IBS 2021 Show Home Boasts Spaciousness in an Urban Setting

By Industry News

Built within the densely populated Winter Park community of Orlando, The New American Home® 2021 will showcase many of the latest building designs and techniques for industry pros. It also features one of the most sought-after amenities of today’s home buyers — a prime location.

An aerial view shows the progress on TNAH 2021. The project is on schedule and slated for completion in October.

The 2021 home stands in contrast to previous editions of The New American Home that were constructed on large lots in less-urban regions. Built on a 0.12-acre lot, the latest New American Home earns high scores on the walkability scale, located just a short distance from numerous retail shops, parks and dining options.

“It’s really targeted for those who want all of the amenities of a walkable community and still have all of the luxuries of a beautiful, new home,” said Phil Kean, the home’s builder and designer, and principal of Phil Kean Design Group. “I love the tall, loft-like feel of the top floor … That’s going to be the architectural jewel [of the 2021 home].”

The unique design of the 2021 home maximizes the relatively small lot with three expansive levels totaling 4,397 square feet of living space. It features a three-car garage, two guest bedrooms, an elevator, exercise room, entertainment room, large master suite, tall ceilings, abundant natural light and two terraces with scenic views.

Despite the industry-wide challenges because of COVID-19, the exhibition home remains on schedule with an expected completion in late October 2020. The official unveiling will take place during the 2021 NAHB International Builders’ Show®, Feb. 9-11.

Home Purchasing Continues Gains

By Housing

The latest round of the Mortgage Bankers Association’s (MBA) Weekly Application Survey showed a decline in its benchmark Market Composite Index for the week ending on May 29 by 3.9% from the previous week on a seasonally adjusted basis. Refinancing activity, fell sharply from the previous week by 8.6%.

However, purchase application activity rose by 5.3%. Continuing the trend that had begun in the second week of April, purchasing activity posted an even higher year-over-year gain this week had, indicating a moderate rise in home buying activity compared to last year.

This week also marks a record low reached by the Primary Mortgage Market Survey’s 30-year, fixed-rate mortgage rate in the MBA’s survey, decreasing by 5 basis points from the previous week to 3.37%. Despite the all-time low, refinancing experienced the seventh consecutive week of decline in activity.

Housing demand is proving resilient to the ongoing economic and virus challenges. While many owners of existing homes are not listing their homes for sale, new-home sales, accounting for a smaller share of the market, overperformed in April.

The Future of Multifamily Design

By Industry News

The COVID-19 pandemic has forced residents to look at a number of their everyday experiences — including the way they live. In residences such as single-family homes or townhomes, residents may be looking to incorporate spaces such as home offices and exercise rooms to be able to remain productive while safely in place. In multifamily developments, however, there are additional components to consider when attempting to follow important health guidelines.

The areas of real change will occur based on two components: health and safety protocols, and consumer demands. Building codes may dictate some changes for the former, while the latter may affect more of the design and functionality of living spaces. In many cases, health and wellness trends will accelerate what was already occurring in the market — whether it’s a rise or a decline.

For example, traditional clubhouses had already been going through changes in multifamily developments, and because of the need for social distancing — especially in large open spaces — that trend will likely continue as those spaces are reworked to something more functional and more intimate, observed Chris Lessard, president and CEO of Lessard Design International.

“Clubhouses were purely social,” he noted. “That has already changed to be smaller, more intimate workspaces.”

Instead, the thoughtful design of shared building areas might become more important, taking their cues from the hospitality industry and allowing for adaption based on a variety of occupant densities.

Flexibility

Flexibility and purpose will not just affect amenity spaces, but individual units as well, especially as more people potentially shift to a work-from-home environment.

“The sanctuary of someone’s home now has the added burden of operating as backup for makeshift employment,” noted Ben Kasdan, principal at architecture firm KTGY. “This means being flexible enough to use different spaces in different ways than we intended or purposefully planning for flexibility to do whatever they need to do, whether it’s working out, working, whatever.”

