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SOCALGAS COULD HELP YOU SAVE MONEY WHEN BUILDING EFFICIENT DUAL-ENERGY NEW HOMES
The Energy Efficient New Homes Program, which offers energy efficiency rebates to builders of eligible new single-family and multi-family projects, is continuing in 2023.
The Energy Efficient New Homes (EENH) Program provides energy efficiency rebates to builders of eligible new residential construction projects that exceed State of California Title 24 Energy Efficiency Standards and are equipped with qualifying energy-efficient natural gas appliances and controller devices.
Only production and custom single-family homes and low-rise and high-rise multi-family projects built in the SoCalGas service territory and served by SoCalGas may be eligible.
Cash rebates are offered for qualifying energy-efficient natural gas appliances. For some appliances higher rebates are available for more efficient models. Cash bonuses are also offered to single-family or multi-family projects which qualify for specific third-party certifications and government programs.
Our representatives are ready to assist builders with enrolling projects to help construct green homes and improve their bottom lines. Call 866-563-2637 or email to: NewHomes@socalgas.com
Program details including rebate amounts, project requirements, terms and conditions, project worksheets and the application form are available online at www.socalgas.com/eenh
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"Building For the Future" "Building For the Future"
We are the leading advocate for thousands of building industry leaders who are committed to a better future for California by building communities, creating jobs, and ensuring housing opportunities for everyone.
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Our members include the smallest to the largest home builders, developers, contractors, suppliers and skilled labor representing over 1 million employees and 10 billion in annual revenues, making us one of the largest building industry associations in the United States.
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For over 99 years, we have provided a collective voice in the public policy arena helping builders continue to do business in California’s complex regulatory environment
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Celebrate BIASC's 100th Centennial Celebrate BIASC's 100th Centennial with us all year long in 2023. with us all year long in 2023.
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Are You Ready for 2023?
Dave Bartlett 2023 BIASC Chairman VP, Land Entitlement, Land & Housing Development, Brookfield Residential![](https://assets.isu.pub/document-structure/230322204757-3a0f7278cc83ecc96edb847137021c17/v1/16642de56830574889eb2cfdcb83d386.jpeg)
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5 Reasons Why Your BIASC Membership Matters
Our organization’s continued growth and success are a testament to our members’ dedication and resilience for our building industry. As we begin celebrating our 100th anniversary, we have outlined the top 5 reasons on why your membership matters, and what you can expect this year.
1. BIASC’s first Member Mobile App will be coming soon, allowing members to engage in industry news, updates, events, and advocacy within our own private social network. So say goodbye to all those emails!
2. New Veterans & Junior Builder programs: As part of our Diversity, Equity, and Inclusion initiative, BIASC chapters will help create and expand multiple programs to help veterans better connect to our industry. Additionally, this summer, the Junior Builders are back with summer camps for underserved communities throughout the Southern California region.
3. Centennial Celebration: After 100 years, BIASC will be honoring our history through a series of events which include the first inaugural Legends Club to help recognize icons of our industry, a feature documentary, and a joint installation gala with our four chapters.
4. Members First Advocacy: Through our talented staff teams and mobile advocacy program, BIASC will continue to help grow and protect our members’ businesses to help counter and collaborate with the government sectors. Expect more events featuring elected officials and special engagements.
5. Best Chapters, Councils & Staff: No matter where you live, work, or what networking event you attend, our Los Angeles/Ventura, Orange County, San Bernardino County, and Riverside County Chapters provide unique and important industry information and opportunities for our members. Our Greater Sales and Marketing Council (GSMC), Council on SAGE, BIAOC NextGen, HomeAid Inland Empire, and HomeAid Orange County are considered the best organizations in the country within their professions. Our BIASC staff is also a dedicated team of hardworking and talented individuals to help ensure your membership is valuable and memorable.
From the bottom of our hearts, thank you for choosing to be a member of the Building Industry Association of Southern California.
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One Hundred Years and Counting
Here we are at last in BIA’s 100th year. We were BCA, the Building Contractors Association, back then, but in 1923 - just as in 2023 - homebuilders and their partners in the industry faced issues that challenged their ability to meet the demand for new homes, and they saw the need for a united voice. Also just like today, they saw the benefit of getting together with their colleagues to share information and loosen their (stiffly starched) collars. Our Centennial Committee and staff are staying true to that longstanding BIASC tradition, brainstorming a number of educational and social events that will unfold over our centennial year to ensure that this hallmark is celebrated with the creativity, opportunities and benefits you’ve come to expect from BIASC and its Chapters. So, read on and stay tuned.
We are also coming up on a year since interest rates began climbing, chilling the pace of new home sales, which had already been hit hard by supply chain meltdowns. We are in a time when everyone has questions: How bad will it be? Is turbulence ahead so I should batten down the hatches? Is this going to be a long downturn so I should tighten my belt? When will things turn around? Who can I turn to for information I can trust? At least there’s an answer to the last question: BIA. In this issue of Southern California Builder and at our chapter economic outlook events you can get advice from the experts who have their eye on all the data. And you might be surprised – there are some indications that 2023 may not just be our centennial year; it may also be our turn-around year!
