NCBIA September 2023 BUILDER Newsletter

IMAGINE THE POSSIBILITIES

There

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).

NCBIA Office

5077 Waterford Dr. Suite 302 Sheffield Village, OH 44035 Phone: 440.934.1090

info@ncbia.com | www.ncbia.com

NCBIA Staff Executive Officer

Judie Docs | judie@ncbia.com

Executive Assistant

LaBreeska Bellan | labreeskancbia@gmail.com

Marketing Associate

Ashlyn Bellan | ashlynncbia@gmail.com

2023 NCBIA Officers President

Tim King, K. Hovnanian Homes - Ohio Division Vice President

Mike Meszes, DRC Construction Co.

Associate Vice President

John Toth, Floor Coverings International Treasurer

Melanie Stock, First Federal Savings of Lorain Secretary

Mike Gidich, Honey Dudes Handyman Service

Immediate Past President

Sara Majzun, Majzun Construction Co.

2023 NCBIA Board of Directors

Sam Hudspath, All Construction Services

Kevin Walker, Walker Wealth Managements + Great Lakes Properties & Investments

Dave Linna, Linna Homes & Remodeling

Jason Rodriguez, The S.J.R Building Co.

Jon Sherer, Paraprin Construction

Brian Schwab, RestorePro, Inc.

Dave Weisenberger, Tusing Builders & Roofing Services

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.

NCBIA Life Directors

Bob Yost, Dale Yost Construction

Chris Majzun Jr., Majzun Construction Co.

Chris Majzun Sr., Majzun Construction Co.

Jack Kousma, Kousma Insulation

Jeff Hensley, Lake Star Building & Remodeling

Jeremy Vorndran, 84 Lumber

Jim Sprague, Maloney + Novotny, LLC

Liz Schneider Dollar Bank

Mary H. Felton, Guardian Title

Randy Strauss, Strauss Construction

Tom Caruso, Caruso Cabinets

Tom Lahetta, Tom Lahetta Builders, Inc.

2023 NAHB Delegates

These are our members who represent our local industry in Washington DC and Columbus:

Randy Strauss, Strauss Construction

Jason Rodriguez, The S.J.R Building Co.

NAHB Senior Life Delegate

Randy Strauss, Strauss Construction

Ohio’s State Rep. to NAHB

Randy Strauss, Strauss Construction

OHBA 2023 President

Richard Bancroft, Bancroft Development

OHBA Past Presidents

Randy Strauss, 1996

2023 OHBA Trustees

Tim King, K. Hovnanian Homes - Ohio Division

Sara Majzun, Majzun Construction Co.

Mary Felton, Guardian Title (alternate)

2023 OHBA Executive Committee Appointees

Sara Majzun, Majzun Construction (Membership)

Judie Docs, NCBIA (Executive Officers Committee)

OHBA Area 2 Vice-President

Ric Johnson, CAPS Builder & Right at Home Technologies

T-SHIRT SPONSOR

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NEED

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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!!!!!

Thursday, September 28th

BUILDPAC Wine Pairing Fundraiser Dinner

5-7 PM

Cole's Public House 209 S. Main Street Amherst, OH 44001

Saturday, October 14th

Clambake & Reverse Raffle

5:30-10 PM

Amherst Eagles

1161 Milan Avenue, Amherst Amherst, OH 44001

Wednesday, October 18th

General Membership Meeting & Election Night

5-7 PM

Tom's Country Place

3443 Stoney Ridge Road Avon, OH 44011

Thursday, November 9th

Building Relationships & Value Through Education

8:15 AM - 3:00 PM

Lorain County Community College

1005 N. Abbe Road SP114 Elyria, OH 44035

If you would like to participate in a committee, please email Judie Docs at judiencbia@gmail.com.

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!

NCBIA PRIMARY MEMBERS!!!

Nominations are now being accepted for the NCBIA Board of Directors that need to be filled. Four 3-year directors are available (commitment beginning January 2024). Those considering a position should be able to attend all Board meetings that are held the second Wednesday of every other month at 5PM (subject to change if a conflict arises).

Please email Executive Officer, Judie Docs at judie@ncbia.com

SEPTEMBER IS Associate Member Month!

The next time you come to a NCBIAevent, look around at your fellow members. Most of them will be associate members. These members are essential to the home building process and help enable our industry to provide Americans with an unrivaled selection of quality homes. Our associate members are subcontractors, sales and marketing specialists, title and settlement experts, lawyers, people in the financial services industry, product suppliers and manufacturers,andmanymorewhoarevitaltothechallengingtaskofproviding housing for a growing population.

