In this Issue: NAHB News....2-5 NCHBA News....6-8 HBAGC News....9-24
April 2025
February Housing Starts Solid Despite Rising Costs
Limited existing inventory helped single-family starts to post a solid gain in February, but builders are still grappling with elevated construction costs stemming from tariff issues and persistent shortages related to buildable lots and labor. Overall housing starts increased 11.2% in February to a seasonally adjusted annual rate of 1.50 million units, according to a report from HUD and the Census Bureau. The February reading of 1.50 million starts is the number of housing units builders would begin if development kept this pace for the next 12 months. Within this overall number, single-family starts increased 11.4% to a 1.11 million seasonally adjusted annual rate, the highest pace since February 2024. The multifamily sector, which includes apartment buildings and condos, increased 10.7% to an annualized 393,000 pace. On a regional and year-to-date basis, combined single-family and multifamily starts were 4.7% lower in the Northeast, 21.5% lower in the Midwest, 8.3% lower in the South and 20.2% higher in the West. Overall permits decreased 1.2% to a 1.46-million-unit annualized rate in February and were down 6.8% compared to February 2024. Single-family permits decreased 0.2% to a 992,000-unit rate and were down 3.4% compared to the previous year. Multifamily permits decreased 3.1% to a 464,000 pace. The number of single-family homes under construction in February was down 6.7% from a year ago, at 640,000 homes. In February, the count of apartments under construction increased 0.3% to an annual- ized 772,000 pace. It marks the first gain after 18 months of consecutive declines. But it was down 20% from a year ago.
HUD Delays Rule on 2021 IECC In a win for NAHB and the housing industry, the Trump administration has announced a six-month delay before the Department of Housing and Urban Development (HUD) begins enforcing the compliance dates for adopting the 2021 International Energy Conservation Code (IECC) and ASHRAE 90.1-2019 as the minimum energy-efficiency standards for certain single- family and multifamily housing programs.
Watch Video Highlights From 2025 IBS Meetings NAHB members who were unable to join us in Las Vegas this February for the leadership meetings at the 2025 IBS can watch the highlights on nahb.org, including: NAHB Chief Economist Dr. Robert Dietz provides a post-election economic outlook and Department of Housing and Urban Development (HUD) Secretary Scott Turner addresses the Leadership Council and vows to work with builders to cut regulations and boost housing supply. 60% of U.S. Households Can’t Afford $300K Home NAHB has updated its housing affordability graph for 2025, and the latest data show that 76.4 million households — 57% out of a total of 134.3 million — are unable to afford a $300,000 home. The graph is based on conventional underwriting standards that assume the cost of a mortgage, property taxes and property insurance should not exceed 28% of household income. For example, the minimum income required to purchase a $200,000 home with a mortgage rate of 6.5% is $61,487. At the base of the graph are 52.87 million U.S. house- holds with insufficient incomes (below $61,487) to be able to afford a $200,000 home.
EPA to Seek New WOTUS Rule In a move strongly supported by NAHB, EPA Administrator Lee Zeldin has announced that the EPA will work with the U.S. Army Corps of Engineers to solicit public input and craft a new regulation for the waters of the U.S. (WOTUS) rule that reduces red tape, cuts overall permitting costs and lowers the cost of business in communities across the country while protecting the nation’s navigable waters from pollution. EPA will also undertake a rulemaking process to revise the 2023 definition of WOTUS.
NAHB Warns Congress on SALT As Congress considers extending the 2017 Tax Cuts and Jobs Act (TCJA), an area of emerging concern is a proposal to cap or eliminate the ability of a business to deduct state and local tax (SALT) payments – including property tax payments – from its federal taxes. NAHB recently joined 17 real estate groups in sending a letter to Congress warning that pursuing this strategy would significantly harm the real estate industry, reduce investment and lower property values.
Projects and professionals in all sectors of the residential housing industry – including single-family production, multifamily development, remodeling and offsite construction – were honored at the 2024 Best in American Living™ Awards (BALA) ceremony during the 2025 International Builders’ Show. The awards are sponsored by SMEG. The winners include: Home of the Year Midtown Modern Tudor, Memphis, Tenn. Best Single-Family Community Galt Commons Garden Hamlet, Kennesaw, Ga. Best Multifamily Built-for-Sale/Condominium New Talley Station, Decatur, Ga. Best Entire Home Remodel Over $750,000 Winterthur, Sandy Springs, Ga. Best in Log Homes The Colantonio Residence, Haliburton, Ontario Remodeler of the Year Mike Pressgrove, Topeka, Kan. Best Multifamily Development Firm Mill Creek Residential, Boca Raton, Fla.