We have two very exciting changes already in store for 2023. First, is a new Building Industry Show (BIS) location in San Diego and a new BIS show, with San
Craig Foster Chief Operating Officer/ Executive Vice President![](https://assets.isu.pub/document-structure/230322204757-3a0f7278cc83ecc96edb847137021c17/v1/596c9d7f5c41152229359f187b28e55a.jpeg)
Diego BIA joining us to ensure more exhibitors, more information and more fun. What kind of fun, you ask? Well, you heard it here first: There will be a 100th Anniversary Celebration on the deck of the U.S.S. Midway aircraft carrier as the culmination of the show, which will be held on October 25th and 26th.
Also coming up is a very exciting change we been working on for a while now: the BIASC Centennial Regional Installation Gala, where for the first time the BIASC Board and the Chapter Boards will all join together in one event to be sworn in. As an organization, our strength is in our numbers and our unity, and the Unified Installation Gala will celebrate this strength, while being an unparalleled networking opportunity. It’s calendared for November 10, so mark your calendar and watch for information updates.
Finally, how about that rain? While the water supply experts are quick to point out that even though the proverbial bucket has gotten a whole lot of drops, it doesn’t spell the end of the drought or a solution to California’s chronic water woes. Still, everyone agrees that trillions of gallons of water rushing into our reservoirs is a good thing. Ensuring that Southern California has the reliable water supply our industry needs to meet the demand for housing is just one of the important issues we are focused on. In fact, BIASC recently joined 12 other Southern California business associations in signing a letter supporting the Sacramento Delta Conveyance Project Environmental Impact Report, and we will continue to monitor water and all the issues facing our industry, fighting for the American Dream throughout the rest of this 100th anniversary year, and for our next 100 years.
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WHO WE ARE & WHY CHOOSE US
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With roots and a rich history in multifamily development and construction, we understand that the way people live and function in their homes has evolved over the years We have the expertise to elevate your construction experience by building with Precision, Honesty, Accuracy, Speed, and Efficiency through each PHASE of the process.
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Pasadena Tournament of Roses Honors Building Industry Association of Southern California with Trophy for Rose Parade®
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Float Designed by Junior Builders
The Pasadena Tournament of Roses® has presented the Building Industry Association of Southern California (BIASC) with the 2023 Past President Trophy in recognition of its “Building For the Future” float. This prestigious honor – one of 23 unique recognitions by the Pasadena Tournament of Roses® at its 134th Rose Parade® – highlights outstanding innovation in the use of floral and non-floral materials. Celebrating the BIASC’s 100th year by depicting the past, present, and future of homes, the award-winning float was designed by participants of BIASC’s Junior Builder program, a program formed in 2019 that engages with 10- to 15-year-old future builders.
Showcasing trees made from 100% organic materials, the float was a true labor of love. “The kids were in charge, and behind the scenes, we saw collaboration and perseverance come together to create a masterpiece that illustrated the endless possibilities of teamwork,” stated BIASC CEO Jeff Montejano. In partnership with Fiesta Parade Floats, more than 600 dedicated volunteers joined forces, working tirelessly alongside the Junior Builders to bring their vision to life. The float design featured three homes – one from the past, the present, and the future –
to demonstrate BIASC’s leadership in the transition to the next generation of home building. The featured Hydrogen Home, inspired by SoCalGas’ [H2] Hydrogen Innovation Experience in Downey, was the first of its kind in the United States.
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“We are honored to receive this recognition from the Tournament of Roses®, and we credit our Junior Builders for their innovation and creativity,” said BIASC EVP Craig Foster. “Support from the community extends beyond our float design team – we also thank our local youth groups for their participation during the parade.” A total of ten float riders and walkers included Mia and Maddie Montejano, the concept creators of the Junior Builder program, plus nominees from multiple community organizations, such as local YMCA and education groups.
“Homeownership remains an icon of the American Dream, and our float design captured this symbolism through the vision and imagination of our future generations,” added BIASC CEO Jeff Montejano. “To us, the trophy honors what is yet to come.”
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Centennial Committee Plans to Celebrate 100 Years of Advocacy …And Networking
BIASC’s float in the Tournament of Roses Parade in Pasadena on January 2, 2023 is just the beginning of a year of events and advocacy centered around the Association’s 100th anniversary. The job of making the most of a milestone that comes around only once every 100 years falls to the members of the BIASC Centennial Committee.
“When you think of something that’s been here in Southern California for 100 years, you recognize right away that this Centennial celebration is something important – there’s not a lot here that goes back that far,” said committee member Eric Nelson, Vice President of Land Development at Trumark Homes and Immediate Past President of the Orange County Chapter. “It makes you wonder what it was like being a builder here in the 1920s. How hard was it then? It must have been hard enough that they needed to form an association to represent their interests – and it’s extra hard now.”
Fellow committee member Brooke Doi, Director of Community Development for Shea Homes and 2023 President of the Orange County Chapter, agrees. “The 1920s were big because they brought Southern California a better transportation system and more automobiles, which led to the first suburban tract home neighborhoods and new architectural styles. It was clear that back then there was a need for a collective voice for homebuilders, and since then BIA has been and seen a lot: the Great Depression and many recessions and recoveries, World
War II when construction stopped, and after the war when it took off. After those 100 years the organization is still going strong, which is a testament to its members and their resilience.”
