29 minute read
By Lori J. Connors
Huntsville Native Named NTEN Digital Inclusion Fellow
By Lori J. Connors / Photos by Steve Babin
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Just by mere circumstance, the global pandemic illuminated the need for digital inclusion here in the United States. It’s an issue that can no longer be ignored or overlooked.
Google Fiber and NTEN recently announced the seventh cohort of 2021 Digital Inclusion Fellows. Since 2015, 75 Fellows have been selected to help to bridge the technology gap in their respective communities.
Brittany Wachter, a Huntsville native, was among the 11 fellows selected for 2021. Wachter is the asset manager at Neighborhood Concepts, a local nonprofit dedicated to strengthening neighborhoods through affordable housing and economic opportunities.
NTEN is a membership organization of nonprofit professionals who put technology to use for their causes. This fellowship helps nonprofits reach their communities online, empowering them to meet their social, economic, and civic needs.
As a newly minted fellow, Wachter will create, implement, and manage a project aimed to promote digital literacy and inclusion.
“I will carry this principle into my digital inclusion project, because I believe communities must have digital literacy to be self-sufficient,” said Wachter. “I hope to teach and inspire others not only about technical and digital skills, but also to bring awareness that digital divides do exist even in high tech communities such as Huntsville and to encourage individuals who share a common goal of digital inclusion to come together to continue this work.”
Although the United States is considered by many to be a hightech land o’ plenty, there still remains glaring disparities with regards to digital access. If anything, COVID-19 beamed a spotlight on these inequalities, especially when it came to remote work and learning.
For many, the online world is overwhelming. Although most people have cellphones, many websites don’t behave the same way when accessed from a cellphone, even with dedicated Wi-Fi. Then, for some, there are skill deficits, such as the ability to use the Internet for research, apply for a job, or fill out a college application.
The digital divide is especially evident in at-risk or economically challenged communities. This often begins with something as simple as reliable Internet access. Sometimes, this lack of access is due to geography. However, in many cases, it’s due to budgetary constraints. Laptops or computers are the kind of technology that can be costly for those who are on a limited income.
After NTEN saw the work that NCI does for the Huntsville community, they reached out to Executive Director Mary Ellen Judah. Judah saw this as a great opportunity to further NCI’s mission in strengthening communities by providing activities that boost the economic condition of underserved populations. She suggested that Wachter apply.
NCI has already taken some initial steps to bridge the digital divide, such as providing computer labs in the clubhouses of the NCI properties, as well as free Wi-Fi access. In addition, NCI has partnered with local financial institutions in providing classes in digital literacy and fraud prevention.
The fellowship will be Wachter’s first role in digital literacy.
“One of my duties as asset manager is to develop services for the residents of our Huntsville communities,” said Wachter. “And I felt this fit nicely within our goals and objectives for our resident service program.” u
What’s New? A Zoo (and an Aquarium) For You!
Imagine a world-class, state-ofthe-art zoo and aquarium, complete with adventure treks, ziplining, coupled with a host of enticing retail, dining, and entertainment options, all rolled into one breathtaking facility. All of this - just a hop, skip, and a jump away, thus eliminating the need for a day trip to Birmingham or Nashville.
The dream is destined to become a reality in the not-so-distant future. In a recent press conference, the North Alabama Zoological Society (NALZS), a Huntsville-based nonprofit, announced its plans for a new zoological park in Limestone County.
NALZS, in partnership with Lansing Companies will be developing the recently purchased 687-acre multiuse site. The location will be easily accessible to communities across North Alabama via US-72, US-31, and I-565 to I-65 at the Huntsville Browns-Ferry exit.
In addition to the big announcement, the architectural design renderings were also presented. The proposed zoo will be completed in 3 phases; phase 1 will take roughly 3 years to complete. The Huntsvillebased architectural firm BRPH will design the buildings. The landscape architecture and thematic design will be implemented by the Orlando (FL) based Perry Becker Design Group.
