HBA Showcase of Homebuilding 2023

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Showcase of HOMEBUILDING Otero Signature Homes 2023 The Time is Now Builders, remodelers and lenders are finding creative ways to adapt to current market conditions and help Northeast Ohioans achieve their dream homes.
MAKE YOUR MOVE THERE’S NO PLACE LIKE NEW. From single-family homes to low-maintenance townhomes, Drees has a plan to fit your needs. Build your own or choose a home already under construction in several communities throughout northeast Ohio. You can even build on your own lot. Visit dreeshomes.com to find your next home! dreeshomes.com ©2022 The Drees Company. All rights reserved. 24-0681-140 7/23 CALL OR TEXT Amy Wood | (440) 485-0365 awood@dreeshomes.com SCAN for DI r ECTI o NS AND IN fo Avon Brunswick Valley City Columbia Station Lake Erie Cleveland Hopkins International Airport 77 Seven Hills North Royalton 90 90 490 90 480 80 71 71 77 76 20 North Ridgeville Elyria 47 Cleveland 71 Westlake Broadview Heights Medina

Adapting

to the Market

As we continue to move forward toward post-pandemic normalcy, residents of Northeast Ohio are making the big decision of whether to stay and remodel their existing homes or purchase a new home. In taking a closer look at market conditions, rates and home prices have significantly increased over the past year. While some people are choosing to stay and make improvements to their current homes to avoid higher rate financing, many are deciding that they would get more value by investing that money into a newly constructed home.

Northeast Ohio is seeing new construction popping up in rural areas with farmland being transformed into new housing developments. Columbia Station is one example. Working from home has given people the opportunity to live farther away from metropolitan areas. People are looking for community and friendships that are often formed in these developments. New homes and residents build stability within communities to keep them thriving and vital, often with plenty of green spaces, new restaurants and excellent schools.

This is a unique time for builders. While they are still facing challenges with lingering supply chain issues and labor shortages, they have also adapted to these challenges and are still evolving. They are collaborating with each other to create innovative ideas and efficiencies to make the building process go more smoothly for their buyers. Builders are also exploring new designs that allow them to incorporate better materials and improved green technologies.

The Home Builders Association (HBA) of Greater Cleveland provides its own

community for builders to learn and share ideas. One of the goals of the HBA is to keep our region progressing by working with all our members — lenders, contractors, real estate agents, design teams, developers and others — in enterprising ways. New construction means more jobs, exciting development opportunities and a dynamic place to live, work and enjoy life.

When you are considering your new build or remodel, be sure to do your homework. When you are looking at financing, many lenders are offering creative options like adjustable-rate mortgages and low closing cost options. Take the time to research and consider choosing a professional that is a member of the HBA. Get your wish list together and have candid conversations with your contractors. HBA members have completed some incredibly beautiful projects throughout Northeast Ohio. Let them create something spectacular for you and your new or existing home.

Sincerely,

2023 HBA Officers & Board

Debra Branske (President)

Third Federal Savings & Loan

Andrew Gotlieb (Vice President)

Keystate Homes & Development

Dan Smoulder (Treasurer/Secretary)

Petros Homes

Rob Myers (Immediate Past President)

Myers Homes/RHM Homes

Brenda Callaghan (Executive Director)

HBA of Greater Cleveland

Board of Trustees

Joe Archer

Sherwin-Williams

Leslee Archer

GLT Products

Tim Bennett

Bennett Builders

Steve Caldwell Ferguson Bath, Kitchen & Lighting Gallery

Dennis Dlugosz

Corrigan Krause CPAs

Mike Gero

Property Inspections

Brian Miller

Mont Surfaces by Mont Granite

Laura Mineff

Array Design

Dana Novotny

K Hovnanian, Cleveland Division

Dennis Reber

Apollo Supply

Jason Rodgers

Paine Creek Builders

Rodney Simon

Simcon Custom Homes

Legal Advisor

Russell O’Rourke, Esq.

Meyers, Roman, Friedberg & Lewis

On the Cover

Otero Signature Homes

Courtesy Otero Signature Homes, HBA

2023 Cleveland Choice Award Winner: Interior Architectural Design of the Year –Single-Family | $500,000 to $750,000

CLEVELANDMAGAZINE.COM HBA 3 MAKE YOUR MOVE THERE’S NO PLACE LIKE NEW. From single-family homes to low-maintenance townhomes, Drees has a plan to fit your needs. Build your own or choose a home already under construction in several communities throughout northeast Ohio. You can even build on your own lot. Visit dreeshomes.com to find your next home! dreeshomes.com ©2022 The Drees Company. All rights reserved. 24-0681-140 7/23
OR
Amy Wood | (440) 485-0365 awood@dreeshomes.com SCAN for DI r ECTI o NS AND IN fo Avon Brunswick Valley City Columbia Station Lake Erie Cleveland Hopkins International Airport 77 Seven Hills North Royalton 90 90 490 90 480 80 71 71 77 76 20 North Ridgeville Elyria 47 Cleveland 71 Westlake Broadview Heights Medina
CALL
TEXT

BEST WEBSITE

Brickhaus Partners

PERFORMANCE IN NEW HOME SALES

$3-5 MILLION

Lindsay Artzner

ProBuilt Homes

$5-10 MILLION

Amanda Bundy

Drees Homes

George Pelesky Jr.

