North Coast Building Industry Association (NCBIA) BUILDER newsletter is the official newsletter of the NCBIA and is published monthly by the NCBIA. The NCBIA is an affiliate of the Ohio Home Builders Association (OHBA) & the National Association of Home Builders (NAHB).
Advertising Policy - The North Coast Building Industry Association reserves the right to reject advertising in the Builder newsletter based on content. Acceptance of advertising does not imply endorsement of the product or service advertised.
John Toth, Floor Coverings International Treasurer
Melanie Stock, First Federal Savings of Lorain Secretary
Jon Sherer, Paraprin Construction, LLC
2024 NCBIA Board of Directors
Sam Hudspath, All Construction Services
Joey McCormick, Bumble Bee Blinds
Dave Linna, Linna Homes & Remodeling
Sara Majzun, Majzun Construction Co.
John Eavenson, Perpetual Development
Theresa Riddell, The Nelson Agency
Jason Rodriguez, The S.J.R Building Co.
Kevin Walker, Walker Wealth Managements & Great Lakes Properties & Investments
NCBIA Life Directors
Jeremy Vorndran, 84 Lumber
Tom Caruso, Caruso Cabinets
Bob Yost, Dale Yost Construction
Liz Schneider Dollar Bank
Mary H. Felton, Guardian Title
Jack Kousma, Kousma Insulation
Jeff Hensley, Lake Star Building & Remodeling
Chris Majzun Jr., Majzun Construction Co.
Chris Majzun Sr., Majzun Construction Co.
Jim Sprague, Maloney + Novotny, LLC
Randy Strauss, Strauss Construction
Tom Lahetta, Tom Lahetta Builders, Inc.
2024 NAHB Delegate
This member represents our local industry in Washington DC
Tim King, K. Hovnanian Homes
NAHB Senior Life Delegate
Randy Strauss, Strauss Construction
Ohio’s State Rep. to NAHB
Randy Strauss, Strauss Construction
OHBA 2024 President
Enzo Perfetto, Enzoco Homes
OHBA Past President
Randy Strauss, 1996
2024 OHBA Trustees
Tim King, K. Hovnanian Homes
John Eavenson, Perpetual Development
OHBA Area 2 Vice-President
Ric Johnson, CAPS Builder & Right at Home Technologies
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Clambake Flyer
2025 NCBIA Home & Remodeling Show Flyer
- MEMBERS ONLY 49-50 -
Night at the Crushers Photo Gallery and Thank you Sponsors! 51 - NAHB Now: The 2024 2024 Energy Code Features More Flexibility for Builders
53-54NCBIA Hall of Fame Nomination Form
55-59Speedway/Fleetcor Flyers
Copies Training Room
Blueprint/Drawing
Contact Ashlyn Bellan-Caskey at ashlynncbia@gmail.com $10 each (plus shipping, if applicable) Your New Home
Design Services Warranty Books
Verizon Wireless
1. 22% off Verizon monthly access fees on Corporate liable lines. $34.99 or higher, 2 corporate lines required.*
2. For a limited time, save $5/month for a year on two UNLIMITED plans by Verizon Wireless: Business Unlimited Pro 5G and Business Unlimited Plus 5G.1
Verizon 5G Business Internet
1. 10-year price guarantee, one month free, and prices as low as $69/month.2 Restrictions apply.
Save the Date!
Want to be a sponsor for any of these events? Let us know! Sponsor early to get maximum exposure!
Call or email Judie at judie@ncbia.com for marketing opportunities to help your bottom line!
Wednesday, September 11, 2024
Executive Committee Meeting 3:30 - 5 PM
Board of Directors Meeting 5 - 6:30 PM
NCBIA Office
5321 Meadow Lane Court - B, Suite #23 Sheffield Village, OH
Saturday, September 14, 2024
Annual Softball Game & Family Picnic
2 - 5 PM
Amherst Township Park 44786 Middle Ridge Road, Amherst
Thursday, September 26, 2024
Member Mixer
5 - 7 PM
Hosted by Granite Works Stone Design 875 Crocker Road, Westlake
Saturday, October 12, 2024
2024 Annual Clambake
5:30 - 10 PM
Amherst Eagles 1161 Milan Ave, Amherst
Wednesday, October 16, 2024
October General Membership Meeting, Election Night and Associate Product Showcase
5 - 7 PM
Tom's Country Place 3442 Stoney Ridge Road, Avon
Thursday, November 7, 2024
Build PAC Wine Pairing Dinner
5 PM
Cole’s Public House 209 South Main Street, Amherst
Wednesday, November 13, 2024
Executive Committee Meeting 3:30 - 5 PM
Board of Directors Meeting 5 - 6:30 PM
NCBIA Office
5321 Meadow Lane Court - B, Suite #23 Sheffield Village, OH
Check the website at www.ncbia.com for up-to-date changes, additions, and corrections to these events!