Much has been considered in the details, especially with regards to location. Despite concerns about the site located directly in the path of the notorious “Tornado Alley,” staff and patron safety and security has been built into the facility’s overarching design.
Zoos are not cheap. The proposed zoological park and aquarium comes with an elephantsized price tag of $33 million, $11 million will need to be raised through fundraising and sponsorship. For almost 45 years, there has not been a nonprofit zoo, nor a zoological park built from the ground up here in the United States. Although there have been other groups with similar visions over the years, plans for a zoo or an aquarium have yet to materialize in North Alabama. At least, not until now.
Formed in August 2019, NALZS organized with a goal of establishing a world-class community zoo and aquarium. To this end, NALZS conducted extensive market research to determine feasibility. All results indicated that Huntsville would be an ideal location.
To further promote the endeavor and to build awareness, NALZS implemented “A Zoo for You, North Alabama” billboard campaign in January 2020. Public response was overwhelming. It soon became clear that in addition to a zoo, the North Alabama community also wanted an aquarium.
Although NALZS’ primary objective is to create a zoo and aquarium in North Alabama, a part of their mission is to conserve wildlife habitats so future generations can enjoy observing the various species in their natural environments. To that end, they are developing relevant programming to support wildlife conservation and education.
The theme of the exhibits will be based on the animals’ homes in the national parks or preserves, providing a relevant way to help visitors connect with the wildlife and their native environs. The Adventure Treks will also allow visitors to move through their native habitats in adventurous ways.
On the aquarium side, there will be one building devoted to aquatic wildlife. However, most of the aquatic species will be in aquaria co-located with other wildlife from their respective national parks and preserves.
“Another area of special interest is the Cosmic exhibit,” said Ethan Woodruff, NALZS Executive Director. “That is going to be an exhibit with species that have gone up in space. It’s a homage to those species that have gone through the astronaut program. We’ll have species that have gone up in space, like spider monkeys, cats, rabbits, and it will be very interactive.”
Zoos and aquariums have a rightful place in an established community. Not only do they have a positive economic impact on nearby community businesses, but they can also significantly improve the quality of life within that community.
Attractions, such as zoos and aquariums can be a source of joy and inspiration for guests. Studies have shown that interacting with animals at zoos and aquariums can improve the emotional and mental health of the visitors.
Woodruff pointed out that when completed, the new zoo would be part of a “zoo trail” along the I-65 corridor, spanning from Nashville to the Gulf Shores. There promises to be a zoo destination almost every 2 hours – or less – along I-65.
“We’ve been working on this for two years and two days; we just had our anniversary August 8th,” said Woodruff. “It has been almost 45 years since a zoo that has been built from scratch, so it’s a pretty exciting thing for our area.” For more info: www.aZooForYouNAL.org u
By Lori J. Connors / Photos by Steve Babin
As businessowners, the construction industry in North Alabama is highly competitive; but as an industry, contractors and builders are friends or at least casual acquaintances who come together to share ideas, discuss problems, and seek solutions that affect everyone across the industry.
When the labor shortage for instance, began affecting the industry, these leaders came together to discuss solutions or mitigate the problem. The results were more recruiting efforts in schools, training classes, and certification programs.
But the building materials and supply shortages the industry is experiencing in the wake of the worldwide COVID pandemic that shut down the international economy, appears to have no solutions – at least not any easy ones, except to wait it out.
Make no mistake – the materials and supplies shortages in the construction and building industry are sweeping.
“In construction, we often look at raw commodities such as wood, aluminum, copper, and steel, since these components make up the majority of our buildings,” said Senior Preconstruction Estimator Brad Parker with Robins & Morton. “Currently, all of these items are affected by shortages to various degrees.
“Resins and plastics are also in short supply because of adverse weather impacts to the production of a variety of polymers and chemicals used in their manufacturing.”