Drees Homes

Michael Yoe

Payne & Payne Builders

Michele Mave

Drees Homes

Jason Baylor

Payne & Payne Builders

David Kronenberg

ProBuilt

Dave Hesse

Payne & Payne Builders

$10 MILLION OR MORE

Larry Underwood

Drees Homes

Keith Stumpf

Drees Homes

Erin Rodgers

Drees Homes

Emily Gentry

Petros Homes

Jill Scot

Drees Homes

Carla Houdek

Drees Homes

Debbie Meyer

Drees Homes

David Binder

Petros Homes

Chelsey Berkey

Petros Homes

Chris Whalen

Drees Homes

EMPLOYEE OF THE YEAR

Dean Tompkins, Payne & Tompkins

Design Renovations

INTERIOR DESIGN OF THE YEAR

UNDER $500,000

Cuyahoga Land

HBA 2023 CLEVELAND CHOICE AWARD WINNERS

Reutilization Corporation

$500,000 - $750,000

Perrino Custom Builders

$750,000 - $1,000,000

Perrino Custom Builders

$1,000,000 - $1,500,000

Perrino Custom Builders

$2,000,000 - $2,500,000

Brickhaus Partners

OVER $2,500,000

Ovation Interior Design

INTERIOR

ARCHITECTURAL DESIGN OF THE YEAR –SINGLE FAMILY

$500,000 - $750,000

Otero Signature Homes

$750,000 - $1,000,000

Drees Homes

$1,000,000 - $1,500,000

MJ Builders Inc.

$2,000,000 - $2,500,000

Otero Signature Homes

INTERIOR

ARCHITECTURAL DESIGN OF THE YEAR – CONDO/ CLUSTER/TOWNHOME

UNDER $500,000

ProBuilt Homes

OVER $500,000

Brickhaus Partners

EXTERIOR

ARCHITECTURAL DESIGN OF THE YEAR –

SINGLE FAMILY

UNDER $500,000

Cuyahoga Land

Reutilization Corporation

$500,000 - $750,000

Edgewood Homes

$750,000 - $1,000,000

Drees Homes

$1,000,000 - $1,500,000

Payne & Payne Builders

$2,000,000 - $2,500,000

Larry Bloch Builders

OVER $2,500,000

Larry Bloch Builders

EXTERIOR

ARCHITECTURAL DESIGN OF THE YEAR – CONDO/ CLUSTER/TOWNHOME

OVER $500,000

Brickhaus Partners

COMMUNITY DEVELOPMENT

BEST URBAN INFILL DEVELOPMENT

Knez Homes

OVERALL CONDO

CLUSTER TOWNHOME OF THE YEAR

UNDER $500,000

Kensington Homes Inc.

OVER $500,000

Petros Homes

CONDO CLUSTER

COMMUNITY OF THE YEAR

ProBuilt Homes

SINGLE FAMILY

COMMUNITY OF THE YEAR

Payne & Payne Builders

REMODEL OF THE YEAR

BEST BATHROOM RENOVATION

UNDER $50,000

Keselman Construction Group

$50,001-$100,000

Otero Signature Homes

OVER $100,000

Payne & Tompkins Design

Renovations

BEST BASEMENT RENOVATION

Payne & Tompkins Design

Renovation

BEST KITCHEN RENOVATION

UNDER $80,000

Keselman Construction Group

80,001-$130,000

Mancuso Homest

OVER $130,000

Studio 76 Kitchens & Baths

BEST INTERIOR RENOVATION

UNDER $150,000

Keselman Construction Group

OVER $150,000

Payne & Tompkins Design

Renovations

BEST EXTERIOR RENOVATION

UNDER $100,000

HTZ Construction, Inc.

$100,000-$250,000

Bennet Builders & Remodelers

BEST OVERALL ADDITION

UNDER $150,000

Mancuso Homes

$150,000-$300,000

Mancuso Homes

$300,000-$450,000

Mancuso Homes

OVER $450,000

Payne & Tompkins Design

Renovations

BEST ENTIRE HOME RENOVATION

UNDER $250,000

Cuyahoga Land

Reutilization Corporation

$250,000-$500,000

Mancuso Homes

OVER $500,000

Bennet Builders & Remodelers

CUSTOM HOME OF THE YEAR

BEST SPECIALTY ENTERTAINMENT ROOM (INDOORS OR OUTDOORS)

Horner Networks, LLC

BEST GREEN BUILT HOME

UNDER 2500 SQ. FT.

Keystate Homes & Development

2501-4000 SQ. FT.

