December 2022
Single-Family Housing Contraction Continues
Elevated mortgage rates, high construction costs for concrete and other building materials and weakening demand stemming from worsening affordability conditions continue to act as a drag on single-family housing production. Overall housing starts decreased 4.2% to a seasonally adjusted annual rate of 1.43 million units in October, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The October reading of 1.43 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 decreased 6.1% to an 855,000 seasonally adjusted annual rate. Year-to-date, single-family starts are down 7.1%. The multifamily sector, which includes apartment buildings and condos, decreased 1.2% to an annualized 570,000 pace. “This will be the first year since 2011 to post a calendar year decline for single-family starts,” said NAHB Chief Economist Robert Dietz. “We are forecasting additional declines for single-family construction in 2023, which means economic slowing will expand from the residential construction market into the rest of the economy.” On a regional and year-to-date basis, combined single-family and multifamily starts are 2.9% higher in the Northeast, 1.5% lower in the Midwest, 2.6% higher in the South and 5.1% lower in the West.
NAHB Offers Cybersecurity Resources An overwhelming amount of confidential informa- tion and business data is stored on servers all over the world. But the loss of client and contractor data can lead to lawsuits and badly damaged business relationships. A cyber or ransomware attack can hit a company’s bottom line hard. NAHB offers resources to help members protect their data and that of clients, contractors and partners from theft or catastrophic loss. Check out a recent podcast by attorney Philip R. Stein on data security and responding to ransomware threats.
Register for NAHB’s Virtual Townhall Meetings NAHB's Senior Officers will host a series of Virtual Townhall Meetings at various times on Thursday, Jan. 12, 2023. The meetings are an important opportunity for members to provide feedback to NAHB leadership on emerging issues in their local communities. These conversations will help craft the agendas for the leadership meetings at the 2023 International Builders' Show. Regis- ter now for this opportunity to help shape discussions at the industry's premier event in Las Vegas. Don’t Miss the 2023 IBS Show Home Despite the significant delays earlier this year, The New American Home (TNAH) 2023 is on track for completion this December. The home boasts 7,575 total square feet of living space, with four bedrooms and six and one-half bathrooms. It also will feature a spa, game room, outdoor kitchen and rooftop deck. Registered IBS attendees can tour TNAH between 9 a.m. and 5 p.m., Jan. 31 - Feb. 2. Free shuttle buses will depart every half hour from the Las Vegas Convention Center (LVCC). Shuttle bus tickets will be available at the TNAH booth in LVCC's Central Hall. Visit BuildersShow.com to register for IBS.
Midterms and the Housing Agenda Republicans flipped the House in the recent mid-term elections while Democrats maintained control of the Senate. What does the divided Congress mean for housing? With narrow margins in both chambers, any legislation with a prayer of being signed into law by President Biden must be bipartisan. NAHB will work with the new Congress to propose bipartisan solutions to create more affordable and attainable housing. Read NAHB’s election analysis for an in-depth look at how the outcomes will affect residential construction.
ICE Extends I-9 Compliance Flexibility The Department of Homeland Security (DHS) and U.S. Immigration and Customs Enforcement (ICE) announced an extension until July 31, 2023, of flexibility in complying with requirements related to Form I-9, Employment Eligibility Verification when a workforce is working exclusively in a re- mote setting due to COVID-19-related precautions. This temporary guidance was set to expire on Oct. 31, 2022.
Housing Affordability Falls to 10-Year Low
Patios Preferred Over Decks The share of new homes with patios increased for the sixth year in a row in 2021 to a post-2004 high of 63%. At the same time, the share with decks was trending in the opposite direction, declining for the fifth year in a row to a post-2004 low. Of the roughly 1.1 million single-family homes started in 2021, only 17.5 percent included decks, according to NAHB tabulation of data from the Survey of Construction (SOC), conducted by the U.S. Census Bureau and partially funded by HUD. This is the lowest point for new home decks since the 2005 re-design of the SOC.
Housing affordability fell to its lowest level since the National Association of Home Builders (NAHB) began tracking it on a consistent basis in 2012 as rising mortgage rates, ongoing building material supply chain disruptions, high inflation and elevated home prices pushed the housing market into a recession. With mortgage rates moving even higher in the fall, affordability conditions are expected to further deteriorate through the end of the year. According to the NAHB/Wells Fargo Housing Opportunity Index (HOI), just 42.2% of new and existing homes sold between the beginning of July and end of September were affordable to families earning the U.S. median income of $90,000. This marks the second consecutive quarterly record low for housing affordability since the Great Recession.
Multifamily Index Sees Decline Prospects for continued high levels of multifamily development declined significantly in the third quarter, as did the prospects for continued high occupancy rates, according to results from the Multifamily Market Survey (MMS) released recently by NAHB. The MMS produces two separate indices: The Multifamily Production Index decreased 10 points to 32 compared to the previous quarter while the Multifamily Occupancy Index fell 15 points to 45. Both indices are now below the break-even point of 50, but multifamily construction levels and occupancy rates remain high compared to historic norms.