“I’m hoping that the next year gives us an opportunity to shine a spotlight on the joys of home ownership and all the benefits that developers and homebuilders bring,” said committee member Tim Roberts, Director of Land Entitlement, Brookfield Properties Development and Immediate Past President of the Baldy View (now San Bernardino County) Chapter. “You see it in newspaper articles, you see it on Yellowstone, the Number 1 show on TV – developers are always vilified. You hear all the time that development is bad, but how did NIMBYs get their homes? How did they get their schools, their parks, their infrastructure, their coffee shops, if it weren’t for developers? So, I’m looking forward to the Centennial year as an opportunity to highlight the good that we do, the dreams that we fulfill, the opportunities and jobs that we create.”
It’s clear that the Centennial Committee is intent on using the Centennial to improve the climate for homebuilding in the state. “This is as an educational opportunity to further our cause, that is, building enough homes to meet the needs of Californians,” said Nelson. “BIA hasn’t just been here for 100 years; it’s been advocating for homebuilding for 100 years, and I would hope that over the next 100 years our efforts will bring us to the point
where people understand why we build and how we build, so they support us instead of their first word being, ‘No.’”
But will the Centennial be all about advocacy? No. As Nelson put it, “With all our challenges, a part of me would like to scrap every part of the Centennial celebration that isn’t hard-core activism, but of course the Centennial Committee will be looking at how to build on the Rose Bowl Parade with a balance of great fun and strong advocacy for the rest of BIASC’s 100th year.”
The timing of the Centennial will make it important that the Committee not put all the focus on advocacy, says Doi. “The Centennial is a great opportunity to highlight the industry during what appears will be a down market – this can be a bright spot we can celebrate because unfortunately we probably won’t be celebrating home sales. Throughout the year we will continue to celebrate, even though we will have to be careful about what we commit to, keeping in mind that 2023 will be a challenging year for the industry.”
“Part of us is a fighting machine, battling regulations, exorbitant fees and process delays,” said Roberts. “But 100 years and the Festival of Roses Parade float are opportunities to remind the public of all the good things that we do – and also to do something else BIA excels at, which is giving our members an opportunity to network and have some fun.”
“As we see how the year is taking shape, the Committee will be ready to realize whatever opportunities we have to educate, highlight our positives, and have some fun,” promised Doi. “I am excited to see what the future will bring, especially with the state demanding all this new housing. It’s a great opportunity, but land is also scarce, and every site has unique challenges, so BIA will be very important. Our 100th year comes at a time when BIA will have an impact on all the future generations over the next 50 or 100 years who will live in the homes we will be providing.”
• Chapter Ambassadors will lead special chapter specific celebrations – to be announced!
• All Chapters and Councils will be participating in the creation our BIASC History/ Legends Historic Wall.
• To Be Announced: the 2023 Class of BIASC “Legends,” BIASC’s first region-wide recognition for extraordinary building industry leaders.
• To Be Announced: Chapter Luncheons honoring each Chapters’ “Legends.”
• The induction of the 2023 BIASC “ Legends” will take place at our Regional Installation Gala on November 10th, 2023
The Building Industry Association The Building Industry Association of Southern California: of Southern California:
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History Highlights
Since 1923 – an entire century ago – BIA has been a champion for its members. This year’s BIASC Centennial Celebration marks 100 years of successful advocacy for greater homeownership in Southern California, along with a century of educational programs and networking opportunities Few other associations in Southern California have attained the centennial hallmark and BIASC’s Centennial Committee is marking this historic occasion with a full slate of networking, advocacy, and sponsorship opportunities Don’t miss out!
The Building Industry Association of Southern California was first organized in 1923 as the Building Contractors Association, covering the local Los Angeles area.
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1933 1938
It incorporated 10 years later in 1933 as the Building Contractors Association of Southern California, Inc.
Reorganized in 1938 to become an organization with chapters in various communities.
The group chartered the Los Angeles chapter in 1938 and m ore than two dozen other chapters soon thereafter Those chapters included Glendale-Burbank, PasadenaSan Gabriel Valley, Riverside County, Santa Barbara, Contractors Southeast, Builder-Developer, Ventura, Orange County, Bay Area, San Fernando Valley, Antelope Valley, Baldy View, Kern County, Whittier, Compton, Manhattan-Hermosa-Redondo, Palm Springs, Fresno, Imperial Valley, Laguna Beach, San Diego, Santa Maria, East Los Angeles, Long Beach and Victor Valley.
The Builder-Developer Chapter withdrew from the Building Contractors Association (BCA) and formed a Home Builders Institute charter, which evolved into the Home Builders Association of Los Angeles, Orange and Ventura counties (HBA).
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The BCA and the HBA joined forces and consolidated into the Building Industry Association of California, Inc. It formally changed its name to the current Building Industry Associat ion of Southern California in 1978.
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The initial Los Angeles chapter remains, but now covers territory from Long Beach through Santa Clarita and the Antelope Valley, west through all of Ventura County, and east into the San Gabriel Valley. It is now called the Los Angeles/Ventura Chapter.
Other chapters have also consolidated through the years into the current four chapters we have now:
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LA/Ventura
Orange County
San Bernardino County (Formerly known as Baldy View)
Riverside County
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Building a Sustainable Future with Leadership, Advocacy and Resolve
Introducing the Builders for Better Communities Foundation (BBCF), a new charitable nonprofit that will serve to promote diversity, equity, and inclusiveness on behalf of the Building Industry Association of Southern California within the Southern California region.
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Designated as a 501(c)(3), the Builders for Better Communities Foundation is a new charitable nonprofit that will serve to promote diversity, equity, and inclusiveness on behalf of the Building Industry Association of Southern California within the Southern California region.