Tariff Worries Weigh on Markets The uncertain timing and scale of tariffs, combined with the last legs of the fight against inflation, have rattled financial markets. Equity markets are in correction territory as investors react to a flurry of public finance proposals, including the largest proposed tariff hikes since World War II. A special question for the March Housing Market Index revealed that builders estimate the recent tariff actions will have an average cost impact of $9,200 per home. At the same time, efforts to extend the 2017 tax cuts are well underway, and the admin- istration has made moves to reform burden- some regulatory rules. Read a full summary from NAHB Chief Economist Robert Dietz.
HOY: Midtown Modern Tudor
A Look at the 2024 Best in American Living Awards
NGBS Reaches Major Milestone The Home Innovation Research Labs closed out 2024 by certifying its 600,000th green home in the National Green Building Standard (NGBS) program. It was also the first year over 100,000 homes were certified in a year. NGBS provides home builders with a national standard to define and measure sustainable multifamily and single-family homes, developments and remodeling projects. It is administered by the Home Innovation Research Lab and gives consumers a level of confidence they are purchasing an independently verified green home. The 600,000th certified home was a renovation of a single-family residence in Baton Rouge, La, completed by Consilium Holdings.
Highlighting Winning Teams from Student Competition
Students from 76 schools participated in the NAHB Student Competition in February during the Builders’ Show (IBS). The winners were announced during NAHB’s Student Chapters Awards Ceremony at IBS on Feb. 28. Four-Year College (Production Homes) First Place: Texas A&M University Second Place: Michigan State University Third Place: University of Denver (Graduate) Four-Year College (Custom/Small Build) First Place: University of Denver Second Place: Louisiana State University Third Place: Purdue University (Team Black) Associate Programs - Construction Management First Place: Kirkwood Community College (IA) Second Place: College of Southern Idaho Third Place: North Dakota State College of Science Secondary School Programs - Architecture First Place: York County School of Technology (PA) Secondary School Programs - Construction Management First Place: Bartow High School (FL) Second Place: Baldwin Preparatory Academy (AL) Third Place: Green Mountain High School (CO)
NCHBA Legislative Updates
Book Your Room Here
Flurry of Activity Leading up to Senate Bill Filing Deadline
The NCHBA Legislative Update provides an in-depth description of each bill. Learn more HERE.
Signed into law on March 19, HB 47 (Disaster Recovery Act of 2025) delays the effective date for both the commercial and residential codes until 12 months after the NC Residential Code Council is set and the publication of all the NC State Building Codes. The new code will go into effect sometime in the second half of next year (we will keep you in the loop!). In the meantime, you can apply for a permit and build under the NC 2018 Codes or you can use the NC 2024 Codes as an alternate method if you wish.
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Description: The NC Home Builders Association will hold its 2nd Quarter Meeting and Legislative Reception on Tuesday, May 6, 2025 in Raleigh. The NCHBA Legislative Reception will be held at Merrimon-Wynne House in downtown Raleigh from 5:00 PM to 7:00 PM.
2024 Building Codes Delayed
NCHBA 2nd Quarter Meeting & Legislative Reception/Meetings May 6-7, 2025
and cared for...May his memory always serve as a blessing. We will miss him."
M/I Homes Announces the Passing of Charlotte Area President George Schulmeyer Vice President of Sales & Marketing, Alan Beulah, Promoted to Area President
With deep sadness, M/I Homes announces the untimely passing of Charlotte Area President, George Schulmeyer on February, 19th. He was 56 years old. The division's former Vice President of Sales & Marketing, Alan Beulah, has been promoted to serve as the next area president of M/I Homes in Charlotte. "George's leadership was nothing short of transformative," Beulah said. "With deep passion for homebuilding and an unwaivering drive for success, George reshaped the course of the Charlotte division over the past five years. His calm demeanor, paired with his relentless determination, set a standard of excellence that will guide our division for years to come. His legacy will continue to impact our country and vision, and has become our roadmap for the future that will forever be remembered and honored." Schulmeyer enjoyed a near 30-year career in homebuilding, working for multiple other national homebuilders before joining M/I Homes in January 2019 as area president. He made a profound difference in the lives of each member of our Charlotte team, thousands of homeowners and countless others in the new home industry. M/I Homes CEO, Robert H. Schottenstein wrote to employees upon Schulmeyer's passing, "George was an outstanding leader; a joy to work with, smart, always positive with very good judgment; he cared about his people, and he personified the core values of our Company. Under his leadership, the Charlotte division was never better, setting records in sales, closings, home readiness and customer service. He was surrounded by a great team that he mentored, developed and generously supported