Keystate Homes & Development

OVER 4000 SQ. FT.

Payne & Payne Builders

BEST OVERALL CUSTOM HOME

UNDER $500,000

Skoda Construction Inc.

$500,000-$750,000

Simcon Homes

$750,000-$1,000,000

Perrino Custom Builders

$1,000,000-$1,500,000

Simcon Homes

$2,000,000-$2,500,000

Otero Custom Homes

OVER $2,500,000

Larry Bloch Builders

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Pella is the most preferred window and door brand by homeowners*

door brand by homeowners*

homeowners*

NEW CONSTRUCTION

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There are so many choices to make when you're building a new home. The team at Pella works with you and your builder to find the right mix of style and functionality to make your home the envy of the neighborhood.

There are so many choices to make when you're building a new home. The team at Pella works with you and your builder to find the right mix of style and functionality to make your home the envy of the neighborhood.

NEW CONSTRUCTION

There are so many choices to make when you're building a new home. The team at Pella works with you and your builder to find the right mix of style and functionality to make your home the envy of the neighborhood.

There are so many choices to make when you're building a new home. The team at Pella works with you and your builder to find the right mix of style and functionality to make your home the envy of the neighborhood.

RESIDENTIAL REPLACEMENT

RESIDENTIAL REPLACEMENT

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RESIDENTIAL REPLACEMENT

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RESIDENTIAL REPLACEMENT

Replacement windows provide homeowners with many benefits, including enhanced curb appeal, improved energy efficiency and better noise reduction. Discover the wide variety of Pella wood, fiberglass and vinyl replacement window options available for your home.

Replacement windows provide homeowners with many benefits, including enhanced curb appeal, improved energy efficiency and better noise reduction. Discover the wide variety of Pella wood, fiberglass and vinyl replacement window options available for your home.

Whether you're an architect, contractor, property manager or developer, Pella Commercial is standing by with expertise, capabilities and experience to make your window or door projects run smoothly. Let us show you how we act as an extension of your team to support you every step of the way.

Whether you're an architect, contractor, property manager or developer, Pella Commercial is standing by with expertise, capabilities and experience to make your window or door projects run smoothly. Let us show you how we act as an extension of your team to support you every step of the way.

COMMERCIAL BUILDINGS

Whether you're an architect, contractor, property manager or developer, Pella Commercial is standing by with expertise, capabilities and experience to make your window or door projects run smoothly. Let us show you how we act as an extension of your team to support you every step of the way.

Whether you're an architect, contractor, property manager or developer, Pella Commercial is standing by with expertise, capabilities and experience to make your window or door projects run smoothly. Let us show you how we act as an extension of your team to support you every step of the way.

Pella is the most preferred window and
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Pella is the most preferred window and door brand by
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brands among homeowners.

THE STATE OF THE MARKET

High demand, low supply, increased interest rates, continued supply chain issues, labor shortages — all these aspects and more have been impacting the housing market in recent years and may continue to do so for many more to come.

Despite these headwinds, the homebuilding and remodeling industry has persisted.

“We’re not back to where we were in 2005 by any means, but we’re holding our own, which is good for the industry, good for employment and good for the economy,” says Rob Myers, president of Myers Homes.

6 HBA CLEVELAND 09.23 2023 Showcase of Homebuilding
Experts weigh in on all the facets impacting the current housing market and how they affect the future of homebuying and remodeling.
by sarah webb
HTZ Construction
MANCUSOHOMES.COM 216-250-2501 @MANCUSOHOMES

Market Dynamics

A higher demand for houses than supply of houses and higher interest rates pose the primary challenges for potential homebuyers, according to Jennifer Rosa, public relations manager for Third Federal.

In fact, Rosa notes that the higher rates have dwindled the stock in the market because current homeowners have less motivation to sell.

“Other than a lifestyle change, there is not as much incentive to sell. When a homeowner has a mortgage interest rate of under 4% and interest rates are now in the 6% to 7% range, that can be an exponential increase on any home purchase,” Rosa says.

However, despite the supply and demand mismatch and higher interest rates, people continue to buy new homes.

“While interest rates are higher, lifestyle changes such as relocating, growing families and downsizing are all trends that continue, so people are still buying homes,” Rosa says. “Northeast Ohio still offers great communities and great options for those who are looking to buy.”

That lack of housing inventory may also be pushing more potential buyers to choose to build a home, according to Myers.

“The market has shown remarkable staying power where new home sales are continuing to take place, and there’s not a lot of supply in terms of resale market, so that’s forcing people to take a hard look at new construction,” Myers says. “For those of us who are involved in new construction, our numbers are still very strong this year, and that’s been a bright spot for us.”

For potential buyers choosing to build a new home, Rosa advises they lock in their rate early.

“The Federal Reserve has already increased the prime rate from 4% to 8.25% in 12 months,” Rosa says. “So, when building a home, it’s

important to lock in your rate, because if interest rates continue to trend upward, it may be harder to qualify once the home is completed.”