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Supporting AFFORDABLE HOUSING opportunities for U.S. Veterans and their families is a cornerstone of Builders for Better Communities Foundation (BBCF).
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California’s housing crisis continues to have a significant impact on the most vulnerable, including our veterans. BBCF will advocate to improve the HOUSING AVAILABILITY and AFFORDABILITY for those veterans. Learn more at buildersforbettercommunities.org.
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Lieutenant Governor Kounalakis & SoCalGas Unveil First-of-its-Kind [H2] Innovation Experience
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California Lieutenant Governor Eleni Kounalakis joined SoCalGas CEO Scott Drury and President Maryam Brown on Monday, January 30 to unveil and officially power on the [H2] Innovation Experience at the Energy Resource Center in the city of Downey.
The [H2] Innovation Experience is North America’s firstever, clean, renewable hydrogen microgrid supplying power our home built to Leadership in Energy and Environmental Design (LEED) Platinum standards.. This type of clean hydrogen microgrid has the potential to deliver reliable and renewable energy around-the-clock to more than 100 homes, rain or shine, for as much as seven days.
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State Senator Bob Archuleta, Assemblymember Blanca Pacheco, other elected officials, and leaders from labor and business were also in attendance to learn more about how clean, renewable hydrogen microgrids can reliably power entire neighborhoods, day and night throughout the year.
“It is no surprise to me that this first of its kind project is here in California. [This state] has long been an innovation powerhouse,” remarked Lt. Governor Kounalakis. “One of the things that makes the [H2] Innovation Experience so exciting is it shows many of the clean energy technologies already available to us today –all of it at work in the same facility.”
“The [H2] Innovation Experience showcases how California can achieve two of its top policy priorities – energy reliability and decarbonization – at the same time,” said SoCalGas CEO Scott Drury. “This innovative project demonstrates how the gas and electric grids –working together – can help California reach net-zero emissions more quickly, affordably, and reliably.”
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Here’s how the [H2] Innovation Experience works:
• The 2,000 square-foot home was built to adhere to Leadership in Energy and Environmental Design (LEED) Platinum standards and is powered by reliable and clean, renewable hydrogen 24 hours a day, 7 days a week, 365 days a year.
• A state-of-the-art microgrid draws power from solar panels on sunny days and converts excess energy into renewable hydrogen, which can be stored and then converted back into electricity via an on-site hydrogen fuel cell.
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• Clean, renewable hydrogen is also blended with natural gas and used in the home’s tankless water heater, clothes dryer, stove, fireplace, and BBQ grill.
James T. Slevin, president of Utility Workers Union of America, AFL-CIO, said “The [H2] Innovation Experience makes use of world-class energy infrastructure that UWUA members have built over the past century and brings the promise of fresh opportunities for tens of thousands of UWUA members who operate and maintain our infrastructure every day.”
“California needs labor to meet its ambitious plans to address climate change... and we are here,” said Aaron Stockwell, international representative with the United Association. “This project gives us a glimpse of what we can accomplish when ambition and innovation are partnered with our skilled workforce.”
In 2021, the [H2] Innovation Experience received a Fast Company’s World-Changing Ideas in North America Award. More recently, the Los Angeles chapter of the U.S. Green Building Council recognized the project for its sustainable innovation.
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2023 Economic Forecast
Roller Coaster Ride?
What Our Experts Predict For The Year
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usbank.com/mortgage
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Whether you’re looking for a construction mortgage or a vacant lot loan, you can count on us for competitive products and trusted support. Choose from fixed- or adjustable-rate construction loans. Plus, get financing that includes your construction and permanent loans all in one closing — with one set of fees.
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– Low down payment options
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– Financing for renovations or expansion projects
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– Interest only payments during the construction of your home
– Construction periods up to 24 months
Call today to learn more.
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Q&A with Ali Wolf 2023 Outlook
For an update on how national economic trends are affecting the Southern California housing market, what is motivating buyers, what’s going on with the supply chain, and how this could affect the business plans of Builders and Associates, we turned to Ali Wolf, Chief Economist at Zonda.
Southern California Builder: Mortgage interest rates have jumped over the past year but are down from the recent highs of 7%+. How are you seeing buyers react to the changing market?
Ali Wolf: The backdrop to the housing market is that mortgage rates have more than doubled since last year. As you mentioned, rates are ‘lower’ today at 6% versus the 7% we saw towards the end of last year. Twenty percent of builders surveyed by Zonda in December 2022 said they saw a positive response from consumers following that downshift. That jumped to 50 percent in January of this year. The lower national rates combined with mortgage rate buydowns are helping to drum up demand a bit.
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SCB: The Fed seems to be easing up on short-term interest rate increases. Is inflation tempering enough to allow a return to lower interest rates sometime soon?
AW: The intersection between Fed policy, inflation, and the housing market is complicated. The policy actions taken by the Fed represent just one of the factors driving interest rates. Inflation and the economy are even more important as they drive how investors perceive the market, and ultimately, investors set rates. As it appears today, we are past peak inflation and that should mean less pressure on interest rates.
It’s important to note, though, that any surprise in economic data can drive interest rates up (or down) overnight. A good example was the surprisingly good labor market data for
Ali Wolf Chief EconomistJanuary. Mortgage rates rose in response to the report as investors weighed the implications for inflation.