That means workspaces within units will likely expand from small cubbies to a more expansive space, Lessard observed, including more ample storage for work items. This may be a challenge, as multifamily units have begun to trend smaller, with creative adaptations such as a kitchen islands being dedicated as desktops.

“The act of working really requires a 5-foot desk space, not a cubby,” he stated.

Flexibility will also play a role in the design of developments overall. Mixed-use projects, for example, may become more frequent, given how essential grocery stores and neighborhood restaurants have been during this pandemic. Accessibility may become more prominent as well.

“Walkability, bike-ability — these are things we’ve been trying to design into our projects for years,” Kasdan stated. “Being able to walk to a couple things of interest has really improved our lives. The pandemic has accentuated that.”

Air Quality

Spending extensive amounts of time at home has also piqued interest in indoor air quality, including better filtration and/or ventilation, and non-volatile organic compound (VOC) paints and sealants, noted Kasdan. Natural ventilation and access to natural light are also going to be in further demand both from a wellness standpoint and work-from-home standpoint.

“Fresh air and air circulation should help prevent viruses,” Lessard concurred, which has generally been decreasing in multifamily buildings, especially high rises, as the envelopes have become tighter through codes. Fresh air ducting systems can improve this — and may become an increasingly important benefit for prospective residents as well.

Balconies may also become more popular in multifamily buildings to provide outdoor access when it might otherwise not be available, added Mark Oberholzer, associate principal at KTGY.

“In a fair amount of urban buildings, there’s definitely a trend not to have them because people don’t use them in a busy city, if you don’t have view or compelling reason,” he observed. “Now all of a sudden, if you can’t leave, outdoor space becomes more important.”

Air quality is not something residents can necessarily control, though. So builders may be increasingly looking toward green building certifications, such as Well Building, LEED and the National Green Building Standard, to help distinguish their projects on the market.

“Green buildings have been marketed using lower utility bills as a draw,” Lessard added. “Now, residents will care about knowing about the air quality, and will pay for better systems.”

Marketing

Virtual tours will become more important as residents seek out new residences online. Prospective residents are already connecting with properties virtually, often with follow-up calls and emails, but the process may become so streamlined that residents never actually meet a staff member.

“In the future, you may be able to get virtual tour, then use your phone to get into apartment you just rented,” Lessard suggested. “You may never see anybody.”

“This will allow for smaller boutique projects because the efficiency of a central leasing staff may not be required,” he added.

For more information related to the COVID-19 pandemic, visit nahb.org/coronavirus.

Resources to Promote National Homeownership Month in June

By Industry News

As Americans are adjusting to spending more time at home, the role of the home is taking on a new meaning. Home is now our office, our schools and our playgrounds. HBAs and members have the opportunity during National Homeownership Month in June to remind consumers that during this unprecedented time, home builders will continue to provide safe and affordable housing.

Recent housing data indicate the housing market is showing signs of stabilizing and gradually moving forward in the wake of the pandemic, according to latest NAHB/Wells Fargo Housing Market Index (HMI) analysis.

To underscore the residential construction industry’s commitment to building homes, creating jobs and boosting manufacturing, NAHB released a new customizable public service announcement “Why Homes are Essential” available for download.

NAHB has an online toolkit of resources that can be tailored for any local market to support members and HBA outreach efforts throughout the month of June. Toolkit resources include: sample social media posts and videos, talking points and articles of interest for current and perspective home owners.

For a complete guide to promoting National Homeownership Month visit nahb.org. Questions? Contact Anna Briseño.

NAHB Offering Educational Webinars throughout June

By Industry News

NAHB Education is offering a variety of dynamic webinars for industry professionals during the month of June. These webinars are specifically designed to help participants expand their knowledge on emerging trends and research, and develop valuable skills, all while learning in a safe environment. Many are offered at a discount to NAHB members, including several that are free for certain council members.