Do you have some business news to share? Business anniversaries, accomplishments, awards, publications, etc.? Send to judie@ncbia.com. We want to hear from you!
SEPTEMBER IS Associate Appreciation Month
Since 1981, September has been designated as NAHB's Associate Member Appreciation Month — an annual celebration of Associate member contributions to the NAHB Federation and the home building industry. Designating September as Associate Appreciation Month is just one way of providing the much-deserved visibility and recognition to our invaluable Associate members.
The next time you come to an NCBIA event, look around at your fellow members. Most of them will be Associate members. Associates are essential to the home building industry and help enable our industry to provide Americans with the dream of home ownership.
Associate members are not only essential to our local association but to OHBA and NAHB as well, offering sponsorships, devoting countless hours at committee meetings, and volunteering at special events which strengthen our industry in the process. Most importantly, our associate members help broaden our perspective so that we can access issues more objectively in the context of our entire industry.
I urge all NCBIA members to get to know one another better, learn about each other’s businesses whenever possible, and to do business with other members. Our association is strong when members are strong and doing business with other members is a great way to strengthen the association while ensuring that the people you work with understand the issues and concerns that affect your day-to-day operations.
Associate members are invaluable to our businesses and an essential part of our proud history, tradition, and spirit. I would like to personally thank our associates!
Tim King, K. Hovnanian Homes
by Judie Docs, CSP, MCSP, MIRM, CMP, CGP
NCBIA BUILDER’S SHOW Calling All.....
Calling All Associate to Showcase Your Products Calling All Builders & Remodelers to Support Our Associates
It sounds like the NCBIA’s Builder’s Show during your October General Membership Meeting/Election Night is shaping up to be a fantastic event! This is an excellent opportunity for our associates to enhance their brand visibility and connect with our builders and remodelers. By providing a platform for networking and showcasing products and services will foster valuable relationships that can drive business growth.
The emphasis on personal interaction—moving from just a voice on the phone to a face-to-face meeting—is crucial in building trust and solidifying partnerships. Plus, sharing experiences and expertise within the industry can lead to innovative ideas and collaborative efforts that benefit everyone involved.
Encouraging a collaborative spirit with the message "we work best when we work together" is a great way to set the tone for the event. It seems like a must-attend for anyone involved in construction!
Associates contact me at judie@ncbia.com or call me 440-934-1090 for more information on this opportunity!
See Event Flyer on page 14.
EVENT SPONSOR
Member: $2000
Non-Member: $2500
Event Sponsors:
Everything on Supporting Sponsor list, PLUS radio interview, booth space, logo on staff t-shirts and all printed advertising, mention in radio advertisements and option to have your company’s banner hung at show entrance!
Saturday, March 15th 9-5 Sunday, March 16th 10-3
Spitzer Conference CenterLorain County Community College 1005 North Abbe Road, Elyria
My company would like to sponsor the 2025 NCBIA Home Show. (Please select below)
Event Sponsor($2000) Member Supporting Sponsor ($300)
Event Sponsor ($2500) Supporting Sponsor ($500)
SPONSOR INFORMATION
SPONSOR
Member: $300
Non-Member: $500
Includes: mention in radio ads, your logo in event program, Facebook event page, slideshow during event, option to put promotional items in swag bag, and recognition in BUILDER newsletter.
PAYMENT METHOD:
Please Indicate how you would like to pay for your sponsorship.
QUESTIONS? CONTACT THE NCBIA www.ncbia.com (440) 934-1090 judie@ncbia.com
Supporting Sponsors:
Bag Sponsor: ___Invoice ___Check Enclosed ___VISA/MC/AMEX/DISC* *If you select credit card, our office will call for your card information.
EYE ON HOUSING
THE RISE OF WHITE-COLLAR Jobs in Construction
Analysis of the history of data from the American Community Survey (ACS) reveals dramatic shifts in the makeup of the construction labor force over the last two decades. While the overall count of workers in the industry now approaches the historic highs of the housing boom of 2005-2006, the share of tradesmen declined from 71% in 2005 to under 61% in 2022. At the same time, the share of computer, engineering, and science occupations doubled, and the share of management and business occupations increased 60%.