If you are interested in serving on the Board and/or Becoming an Office please contact KT at 561-228-6137 or KT@GCBAFlorida.com
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Calendar of Events Check GCBA's Wednesday Mid-Week eMail for current Location & Registration Information. .
December 10 Kids Cancer Foundation Please Donate! December 13 Holiday Hard Hat Happy Hour January 6 Coffee & Conversation January 19 Installation & Awards Celebration January 28 – February 4 IBS in Vegas March 8 Meet the Builder Speed Networking May 19 Annual Golf Outing September 13 PRISM October 18 Annual Meeting November 9 Annual Chili Cook Off Board of Directors Meetings / Quarterly on: March 16, June 21, September 6, December 6 Look for full list of events in GCBA's 2023 Directory and online at www,GCBAFlorida.com/events
2022 GCBA Officers and Directors OFFICERS PRESIDENT Rafael Roca, DR Horton 1ST VP Michael Nunziata, 13th Floor Homes 2ND VP Frank Coppola, Coppola Brothers LLC ASSOCIATE VP Tony Macaluso, Universal Engineering Sciences VP FINANCE Steve Karp, Steven Karp PA IMMEDIATE PAST PRESIDENT Fred Pfister, Builder / Developer DIRECTORS Mark Richards, Stock Custom Homes Herb Tremble, Master Contractors & Subcontractors Assoc. of FL. Karl Albertson, DR Horton Mark Welsh, Lennar Jon Long, Ryan Homes Steve Dassa, Mattamy Homes Ethan Nelson, UMI Stone Rick Baxter, Localiq (Palm Beach Post) Mark Anderson, US Bank Executive Officer: KT Catlin Design: Gregory J. Del Deo
Six Steps to Reset Building Materials Costs
Rising interest rates and high inflation are dampening the residential construction market as more consumers are priced out. To manage costs in this environment, many home builders are working with vendors in their supply chain to lower material costs. Some will send off letters to suppliers mandating cost. They’ll bid out the various categories and swap vendors wherever they can save money. But that may not be the best way to treat trade and supply partners that held cost increases at bay, prioritized your orders, and worked like crazy to take care of you during the boom market. The following is a six-point guide to making a more collaborative strategy work for you. 1. Start with data analytics. 2. Set up meetings with members of your supply chain. 3. Put everything on the table. 4. Review your specification levels. 5. Involve your internal team. 6. Avoid laying off purchasing professionals. For more detail, read the full article, which originally appeared in the September/October 2022 issue of Pro Builder.
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ASSOCIATES The Greg Forest Team Sotheby's International Realty Palm Beach Greg Forest greg@thegregforestteam.com 561-220-2007 Pure Infinity Group, LLC. Christopher Eddowes chris.eddowes@waterdrs.com 561-537-0365 Archetype Homes LLC Erik Scheuermann Sales@Archetype.Homes 1-800-961-8047 Jessica Robins PA Jessica Robins jessica@tracyestates.com 561-562-9199 The Palms Bookkeeping Services Jill Yeagy Jill@thepalmsbookkeepingservices.com 508-325-2775 BUILDER EG HOMES LLC Hunter Lancaster office@eghomesflorida.com 561-400-5528 If you sponsored one of these individuals please let KT know! We will be having year long contests and recognition for Recruiting & Retention!
GCBA 2022 TOP RECRUITERS Michele Mockenhaupt – 17 KT Catlin – 11 Rafael Roca – 10 Michael Nunziata – 3 S. Robert August – 4 Ray Puzitiello – 1 Beth Cohen – 1 Kate Nordstrom – 1 Jay Huebner – 1 Herb Tremble – 1 Jamil Mikati – 1 Kathy Macaluso – 1 Michael Brown – 1 Fred Pfister – 1 Jamie Janson – 1 Peggy West – 1 Gary Brown – 1 Tom Corona – 2 Ron Yuter – 1 Andrea Flores – 1 Ron Ellish – 1 Cynthia DeShields – 1 Susan Burns – 1 Ethan Nelson – 1 Cary Stamp – 1 Chelsea Swanson – 1 GCBA SPIKE CLUB Members reach the GCBA Spike Club once you recruit 5 or more members in the current year. GCBA Spike Club Members will be recognized at Board Meetings & more!
