That’s 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-effi ciency 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 fl ooring

choices, investing in effi ciency allows the builder to set reasonable expectations for

what homeowners will spend to operate their homes, differentiating Jagoe Homes

from resale options. “If you’re applying those dollars toward something that saves

energy,” Jagoe says, “homeowners are going to continue to get value out of it

long term.”

In addition to gas space heating and water

heating, Jagoe offers gas cooktops, fi replaces,

clothes dryers, and outdoor stubs as standard

or options on all of its homes.

Natural gas is a clean, safe, and affordable energy choice for builders to

deliver energy-effi cient 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. 20–22, 2015, in Las Vegas.

By cutting waste and making smart

decisions about energy, Jagoe Homes

achieves competitive HERS ratings at

affordable price points.

Circle no. 151

ADVERTISEMENT


11. bosch home appliances new chimney wall and island hoods come with an internal 600 CFM blower; the Energy Star model’s 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. liftmasterOperating on MyQ technology, the LiftMaster 8557 can be controlled from any location and sends a smartphone alert when

the garage door opens or closes. a steel reinforced belt helps lift heavy doors. www.liftmaster.com. Circle no. 33.

13. baldwin hardwareThe Square reserve Lever’s 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

11

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QualityQuality

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 development—and 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 history—more 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 Kichler’s business. The majority of Kichler’s business comes from other products—ceiling 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 trends—energy 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.”

What You Need

When You Need ItManaging 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 areas—interior 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 on-time, 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 country—ensuring most deliveries in three days or less. “Our distribution network, extensive inventory and knowledgeable support staff keeps your projects on time and on-budget.”

Kichler Opens Up Possibilities With New LED Lighting And Ceiling Fans

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

» lighting

ADVERTISEMENT

Circle no. 163


17. progress lightingusing 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.

18. behrMarquee 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.

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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 state-

of-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. What’s more,

sound levels are as low as an impressive

54dB on the heat pump systems for quiet

comfort all day long.

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 Trane’s

ComfortLink II Control and provides zone-to-

zone control for optimal comfort throughout

the home. And because it’s a Trane,

consumers know they’re 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 Trane’s TruComfort Variable

Speed systems.

Trane solutions optimize indoor environ-

ments 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

For more information on Trane’s full line of HVAC systems,

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

Circle no. 152


The New AmericAN home 2015 SpoNSorS ANd coNTribuTorSNAhb leAdiNG SupplierS couNcil—SpoNSorSProducts 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 (whole-home 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)

oTher SpoNSorS ANd coNTribuTorSAbsolute closets and cabinetry (closet systems)Anthony & Sylvan pools (pool installation)Arizona Stone & Architectural products (Coronado stone)*baldwin/Kwikset (door hardware)*behr paint (paints/coatings)canyon plumbing (plumbing installation and parts)*clopay (garage door) coronado Stone (exterior stone products)crestron (home automation control system)custom Specialties (fireplaces, installation, and fire features)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)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)

*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)pegasus marble (labor for exterior stone materials)powerhouSe plastering (stucco installation)Quality carpentry (pocket door automation installation)Questar (GMC Sierra truck)Sierra Air conditioning (HVaC installation)Simpson Strong-Tie (fasteners)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

*Kohler/Kohler power Systems (tubs, sinks, lavatory, faucets, bath hardware, and standby generator)*lift master (chamberlain) (garage door opener)*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 couNcil—coNTribuTorSeaton 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)

T N A H S p o N S o r S

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

permeates the bathroom with a light, clean scent.

SINGING IN THE SHOWER JUST GOT EASIER

The shower becomes a customizable retreat by incorporating music

with the Moxie showerhead + wireless speaker. The Moxie delivers

up to 7 hours of music, news and more by pairing wirelessly with

any Bluetooth device. Homeowners can further customize their

experience for different family members with new colorful speakers

or the Moxie rainhead + wireless speaker.

TOUCHLESS TECHNOLOGY IN THE KITCHEN

The Sensate faucet brings touchless technology into the kitchen,

helping speed up food prep and cleanup without spreading messes

and germs throughout the kitchen. Response™ technology makes

Sensate respond to the user’s every move. A simple wave of the

hand—or an object such as a pan or kitchen utensil—is all that’s

needed to turn Sensate on or off.

For more information about these and more innovative products from Kohler,

visit www.us.kohler.com/us/.