Myers adds that because the cost of developing lots and improving them has gone up dramatically, the best time for homeowners to start a new project or buy a new home is now.

“The least expensive time to buy your new home is today, because tomorrow it will cost more,” Myers says. “With interest rates and inflation and regulations, if your income qualified you for a mortgage two years ago, you may not even qualify for that mortgage to buy that same exact house this year. For every dollar added to the cost of a home, there’s a certain number of people knocked out of the homebuying market based on income levels.”

Despite the challenges in the market, Myers encourages those looking to purchase a new home not to give up.

“Enjoy the experience, and find a home that you love and want to live in for a while,” he says.

Supply Chain and Labor Shortages

While supply chain shortages have eased a bit, the labor market remains fairly tight across the board, according to Myers.

He says that the homebuilding industry has been skillful so far at managing the supply chain crisis.

“We’ve been able to work our way around a lot of these bottlenecks, either by finding alternative materials or by managing timelines better and placing orders well in advance of when we’re going to need them,” Myers says. “The issue now is less broad. So, while some suppliers and vendors are still having problems, and some people might not get exactly what they wanted, they’re still getting a substitute that works just as well.”

8 HBA CLEVELAND 09.23 2023 Showcase of Homebuilding COURTESY MYERS HOMES
Myers Homes

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Consider a Refresh

For those who prefer to stay in their current homes, remodeling provides homeowners the ability to increase the value of their home, according to Lori Bryant, owner of HTZ Construction.

“For a lot of people, their home equity has increased so much since COVID-19, so if you’re debating between renovating and moving and there aren’t a lot of houses that fit [your] needs, it makes sense for people to just put that money into their own home and customize it to make it what they want,” Bryant says.

Before embarking on a remodel, Bryant says there are several factors that homeowners must consider.

1. Think about how long you plan to stay in your current home.

“If you’re going to be in your home for five years or more, then it’s a good idea to do your dream design, but if you’re planning on moving within the next five years, you probably want to stick with a lower budget and make cosmetic changes, because if you do a full renovation and gut the house, you’re not going to get your return on investment in that timeframe,” Bryant says.

Cosmetic changes can include adding a fresh coat of paint, refreshing lighting fixtures, incorporating new hardware to cabinets

and updating floors with a luxury vinyl plank flooring, which, Bryant says, is fairly affordable and easy to install.

“That kind of thing can really freshen up a look for a homeowner,” she says.

2. Consider how much money you’re willing to put into a project.

“Once you have that number, you can really make decisions. It’s silly to design a whole project and then realize you can only afford half of it,” Bryant says. “Once you have your budget figured out, then you can look at photos for inspiration and start having an idea of what you want to accomplish.”

However, Bryant warns potential remodelers that items may cost more than expected.

“We get a lot of homeowners who base their budget on Google searches of, for example, how much a bathroom renovation costs, but those number don’t consider everything,” Bryant says.

She adds that if homeowners are financing a project, they will need to discuss that with their bank.

To make home remodeling projects financially feasible, Rosa says a home equity line of credit is one option.

“Because interest rates are higher after being low for so long, it’s no longer a viable funding alternative to apply for a cash-out refinance for home projects, because the homeowner will refinance into a higher interest rate,” Rosa says. “A home equity line of credit (HELOC) lets the homeowner keep their current, lower, first mortgage rate and use the HELOC for remodeling projects.”

3. Do your due diligence to find a contractor who fits your needs.

“Make sure you find a contractor who is registered in the city you’re remodeling in and who will pull all the necessary permits if the job requires it,” Bryant says.

SKILL BUILDING

The HBA’s Charitable & Education Foundation is supporting a preapprentice certified training program for the construction trades. The pilot program is being offered this fall in a public high school in one of Cleveland’s eastern suburbs. The high school students enrolled in the program will graduate with a set of skills that allows them to enter the construction workforce immediately.

“We don’t know yet what the numbers are in the program. However, I do know that we are short 65,000 construction workers in the state of Ohio, and we’re not going to move the needle on that by hunting and pecking for workers,” says Rob Myers, president of Myers Homes and past-president of the HBA. “We need to make these kinds of programs available to high school students across the state to educate kids that they can earn a good living, enjoy a great lifestyle and become entrepreneurs — without having to borrow a lot of money to obtain a four-year college degree.”

10 HBA CLEVELAND 09.23 2023 Showcase of Homebuilding
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BEFORE YOU BUILD

Lenders are embracing novel strategies to keep your dream home within reach.

Getting ready to build a home should be a time of excitement, not anxiety. But right now, with home prices hovering high and interest rates on the rise, affording that perfect place might seem like an impossible mission. Banking pros, though, are getting creative with cutting costs — helping borrowers ink deals with confidence.

Room to Adjust

With mortgage interest rates dangling just below 7%, an adjustable rate mortgage (ARM) might be tempting. Typically, ARMs have a lower starting interest rate and monthly payment than fixed-rate mortgages — but loan officers have differing opinions about them.