SCB: What have you seen to be the most effective strategy regarding pricing and incentives?
AW: Housing demand didn’t slow because the desire to own went down. Housing demand slowed because the ability to buy went down. When affordability meets significant consumer confidence challenges, the market freezes up.
What we’ve said to our clients over the past six months is that consumers want to feel they are getting a deal in the changing market. In communities where sales slowed notably, we advised our clients to just rip the band aid off with pricing. Drop once to find the market to prevent consumers from getting into a deflationary mindset. Early indications are that consumers are reemerging to the market following a price drop and/or access to reasonable incentives.
SCB: Are supply chain issues still a factor in the current market?
AW: Our Zonda data as of January shows roughly 80 percent of builders have seen a recent improvement in the supply chain. The improvements are seen in both building material costs and availability. In fact, the producer price index for construction materials, a measure of costs, is off from recent highs.
There’s a big different between the front end and back end though. Front end materials and trades are less busy as homes move through the construction cycle and new housing starts slow. Those involved in the back end are still working through the near record number of homes under construction so are still as busy as ever.
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SCB: Is there anything about the Southern California economy that will help it return to a healthier state sooner than the rest of the country?
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AW: The basis of any economy is the labor market. We are constantly tracking employment trends for signs of weakness. Right now, most of the economy continues to hum along with some exceptions related to tech, entertainment, and construction. As we consider the shifts in the market, we don’t believe Southern California is recession-proof, but we also believe the diversified labor market allows for a bit more resilience compared to areas more dependent on tech or energy, for example.
In the housing market, Southern California is supported by a wide array of buyers, including higher wealth individuals, cash buyers, international shoppers, as well as everyday Californians. The lifestyle draw is supportive of more medium-term housing demand despite some negative migration trends. The housing market remains significantly undersupplied in Southern California at attainable price points, though. As such, we are watching the local homeownership rate closely. The homeownership rate in Southern California is perpetually lower than most other markets given local affordability constraints, and higher mortgage rates traditionally have an outsized impact on higher cost areas.
SCB: What advice would you give for BIASC’s inland counties versus its coastal counties?
AW: The relocation boom fueled by the pandemic lifestyle changes allowed many coastal Southern California residents to move inland for a way bigger house at a way better price. That price differential has narrowed making consumer research more important than ever.
Inland builders should ask questions like: What is the mix of buyers purchasing in each submarket and what key factors are driving their decision to buy? Are they locals living near where they work, are they coastal transplants moving for affordability, or are they buyers from outside the region? Once the buyer motivations and basic demographics are established, there are two follow-up questions: What do these consumers want and what are they willing to pay?
We still suggest leading with consumer research in coastal counties, but the emphasis is more on finding the holes in the market. Well-located and well-priced homes in coastal areas are still finding strong buyer interest despite higher home prices and higher mortgage rates.
SCB: What advice to you have for BIASC’s trade partners and associate members for 2023?
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AW: There’s a lot of talk about how housing has bottomed, and we are in growth mode from here. The data has, objectively, bottomed but I don’t believe it will be a straight line up from here. There are still risks related to the economy and employment that need be considered for this year.
With that being said, keep two things in mind. First, new home product in Orange County is rare and will only become rarer over time. The construction community is offering a unique product in a fundamentally supply-constrained market, which helps with resilience. Second, this is not like the last cycle. The people that bought homes over the past few years were exceptionally well qualified with skin in the game and great credit scores. Builders have also been financially prudent. The market can ebb and flow, but a repeat of anything that resembles the Great Financial Crisis is extremely unlikely.
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Market Trends with Clarity Real Estate Advisors’ Adam Artunian –Be Optimistic, But Be Careful
Clarity Real Estate Advisors provides real estate decision-makers with research-based insights into market dynamics and product trends. Southern California Builder spoke with Clarity’s vice president, Adam Artunian, about the current home market in Southern California and what he sees ahead.
Southern California Builder: Let’s start by looking at how the market is doing at the moment, following what has been some tumultuous months.
Adam Artunian: For the new home market in Southern California as a whole, it looks like we’re through the worst of the price correction slow-down of the past eight months. Prices are down from the peak in May and June of 2022, with new home pricing really depending on the sub-market. In the inland markets it could be a 10 to 15 percent correction from the peak, however the inland markets saw more price appreciation from 2019 through early 2022 than the coastal markets. The coastal markets are more in low to mid-single digits. But we think the major price correction has already taken place, with prices starting to moderate over the past month or month and a half. It’s still a little bit soft on the pricing side, so prices may come down a little bit further, but I think we’re through the big correction.
In the coastal markets, the pricing drops have flattened more, with maybe a little bit more movement to go in the inland markets, but across the whole market there has been a slowing of the decline. It is a matter of supply: On
Adam Artunian Clarity Real Estate Advisors, Vice President![](https://assets.isu.pub/document-structure/230322204757-3a0f7278cc83ecc96edb847137021c17/v1/49382e6e2bf17a4cca04f9a526836a92.jpeg)
the resale side, there is not a lot of inventory, and on the new home side it’s the same story. We didn’t over-build during this past cycle leading up to eight months ago. As we look at the number of new home projects currently selling, they’re at relatively low levels and new home inventories is fairly low right now.
SCB: That’s very unlike the last downturn in 2008. To what do you attribute the difference?