Another builder said the price of Oriented Strand Board, a common material used for roofs and siding is up 503%. He said before COVID, he could buy it for $7.50 a sheet. Now it is $40 to $50 sheet. He used to buy plywood for $7 a sheet; it is now $76 a sheet.
Joey Ceci, president of the Breland Companies said, be assured, the shortages are across the board and unrelenting.
“Forget choosing your own roofing material, you have to pick what is available and that is not much,” said Ceci. “Usually if we have a lumber shortage, we use steel studs in the
walls instead of wood. But they too are in short supply. You have to order windows when you sign a contract if you want to get them in time. Electrical contractors are even having problems getting copper and wire, so they are going to Home Depot and Lowe's and cleaning them out.”
And if the shortages seemed to be directed only at supplies and materials, there are many ancillary shortages causing headaches for builders.
Many of the spas people are putting in their new homes require a microchip made in China. The spas are joined by air conditioners waiting at the manufacturing plants for these chips that regulate temperature.
And appliances …
“It is almost across the board on appliances,” said Ceci. “We are finishing houses every day and the owners are ready to close but they are having to wait to get appliances.”
But Barry Oxley, executive officer with the Huntsville Madison County Builders Association, said the appliance shortage is not because there are no appliances being made, it's because they are sitting in warehouses and on docks awaiting trucks to pick them up and ship them.
Oh, those microchips!
“The shortage of microchips is one of the worst shortages out there affecting the construction industry,” said Ceci. “If you remember, during the early days of the pandemic, car dealerships were breaking records selling cars and trucks. Now, not so much because they can’t get inventory due to a shortage of the microchips in key fobs and GPS.
“Car dealerships are only giving out one key to new car and truck owners because there is a shortage of the chip in the key fob. I just saw a picture of a Ford truck plant in Kentucky with a huge lot of new parked trucks waiting for microchips.”
How do key fobs and microchips affect the building industry you might ask?
Look at any construction site. Most of the vehicles are work trucks and heavy equipment and almost all of them require microchips to control the lock mechanisms and the GPS. And many delivery vehicles and shipping carriers use them as well, and they all come from Asia where they are under strict COVID rules and regulations.
“The pandemic, floods, fires and storms have affected the United States economy, and many of these same disasters have also affected the international business community,” said Parker. “If there is an appliance or material needed that is made in the United States, the manufacturing facility may still be repairing damage from a storm, experiencing reduced workforce, or battling other external supply issues that make them unable to produce their materials at the same rate as previous years. “When we’re talking about importing goods internationally, not only have other countries faced similar issues, but they also have to ship their goods, and there are currently widespread challenges with transportation.” But is COVID the absolute culprit in all these shortages, or are there mitigating circumstances as well?
“At some point supply will catch up with demand,” said Ceci. “And it is easy to blame COVID, and it is to blame to some extent, but especially in North Alabama, we are seeing unprecedent demand.”
“COVID shutdowns and the resulting supply chain disruptions are certainly the major cause of the current shortages,” said Parker. “However, other factors are at play such as pent-up demand for new construction — both residential and commercial — as well as international trade challenges, logistics, and natural disasters. Although the supply chain is squeezed more than normal, there’s always been both economic and supply volatility somewhere in global supply chains.”
Parker said materials are readily available and align with standard lead times that developed around construction schedules. This allows them to order materials as needed while also mitigating any effects of inflation.
“Any disruption to availability can cause a ripple effect that drastically alters cost and timing,” said Parker. “Although the last year has been especially trying with material availability and cost, this is something that the construction industry deals with frequently.
“For example, several years ago, we experienced challenges in
material procurement due to a series of international trade conflicts. To mitigate this, we purchased and stored materials in warehouses until needed. Construction isn’t something that you can stop in the middle of when things are challenging.”
Oxley agrees the building industry faces these challenges frequently but the pandemic has exacerbated any existing problems.