Circle no. 156

KOHLER® rainheads with Katalyst®

spray technology can take you

worlds away to the large, luscious

drops of a warm tropical rain.

Another extraordinary shower

experience. Only from Kohler.

Discover yours at KOHLER.com.

When you take a shower, where does your shower take you?

Circle no. 384

See us in

Las Vegas!

Tuesday, January 20th

10-11am Installation Demonstration

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

3:30-4:30pm Installation Demonstration

Wednesday, January 21st

10-12pm Nicole Curtis (Rehab Addict)

1-3pm Vanilla Ice

3:30-4:30pm Installation Demonstration

Thursday, January 22nd

10-11am Installation Demonstration 1-2pm Installation Demonstration

Schedule of Events

International Builder’s Show | Convention Center | Las Vegas, Nevada

January 20-22, 2015 | Booth #C5526

For more information contact your ProSales Sales Representative

at 800-274-2360 or [email protected]

Nicole Curtis Tom Silva Norm Abram Vanilla Ice

Meet TV Celebrities and Home Improvement Experts

Check Out New Flooring Innovations

See a variety of the

HOTTEST fooring trends

Booth #C5526

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

• Sample Programs

• Volume Discounts

• Business Line of Credit

(House Account)

• Full Warranties

• Sales opportunities nationwide

Circle no. 184

IBS 2015

all homesstart here

#IBSVegaS

see you in Vegas!january 20-22 | | Las Vegas | | BuildersShow.com

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? it’s not too late! Register by January 17 to avoid onsite pricing.

Why IBs 2015?see WhaT We haVe PlaNNeD FoR yoU!

1 More than 1,300 manufacturers and suppliers in over 500,000 square feet of exhibits – IBs is by far the building industry’s biggest event!

2 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 décor & furnishings) and the International surface event.

3 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 aren’t taking advantage, then you’re missing out!

Business-Building opportunities await you, don’t miss out on:

Attending the 2015 NAHB International Builders Show® (iBs) is your first step to getting the tools you need to improve your business. At iBs you’ll access an array of opportunities that benefit every aspect of your business and give you the edge over your competition, plus you’ll be able to mix in some fun with your colleagues.

#IBSVegaS

4 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.

5 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, you’ll see first-hand, the best practices for improving efficiency in all areas of the home at the 2015 hPBZ.

6 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.

7 Networking – the entire building industry will be at IBs, giving you the opportunity to connect with thousands of industry professionals in one location.

8 IBS Spike Concert – this spectacular closing event, sponsored by Geico, will have you rockin’ at a private concert by the iconic trio ZZ tOP!

9 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.

10 all work and no play – not the case at IBs! the 2015 show will be in fabulous Las Vegas so you’ll have tons to see and do.

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 away—in large pieces, or bit-by bit—and 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 Don’t 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 industry’s most comprehensive product

portfolio, we deliver the personal relationships, consultative support

and fl exibility you need to run your business, your way.

That’s the JM Advantage / www.jm.com/insulation

Try JM’s Energy Performance Calculator at IBS Booth C6513Calculate the HERS ratings your homes can achieve.© 2015 Johns Manville. All Rights Reserved.

Circle no. 373

ADVERTISEMENT


THE COLORS OF DUPONT™ CORIAN® AND ZODIAQ®

BE DAZZELED, BE INSPIRED, AND BE READY FOR WHAT’S 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 décor. The collection

begins with subtle hues of FILTERED, which softly represent one’s

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.

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

or call 1-800-426-7426.

Circle no. 155

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.

MiTek’s 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 fi 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


Millennial Home Buyer

Fact or Fiction: 7 Potentially

Deadly Myths About Gen Y and Housing

h o u s i n g m a t t e r s

by k ay la devon, li n dsay m ach a k, & lau r a mcn u lt y

/ i llustr ations by Ja m es ben n

Ja n ua ry 20 15 b u i l d e r 13 9


Millennials Carry Historically High

Student Debt Levels

It’s hard for millennials to save money. In fact, most are mired in debt with an average savings rate of -2 percent, according to Moody’s Analyt-ics. However, according to Moody’s chief econo-mist Mark Zandi, they’re not behaving any differently than the generations before them.

“If anything, they’ve 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 don’t know that they’re behaving any differently,” he says.