Liz Schneider, a construction loan specialist with Dollar Bank, explains that ARMs begin with a fixed-rate period of five, seven or 10 years, after which the rate varies based on market conditions. That means there’s a risk of even higher rates at the end of the fixed period.

“The only time I’d suggest an adjustable-rate mortgage is if you’re sure you’re only going to be in the home for the length of the fixed term of the adjustable loan,” she says.

However, Todd Urmson, a loan officer with Andover Bank, thinks they’re a great option for saving money. Understanding the risks versus the benefits is the key.

“I am not afraid of an adjustable mortgage at this time,” he says. “Right now, I’m not recommending less than a five-year adjustable, because I don’t know what rates are going to do in the next five years. But it makes it worthwhile — you’re saving more money on a monthly basis. Our adjustable rates only adjust every three years after the initial fixed period, which significantly reduces the risk of the rate increasing rapidly compared to many that adjust annually or even every six months.”

Putting Down Less

Conventional wisdom says new construction loans always demand a 20% to 25% down payment. Lenders consider them riskier than mortgages for existing homes, so while the median down payment on an existing home in 2022 was just 13%, according to the National Association of REALTORS, loans for homebuilding have not been so flexible — until now. Some banks have even ditched the requirement for private mortgage insurance (PMI) that typically accompanies a lower down payment.

”For pretty much anyone that qualifies, on a business-as-usual basis, we can do 5% down on construction loans, with PMI,” Urmson says. “We have a community program where we can do lower down payments and no PMI, and we have a program for individuals that are in certain professions, that we can do with no down payment and no PMI.”

Urmson says his company is also saving borrowers money by reducing or limiting some of the construction loan fees.

Dollar Bank also offers construction financing with as little as 5% down payment or lot equity — if you’ve already purchased your lot.

Expert Advice

However you choose to finance, get your loan lined up in advance, Schneider says, and don’t budge once you set a budget.

“Get prequalified first so that you and your builder know what your budget is and what you can afford,” she says. “Because if, during the course of construction, (material costs) go up, you’re going to get faced with a bill from your homebuilder at the end.”

Schneider also notes that delays and surprises are inevitable in homebuilding.

“Be patient with the process,” she says. "A lot of things are out of the homebuilder’s control. I know this sounds old, but there are still some supply chain issues; there’s a construction labor shortage. Have fun in the process. It’s not all stress, but just pack your patience.”

12 HBA CLEVELAND 09.23 2023 Showcase of Homebuilding COURTESY PULTE HOMES
Pulte Homes
NEW HOMES FOR EVERY STAGE IN LIFE LOCATED IN HIGHLY DESIRABLE SUBURBS SERVING THE GREATER CLEVELAND AREA AND AKRON-CANTON Open, Flexible Floor Plans Designed with You in Mind Convenient Locations with Highway Access For over 70 years, Pulte has built homes with the homeowner in mind. The things that are important to you are what we focus on. Our foundation is quality construction and a simplified buying experience. With our insightful Life Tested design features and easy personalization options, everyday moments are more enjoyable in your new Pulte home. That's More Life Built In . Visit Pulte.com/homes/ohio/cleveland to find your new home or visit our Sales Offices today! Prices may not include lot premiums, upgrades and options. Community Association and golf fees may be required. Prices, promotions, incentives, features, options, amenities, floor plans, elevations, designs, materials, and dimensions are subject to change without notice and may not be available on all homes or in a particular community or may be unavailable due to an individual home’s construction schedule. Square footage and dimensions are estimated and may vary in actual construction. Community improvements and recreational features and amenities described are based upon current development plans which are subject to change and which are under no obligation to be completed. Actual position of house on lot will be determined by the site plan and plot plan. Floor plans, interiors and elevations are artist’s conception or model renderings and are not intended to show specific detailing. Floor plans are the property of PulteGroup, Inc. and its affiliates and are protected by U.S. copyright laws. For further information, see our terms of use. This is not an offering to residents of NY, NJ, CA or CT or where otherwise prohibited by law. Pulte Homes of California, Inc. is a licensed California real estate broker (lic. #02023929) Two-Story Homes, Limited-Maintenance Ranch Homes and Townhomes ® ®

CORNFIELDS TO COMMUNITIES

From farmland to future abodes — new construction is on the rise in Northeast Ohio’s traditionally rural areas, including Amherst, Perry and Columbia Station.

“When we talk about rural, people automatically think they’re going to be living out in the country somewhere,” says Dana Novotny, region vice president of sales for K. Hovnanian Cleveland Division. “But rural is really just defined by how many people live in an area, and it could even be relatively close to the city.”

A report from the National Association of Home Builders notes that while the growth rate in large metro outlying counties fell from 17.4% in the first quarter of 2022 to

-22.3% in the first quarter of 2023, the rural single-family home building market share has increased from 9.4% at the end of 2019 to 12% by the first quarter of 2023.