“A winter storm in Texas recently knocked out two large glass manufacturing plants,” he said. “Glass is manufactured 24 hours a day because they have to keep the heat levels up and they can’t have hot-cold, hot-cold fluctuations. The factories effectively melted down.
“At almost the same time, another glass factory in the Midwest had a fire. That was three major glass plants down, and then came COVID. So, you will always face freaks of nature, but if glass manufacturing is behind, the making of windows falls behind.
“In a standard build, you order windows six weeks out about the time you lay the foundation. Now it takes 16 to 18 weeks for windows and specialty windows take even longer.”
“If you go back to when pandemic started more than a year ago in March, construction never shut down,” said Oxley. “But you have a supply chain set up with trucks and trains and boats, and it never completely shut down, but their priorities were of course healthcare, supplies, and food.
“In the meantime, there was no slowdown in construction. Builders were still replacing appliances, completing remodeling projects, replacing windows, doors, and roofs. That stuff was still coming out of the supply chain. Then people who were stuck at home said, ‘This is a good time to redo the kitchen or bathroom or do a remodeling project.’
“The supply chain got derailed and hasn’t fully come back.”
Ceci said what is different about this shortage over other shortages caused by hurricanes, fires, floods, or other unforeseen forces is that it really is shortages causing the delay.
“Usually, it’s a matter of a supplier having what you need and just wanting a higher price for it,” he said. “And we always watch for hurricanes during hurricane season, and we see massive damage that will cause some disruption in the lumber market for instance that we know will affect price and availability for a while, we deal with that.
“But this is different because it is across the board. Several of the new restaurants and hotels at Town Madison have been held up due to these shortages. Just recently we had a case where the supplier said it was going to be 90 days.
“Louis (Breland) made phone calls until his ear turned blue and found someone who could get it in 60 days. That is considered a victory and we can only hope the supplier is telling the truth when he shortened the wait time to 60 days.”
It makes for a difficult time for some homebuilders.
One builder presold homes before COVID and had contracts with homeowners quoting a price. When COVID struck and prices, even availability, destabilized, they not only had to rewrite those contracts, but they added escalation clauses that caused a great deal of consternation with owners.
“When prices are stable, you can say, ‘I can build your home for $350,000’,” said Ceci. “But when prices are unstable, it is impossible to quote a price because you don’t know what the lumber, the roofing material or electrical and plumbing prices are going to be. That’s why Breland has never had that sales approach.”
“At Robins & Morton, our job is to advocate for our clients,” said Parker. “Although there are things out of our control, one thing we can do is plan appropriately.
“It’s important that we’re always transparent with our clients about the unavoidable issues that we face during the construction process. Our goal is to become a partner to our clients and an extension of their team. This requires trust. In most cases, our clients understand that there are many limitations beyond our control and that are not a result of a lack of planning or poor performance. Fostering this kind of environment on our projects allow us to look at any barriers in a collaborative way, working together to do all that we can to reach our set goals.
Is there an end in sight?
“We have seen improvement in some areas, but we have also seen an increase in shortages such as drywall and roofing materials,” said Parker. “The challenges in the supply chain for building materials are somewhat different than for items found in a typical storefront due to the types and time to fabricate or manufacture. For example, things like large, structural steel beams must be made specific to the project and can’t be simply stored by the fabricator in countless configurations.
“It’s still too early to determine when we may see volatility subside, especially since so many of the impacts have been a result of the still-present coronavirus outbreak and natural disasters,” said Parker. “However, optimistically I can say that our economy and our workforce is adaptable and resilient. We’ve seen many difficult years in our nation’s history, and we will work to continually resolve new challenges with viable solutions.”
“I see light at end of the tunnel,” said Oxley. “I listen to economists and recently one of them predicts that the shortages and prices in construction material and heavy metals, without factoring in inflation, should be back to normal by the end of the first or second quarter next year. I’m hoping for that.”