Most millennials were just entering the job market during the recession, with an unem-ployment rate for recent graduates with a bachelor’s or advanced degree aged 20 to 29 hit-ting 17.6 percent in 2009, according to the Bu-reau 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, ac-cording to a 2009 Yale University study.

Then there are the student loans and sky-rocketing 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 Harvard’s Joint Center for Housing Studies. Also, Freddie Mac found 50 percent of renters who plan to continue rent-

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 De-mand Institute, it’s 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 buy-ing age, but the younger end is just entering college. “It’s a little premature, I think, to worry or to conclude that millennials won’t have the financial resources necessary to buy homes when they get into their late 30s,” Zandi says.

Millennials Can’t Afford Down Payments at Today’s Standards

False True

Much attention has been paid to skyrocketing college costs, with many positing that the resultant accumulation of unprecedented student loan debt—now totaling more than $1 trillion—makes homeownership unafford-able 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. Accord-ing to The Project on Student Debt, 2008 gradu-ates from nonprofit four-year colleges had an average of around $24,600 in student loans. Compare that with the average debt of ap-proximately $15,000 (adjusted for inflation) for Gen X’s 1993 graduates.

For many, the weight of student debt im-pacts buying choices: In a 2012 Rutgers Univer-sity survey of recent graduates, 40 percent of respondents cited student loan debt as a reason they’ve 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. “We’re seeing more and more FHA loans, more down payments under 20 per-cent.” Because mortgage rates remain low, pay-ments 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 dedicat-ing large portions of their monthly budget to student loan repayment. “When you crunch the numbers, it will be a better economic deci-sion to buy as opposed to rent,” Olsen says.

False True


While the apartment industry wants to be-lieve that the majority of Gen Y will be for-ever “renters by choice,” experts simply don’t agree.

Credit, affordability, and financial woes seem to be the largest road blocks to home-ownership for this cohort, but some millenni-als simply don’t want to buy—yet.

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 doesn’t have as many rules as their par-ents,” she says. “To get married by the time they’re 24 isn’t their goal. To have two to three children isn’t the plan, to get married first and then have children—not necessar-ily their rules.”

And when comparing millennials to their parents (who often are baby boomers), the interest in homeownership has been de-layed, but it’s still there.

Carmichael predicts 2019 will be when the majority of the millennial generation will be-come most interested in buying homes.

“I’m 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 in-sights, I look at interest and when they want to buy. With Gen Y, that’s at 30 and older.”

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 re-cent Freddie Mac survey.

Those in the millennial generation eventu-ally 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 millenni-als are no different. If I’m not getting mar-ried or having children, then there is no urgency to buy a home. And until I do, the urgency isn’t there.”

Millennials Don’t Want to Own a Home

False True

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 years—from 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 you’re looking for a job across the U.S., there are way more jobs than if you’re 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 you’re tied into a home, it makes it harder to take the next op-portunity,” Kent says. “With the competi-tion 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 aren’t just looking for any job—they want the right one. Millen-nials want to be passionate about their career and, “depending on the field, that may or may not be available in their city,” Kent says, add-ing that the generation’s preferences and at-titudes 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 don’t live to work, they work to live. They’re looking to live life, not just climb the corporate ladder.”


Millennials Want To Stay In Urban, Walkable Areas

Millennials Will Pay A Premium For

Green And Tech Features

False True

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 sur-vey 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 experi-enced 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 major-ity of millennials are in their 20s, an age when most are single and not yet thinking of set-tling 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.

“It’s a wonderful life, but when that first kid comes along that 40th floor balcony is not ac-ceptable,” says Cox.

A survey from the Demand Institute sup-ports this outlook, noting that 48 percent of Gen Yers will look to the suburbs to purchase a home.

In general, millennials place more importance on being environmentally friendly and techno-logically connected than previous generations, and they want their homes to reflect that.

A Better Homes and Garden Real Estate (BH-GRE) survey of 18 to 35 year olds found that 84 percent of respondents believe updated tech-nology is a home essential. Fifty-six percent ranked home technology capabilities as more important than curb appeal. And when it comes to a home’s 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 can’t afford them.

The Demand Institute sees interest in addi-tions that help consumers reduce their energy usage. Similarly, respondents to BHGRE’s sur-vey named their most sought-after home tech-nology 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. Think-ing small could work for the home’s fundamen-tal 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 effi-cient,” Burbank says. “I think that’s an impor-tant benefit to communicate.”