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mEMBERSHIP NEWS
GCBA Announces Officers AND Directors for 2023 The following individuals were elected and appointed to 2023 GCBA Executive Officers and Board of Directors at the October 12, 2022 Annual Meeting of the members... Executive OFFICERS PRESIDENT Frank R Coppola lll, Coppola Brothers 1ST VP Michael Nunziata, 13th Floor Homes 2ND VP Jon Long, Ryan Homes VP FINANCE Steve Karp, Melamed & Karp PA ASSOCIATE VP Anthony Macaluso, Universal Engineering Sciences 2nd Assoc. VP Ethan Nelson, U.M.I. IMMEDIATE PAST PRESIDENT Rafael Roca, D.R. Horton Homes Board of Directors Builder Members Mark Richards, Stock Custom Homes Mark Kruger, Hierromat Development Mark Welsh, Lennar Homes Herb Tremble, Master Contractor and Subcontractor Association of Florida Matt Ellish, Ellish Custom Homes Michelle Mockenhaupt, D.R. Horton Associate Members Mark Anderson, U.S. Bank Sam Yates, Yates Associates Rick Baxter, Palm Beach Post Andy Wyman, Wyman and Associate Interested in being involved? Call the GCBA Office for information on committee positions and 2024 Board Positions.
Southeast Building Conference Recognized In Top 100 Trade Shows Across The U.S. In September the Southeast Building Conference (SEBC) was recognized at the Trade Show Executive’s Gold 100 Awards and Summit in Santa Barbara, CA. The prestigious Gold 100 recognizes the top trade shows held across the U.S. and ranked SEBC #61 in the top 100. The award is presented by Trade Show Executive, an industry publication that aims to highlight successful trade events, strategies, and best practices to further the tradeshow industry. SEBC is among the tradeshows that set the Gold Standard for programming, attendance, and event planning. Be sure to save the date for the 2023 show, July 19-20 at the Orange County Convention Center in Orlando!
Last Call For SOUTHEAST BUILDING CONFERENCE Speakers Don't miss your last opportunity to become a speaker at the 2023 Southeast Building Conference (SEBC). Applications will be closing by end of day December 12. Come share your knowledge in areas such as: Business Management; Building and Design; Sales and Marketing; and courses approved by the Florida Construction Industry Licensing Board. SEBC will take place on July 19-20, at the Orange County Convention Center in Orlando. We hope to see you there!
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Stay Competitive By Offering Health Benefits To Employees The FHBA Private Health Exchange offers members access to the most competitive group health insurance solutions on the market. Enjoy unique cost-saving opportunities, complimentary enrollment technology, valuable HR tools, and voluntary premier-level ancillary benefits with special pricing and concessions. Speak to a benefits counselor and request a free quote today:
Brief Summary On HVAC Efficiency Standards On Jan. 1, 2023, new minimum efficiency standards for air conditioners and heat pumps will go into effect across the United States. There are two significant components to the changes. The way that the numbers are calculated is changing. The standard is changing from SEER to SEER2. The required efficiency is increasing slightly for our area. There has been a significant amount of concern and confusion on this subject, particularly the impact on those using heat pumps. “For the Southeast and Southwest regions, the Jan. 1, 2023, deadline will also apply to the installation of air conditioning systems at the building. Because the indoor and outdoor units must be paired to achieve the rated system efficiency, but can be installed at different stages of construction, it’s important that HVAC contractors and builders plan accordingly to meet the January 1 installation deadline. The installation deadline applies only to the AC units (not to heat pumps and not to other specialty systems),” says NAHB. FHBA is working with NAHB and Florida local HBAs on a joint letter asking Florida’s Congressional delegation to extend the effective date from January 1 to July 1. The link below will take you to an expanded discussion of this subject from the NAHB blog.
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NAHB Publishes Model Safety Program For Remodelers Having a written safety plan in place is essential to protecting workers and others on a jobsite. NAHB recently published the free Remodelers Safety & Health Program, a model safety program specifically designed for residential construction companies that primarily engage in remodeling projects. The Remodelers Safety & Health Program contains the materials needed to effortlessly set up a safety program and is intended to be used by management, who can take the safety program and provide it to each project site. Download the complete safety program and use the forms on the Remodelers Safety & Health Program page to execute the program and display on jobsites. Link below.
New NAHB Monthly Update Now Available The talking points this month feature a post-election analysis for the housing industry. In addition, NAHB Chief Economist Robert Dietz shares his latest housing market analysis. Questions? Contact Anna Briseno.
Next Week's Housing Releases The most recent findings from the NAHB Home Building Geography Index (HBGI) show that home building activities have shifted to low-density and low-cost markets since the beginning of the COVID-19 pandemic. As a result, the market share for single-family constructions in large metro core and inner suburbs has declined to 41.6% from the fourth quarter of 2019 (pre-COVID), to the second quarter of 2022. Read more.
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NOTE: If you need coverage with an effective date of Jan 1, 2023, you must enroll by Dec 15, 2022.
Ready to start shopping? Have questions? Need help? Visit the FHBA Private Health Exchangewebsite to: Shop the best pricing on plans from industry-leading carriers Use the live chat tool Schedule an appointment to have a licensed benefits counselor assess your needs, discuss your options, and determine potential savings from subsidies