AA: The builders have been very disciplined on releasing homes. Across the board on the supply side it’s very low, particularly LA, Ventura and San Diego. Even Orange County is low. In the Inland Empire it’s a little bit of a different story, but it’s still low historically. Compared to 2006 and 2007, we’re at a fraction of the number of projects selling. Part of this is because the builders learned a lesson from the last recession, and part of it is that it’s hard to get entitlements, hard to get the labor, and hard to get the materials you need to get things built. There’s a lot going on that’s capped the number of projects on the market, so we are in a situation of very low supply while job growth overall has been steady with unemployment low, and mortgage rates have come down a little bit, which is bringing folks into the market. Overall, we’re optimistic about the market in 2023. We think prices will stabilize with maybe some minor corrections still to go, but prices may even go up a little bit in some markets if interest rates dip back down into the mid-5% range, which is where the Mortgage Bankers Association expects rates to be by mid-year.
E v e n t s
Check Out List of Events for 2023
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March 8 - 9
March 1 5
BIA LAV Perfect Storm Series 2 Day Event
March 8-9, 2023
Virtual Event
BIASC Greater Sales & Marketing Council Builder Panel
Wednesday, March 15, 2023
Brookfield Residential in Costa Mesa
March 1 6
March
2 2
BIA San Bernardino County Chapter Mechanics Lien Seminar
Thursday, March 16, 2023
Virtual Event
BIA Los Angeles / Ventura Chapter Margarita Madness
Wednesday, March 22, 2023
Salt Creek Grille in Valencia
April 5
April 6
BIA San Bernardino County Chapter Crafted Event
Wednesday, April 5, 2023
To Be Announced
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BIA Riverside Chapter Government Affairs Luncheon
Wednesday, April 6, 2023
Riverside Convention Center
BIA San Bernardino County Advanced Mechanics Lien Seminar
April 7
Friday, April 7, 2023
Virtual Event
SCB: So you are not looking for a protracted downturn?
AA: We don’t think that will happen. The only caveat is a major economic recession or depression. If that hits and unemployment goes to nine or ten percent, then it’s a different situation but if the economy goes through a mild recession or slow-down then bounces back, the market will be healthy in 2024. In fact, it could be healthy in the next few months. We could have a good spring because the January new home sales numbers looked really good, averaging over three a month per project across Southern California. That’s an OK number for March or April, but for January it’s a good number that the builders are happy with. Of course, there have been incentives and price cuts, so you have to work to get those numbers, but homes are selling and optimism is returning.
SCB: Is there any particular difference by price segment?
AA: I don’t think there are big differences. In the coastal markets, the affordable project is selling the best. For example, attached infill in LA and Orange County with prices in the sixes and sevens are selling well. There’s not a lot of $1.5 to $2.5 million product out there, and it’s moving slower. Even in Rancho Mission Viejo in Orange County they’re selling really well and their prices are $900,000 to $1.1 million, which for Orange County is an attractive price point. The second move-up market is probably the slowest, where people don’t really have to move and they’ve got their 3% mortgage rate, so they’re hesitant to sell and move into a bigger home at a higher mortgage rate. But for the entry level buyer or the first move-up where you really need that extra space for an extra bedroom or an office, that market is chugging along and doing fairly well.
SCB: During COVID, we had that unexpected sales surge as people realized they needed a more livable place for the duration of the pandemic. Has that demand pretty much been fulfilled?
AA: For the most part, that’s not as much of a motivation now, but people are still forming households, having families, having kids, which means they need more space. All of our clients tell us that an in-home office has never been more in-demand, so that trend has really stuck and there will be a premium for the homes that have the extra room. Sometimes that’s hard to find in the resale market, which is benefitting the builders. The premium for an additional bedroom has doubled in many markets post-COVID.
SCB: What else is on your mind?
AA: We are more optimistic than some of the doom-andgloom headlines that you see about 15 to 20 percent new home price corrections. We’re not seeing that in Southern California. When you look at the supply and demand fundamentals here, it’s really basic: Low supply and demand that is definitely there, even if it’s not high. That’s a positive sign for the housing market going forward. We’re optimistic that we’ve gone through the worst of it, so we’re telling our clients to be optimistic, but be careful and don’t assume a lot of price appreciation in the next couple years. You have to start looking at refilling your pipeline because the market is going to look good in six months, a year or a year and a half, so it’s time to start looking at buying new deals again. You’ll see some of the big guys jumping back into the market in the next few months and we’ll see some revitalization.
SCB: Tell us about Clarity’s services and how you help home builders.
Clarity: We provide the real estate industry with marketbased guidance to optimize the viability of new real estate developments. There is a lot of data to be had, but that doesn’t mean the data is any good, and it doesn’t mean that it’s easy to figure out what it means, so we evaluate and understand the nuances and interpret what that information means to our client’s particular property.