Millennials Form Households In

Different Ways From Past Generations

False True

Many millennials want the typical household with a spouse and kids. They just don’t 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, Cen-sus data shows today’s 18 to 34 year olds are more educated, more poor, and more unem-ployed than 18 to 34 year olds were 30 years ago. More educated people often get married later in life. Likewise, wealth positively impacts house-hold formation. Since millennials have strug-gled to save in this economy of high unemployment, staggering rents, and sur-mounting student debt, most resort to living with their parents because they haven’t felt stable enough to form a household.

That doesn’t mean they don’t plan to in the near future, though. According to the Demand Institute’s “Millennials and Their Homes” re-port, 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, accord-ing to Trulia, and has been declining slightly over the past two years. Since household forma-tion levels are still stagnating, many millenni-als 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.

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Circle no. 395


E n t r y - L E v E L E c o n o m i c s

Core CurriculumSince 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.


Sby Les sh av er

ince the start of his career at Indianapolis-based CP Morgan, Todd Anderson has built homes for the entry-level market. He devel-oped a great deal of pride in providing an af-fordable dwelling to meet the most basic needs for people without great means. “Something that’s near and dear to my heart is trying to keep housing affordable,” he says.

As a result, it wasn’t a surprise that the entry-level market was at the core of his strat-egy when he started Challenger Homes in 2008 with some distressed lots he bought from a developer. But over the past couple of years, Anderson’s finding it harder and harder to hit that price point. “Even if you have a heart for it, it almost feels like you’re 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 entry-level buyer can afford. Though there have been glimmers of hope—most notably the reported success of Fort Worth, Texas–based D.R. Hor-ton’s entry-level Express Homes and the con-tinued growth of The Woodlands, Texas–based LGI Homes—many builders have found more profit and safety by migrating to the more ex-pensive rungs of the new-home market.

“As builders, we’re 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 it’s a noble cause.”

But not every builder sees the entry-level market as a calling. That segment used to rep-resent about 50 percent of the business for Chris Cates, co-owner of Fayetteville, N.C.–based Caviness & Cates Communities. Now, it’s about 20 percent of the builder’s business as the company’s 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-

Courtesy: C

hallenger Hom

es


found the share of first-time buyers fell last year to its lowest point in nearly three de-cades. The long-term average in this survey, dating back to 1981, shows that 40 percent of home purchases are traditionally from first-time buyers. In 2014, the share of first-time buyers dropped to 33 percent, representing the lowest share since 1987.

Lawrence Yun, NAR’s 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 who’ve experienced limited job prospects and flat wage growth since en-tering the workforce,” he says. “Adding more bumps in the road is that those finally in a position to buy have had to overcome low in-ventory levels in their price range, competi-tion from investors, tight credit conditions, and high mortgage insurance premiums.”

creases,” says Brad Hunter, chief economist for Metrostudy, the research arm for BUILDER’s 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 de-mand side, builders are finding that it’s 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.

Economic PressuresWith the days of lax underwriting and 103 per-cent loans a long-faded memory, the new real-ity is that the much of the starter-home seg-ment 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

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, that’s not a great recipe for secur-ing a loan. But coming out of the worst finan-cial crisis since the Great Depression, those potential buyers struggle to meet Federal Hous-ing Administration (FHA) loan limits, are sus-ceptible to interest rate increases, and are sen-sitive to high housing costs. (See sidebars for information on these data points for five met-ropolitan 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. “We’re just having a difficult time getting people qualified in anything south of $200,000.”

Not surprisingly, the percentage of entry-level buyers has plummeted. A recent Na-tional Association of Realtors (NAR) survey

First-time buyers make up 29% of home buyers in the Atlanta regionunemployment rate 7.6%

Median Household income $56,009Median New Home Closing Price $292,800 Average Home Cost Per Square Foot $156

FHA loan limit $320,850Top Area builders Catering to First-Time buyers D.R. Horton, Peachtree Communities, Ashton Woods

Atlanta

Left: istock.com/trekandshoot; right: M

el Ashar


First-time buyers make up 36% of home buyers in the Chicago regionunemployment rate 8%Median Household income $53,172Median New Home Closing Price $306,900 Average Home Cost Per Square Foot $219FHA loan limit $365,700Top Area builders Catering to First- Time buyers D.R. Horton, The Ryland Group, PulteGroup

Chicago


First-time buyers make up 30% of home buyers in the Houston regionunemployment rate 5.8%Median Household income $52,242Median New Home Closing Price $191,900 Average Home Cost Per Square Foot $90FHA loan limit $295,550Top Area builders Catering to First-Time buyers Lennar, Perry Homes, D.R. Horton

Houston


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 don’t 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 de-veloping 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. “It’s 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, landscap-ing, and retention ponds.