The results are noteworthy, particularly given a recent focus on relatively flat productivity growth in the construction sector. A growing count of engineering/tech workers would, on its face, suggest a boost to productivity. However, a decline for the share of workers associated with the trades could suggest declining productivity. Indeed, more workers in management and business occupations could be another impact of the rising regulatory burden associated with building. These findings and possible impacts deserve additional research attention given the need to supply more attainable housing to the market.
As of 2022, the construction labor force exceeds 11.7 million, just slightly below the housing boom peak of 12 million. Construction trades (such as carpenters, electricians, painters, plumbers, laborers, as well as firstline supervisors) account for 7.1 million workers in the industry, or 60.7%. In contrast, there were 8.5 million construction tradesmen during the peak employment of 2006. The disappearance of more than a million craftsmen helps explain the persistent labor shortages reported by the NAHB/Wells Fargo Housing Market Index Survey.
Over the same period, the construction industry absorbed a rising number of white-collar workers. The management ranks expanded from 1.2 million to 1.9 million workers, and their share increased from 10% to 16%. Business and financial occupations grew at similar rates. The number of engineers, architects and other science occupations doubled; they now account for close to 2.7% of the industry workforce. In contrast, the share of computer, engineering and science occupations was just 1.3% in 2005.
Even though the prevalence of white-collar jobs in construction remains less common than in the US economy overall, their numbers and shares have been rising faster in construction since 2005. For example, while the share of computer, engineering, and science occupations doubled in construction, it increased only 40% in the overall US workforce. Similarly, whereas the management ranks increased 60% in construction, they grew at a slower rate for the US labor force and registered gains of 45% since 2005.
The rising presence of white-collar workers in construction undoubtedly reflects evolving production technologies, an enhanced regulatory environment and more stringent building codes. The changing makeup of the construction workforce also coincides with the declining rates of selfemployment in the industry and may reflect a shift towards larger construction firms. Larger building enterprises are better equipped to invest into new technologies and absorb higher overhead costs.
The labor force statistics reported in the post are tabulated using the historic ACS Public Use Microdata Sample (PUMS). The ACS statistics are most comprehensive as they include payroll workers, as well as self-employed. As the common practice dictates, the labor force estimates count employed and those unemployed workers who look for jobs.
SURPRISE LIFT FOR New Home Sales in July
Sales of new homes rose unexpectedly in July, following significant revisions in the previous months data.
Sales of newly built, single-family homes in July rose 10.6% to a 739,000 seasonally adjusted annual rate from significant upward revisions in June, according to newly released data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The pace of new home sales in July is up 5.6% from a year earlier. After the notably higher revisions for the May and June data, new home sales from January through July of 2024 are up 2.6% compared to the same period in 2023.
While mortgage rates moved lower in July, the Census estimated gains for new home sales do not match recent industry survey data including the NAHB/Wells Fargo Housing Market Index, which showed weakness in the current sales index. The Census estimate of new home sales is often volatile and subject to revisions, and it is possible that the July estimate for sales will be revised lower next month. NAHB is forecasting gradual improvements for the home building sector as the Fed eases monetary policy and mortgage interest rates trend lower.
A new home sale occurs when a sales contract is signed, or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction or completed. In addition to adjusting for seasonal effects, the July reading of 739,000 units is the number of homes that would sell if this pace continued for the next 12 months.
BY: ROBERT DIETZ
New single-family home inventory in July ticked lower to a level of 462,000, down 1.1% from the previous month. Only 16.7% of inventory available for purchase consists of completed, ready-to-occupy homes (102,000), although this inventory component is up 44% from a year ago.
The total new home inventory level represents a 7.5 months’ supply at the current building pace. While this reduced level of months’ supply is above the commonly used balance measure of 6, the measure of total home inventory is lower. Given a lean level of resale inventory, total home inventory (new and existing) is near 4.5, which remains low.
The median new home price was $429,800, up 3.1% compared to last month, and a 1.4% decrease from this time last year.
Regionally, on a year-to-date basis, new home sales are up 5.4% in the Northeast, 22.1% in the Midwest and 6.1% in the West. New home sales are down 2.4% in the South.
THANK YOU SPIKES!
SUPER SPIKE (250-499 SPIKE CREDITS)
Terry
Dave
Chris
GREEN SPIKE (50-99 SPIKE CREDITS)
Jim
Chris Mead Maloney & Novotny, LLC
Aaron Kalizewski ........ Grande Maison Construction....................
Jeremy Vorndran ......... 84 Lumber ....................................................
Liz Schneider Dollar Bank
Tim King K. Hovnanian Homes
LIFE SPIKE (25-49 SPIKE CREDITS)
Steve Schafer ................ Schafer Development .................................
John Daly ...................... Network Land Title ....................................