“If you don’t have to do it right now, don’t,” said Ceci. “Don’t buy new appliances, don’t reroof your house, don’t remodel a bathroom or kitchen unless it involves life safety issues, because if you start what would be a 30-day project today, chances are you will not be finished for seven or eight months and the cost is not going to be in your favor.”
Leading up to the shortage crisis, representatives from the National Association of Homebuilders visited the White House, spoke with the Commerce Secretary, and appealed to Congress for help with pricing because the shortage and high prices affect the affordability of housing people.
“People want and need houses, and we still have to build four to five million homes a year,” said Oxley. “With rising prices, that means we build less houses, which means we are not able to meet the basic demand. "And owning a home is the American Dream.” u
From Staff Reports
MADISON -- With more than a century’s worth of combined know-how in the U.S. steel and auto industries, Steel Summit Holdings, Toyota Tsusho America, and Southern Mobility Products are celebrating a first-of-its-kind collaboration in a new U.S. joint venture - Madison Metal Processing.
According to a news release, MMP will supply steel blanks – the precursor to automotive surface body parts – for up to 300,000 vehicles produced at the Mazda Toyota Manufacturing plant. MMP will also provide steel products to other automotive suppliers.
According to the release, the company’s $40 million, 110,000 square-foot facility in Limestone County is creating 40 jobs. Full production is planned for mid2022, with trial production already underway.
“Toyota Tsusho is a major player in the global auto supply chain, and its new collaboration with an arm of Sumitomo Corporation of Americas unites two companies that are giants in their respective industries,” Gov. Kay Ivey said.
“At MMP, we are committed to providing steel solutions that exceed our customers’ expectations,” said Kirk Lewis, chairman and president of Madison Metal Processing and chairman of Southern Mobility Products. “Together, with our partners and the added benefit of our collective acumen, MMP will set the bar for quality in every steel product we deliver.” As a fullservice steel processing service center, MMP will specialize in blanking and warehousing steel products including hot rolled steel, cold rolled steel, and exposed and coated steel products. The company estimates it will process as much as 5,000 tons of steel per month at the new facility.
“SteelSummit is very excited to partner with Southern Mobility Products and Toyota Tsusho to form MMP,” said Todd Rollins, CEO and president of Murfreesboro, Tenn.,based Steel Summit Holdings. “MMP’s new state-of-the-art blanking operation provides us with the opportunity to support Mazda Toyota’s new auto assembly operation and expands SteelSummit’s existing presence in North Alabama.”
The collaboration of the three companies brings considerable expertise to the region, with Steel Summit’s 36-year history in the U.S. steel industry and TAI’s nearly 70 years in America.
“At Toyota Tsusho, we value meaningful partnerships that get results for our customers and benefit local communities at the same time,” said Toyota Tsusho America group Vice President and Metals division head, Shawn O’Connor. “We believe our investment in MMP will be good not just for business, but for the Huntsville region. "We are pleased to expand Toyota Tsusho’s footprint in Alabama.” u
Charming Southern Architecture, Cottages at Old Monrovia Now Leasing
By Kimberly Ballard / Photos Courtesy of Capstone Communities
While Huntsville is on the fast track to building residential communities to meet the needs of its growing population and economic growth, Capstone Communities is completing one of Huntsville’s most unique housing developments at the Cottages at Old Monrovia.
The 25-acre development located off Old Monrovia Road, just blocks from Huntsville’s exciting new MidCity district, turns apartment living into a classic American neighborhood with 275 standalone cottages, private fenced-in backyards, pristine sidewalks, and individual curbside parking.
“The cottage architecture feels like a home and not a temporary place to stay,” said John Acken, executive vice president of development for Capstone Communities. “The unattached singlefamily style is more like living in a neighborhood than in an apartment complex with walking paths, a playground, a community swing, and plenty of open green areas for gathering with neighbors for a barbecue.