April 1 7
BIA Riverside Chapter Golf Tournament
Monday, April 17, 2023
Temecula Creek Golf Club
BIASC Greater Sales & Marketing Council Networking Event
April 1 9
April 2 0
Wednesday, April 19, 2023
To Be Announced
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BIASC Special Evening with Industry Leaders
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Thursday, April 20, 2023
Richard Nixon Presidential Library
May 8
June 1
June 9
BIA Orange County Chapter Golf Tournament
Monday, May 8, 2023
Cota de Caza Golf & Racquet Club
BIA San Bernardino County Chapter & BIA Riverside Chapter Joint Top Golf Event
BIASBC & RC Joint Top Golf Event Top Golf in Ontario
BIA Orange County Chapter Women in Leadership Conference
Friday, June 9, 2023
City National Grove of Anaheim
Check Out List of Events for 2023
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E v e n t s
June 1 2
BIA Los Angeles / Ventura Chapter Golf Tournament
Monday, June 12, 2023 To Be Announced
BIA Orange County Chapter Whiskey Tasting Event
June 1 5
July 1 3
Thursday, June 15, 2023 Dacor Kitchen Theater in Irvine
BIA Riverside & San Bernardino County Chapter Joint BBQ Networking Event
Thursday, July 13, 2023
To Be Announced
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July 1 8
BIA Orange County Annual Baseball Night
Tuesday, July 18, 2023 Angels Stadium of Anaheim
July 2 7
BIA Los Angeles / Ventura Chapter Top Golf
Thursday, July 27, 2023 Top Golf in El Segundo
August 1 7
BIA Riverside County Chapter Annual Wine Event
Thursday, August 17, 2023 Wilson Creek Winery
August 3 0
September 8
September 2 8
September 3 0
October 2 52 6
November 6
BIA Los Angeles / Ventura Baseball Night - Dodgers vs. D-Backs
Wednesday, August 30, 2023 Dodgers Stadium
BIA Orange County Chapter Softball Tournament
Friday, September 8, 2023
Irvine Great Park
BIA Orange County Chapter BITA Fundraiser Wine Event
Thursday, September 28, 2023
To Be Announced
SoCal MAME Awards
Saturday, September 30, 2023 To Be Announced
BIASC & BIASD Present the 2023 Building Industry Show
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Thursday, October 25-26, 2023
USS Midway Marriott Marquis San Diego Marina
BIA BIA Los Angeles / Ventura Chapter Trap Shoot Tournament
November 6, 2023
To Be Announced
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Check Out List of Events for 2023
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E v e n t s
November 1 0
BIASC Centennial Regional Installation Gala
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November 10, 2023
To Be Announced
S A V E T H E D A T E
Stay tuned for more information coming soon
Spring
BIASC Council on SAGE Breakfast
Spring 2023
To Be Announced
June
BIA Riverside Chapter Economic Forecast
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June 2023
To Be Announced
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REX STEWART HIME
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Activate Your Employees Now & They Can:
Receive exclusive discounts at Verizon, Staples, Expedia, and more through our savings program with National Purchasing Partner
Grow their network by attending members only networking events including Meet the Builder
Grow their network by attending members only networking events including Meet the Builder
Access the BIASC Membership Directory containing all 900 member companies and 4,800+ contacts
Did You Know Your Employees Are MEMBERS Too? Activate Your Employees Now & They
Join a specialty council such as GSMC, Council on SAGE, UCC, and more
Access the BIASC Membership Directory containing all 900 member companies and 4,800+ contacts
Receive exclusive discounts at Verizon, Staples, Expedia, and more through our savings program with National Purchasing Partner
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Join a specialty council such as GSMC, Council on SAGE, UCC, and more
Receive email updates, advocacy alerts, event reminders, and chapter communications from all chapters
Grow their network by attending members only networking events including Meet the Builder
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Help us strengthen our collective advocacy efforts, while also adding value and engaging each of your employees by registering them now!
Access the BIASC Membership Directory containing all 900 member companies and 4,800+ contacts
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Receive email updates, advocacy alerts, event reminders, and chapter
To add employees, please contact: Kaitlin Radcliff: KRadcliff@biasc.org or Lisa Meadows: LMeadows@biasc.org
ROBERT M. SAWYER
1945 – 2023
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It is with great sadness that we announce the passing of "Rob"Robert M. Sawyer, a renowned and respected leader in the field of Landscape Architecture With over 50 years of experience, Rob dedicated his life to improving the profession
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Rob began his career at a young age working for his father’s business, Sawyer Nurseries and Landscaping, and later went on to graduate from Cal Poly Pomona in 1968 with a degree in Environmental Design/Landscape Architecture. He then worked for the esteemed firm of Courtland Paul/Arthur Beggs and Associates before founding his own company, Robert M. Sawyer and Associates, in 1974. The company later became Land Concern, Ltd. and under Rob’s leadership, the company received numerous awards and recognitions
Rob has been actively involved in supporting the Building Industry Association of Orange County (BIASC) and the California Landscape Architectural Student Scholarship Fund (CLASS Fund) for many years He has served on the Board of Directors of CLASS Fund since 1982, and was the Chairman of the Board in 1990. He has been a major contributor to the success of this organization, which has raised over $1.5 million dollars in its endowment fund since its inception and has awarded hundreds of thousands of dollars in scholarships to students in need of financial aid in the field of landscape architecture, ornamental horticulture/plant science, and irrigation science
Rob has also been a mentor to many of the students who were awarded Intern Scholarships He served on the Board of Directors for the Sales and Marketing Council (SMC) and was the 2001 past president of that organization. In 1998, he received the Max Tipton Award of Excellence for his contributions to the SMC and to the Building Industry Association of Orange County.