BLUE SPIKE (6-24 SPIKE CREDITS)
Mark McClaine 84 Lumber
John Toth Floor Coverings International 18.50
Chris Collins Carter Lumber
Dave LeHotan .............. All Construction Services ..........................
Ken Cassell ................... Cassell Construction...................................
John Blakeslee Blakeslee Excavating, Inc 11.50
Ashley Oates 84 Lumber 10.00
Scott Kosman Lakeland Glass 9.50
Mike Meszes DRC Construction 7.00
Tim Hinkle Green Quest Homes 6.50
Jim Tipple ..................... Maranatha Homes ...................................... 6.50
Lindsay Yost Bott......... Dale Yost Construction .............................. 6.00
Thanks for Renewing!
Colin Coyne, 84 Lumber
Victoria Caruso-Myers, Caruso Cabinets
Tom Eschthruth, Environmental & Renovation Services, Inc.
Bill Galik, Galik Building Company
Annette Gilgenbach, Gilgenbach & Sons Excavating, LLC
Mike Gidich, Honey Dudes Handyman Service
Joann Dosztal, JD Custom Designs, LLC
Sara Majzun, Majzun Construction Company
Joe Hart, North Coast Integrated Technologies
Rob Pietruszka, Progressive Poured Walls
Emilie Katcher, Ryan Homes
Nicholas Sommer, Ryan Homes
Mike Martin, Third Federal
Tim Hutman, Tim Hutman Home Renovations
Bob Kreimes, Bob Kreimes Construction
Allen Paul, North Star Builders
Scott Doane, North Star Builders
EYE ON HOUSING
EXISTING HOME SALES EDGE
Higher in July
Existing home sales increased for the first time in five months, according to the National Association of Realtors (NAR) , as improving inventory and declining mortgage rates motivated some buyers to act. Despite these changes, sales remained sluggish and low inventory continued to push up median home prices. However, we expect increased activity in the coming months as mortgage rates continue to moderate. Improving inventory is likely to ease home price growth and enhance affordability. Homeowners with lower mortgage rates have opted to stay put, avoiding trading existing mortgages for new ones with higher rates. This trend is driving home prices higher and holding back inventory. Mortgage rates are expected to continue to decrease gradually, leading to increased demand (and unlocking lock-in inventory) in the coming quarters. However, that decline is dependent on future inflation and job reports, and especially possible easing by the Federal Reserve.
Total existing home sales, including single-family homes, townhomes, condominiums, and co-ops, rose 1.3% to a seasonally adjusted annual rate of 3.95 million in July. This marks the first increase after four months of declines. On a year-over-year basis, sales were still 2.5% lower than a year ago.
The first-time buyer share stayed at 29% in July, identical to June but down from 30% in July 2023. The inventory level rose from 1.32 million in June to 1.33 million units in July and is up 19.8% from a year ago. At the current sales rate, July unsold inventory sits at a 4.0-months supply, down from 4.1-months last month but up from 3.3-months a year ago. This inventory level remains low compared to balanced market conditions (4.5 to 6 months’ supply) and illustrates the long-run need for more home construction.
However, the count of single-family resale homes available for sale is up almost 19.1% on a year-over-year basis. Homes stayed on the market for an average of 24 days in July, up from 22 days in June and 20 days in July 2023. The July all-cash sales share was 27% of transactions, down from 28% in June but up from 26% a year ago. Allcash buyers are less affected by changes in interest rates. The July median sales price of all existing homes was $422,600, up 4.2% from last year. This marked the 13th consecutive month of year-over-year increases. The median condominium/co-op price in July was up 2.7% from a year ago at $367,500. This rate of price growth will slow as inventory increases.
Existing home sales in July were mixed across the four major regions. In the Northeast, South, and West, sales increased by 4.3%, 1.1%, and 1.4%, respectively, while sales in the Midwest remained unchanged. On a year-over-year basis, sales rose in the Northeast (2.1%) and West (1.4%) but fell in the Midwest (-5.2%) and South (-3.8%).
The Pending Home Sales Index (PHSI) is a forward-looking indicator based on signed contracts. The PHSI rose from 70.9 to 74.3 in June as inventory improved. On a year-overyear basis, pending sales were 2.6% lower than a year ago per NAR data.
TWO DAY SHOW!!!!!
EXHIBITOR CONTRACT
Company Name (as it will appear in show) __________________________________________
Contact Person (print) _________________________________________________________
Booth spaces are LIMITED and available on a 1st Come, 1st Served Basis! 2024 SOLD OUT - Act now to secure your booth!
BOOTH INFORMATION
Electric is optional and available on a 1st Come, 1st Served Basis!