“Unlike traditional apartments, every cottage is somewhat unique in its own way, whether it is through the use of color or a slight variation in the façade – each has that little something that gives it individuality like a true home always has.”
He said the attention to detail and focus on quality like stainless steel appliances, granite countertops, and 18 to 20-foot vaulted ceilings are unlike any other rentals in the area and adds real value for the resident.
“It is a style that is timeless and universally popular throughout the Southeast,” he said.
Additional upscale amenities include wood-grain flooring, in-unit washers and dryers, a smart home technology package, state-of-theart fitness center, resort-style pool, centralized clubhouse, dog park, electric car charging stations, a car care center, a pet spa, 24/7 on-call maintenance and optional enclosed garage parking.
Capstone Communities has been building on-campus and off-campus housing in college towns all over the country since their founding in 1990; however, they have designed the Cottages at Old Monrovia to attract a much broader tenant than the average college student.
“Huntsville is a market where, even though we are close to UAH, we are just as close to Redstone Arsenal and Cummings Research Park,” said Acken. “The Cottages at Old Monrovia are attracting young professionals that have graduated from college and are starting families; families who are transferring into the area and need a homey place to live while they look to buy a house, build, or remodel a home. “We are even attractive to seniors who are downsizing. In fact, seniors are a very big component of this type of development because the units are predominantly one-story with no steps, and you can park on ground level and walk comfortably up to your door,” said Acken.
The Cottages at Old Monrovia have a mix of one-, two-, and threebedroom cottages, lofts, and carriage house style unattached homes.
Pricing is based on traditional three-story walk-up apartment complexes throughout the area, with a premium add-on because of the private back yard.
“Renting at the Cottages at Old Monrovia is very much like renting a house in a single-family neighborhood,” said Acken.
Currently, about one-third of the development is complete and leasing units. The lofts overlook the swimming pool and feature an upstairs bedroom overlooking the living area with 18foot cathedral ceilings. They will be open to lease by mid-August.
The remaining property is expected to be complete and leasing in October. u
NesinFit in Lincoln Mill Targets Active Population Needing Rehab, Wellness
By Alan Clemons
NesinFit Physical Therapy in Lincoln Mill will provide treatment and training for those injured or hurt while enjoying active lifestyles, exercise and recreational activities.
Nesin Physical Therapy CEO Janine Nesin said NesinFit is a subsidiary of the existing three-clinic company. NesinFit opened in Lincoln Mill, Huntsville’s newest repurposed facility, at 1300 Meridian Street. The clinic is subleasing space from Iron Tribe Fitness, which is in the Lincoln Mill complex, and also collaborates with Fleet Feet and the Team Rocket Tri-Club of Huntsville.
“Our goal is to pull in all athletes,” Nesin said. “We see runners from Fleet Feet, triathletes, cyclists, HITT enthusiasts, runners, swimmers, those in the athletic population and primarily the adult athlete. We will work on athletes of all ages, but insurance companies are not great about returning people to recreation activities they love to do or to exercise. You’d think wanting to help people maintain or return to a healthy lifestyle would be important to them.
“When you’re healthier your risks are lower for all sorts of things: heart disease, diabetes, other health issues. Insurance doesn’t really care if you’re able to enjoy recreation or exercise, as long as you can get around the house. We are not contracted with insurance companies. But we understand the process and can help navigate the submission for reimbursement directly from the company.”
Nesin is joined by Chief Operating Officer Becky Deason and certified therapists Jonathon Cooper and Amanda Spalding; Cooper will be directing the clinic. He and Spalding most recently worked at the Nesin therapy facility on of Whitesburg Drive. Nesin and Deason also will be working with clients.
“We hope to grow and add additional staff members as needed,” Nesin said. “One thing about NesinFit is it’s not just for high-intensity athletes or triathletes. I love pickleball, and we know people enjoy being active in a variety of things. We’re here for people who enjoy recreational activities and want to get back on the golf course, or trail running, or being active with their family.