“What we don’t 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, it’s $50,000. You can’t build a $175,000 home on a $50,000 lot. The numbers don’t work.”

And that’s before localities, often driven by neighborhood groups, start specifying ma-terials. “You get in [to a development] and they say we don’t 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.

“That’s kind of what has driven that af-fordability out,” Anderson says. “It’s the dirt cost, development costs going up, and entitle-ment 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. It’s kind a perfect storm of unaffordability.”

Creative SolutionsWhen dealing with land and entitlements, there’s really only so much that a builder can

do. If you aren’t 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, ex-ecutive 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., Anderson’s lot costs were around $50,000 and fees pushed things up to about $100,000. Sud-denly, 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 we’re 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 it’s less as a percentage,” Anderson says.

Anderson also has effectively increased density by utilizing coving instead of the stan-dard 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 de-velopment costs by 25 percent.

Some builders have found cooperation in communities where they’re building more affordable homes. “We call it constructive engagement,” Anderson says. “We get togeth-er with the city people, the water people, with

First-time buyers make up 36% of home buyers in the San Francisco region unemployment rate 5.1%

Median Household income $74,559Median New Home Closing Price $815,200 Average Home Cost Per Square Foot $788

FHA loan limit $625,500Top builders Catering to First-Time buyers Shea Homes, Meritage Homes, Standard Pacific

San Francisco

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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 exist-ing market is where the entry level is for the next several years.”

But Carruthers says he’s starting to see some hopeful signs that things are chang-ing. “We’ve seen improvement in the avail-ability of credit pretty steadily in the last few years,” he says.

With Fannie, Freddie Mac, and the FHA evaluating policies that affect buyer’s ability to make down payments, the hope is that 2015 will get better.

“We’ve seen improvements in the mar-ket,” 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

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 in-crease the fees?”

In some cases, the localities will cooper-ate. 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 con-versation 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.”

It’s 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

can enjoy some efficiency.“We’ll build 350 homes,” Riley says. “Be-

cause were buying a better volume, you’ll get better pricing.”

But for smaller builders, getting those ef-ficiencies is a challenge. “If you’re a smaller builder doing 100 houses or less and you don’t have that buying power, it makes it even more challenging,” Riley says.

Growth PotentialUltimately, 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 buyer’s ability to qual-ify for a loan and make payments. Until then, builders expect to resales dominate the start-er-home market.

“The existing houses have taken over the entry-level market,” Cates says. “That’s where the sales are now. That’s where you can get a

First-time buyers make up 37% of home buyers in the St. Louis regionunemployment rate 8.9%Median Household income $33,770

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

Top builders Catering to First-Time buyers McBride & Son Homes, PulteGroup, Payne Family Homes

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On 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 voilà, you have the entry-level home.

But that’s not how many architects and builders who still work in the entry-level mar-ket view things. While there are some build-ers out there who produce a bare-bones home without basics like appliances, many archi-tects contend that the best way to attack en-try-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, presi-dent 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.”

“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 I’m designing a small home, I start with 9-foot ceilings and 5-foot, 6-inch win-dows. If I can get those two things, I know the character of space is fantastic.”

Platt prioritizes things that can’t be re-moved. “You can’t sacrifice light,” she says. “My edict is always give them what they can’t go back and fix. They can’t go back later and fix windows. They can’t 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 millen-nial segment—today’s primary entry-level buying market—doesn’t necessarily want to give up granite countertops and the nicer fin-ishes with which they’ve grown accustomed.

“It’s 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 it’s hard to design the en-try-level home doesn’t mean it’s 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 adven-turous approaches.

Target Practice: Five Places to Find Savings

Building the entr y-level home isn’t easy, but architects identify f ive places where builders can cut costs —and places where they can’t

by l e s sh av er / i l lust r ations by Pet e such e sk i


S t r a t e g i c S a v i n g S

3

4

1

5

2


Cusato is a strict adherent to the tenant that the simplest solution is usually the best solution. “In itself, simplicity can be beauti-ful,” she says.