Will you need electricity? _______ YES _______ NO ______# of Booth Spaces ____________TOTAL AMOUNT DUE
I understand that I have contracted for exhibit space by signing this contract and I am liable for the full cost of the booth space. I also understand that the final location of space will be determined by show management when payment is made in full. The undersigned represents that he/she is fully authorized to execute and complete this agreement. The undersigned also understands and agrees to the rules and regulations on the reverse side of this contract.
Authorized Exhibitor Signature
PAYMENT METHOD:
Please Indicate how you would like to pay for your booth space.
Printed Name ___Invoice ___Check Enclosed ___VISA/MC/AMEX/DISC*
*If you select credit card, our office will call for your card information.
Please send completed form to Judie@ncbia.com or 5321 Meadow Lane Court - B, Suite 23 Sheffield Village, OH 44035
Event Sponsors: **A $5.00 Convenience Fee will be charged for all Credit Card Payments
RULES AND REGULATIONS GOVERNING EXHIBITS
MANAGEMENT: The North Coast Building Industry Association (NCBIA) shall be deemed Event Management and shall have all rights thereto assigned. (From here on the North Coast Building Industry Association will be referred to as NCBIA).
CHARACTER OF EXHIBITS: NCBIA reserves the right to approve all exhibits. The exhibits and the distribution of promotional material shall be limited to the confines of the Exhibitor’s space. Under no circumstances shall any Exhibitor be permitted to attract attention to his/her exhibit in such a way as to distract or interfere with the other exhibitors.
REGISTRATION: Exhibitors and their employees at the Event should wear a registration badge and/or tag for proper identification.
SET UP/REMOVAL OF EXHIBITS: All exhibits must be placed and ready at the opening of the show and no movement of exhibits will be permitted until after the close of the show. Exhibits must remain intact until after closing of the show and be removed within such time as may be specified by the NCBIA. Strict compliance with move in and move out times is mandatory. A fine for late move in and/or early move out will be assessed at the discretion of the NCBIA.
RAFFLES: Exhibitors are encouraged to conduct games, lotteries and/or similar activities to increase patron participation, so long as it does not interfere with the other exhibitors.
CARE OF EXHIBITS/AISLES: Aisles must be kept clear at all times. Seating for buyers must be confined within the exhibitor’s space. Exhibitors are requested at all times to cooperate with the NCBIA in maintaining all exhibits in appropriate condition.
*In the event that the Exhibitor does not exhibit as provided herein or fails to comply in any respect with the terms of this agreement, the NCBIA management shall have the right without notice to the Exhibitor, to license the use of said space to any other company, enterprise, person or persons and the Exhibitor agrees to pay any deficiency, loss and/or damage sustained by the NCBIA as a consequence of such failure to occupy space as provided in this agreement. In addition, it is agreed that should the NCBIA be unable to license the use of said space as herein provided, it shall have the right to occupy said space for its own purposes without prejudice to its rights against Exhibitor pursuant to this agreement, including but not limited to the payment of a license fee.
*Exhibitor will not sub license any part of the space herein provided for without the express written consent of the NCBIA. In the event the exhibit premises are destroyed or rendered unavailable for any reason whatsoever (whether before or during the scheduled exhibition), the rights of the Exhibitor under this agreement shall be limited to a pro-rated refund of the amount paid for the space licensed.
DIRECT SALES: All direct sales vendors must make the payment for their space in full at the time of registration.
REFRESHMENTS: No sample food and/or beverage products may be distributed by exhibitors except upon written authorization of the NCBIA.
COMPLIANCE WITH LAWS: Exhibitors must comply with all federal, state and local laws, regulations and rules that may be in force during the exhibit.
INSURANCE: Exhibitors who desire insurance on their exhibits must procure same at their own expense. The NCBIA will not be responsible for any losses incurred by the Exhibitor or its employees because of theft, damage or for any cause whatsoever nor to any property of employee(s) or Exhibitor(s) while en route to or from exhibit. The Exhibitor agrees to make no claim for any reason whatsoever, including negligence, against the NCBIA or NCBIA management, its agents or employees while in the show quarters. Exhibitor agrees to indemnify and hold harmless the NCBIA against any loss, damage or expense (including reasonable attorney’s fees) act or omission of Exhibitor or its agents connected in any way with its exhibits.
DECORATIONS, SIGNS, ETC: All equipment in conjunction with the exhibit must be provided by the Exhibitor. However, only the sign of the firm covered by the Exhibitor’s agreement may be placed in the booth or upon printed list of exhibitors or program. All decorations must conform to fire regulations. No exhibit is permitted that is more than eight feet high, or that obstructs other exhibits due to its design or size or that presents a safety hazard to other exhibitors and/or attendees.