Rob will be remembered for his compassion, work ethic, and dedication He was a true pioneer and leader, mentoring many young professionals and leaving a lasting impact on the field Our thoughts and prayers are with his family and loved ones during this difficult time
A
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PLEASE WELCOME BACK OUR RENEWING MEMBERS
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NOVEMBER 22, 2022 -
FEBRUARY 7, 2023
"T" McGee Electric Inc.
Ackerman Law PC
Aliso Electric Inc.
Allied Construction Services
Alta California Geotechnical, Inc.
Alumadoor
Andrew Lauren Interiors Inc.
Angelus Block Co., Inc.
Applied Photography LLC
Baker Tilly US, LLP
Balbas Construction Inc.
Beazer Homes
Belgard Commercial
Bergum Construction Company
BHE Management Corporation
bmg advertising
Boise Cascade
Bomel Construction Co Inc.
BORM International
Borstein Enterprises
Bosch, Thermador & Gaggenau
Brookfield Residential
Bucilla Group Architecture
Builder.Media
C9 Balloons
Capital One | SPARK Business
Century Communities
Chapman University - Argyros School of Business & Economics
Circa Lighting
City of Costa Mesa Development Services
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Clarity Real Estate Advisors
Community Works Design Group
Construct 1 One, Corp.
Construction Planning Services
Cooley Construction Inc.
Cornerstone Commercial and Personal Insurance Services Inc
Cox, Castle & Nicholson LLP
Crestwood Communities
Crummack Huseby Property Management, Inc.
Danielian Associates
Developers Edge LLC
Developers Research, Inc.
Di Cecco Architecture, Inc.
Dittemore Insulation Contractors Inc
Diversified Pacific Development Group, LLC
DR Horton LA Holding Co. Inc.
Empire Insulation Inc
Environmental Construction, Inc.
EPD Solutions, Inc.
Equity Residential
Felesia Dailey/ Simple Reverse
Fiber Fast Homes
First American Title Homebuilder Services
Geocon West, Inc.
Get Community Inc
GGG Demolition
Gouvis Engineering Consulting Group, Inc
GreenBee Services
Hermann Design Group, Inc.
Highridge Costa Housing Partners, LLC
Holland & Knight LLP
Homesite Services, Inc., A California Corporation
Housing Partners Inc
HUB International Insurance Services
Integrated Mobility Stairlifts
Investment Concepts, Inc.
John Burns Real Estate Consulting
Just Like The Model
JWilliams Staffing Inc
JZMK Partners
KASA Construction, Inc.
KB Home
Kellenberg Studio
Keusder Homes
Keyline Sales, Inc.
Kimley-Horn & Associates, Inc.
Klang & Associates, Inc
KTGY
Laer Pearce & Associates
Lakebridge
Landscape Development, Inc.
Launch Development Finance Advisors
PLEASE WELCOME BACK OUR RENEWING MEMBERS
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NOVEMBER 22, 2022 -
FEBRUARY 7, 2023
LB3 Enterprises, Inc.
LGI Homes California LLC
LIGHT
LMI - Methvin Installation
Manning Homes
Mantalozi Consulting, LLC
Melia Homes
Mission Springs Water District
Mitsubishi Cement Corp.
MONTE VISTA HOMES
Moote Companies, LLC
Murow Development Consultants
Navy Federal Credit Union
Next Phase Construction
Nissho of California, Inc.
NOVA Services
OPR Communications
Orange Coast Title Company
Orange County Association of Realtors
Pacific Advanced Civil Engineering, Inc.
Pacific Dimensions Inc
Pacific InterWest Building Consultants, Inc.
Pacific Masonry Walls Inc
Park West Landscape, Inc.
Parker Rose Design
PDPlay
Petra Geosciences, Inc.
Proactive Engineering Consultants, Inc.
Raincross Development
Realtor.com
Richland
Richmond American Homes of CA
Rick Engineering Company
Rufus Builder Services, Inc.
SARES-REGIS Group
Saunders Property Company
Schamber Electric Inc
Schlage Lock Company
Shaw Equipment & Services, Inc.
Sherwin-Williams
Sign Image, Inc.
SiteOne Architectural
Smart Staffing Solutions
SMP, Inc.
Soil Retention Systems, Inc.
Songstad Randall Coffee & Humphrey LLP
Spates Fabricators Inc.
Specialty Steel Post-Tensioning Inc
Springbrook Realty Advisors Inc
Strata Equity Group Inc.
Strategic Sales and Marketing Group Inc
Stratham Homes Inc.
Studiopi2 Inc.
Sunnova Energy Corporation
Superior Masonry Walls, LTD
Taylor Morrison, LLC
Tellus Land & Capital, Inc.
The Henderson Law Firm
The Hoffman Company
The Larson Group
The Mark Group
The New Home Company
Thompson Pipe Group
Trademark Concrete Systems Inc
Trilogy Plant Co.
Trumark Homes
TSIB
Tsutsumida Pictures
United Dwelling
Unitex Management Corp.
VCS Environmental
Ver Designs
Volutone, LLC
Warmington Group
Waterlogged
Welcome Home Hub Inc.
Wells Fargo Home Mortgage
West Helm Construction Inc
Western Community Housing Inc.
Western Municipal Water District
Williams Homes Inc.
Woodside Homes of California Inc.
United Site Services of California, Inc.
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RICHARD R. BETZ
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Richard “Dick” R. Betz served a key contributor to building industry for over 45 years and was a long-time member of BIASC. Dick was deeply loved and respected, and will forever be in our hearts.
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