On the exterior of a home, simplicity isn’t just beautiful—it 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. “It’s only a drag. When you add in all of these extra things you lose authenticity. You’re try-ing to make it look great, but you’re actually making it look worse.”

Even features that typically are considered nice may not be necessary on an affordable home. “If you’re going to do a beautiful bay win-dow, go for it,” Cusato says. “But the reality is if you’re doing affordable housing, there is prob-ably 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 spe-cial disdain for small porches. “It’s better to have a nice door surround than a porch that’s 3 feet because a porch that’s 3 feet is a joke,” she says. “If you have a front porch, make sure it’s 8 feet or take it off.”

Others agree. “Decorative porches are aes-thetic and very costly,” says Nick Lehnert, executive director of Irvine, Calif.–based KTGY Group.

2 RoofsWith a top-down approach, Cusato con-tends that builders can save a lot of money. “A lot of times houses get off target be-

cause people have started with a floor plan and they have to put a lid on it,” she says. “The vol-umes don’t 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 forget-ting about the roof plan until the end of the design process introduces issues that all have one thing in common—they add cost. It makes the drawing process difficult and it can be com-plicated to build. It also creates the opportunity for leaking and failures over time, and these bulky roofs aren’t 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 wasn’t thought out.”

Larger roofs also produce another problem

that might have a long-term impact on the entry-level buyer’s wallet. A larger room means there’s 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 mechani-cal systems have to compensate for an enor-mous volume of air in these large attics.”

That’s why it’s easier to start the design with the roof. “If you can keep the floor plan simple and straightforward then you’re able to have a roof that is easy to build, efficient to maintain, and looks great,” Cusato says.

3 KitchensWhen you’re 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 coun-tertops. And, with the right design, small kitchens can still be very nice.

While there’s debate about how much mil-lennials really want to give up, some archi-tects make the case that builders can save money on kitchen features and still attract entry-level buyers. “In that marketplace there’s 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 sol-id, cost-effective alternative to the granite millennials are said to prefer. “The problem with Formica has been the sinks have al-ways 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.

4 open flooR plans When architects design entry level in ex-pensive markets, they’re 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 it’s annoying to spend square feet in a hallway,” Platt says. “Now you don’t 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 be-comes, how do you keep it private? You’re 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 archi-tectural 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: “Don’t open things up too much,” she says. “A lot of those floor plans got so large that you can’t 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.”

5 Unfinished BedRoomsWhen Bill Warwick thinks about aging in place, he’s not talking about seniors housing. A principal with Philadelphia-

based 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. War-wick envisions a bedroom (and even bath-rooms) with rough mechanical duct work devoid of paint, fixtures, flooring, trim, and finished closets. “It’s a raw, unfinished space,” he explains.

But it’s also less up-front cost to the buyer. “It’s all of the other stuff—painting, finishing, carpeting—that adds more cost,” he says.

And, for a childless couple in their late 20s, there’s no need to pay for the extra bed-rooms to be finished. “Realistically, they don’t have to finish out the additional bed-rooms until they have a need for it and start having kids,” Warwick says. “It’s a way to get someone in a home that doesn’t need all of that space today. In three years, they may need it.” B

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Circle no. 203


News From Housing’s Ground Zero /// Edited by Jennifer Lash

LandscapeSignificant Strides in 2014as Kevin Kelly’s term as naHB chairman comes to an end, he reflects on the association’s progress over the past year

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.” Be-cause the House of Representatives was in re-cess 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 di-gest, Housing Headlines, to give members the latest industry information.

Another item on deck is our new Field Rep-resentative Program, which will place staff experts in five regions across the U.S. to help HBAs and members better leverage NAHB’s offerings. We also implemented an orientation program for new association Executive Offi-cers to familiarize them with NAHB’s many products and resources to help ensure mem-bers 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 together—and how the federa-tion works for members—to create the best business environment for housing. I’ve enjoyed leading the NAHB through such an eventful, productive year. I thank you for the opportu-nity to serve as your chairman. — kevin kelly, nahb chairman of the board

As my term as NAHB’s Chairman of the Board draws to a close, I’m proud to report that we made great progress in 2014 with signifi-cant 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 ac-cess to important rural housing programs; the Homeowner Flood Insurance Affordability Act rolled back the costly consequences of the Big-gert-Waters Flood Insurance Reform Act of 2012. Members at the local and state levels ini-tially brought both of these issues to our atten-tion, 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 expan-sion 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 au-thority to require multifamily and commer-

NAHB Chairman’s Letter Nahb briefs

code changesIn 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.