Associate members are also essential to the NCBIA, OHBA and NAHB, offering sponsorships, devoting countless hours at committee meetings and volunteering at special events, and strengthening 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 individual 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

ONE GREAT NAHB Association Management Conference (AMC)

The staff and I had an exceptionally positive and enriching experience at this year’s NAHB AMC. It was great that we were all able to go since this year’s conference was in Cincinnati and we received a scholarship to attend. There are a variety of sessions scheduled during the same time, so we were able to divide and conquer as much as possible.

by Judie Docs, CSP, MCSP, MIRM, CMP, CGP

All the sessions attended had presenters who were very knowledgeable and engaging. New and innovative ways to engage our members and strengthen our association, in our new virtual, in-person and hybrid world and the ability to keep up with industry changes. All sessions gave me a renewed insight on how I can be a better Executive Officer and leader, and staff can better assist. Some things learned can be used immediately, which should have positive results. We learned new strategies on how to better represent our association and express our passion to others. Additionally, the focus on self-improvement sessions to enhance both personal and professional lives was great. The recognition that many associations face similar challenges and the opportunities to learn from others’ experiences is invaluable. Collaborating and sharing ideas with peers from across the country can certainly lead to innovative solutions and improvements in serving our members.

Some of the sessions attended were: How to Speak the Language of Leadership, Build Your Association Through Better Decision Making, Annual Sponsorship Programs, How to Track Legislation & Educate Local Officials, How to Create a High-Performance Culture of Growth, Big Benefits for Small Associations, Elevating Engagement, Social Media, Out of the Frying Pan – Diagnosing, Curing & Preventing Burnout, Partnerships with Local Schools, Attracting & Engaging Members in the Age of Distractions, Managing Your Energy Not Your Time, Benchmarking the HBA, Control the Chaos – Renew, Reenergize & Reclaim Your Energy, It’s Not Personal, It’s Generational, It’s Not What You Say, but How You Say It! – Next Level Communication, New Year, New Leadership, Now What? And last but not least…How to Make Difficult People Disappear…Without Breaking the Law.

There was also breakfast with Chief Officers and a State of Affairs Lunch with NAHB CEO, Jim Tobin and NAHB Chief Economist, Dr. Robert Dietz.

Meeting some new NAHB staff and getting to know other EO’s and their staff is a great resource to help our members more efficiently and effectively. There is so much that NAHB has to offer and relaying these valuable tools to help our members will increase awareness of what a great association and industry we truly have.

Overall, our experience underscores the importance of conferences in facilitating learning, networking, and the exchange of ideas within our great industry. Staff and I are committed to using the valuable insights and ideas to benefit the NCBIA.

DEAR VALUED NCBIA Member,

We hope this message finds you well and thriving in your professional endeavors. At the NCBIA, your success is our top priority, and we are committed to delivering exceptional value to you, our esteemed members.

Membership Dues Adjustment - Effective 1/1/2024: In order to maintain our upward trajectory and continue providing you with valuable benefits, we find it necessary to adjust our membership dues. We understand that any increase may raise questions or concerns and we want to assure you that your investment in the NCBIA remains a sound one.

1.Supporting Industry Associations: It's essential to clarify that the NCBIA is not just a local chapter; we are part of a larger family. A portion of your annual dues is directed to both the Ohio Home Builders Association (OHBA) and the National Association of Home Builders (NAHB). This ensures that your support extends beyond our local community to strengthen the industry nationwide.

2.OHBA Dues Increase: We want to be transparent with you. The OHBA has recently raised their annual dues for local association members. We want to emphasize that not all of the dues increase is directed to the NCBIA; we are committed to allocating your contributions responsibly.

3.Fiscal Responsibilities: Rest assured, we are conservative stewards of the NCBIA. We understand that the value of your investment extends beyond just the benefits you receive, and we remain dedicated to ensuring your dues are used effectively to benefit you and the industry.

4.Industry Advocacy: While our focus is on member benefits, we also recognize the importance of supporting the industry that enables the American Dream. Our members are the warriors in the fight to drive progress and success in our field. Together, we can continue to make a positive impact and achieve great results.

5.Member Input and Engagement: Your input in invaluable to us. We emphasize member engagement because we genuinely value your opinions and ideas. Your feedback guides our decisions and helps shape the direction of our association. We encourage you to actively participate and share your suggestions to make the NCBIA stronger and more responsive to your needs.

Your understanding and continued support mean the world to us. Together we can ensure that our association thrives and prospers, benefiting both you and our industry as a whole.

Thank you once again for your dedication to the NCBIA. Your membership is the foundation upon which our success is built, and we look forward to continuing this journey together.