PAYMENT DEFAULT: Payment must be made prior to event set up.
REFUND POLICY: A partial refund will only be given with a minimum of 45 days notice prior to the event. The NCBIA retains the right to use their own discretion when deeming the reason for refund as a viable one to determine whether refund shall be granted.
*The NCBIA shall have the right to make such rules and regulations in connection with the Exhibition as it may deem proper and may amend them at any time, and the NCBIA shall have the full power in the matter of interpretation and enforcement thereof. The rules and regulations heretofore referred to are printed on this agreement and are incorporated herein by reference. Exhibitor agrees to abide by said rules and regulations.
*It is agreed that this instrument is a license, and not a lease, and that no leasehold or tenancy is intended to be or shall be created hereby.
*This agreement cannot be varied, modified or canceled by the Exhibitor without the express written consent of the NCBIA.
*IN WITNESS THEREOF, the Exhibitor has caused this application and agreement to be executed by authorized representative.
BEST QUARTER FOR CUSTOM HOME Building in Almost Two Years
NAHB's analysis of Census Data from the Quarterly Starts and Completions by Purpose and Design survey indicates gains for custom home building after some recent slowing. Custom home building typically involves home buyers less sensitive to changes for interest rates.
There were 52,000 total custom building starts during the second quarter of 2024. This marks an almost 6% increase compared to the second quarter of 2023 and the best reading since the third quarter of 2022. Over the last four quarters, custom housing starts totaled 180,000 homes, a 5% decline compared to the prior four quarter total (189,000) due to
weakness in prior quarters. After share declines due to a rise in spec building in the wake of the pandemic, the market share for custom homes increased until 2023 and then entered a period of retrenchment. As measured on a one-year moving average, the market share of custom home building, in terms of total single-family starts, has fallen back to just under 18%. This is down from a prior cycle peak of 31.5% set during the second quarter of 2009 and a 21% local peak rate at the beginning of 2023.
Note that this definition of custom home building does not include homes intended for sale, so the analysis in this post uses a narrow definition of the sector. It represents home construction undertaken on a contract basis for which the builder does not hold tax basis in the structure during construction.
BY: ROBERT DIETZ
IMAGINE THE POSSIBILITIES
There has never been a better time to be a Carter Lumber customer in the Cleveland/Akron area. We now have even more resources to provide our customers with quality materials and exceptional service. We’re more than just a lumberyard!
Contact your nearest store location to see how having Carter Lumber as a part of your team can help you grow your business and your bottom line.
WAITING FOR FED Interest Rate Cuts
The residential construction industry is in a holding pattern until the Federal Reserve moves forward with interest rate reductions. However, this monetary policy move now appears to be firmly in view, as economic data continue to soften. Inflation readings are moderating after an unexpected uptick during the first half of the year. And the bond market is investing as if the first-rate reduction will arrive at the Fed’s September meeting, with a series of further reductions through the end of 2025.
With macro data slowing but reasonably solid, inflation expectations anchored, and short-term rates likely to fall, the 10-year Treasury rate has fallen back to around 3.8%. This is down almost 100 basis points from late April. Mortgage rates have moved lower as well, averaging approximately 6.5% last week, per Freddie Mac — the lowest reading in a year. Consumer inflation is also slowing, with a 2.9% year-over-year estimate for the Consumer Price Index in July. However, shelter inflation continues to be the last leg of the inflation fights, with housing costs up 5.1% year-over-year. Shelter inflation has been responsible for 70% of the overall rise in consumer costs over the last 12 months. And like other sectors, these costs are up because of underlying business cost growth. For example, residential construction material costs rose 2% year over year in July — the sixth straight month with that rate of growth. Meanwhile, residential construction wages were up 9% year over year.
Despite the outlook for lower interest rates, current housing data have been weak because of the lagging effects of prior elevated interest rates and ongoing price and cost growth. Single-family housing starts decreased 14.1% in July to an 851,000 seasonally adjusted annual rate. Nonetheless, on a year-to-date basis, single-family starts are up 11.4% for the first half of 2024. The July drop for single-family home building mirrors recent softening for the NAHB/Wells Fargo Housing Market Index (HMI), which dipped another two points in August to a weak reading of 39. The HMI should improve as the Fed provides more details about the eventual reduction of short-term interest rates.