It’s 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

labor by the Numbers

Over the past year, residential

construction employment has grown by 122,000

122K

Home builders and remodelers added 16,700 jobs to the

economy in November

Source NAHB Eye on Housing blog; Bureau

of Labor Statistics data

16,700


LANDSCAPE

Recipe for a Green HomeThe 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 con-struct, and there are always additional costs involved compared with building a code-minimum home. There are innumerable regulations and codes, specs for hundreds of products, and the need for dozens of subcon-tractors 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 Innovation’s NGBS Green Certifi-cation can make the process easier and more affordable. The NGBS—designed specifically for residential construction—was conceived to make green building more accessible to all builders. As an ICC I-Code, the NGBS is writ-ten in code language so that the green build-ing practices can be easily understood by everyone involved in the construction pro-cess: designers; architects; builders; carpen-ters; HVAC contractors; insulation installers; plumbers; and electricians. This helps to eliminate, or at least reduce, communication and implementation issues.

The NGBS establishes a minimum perfor-mance baseline by mandating those building practices considered critical to a home’s func-tioning. NGBS-compliant homes and multi-family 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 insu-lated to meet at least a minimum level. And, building owners must be provided with a list of the green building attributes included in

Home Innovation Research Labs

insulation by the

numbers

In new homes built 20 years ago, 90 percent of cavity insulation

installed was fiberglass batt or loose fill

90%

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

2012

change proposals, this will make the building codes process more cost-effective and affordable. ”

For more about the ICC and the code development process, NAHB’s 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 limitsThe 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 one-unit 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.

the building. Once the mandatory practices have been met, the NGBS offers numerous ad-ditional 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 pro-spective home buyers and renters? In an ef-fort to help new green builders overcome this challenge, Home Innovation created the NGBS Bronze Cookbook.

The concept behind this green building roadmap is simple—it allows builders to see which practices are most commonly incor-porated into NGBS Green Certified homes. Home Innovation developed the Bronze Cookbook by reviewing every NGBS Green Verification Report for homes and multifam-ily buildings that have attained NGBS Green Certification. Based on that review, we pre-populated an Excel-based scoring spread-sheet with the most commonly used practices to achieve Bronze-level NGBS Green Certification. Given the widespread use of these specific practices nationally, a new-to-green builder can assume they represent the most cost-effective and relevant green prac-tices for residential construction.

By identifying cost-effective green prac-tices, the Bronze Cookbook can save builders time and money by streamlining what can otherwise be a complex and extensive deci-sion-making process. But the cookbook is just one way to help figure out how to attain NGBS Green Certification—the NGBS offers innumerable combinations of green build-ing practices for a home to attain Bronze or any other level certification. Home Innova-tion always encourages builders to strategi-cally 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.

Circle no. 436


LANDSCAPE

Peter James Field/agencyrush.com

David Crowechief economist, [email protected]

Optimistic OutlOOkall signs point toward growth in the residential construction industry for 2015

The new year either will see the housing sec-tor break out in a traditional, solid recovery or it will see another mundane nudge forward. It doesn’t 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 single-family construction and sales is that we are due. New and existing home sales have ad-vanced since their trough in 2011, but at a relatively slow rate given the depth of the col-lapse. 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 pri-mary missing link in this recovery, and the modest employment gains from 2010 to early 2014 were the leading cause behind the slow-to-return demand. The slow economic recov-ery diminished households’ comfort and abil-ity to purchase a home. But as the economy finds its footing as monthly employment gains provide security that job losses and in-come stagnation have faded, and as home values continue to rise, those hesitant house-holds will be back in the market.

Existing home sellers are the primary cus-tomers 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 ac-cumulating 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 frus-trated builders over the past two years and some annoyances will linger but a slower in-ternational economy will relieve the worst of the price pressures suffered recently.

Credit remains the primary demand defla-tor. Mortgage underwriting standards have been unreasonably tight as the housing fi-nance 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 pronounce-ments suggest modest relief is coming, but true clarity won’t 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 econo-my. The world economy weakened in 2014 and if the expected turnaround doesn’t 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 econom-ic model can envision the black swan that slips in without warning. Unpredictable events aside, all systems are aligned for the best im-provement in year-to-year housing growth since the boom. B

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.