“You see a lot of builders in that area, and if you look at the last year or two, there’s been tremendous growth just in those places,” says Jeff Copp, director of marketing for Pulte Homes.

The Why

Shortages of lots — and high prices of those lots — in traditional suburbia is one driver of these new developments, according to Gary Naim, president of Petros Homes.

Naim says that potential homebuyers are also flocking to the lower prices of those new

builds compared to what they’d find in an inner suburb or city.

“Everything is impacted by price and the ability to amass a larger parcel of land where you can build a planned unit development,” Naim says. “There’s a low supply of land in the inner suburbs, so you have to extend yourself out to where land is more available.”

Novotny notes that in addition to potential homebuyers acquiring more house for their buck, new residents to these areas often pay lower taxes than in other areas.

“So, there's an affordability component because they’re often paying a lot less for city services through their taxes,” Novotny says. “They may be a full percent lower in some cases.”

Additionally, the fact that oftentimes homebuilders have their own mortgage company and can offer lower rates than what’s being offered right now — somewhere around 4.99% versus 7.5% — only sweetens the deal, Novotny adds.

Lower prices aren’t the only reason people have expanded outward. Amid the COVID-19 pandemic, many people moved out of cities and densely populated areas in droves, Novotny says.

14 HBA CLEVELAND 09.23 COURTESY PULTE HOMES
New developments cropping up in lower population areas means more opportunities for homebuyers.
2023 Showcase of Homebuilding

“During the pandemic, people were eager to get out of cities where they felt like they were on top of their neighbors and in close proximity, because there were a lot of health concerns and fear and uncertainty,” Novotny says.

And yet, that trend has not completely reversed post-pandemic.

“There are some people returning to cities and suburbs, but there is still a contingent that works remotely and who want to be in a rural area,” Novotny says. “The trend we

CLEVELANDMAGAZINE.COM HBA 15 2023 Showcase of Homebuilding
Development at Emerald Woods, Pulte Homes

thought was going to be temporary is actually more permanent as people are looking for that smaller town feel, bigger fenced-in yards for their pets, more affordability and easier access to parks and recreational offerings.”

Naim adds that because many people are working remotely, proximity to the city doesn’t matter nearly as much.

“Working remotely, people are less concerned with commutes and are more apt to move farther away from the city to reach the price point that’s better than what they’d get in an inner ring suburb,” Naim says.

Copp notes that just because the homes are outside of the city doesn’t mean that residents won’t still have access to the amenities the city provides.

“From one of our developments in Columbia Station, you can still get downtown easily, and residents still have easy access to everyday needs and highway access,” he says.

The Benefits

While there are many reasons people move to these new developments, Copp says

16 HBA CLEVELAND 09.23 2023 Showcase of Homebuilding COURTESY
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the desire to live in a strong school district is one of them.

“School systems are very important to us,” he says. “In Columbia Station, for example, Columbia Local Schools are highly rated.”

The benefits don’t end in the classroom, either.

Residents are also enticed by easy access to recreation, walking trails and the outdoors, according to Novotny.

“There’s a health and well-being component where, being outside of the city, things slow down. It seems to take the stress away, and people thrive when they have greater access to sports, recreation, the outdoors and that serene environment,” Novotny says.

And what better way to enjoy the outdoors than with neighbors?

Homeowners living in these developments reap the benefits of their community feel.

“In smaller towns, people really get to know their neighbors, and there’s a greater sense of community,” Novotny notes. “There’s also a greater sense of safety.”

Who’s Moving In?

These new developments cater to more than just one demographic. One example is empty nesters looking to downsize.

“In our experience, I’ve seen a little bit of everybody, but in one development in particular, we have an age-targeted community where the average age is around 60. People are downsizing, and they want one-floor living. As they approach retirement, they want to be able to enjoy their lifestyle and have a little bit less stress,” says Novotny, adding that the homes for these developments range from 1,600 square feet all the way up to 3,100 square feet.

Other homes in these developments are servicing first-time homebuyers.

“We have different product lines and floor plans to suit everyone’s needs, including two-story homes and ranch homes with varying sizes, with two- to three-car garages,” Copp says.

CLEVELANDMAGAZINE.COM HBA 17 DESIGN BUILD REMODEL YOUR PARTNER IN LUXURY LIVING 16816 CHILLICOTHE RD CHAGRIN FALLS, OH 44023 VISIT US ONLINE AT OTEROHOMES.COM CONTACT US TODAY 440-543-3333 INFO@OTEROHOMES.COM COURTESY K. HOVNANIAN CLEVELAND DIVISION / COURTESY PULTE HOMES
K Hovnanian Homes Pulte Homes

IN RURAL MARKETS

ACCORDING TO THE NATIONAL ASSOCIATION OF HOME BUILDERS Home Building Geography Index (HBGI) for the first quarter of 2023, rural markets have exhibited strength in new home builds in recent years. The rural (Micro Counties and Non Metro/Micro Counties) singlefamily homebuilding market share has increased from 9.4% at the end of 2019 to 12% by the first quarter of 2023. On the flipside, the combined Large Metro areas (Core, Suburban and Outlying) market share has fallen for the last seven quarters to a share of 49.7%. This is the first time the combined Large Metro market share has fallen below 50% market share since the inception of the HBGI.