“Sometimes you don’t realize the cascade of events and how the body is connected. Over time, something that is injured may impact your hip or back or opposite leg or shoulder. The damage can be compensatory, over time, and you don’t want it to affect other joints and parts of your body and the activities you enjoy.”
Due to the historic designation for Lincoln Mill, signs are restricted. NesinFit is in the back building, through the glass double doors for Iron Tribe Fitness and upstairs.
Nesin said her team is excited to be part of a revitalized area in the city.
“Lincoln Mill is a hotbed of construction and a really cool facility,” she said. “It has a lot of office space, some restaurants and other businesses, and will continue to grow. I think it’s a great part of the restoration in that area of town and we’re looking forward to being there.” u
Huntsville Millennials Key to Record VA Loan Growth & Refinance Growth
According to a first quarter 2021 Veterans Administration report released by Veterans United Home Loans, Huntsville is ranked no. 10 out of 35 markets with a 72.65 percent increase in VA Loan growth year-over-year. Furthermore, Huntsville is ranked no. 5 with an increase of 127.49 percent increase in VA refinancing growth.
Chris Birk, vice president and director of Education for Mortgage Insight and author of The Book on VA Loans, said his company requests data from the VA quarterly so they can look for trends.
Astoundingly, 2020 was the biggest year in the history of the VA Home Loan benefit program begun in 1944. With the shock of such high numbers during a pandemic, Birk’s company was anxious to see what the first half of 2021 looked like.
Birk’s company did a survey late last year of 900 veterans across the country, asking them how they felt about the housing market and how had COVID impacted their plans. One of the most interesting things to come out of the survey, said Birk, is that despite COVID, most veterans decided to accelerate their homebuying plans rather than pause.
“The results showed the pandemic affected nearly half of veteran homebuyers, but of that half, most decided to go ahead and buy rather than wait,” he said. “The VA fiscal year runs from October 1 through September 30, and we still have two full quarters remaining.
The Veterans Administration backed more than a million loans last year for the first time in its history, reflecting nine years of purchase
growth; however, despite those high numbers, refinancing was really the story of last year, and it is what is propelling overall growth.
But Birk said that’s where VA demographic data comes into play.
Nationally, Millennials are the largest demographic in the country. In Huntsville, they are the only demographic to see an increase in purchase loans.
Millennials are fueling the growth in VA lending in the Huntsville market according to Birk, with a refinance increase among Millennials of 167 percent and the VA purchase loans among Millennials is up 14 percent.
“Millennials are looking to break into the housing market and buy their first home,” he said. “It is interesting to see because GenX homebuying is down; Boomers are down; the Silent Generation is flat, but Millennials are playing a huge role. Even older Millennials are looking to refinance after buying their first home two to five years ago, while some are buying a second home."
The signature benefits of a VA home loan is no down payment, no mortgage insurance, more flexible credit requirements, and a low average market rate.
“A VA loan has the lowest average interest rate on the market and has for the last six years in a row,” said Birk. “That benefit is compounded by the fact veterans are looking at the overall interest rates being the lowest any homeowner has ever seen. That is not an environment or opportunity even veterans who bought a home a few years ago, are going to pass up.”
Birk explained his methodology to ensure the numbers are not skewed.
A VA benefit loan has been the safest loan on the market for last decade, with the lowest foreclosure rate of any other loan product on the market, even though eight out of 10 veterans buy without a down payment.
The question becomes, is this trend sustainable?
“I think rates are going to stay low through this year and into next year,” said Birk, “although there is definitely the specter of inflation and a lot of concern about home price depreciation being astronomical in some parts of the country. Inventory is still tight in a lot of markets – Huntsville being one of them.
“But I believe we will see some veterans struggle in some markets and not necessarily get the first or second house on their list due to cash offers, but I do think we will continue to see incredible growth with the VA Home Loan benefit program as veterans continue to discover or rediscover their options.” u
By Kimberly Ballard