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AD Index

170 B U I L D E R JA N UA RY 20 15

Advertiser PG number RS numberAdvertiser PG number RS number

ABC Supply 29 257

AdvanTech 60 200

American Gas Association 121 151

BASF 45 437

Boise Cascade 6 361

Bosch 22-23, 117 387, 159

CaesarStone 43 368

Calculated Industries 10 ---

Centipede Tool 153 435

CertainTeed Saint-Gobain 54-55, 155 250, 154, 392

Chief Architect 24 354

ClimateMaster 46 297

Clopay 143 393

Cummins Power Generation C5 231

Daimler Vans USA, LLC 35 216

Danver 154 432

Delta Faucet 11 314

Diablo by Freud America 82 197

Diamond Spas 28 399

Dryerbox 36 274

DuPont Surfaces 136-137 155, 363

DuPont Tyvek ThermaWrap 16a-d ---

52, 53 342

Eldorado Stone 21 288

Electrolux C6 207

Endura 26 213

Environment One 59 221

ExakTime 12 ---

Fantech 171 284

Ferguson 169 198

Geico 48a-b* ---

Gladiator by Whirlpool 91 282

HB&G 47 380

Henry 27 316

Housing Leadership Summit 49 ---

IAPMO 66-67 157, 251

Icynene 8 272

Integrity by

Marvin Windows and Doors 37 296

James Hardie 30-31 416

Jamsill 90 357

JELD-WEN Windows & Doors C2-4

C2a-C2c 423

96-97 158, 318

*Issue mailed in regional editions.Advertisers: To update your listing, contact Lauren Searson at 202.736.3461 or send an email to [email protected]

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Circle no. 431

AD Index

Advertiser PG number RS number Advertiser PG number RS number

*Issue mailed in regional editions.Advertisers: To update your listing, contact Lauren Searson at 202.736.3461 or send an email to [email protected]

Johns Manville 135 373

Kichler 123 163

Kohler 128-129 156, 384

Kwikset 41 ---

LivingHomes 162 295

LP Building Products 32a-b ---

Lumber Liquidators 130 184

Make It Right 32 364

Marvin Windows and Doors 51 185

Metrostudy C2d, 163* ---

Milgard Windows & Doors 163* 301

MiTek 138 238

Mohawk 87 276

NAHB 16, 17, 33 ---

48, 160, 161 ---

Nissan 127 269

NKBA 171 431

Norbord 19 264

Outdoor GreatRoom Company 173 438

Panasonic Eco Solutions

North America 74-75 160, 212

Ply Gem 18 310

PPG Industries 93 255

PPG Paints 57 217

Royal Building Products 119 300

Sherwin-Williams 83 376

Sierra Pacific 144-145 153, 395

Simpson Strong-Tie 13 192

SoftPlan 10 237

Sterling by Kohler 39 355

Tamlyn 167 436

The 2015 New American Home 94-95 ---

The Chamberlain Group 164 203

The Lubrizol Corporation 1 356

The Tapco Group / Mid America 4-5 245

Thermador 14-15 388

Timberlake Cabinetry 156 196

Time Warner Cable 84 268

Total Basement Finishing 90 299

Trane 125 152

Trex 9 239

Whirlpool 2-3 279

ZIP System by

Huber Engineered Woods 89 242


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JA N UA RY 20 15 B U I L D E R 175

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Fit & Finish

70%of adults are unaware

of down payment assistance programs

— NeighborWorks America

31%of homeowners

are living payday to payday

— Freddie Mac

$971billion in total

construction activity in the U.S. for October

— U.S. Census Bureau

5.5%12-month increase in

median existing home price from October

— National Association of Realtors

21Kspecialty trade

contractor jobs added in

November— Bureau of Labor Statistics

4.8Mjob openings

on Oct. 31— Bureau of Labor Statistics

458Knew homes

sold in October— U.S. Department of Housing and Urban Development

39%of consumers say it’s a good

time to sell a house

— Fannie Mae November Housing Survey

68%of Americans feel

it’s a good time to buy a house

— Fannie Mae November Housing Survey

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builder - jan 2015

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entire home

home renovation

authentic wood

range of wood

molded wood

jeldwenour patios

flush wood composite