BY: DR. ROBERT DIETZ
In the meantime, elevated short-term interest rates are holding back the acquisition, development, and construction (AD&C) loan market for private builders. Average effective interest rates increased for three of the four categories of NAHB's second quarter AD&C financing survey. For the quarter, the average effective interest rate increased from 11.09% to 12.22% on loans for land acquisition, from 13.35% to 14.32% on loans for speculative single-family construction, and from 12.95% to 13.08% on loans for presold single-family construction.
Multifamily construction of apartment buildings and condos increased 14.5% to an annualized 387,000 pace in July. Because the monthly multifamily data are volatile, the year-to-date data are more instructive. Multifamily 5-plus unit construction is down 35% thus far in 2024 due to tight financing and an ongoing rise of completed apartments. This weakness is consistent with NAHB's Multifamily Production Index, which had a second quarter reading of just 44, marking a year-over-year decrease of 12 points. Multifamily developers are less optimistic than they were at this time last year, given high interest rates and tight financing conditions.
Members of our local association are automatically NAHB members, which means that you and your employees are eligible to access incredible September deals to register for the 2025 NAHB International Builders’ Show® (IBS).
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TWO DAY SHOW!!!!!
EXHIBITOR CONTRACT
Company Name (as it will appear in show) __________________________________________
Contact Person (print) _________________________________________________________ Cell # _______________________________________________________________________
Booth spaces are LIMITED and available on a 1st Come, 1st Served Basis! 2024 SOLD OUT - Act now to secure your booth!
BOOTH INFORMATION
Electric is optional and available on a 1st Come, 1st Served Basis!
Will you need electricity? _______ YES _______ NO ______# of Booth Spaces ____________TOTAL AMOUNT DUE
I understand that I have contracted for exhibit space by signing this contract and I am liable for the full cost of the booth space. I also understand that the final location of space will be determined by show management when payment is made in full. The undersigned represents that he/she is fully authorized to execute and complete this agreement. The undersigned also understands and agrees to the rules and regulations on the reverse side of this contract.
Authorized Exhibitor Signature
PAYMENT METHOD:
Please Indicate how you would like to pay for your booth space.
Printed Name ___Invoice ___Check Enclosed ___VISA/MC/AMEX/DISC*
*If you select credit card, our office will call for your card information.
Please send completed form to Judie@ncbia.com or 5321 Meadow Lane Court - B, Suite 23 Sheffield Village, OH 44035
Event Sponsors: **A $5.00 Convenience Fee will be charged for all Credit Card Payments
Night At the Crushers
Thursday, August 22nd 6:30 PM
THE 2024 ENERGY CODE FEATURES More Flexibility for Builders
The International Code Council (ICC) published the 2024 International Energy Conservation Code (IECC) on Aug. 14. The IECC is a model code that sets minimum requirements for energy efficiency for residential and commercial buildings. It is the most adopted energy code in the country and is recognized as the national model energy code for low-rise residential buildings in federal law.
ICC publishes a new edition every three years for states and municipalities to adopt, amend and enforce in their jurisdictions. The residential provisions of the IECC also provide the basis for International Residential Code (IRC) Chapter 11 Energy Efficiency. Read-only versions of the 2024 IECC and the 2024 IRC Chapter 11 are available online for free, and full access versions are available for ICC Digital Codes subscribers. PDF downloads and physical codebooks will be available soon in the ICC online store.
The publication of the 2024 IECC completes a three-year code de velopment cycle unlike any other before it.
In March 2021, the ICC Board of Directors voted to develop the 2024 IECC through a standards development process separate from the governmental consensus process it uses to develop most of the other I-Codes, including the International Building Code and International Residential Code.
Several NAHB members and staff actively participated on the committees and subcommittees tasked with developing the 2024 IECC — devoting significant time and effort to ensure the code includes solutions that:
• Prioritize cost-effectiveness and consumer benefits
• Maximize design choices for builders
• Can be practically implemented in the field
The U.S. Department of Energy will issue a determination in the next 12 months (or sooner) estimating the energy savings of the 2024 edition compared to the previous edition, the 2021 IECC. The residential provisions — covering one- and two-family homes and multifamily dwellings up to three stories — are expected to be about 7% more efficient. The commercial provisions — covering buildings four stories and higher — are expected to be about 10% more efficient.
• Although the 2024 IECC will achieve incrementally higher energy savings than the 2021 edition, the residential provisions will offer substantially more flexibility and a wider range of options for builders to achieve compliance. Among the most significant changes to the residential provision s:
• Ceiling insulation requirements are returning to levels from the 2018 IECC, and additional design flexibility is included for wall insulation in Climate Zones 4 and 5.
• The prescriptive compliance path will require additional efficiency practices from a list of dozens of measures with assigned credits.