Check out the schedule for June:

How to Build a Brand Buyers Can Trust
Thursday, June 4
2-3 p.m. ET

Learn how to transform your brand into one that consumers trust through the power of shared experiences and authentic stories. Learn how to create content that keeps your name relevant, and develop a compelling brand personality with an honest voice that draws in buyers. Free for NAHB National Sales & Marketing Council Members.

The Four Ps of Leadership: Understanding Yourself to Influence Others
Wednesday, June 10
2-3 p.m. ET

Discover four key areas of leadership that one needs to master in order to successfully manage employees and in turn, serve customers. Learn why understanding yourself is the most critical factor in becoming an effective leader and why philosophy, persistence, perspective and people are the keys to your team’s success.

Top Trends Shaping the Future of 55+ Communities
Thursday, June 11
2-3 p.m. ET

Explore industry trends for building out floor plans, amenities and apartments to help increase sales in 55+ communities. You’ll learn about emerging single-family and senior apartment markets and get creative solutions for land planning to increase density and keep product affordable. Free for NAHB 55+ Council Members.

How Gen Z and Millennials Are Changing Home Building Forever
Wednesday, June 24
2-3 p.m. ET

Come to understand the wants and needs, desires and expectations of the Gen Z and millennial generations based on the latest scientific and consumer research and learn how to appeal to and sell to these new consumers.

Participants can earn one hour of continuing education credits for each webinar for the following professional designations: CAPS, CGA, CGB, CGP, CGR, CMP, CSP, GMB, GMR, Master CGP, Master CSP and MIRM.

Register today. For questions about registration, please contact Deborah Krat at EdWebinars@nahb.org.

HBGI: Increased Home Building in Lower-Density Markets Ahead

By Housing

The COVID-19 pandemic is likely to hasten a housing trend already taking place across the nation – residential construction activity that is expanding at a more rapid rate in lower density markets such as smaller cities and rural areas. This conclusion is among the findings of the latest quarterly National Association of Home Builders Home Building Geography Index (HBGI).

An unavoidable lesson of the public health crisis associated with COVID-19 is that major metropolitan areas faced greater challenges. High density lifestyles, championed by some planners over the last decade as a rival to suburban living, proved to be vulnerable to a virus due to crowded living conditions, dependency on mass transit, and insufficient health and public sector infrastructure. Moreover, the spread of COVID-19 that began towards latter half of the first quarter of 2020 resulted in the closure of most non-essential businesses, weakening economic activity and housing demand.

The HBGI found that even before the pandemic hit, home construction activity was increasing at a higher rate in inner and outer suburbs than in high-density markets. While the data show that single-family construction expanded across all seven HBGI-tracked economic geographies, the strongest growth rate (9.1 percent) was found in outlying suburbs (exurbs) of small metro areas, as measured on a one-year moving average.

Given expected impacts of the virus on housing preferences, we expect these trends to continue. In general, the hardest hit areas in terms of reported positive cases and deaths were those where population-density was the highest, i.e., major metropolitan areas. This will lead to more construction in low- and medium-density markets in the quarters ahead, as households seek out single-family homes further from urban cores, particularly as telecommuting continues in elevated numbers.

In the first quarter HBGI data, core counties, suburban counties, and exurbs of large metro areas posted the lowest growth rates of 7.2%, 4.9%, and 5.4%, respectively, for single-family construction over the last four quarters. In contrast, small metro areas, small towns, and rural areas individually possessed growth rates of no less than 8.0%.

As the above figure also shows, the combined shares of lower density markets, which includes core metro areas of small cities, has gradually increased since 2016 to about 47% of all single-family builds. These less dense markets make up about 44% of the U.S. population.

The data also show that small town (micro county) single-family home building prospects were very strong in 2017 but slowed during the interest-rate induced housing affordability soft patch of 2018/2019.

In future posts, we will examine the HBGI’s new economic geographic analysis of building trends based on the relative size of the education and health services (EHS) sector. The current public health crisis makes this an important perspective.