Growth Rate of Single-Family Homebuilding Past

18 HBA CLEVELAND 09.23 2023 Showcase of Homebuilding GROWTH
Source: National Association of Home Builders Home Building Geography Index (HBGI) for the first quarter of 2023
5 Quarters YoY
20.0% 0.0% 10.0% -10.0% -20.0% Large MetroCore County Micro County Large MetroSuburban County Large MetroOutlying County Non Metro/Micro County Small MetroOutlying County Small MetroCore County Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Studio 76 Kitchens & Baths 9122 Ravenna Rd., Twinsburg 330.487.1176 studio76kitchens.com t Kitchen and Bath Remodeling Visit our Showroom a Better Business a Better Business BBB Accredited Businesses are committed to operating with integrity, honoring promises, and telling the truth. Makes you wonder why all businesses aren't BBB Accredited? Always look for the BBB Accredited Business Seal, because it is looking out for you That's why it's THE SIGN OF A BETTER BUSINESS. TRUST THE ONES THAT BACK IT UP. Find Become
Moving Average Growth Rates

WCheck out these inspiring designs from three HBA 2023 Cleveland Choice Award winners.

ORTHY INNERS

Brickhaus Partners

Interior Architectural Design of the Year –Condo/Cluster/Townhome | Over $500,000

Interior Design of the Year | $2 million to 2.5 million

Exterior Architectural Design of the Year –Condo/Cluster/Townhome | Over $500,000

Nestled on the picturesque shores of Lake Erie in Rocky River, 700 Lake stands as a symbol of exceptional design and unparalleled luxury. This magnificent property boasts 25 condo units and eight townhomes, with most residences already occupied. Prospective residents can still call 700 Lake their home at prices ranging from $1 million to $3 million.

The vision for this project was meticulously crafted by the Brickhaus Design Team led by Andrew Brickman. What sets this development apart is the careful curation of materials from abroad. For example, the kitchen cabinetry was created in Italy by Aran, the same company responsible for the kitchens at 42 Park, the iconic building overlooking Central Park in New York City. From the kitchen cabinetry to the doorknobs, every detail has been considered to offer the highest quality finishes and latest technological advancements. “This level of luxury isn’t commonly seen in Ohio,” says Kritika Cerreta, senior interior designer. “There is absolutely nothing else like this in Cleveland.”

Beyond the interiors, the views from 700 Lake are breathtaking. Situated right on the shores of Lake Erie, every home boasts a lakeside view. “I truly

CLEVELANDMAGAZINE.COM HBA 19 COURTESY BRICKHAUS PARTNERS

WorthyWinners

believe it’s the most luxurious piece of land you can find between New York and Chicago,” says Cerreta. Residents can indulge in top-tier amenities, including an infinity pool set to open next season. Outdoor enthusiasts will appreciate access to an outdoor kitchen, a fire pit and water activities like kayaking and jet skiing.

However, what makes 700 Lake truly unique is its sense of community. The building is thoughtfully designed with communal spaces that encourage interaction and foster a sense of camaraderie among residents. The environment cultivates a feeling of belonging. “It’s really conducive to this friendly, intimate atmosphere, which Rocky River is known for,” Cerreta says.

The journey toward the completion of 700 Lake has not been without challenges. COVID-related disruptions, including

temporary closures of suppliers in Italy, caused unforeseen delays. Since many of the materials were hand-curated from Italy, that country’s shutdown created obstacles.

Despite these hurdles, the project has received multiple awards from the Home Builders Association, thanks to the exceptional design and attention to detail.

20 HBA CLEVELAND 09.23 COURTESY INDIVIDUAL COMPANIES

Otero Signature Homes

Interior Architectural Design of the Year – Single-Family | $500,000 to $750,000

Known for custom designs, Otero Signature Homes recently gained recognition for one of its model homes. The design, which reflects the company's innovative “Living in Place” philosophy, is located in Bainbridge Township. It offers three bedrooms inside 3,200 square feet of living space with a 500-square-foot covered back porch.

The goal is to create residences that are accessible and comfortable for individuals of all ages and abilities. To achieve this, the model incorporates attractive designs and modern features such as zero-entry thresholds, open floor plans, wide doorways, flush tile entry into the showers and smart technology. “It's really great, easy living,” says Ted Otero, president of Otero Signature Homes. “Everyone seems to appreciate the ease of entry. It’s really been popular for us.”