• The performance compliance path has been updated and expanded to allow once again for equipment trade-offs and to recognize duct location.
• The Energy Rating Index (ERI) compliance path has been updated to improve its usability.
• Provisions for existing buildings have also been substantially updated.
• The 2024 IECC will also include appendices (which states and municipalities can choose to adopt to be part of the mandatory requirements in their jurisdiction) developed to address state and local goals for electrification and even higher levels of performance, including options to achieve zero net energy in residential and commercial buildings.
NAHB is offering resources as part of its 2024 IECC Residential Code Adoption Kit to help builders and state and local HBAs navigate the new model energy code requirements, including :
• A summary of significant changes to the 2024 IECC residential provisions
• A list of recommended amendments to the 2024 IECC to improve cost-effectiveness supported with substantiating information
• A cost evaluation of the 2024 IECC code changes is being conducted by Home Innovation Research Labs and is expected to be available in December 2024.
The 2024 IECC includes a number of new voluntary appendices that states and municipalities can choose to adopt in their jurisdiction, including:
• Electric vehicle (EV)-ready provisions for charging infrastruct ure in residential buildings (Appendix RE)
• Electric-ready provisions for specific appliances (cooking, clothes drying and water heating) in residential buildings (Appendix RK)
• Solar-ready provisions in residential buildings (Appendix RL)
• Electrical energy storage system (ESS)-ready provisions in commercial buildings, including multifamily buildings four stories or higher (Appendix CJ)
NCBIA Hall of Fame Members
Terry Goode Inaugural Class 2001
Bucky Kopf Inaugural Class 2001 Robert Nickoloff Inaugural Class 2001 Ernie Parsons Inaugural Class 2001
Calvin Smith Inaugural Class 2001 Dan Strauss Inaugural Class 2001 Randy Strauss Inaugural Class 2001
Inaugural Class 2001
Hall of
FAME
North Coast Building Industry Association Hall of Fame Nominating Form
The NCBIA Hall of Fame was established to honor individuals who have made a lasting contribution to the housing industry through their work in building and development, public service and housing-related areas. To nominate an individual for Hall of Fame induction, you must be a member of the NCBIA in good standing, complete this form on both sides and return it to the NCBIA office by November 29, 2024.
Hall of Fame Candidate Name:
Title:
Company Name:
Address:
City/State/Zip: Phone
Nomination Submitted by:
Company: Phone
Dale Yost
Jim Schmidt Class of 2002
Robert Yost Class of 2002
Chris Majzun Class of 2003
Bill Perritt Class of 2003
Mick Mackert Class of 2004
John Sarnovsky Class of 2004
Chris S. Majzun, Jr. Class of 2004
Gene Henes Class of 2004
Andy Kerchmar Class of 2005
LeRoy Forthofer Class of 2006
Ray Yunker Class of 2006
Larry Franklin Class of 2005
Mary Felton Class of 2009
Linda Kacher Class of 2009
Joe Scaletta Class of 2010
Rich Smothers Class of 2010
Jeff Hensley Class of 2020
Jeremy Vorndran Class of 2020
Jim Sprague Class of 2021
Terry Bennett Class of 2021
Tom Caruso Class of 2022
Liz Schneider Class of 2022
Dave Linna Sr. Class of 2023
Jack Kousma Class of 2023
NCBIA Hall of Fame Nominating Form (continued)
If you want to check on the criteria for your nominee, please contact the NCBIA office at (440) 934-1090.
Hall of Fame Core Criteria
- At least ten (10) years of NCBIA membership
- Served on committee(s) and/or councils during the time of membership for a total of seven (7) years
- Chaired one (1) committee and/or council- or - Served as President
- At least five (5) years as a board member
- Must have achieved Life Spike Status
- Involvement defined as something that takes a time commitment (not just a monetary one)
- Speaking engagements, home show participation, LCJVS or EHOVE liaison, use of logo in advertising, etc.
Other Criteria Considered
~OHBA and/or NAHB involvement
~Sponsorships (e.g. sponsorship program or event sponsorships)
~Task Force Involvement
~Special Stories/Circumstances
~Awards received (NCBIA & others)
~Complaints or lack thereof (NCBIA records will be checked for compliance)
List any OHBA and/or NAHB involvement
Use additional sheets as needed and please type information when possible.
Member from to .
List committees, councils &/or task forces that nominee has served on and indicate chair positions as they apply. year year committee/council/task force name
List NCBIA offices held office/directorship
Industry & Community Involvement
Awards Received (NCBIA and others)
Special Stories or Circumstances that are pertinent
Summary Statement: I believe that should be named to the NCBIA Hall of Fame because...
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