Inside, homeowners will find high-quality materials that are also reasonably

priced. Luxury vinyl plank flooring spans the entire house, offering a seamless transition from room to room. Bathrooms feature stylish tile designs, adding elegance to the space. The multiple vaulted ceilings, indirect lighting and backlighting contribute to a warm and inviting ambiance. Custom cabinetry, a feature of Otero Signature Homes, allows for personalized kitchen designs that cater to individual client needs. MSI Quartz Countertops by American Countertops further enhance the overall appeal and provide minimal maintenance to the homeowner.

CLEVELANDMAGAZINE.COM HBA 21
DISCOVER LAKEFRONT ELEGANCE NATURAL BEAUTY UNPARALLELED LIFESTYLE UNMATCHED VALUE The Kim Crane Group | kim@kimcranehomes.com | 440.652.3002
2-3 Bedroom Condo Residences Ranging from $1.149 Million to $2.39 Million and townhomes starting at $899,900.

The standout feature of this particular model is its trend-forward, contemporary kitchen design. Otero’s interior designers expertly combined various colors and textures, creating a visually striking environment. The kitchen cabinetry showcases three colors — a dark shade for the lower cabinets, white for the upper cabinets and natural woodwork on the island. “It’s different than what our clients have been asking for,” says Otero, “but it was very well received by those who walked through the home.”

In June, the award-winning model was showcased in the HBA 2023 Summer Parade of Homes. The house quickly found a buyer, highlighting the appeal of its open floor plan, spacious great room and well-designed kitchen. The owners are thrilled with their new home and the recognition it has garnered.

“We’re extremely proud of the awards we’ve won,” says Otero. “We’re very positive about the market, and we’re always looking to challenge it and push the envelope on our design.”

Mancuso Homes

Best Kitchen Renovation | $80,000 to $130,000

Renowned for exceptional renovation projects, Mancuso Homes recently tackled a remarkable kitchen transformation for a busy Lakewood family. With parents juggling professional commitments, an active social life, three teenagers and two dogs, the family wanted a more spacious and inviting kitchen to meet their needs.

One of the primary challenges the family faced was the lack of natural light in their old kitchen. Kate Mancuso, owner and designer for Mancuso Homes, devised a plan to reconfigure the kitchen’s layout and add four additional windows. A glass door was also installed in the walk-in pantry, allowing even more light to flow into the kitchen. “It’s just lighter and brighter,” says Mancuso.

Many older homes on the West Side of Cleveland lack spacious kitchens and walk-in pantries. However, once a double, this particular house had been converted into a single-family home, allowing for a larger kitchen. An adjacent bathroom was repurposed into a walk-in pantry with custom shelving.

“They didn’t live the way that we live (now) 100 years ago. They didn’t have big kitchens,” says Mancuso. “We do a lot of those conversions of older homes.”

22 HBA CLEVELAND 09.23
WorthyWinners something new. Contact Liz Schneider today! NMLS #728176 440-452-3894 eschneider187@dollarbank.com Dollar Bank offers easy and affordable construction mortgage options, designed with your needs in mind. Equal Housing Lender. Member FDIC. Copyright © 2023, Dollar Bank, Federal Savings Bank. MOR358_23 Do Showcase of HOMEBUILDING Otero Signature Homes 2023 The Time is Now Builders, remodelers and lenders are finding creative ways to adapt to current market conditions and help Northeast Ohioans achieve their dream homes. A DIGITAL EDITION OF IS AVAILABILE ONLINE HBACLEVELAND.COM DISCOVER THINGS TO DO EVERY WEEK! Get weekly email updates on the city’s hottest events, best restaurants and most interesting things to do each week. clevelandmagazine.com/newsletters

The kitchen cabinets were custom made with practical drawer inserts, ensuring efficient use of space. Quartzite (a durable natural stone resembling marble) was chosen for the countertops, providing both elegance and functionality. The rangehood above the stove was designed to fit seamlessly within the kitchen’s aesthetics. New, white-oak hardwood flooring was installed to tie the kitchen together with the rest of the house.

A distinctive characteristic of the renovated kitchen is the absence of upper cabinets. While this choice meant sacrificing some storage space, it allowed for the installation of eye-catching decorative elements, including wall sconces and handcrafted zellige tiles. “You always question whether you should sacrifice storage for pretty things. In this case, I feel like it was worth it,” says Mancuso.

The homeowners chose to work with Mancuso Homes after purchasing a house the company remodeled in 2015. When the family moved into their current home, they asked the company to renovate their new kitchen.

“That’s the best compliment we can have — repeat business or referrals from our clients,” says Mancuso.

CLEVELANDMAGAZINE.COM HBA 23 BUILD WITH A professional member OF THE Your home is one of the largest investments you'll make. When you buy a new home or remodel your existing one, you want to make sure you've invested well. HBA professional members have knowledge in practices such as sustainability, green building, high performance, and aging in place. These experts make your dreams a reality. Visit HBAcleveland.com for a list of local Builders & Remodelers Home Builders Association of Greater Cleveland 6140 West Creek Rd. Independence, OH 44131 216.447.8700
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