INFLATION ACCELERATES for Second Straight Month

BY: FAN-YU KUO

Consumer prices in August saw the largest monthly gain since June 2022, primarily driven by a surge in gasoline costs. Core service inflation excluding housing was little changed in August, suggesting that the path toward disinflation ahead still has some fluctuations. Meanwhile, shelter costs continued to remain at a high level and was the second-largest contributor to the increase in inflation. The Fed’s ability to address rising housing costs is limited as shelter cost increases are driven by a lack of affordable supply and increasing development costs. Additional housing supply is the primary solution to tame housing inflation. The Fed’s tools for promoting housing supply are at best limited. In fact, further tightening of monetary policy will hurt housing supply by increasing the cost of AD&C TIT financing. This can be seen on the graph below, as shelter costs continue to rise despite Fed policy tightening. Nonetheless, the NAHB forecast expects to see shelter costs decline further later in 2023, supported by real-time data from private data providers that indicate a cooling in rent growth.

In August, the indexes for gasoline (+10.6%) and shelter (+0.3%) were the largest contributors to the increase in the headline CPI. Meanwhile, the indexes for lodging away from home (-3.0%), used car and trucks (-1.2%) as well as recreation (-0.2%) declined in August.

The index for shelter, which makes up more than 40% of the “core” CPI, rose by 0.3% in August, following an increase of 0.4% in July. The indexes for owners’ equivalent rent (OER) increased by 0.4% and rent of primary residence (RPR) increased by 0.5% over the month. Monthly increases in OER have averaged 0.5% over the last eight months. These gains have been the largest contributors to headline inflation in recent months.

During the past twelve months, on a not seasonally adjusted basis, the CPI rose by 3.7% in August, following a 3.2% increase in July. The “core” CPI increased by 4.3% over the past twelve months, following a 4.7% increase in July. This was the slowest annual gain since October 2021. The food index rose by 4.3% while the energy index fell by 3.6% over the past twelve months.

NAHB constructs a “real” rent index to indicate whether inflation in rents is faster or slower than overall inflation. It provides insight into the supply and demand conditions for rental housing. When inflation in rents is rising faster (slower) than overall inflation, the real rent index rises (declines). The real rent index is calculated by dividing the price index for rent by the core CPI (to exclude the volatile food and energy components). The Real Rent Index rose by 0.2% in August.

The Bureau of Labor Statistics (BLS) reported that the Consumer Price Index (CPI) rose by 0.6% in August on a seasonally adjusted basis, following an increase of 0.2% in July. The price index for a broad set of energy sources rose by 5.6% in August as all the major energy component indexes increased. Excluding the volatile food and energy components, the “core” CPI rose by 0.3% in August, following an increase of 0.2% in July. Meanwhile, the food index increased by 0.2% in August with the food at home index rising 0.2%

2023MEMBER

HOUSEHOLD REAL ESTATE VALUE Jumps in the Second Quarter

BY: JESSE WADE

The second quarter of 2023 release of the Z.1 Financial Accounts of the United States indicates that the market value of households’ real estate assets increased over the quarter. Low existing for-sale inventory helped to increase real estate value after falling for three consecutive quarters.

The level of households’ real estate assets increased by $2.43 trillion from $42.07 trillion in the first quarter of 2023 to $44.50 trillion in the second quarter of 2023, a 5.78% increase. This was the first quarter-over-quarter increase since the second quarter of 2022. The market value of owner-occupied real estate decreased 0.14% on a yearover-year basis from $44.56 trillion a year ago. This marked two consecutive quarters of year-over-year declines in the market value of real estate assets, the first occurrence since the second quarter of 2012.

Real estate secured liabilities of households’ balance sheets, i.e., mortgages, home equity loans, and HELOCs, increased over the second quarter from $12.76 trillion to $12.85 trillion, a 0.71% quarterly increase. Year-over-year, real estate liabilities have increased 4.14% from $12.34 trillion in the second quarter of 2022. The year-over-year growth of real estate liabilities has fallen from 9.96% in the first quarter of 2022 but remains positive.

Aggregate owners’ equity (i.e., the difference between homeowners’ real estate assets and liabilities) rose from $29.31 trillion to $31.65 trillion, representing 71.12% of all owner-occupied household real estate.

WHEREAS, a sense of caring and desire to strengthen the industry have motivated thousands of Associate members to volunteer their time and services to the needs of the North Coast Building Industry Association; and

WHEREAS, our Associate members possess many skills and talents which they generously and enthusiastically apply to a variety of association tasks; and

WHEREAS, all members of this association and the community benefit from the deeds of these selfless and dedicated individuals; and

WHEREAS, the achievements of Associate members have become an essential part of the association’s proud history, tradition, and spirit;

NOW, THEREFORE, I wish to honor the Associate members of the North Coast Building Industry Association who give so freely of their valuable time, energy, and abilities by proclaiming the month of September to be officially designated as Associate Member Appreciation Month.

I call upon all members to recognize this special period by appreciating and extolling the goodness of the Associate members and by following their shining example.

SPONSORSHIP PACKAGES AVAILABLE FOR 2024

Event Sponsors:

Saturday, February 24th 9-5

February 25th 10-3

Emerald Event Center

My company would like to sponsor the 2024 NCBIA Home Show. (Please select below)

Member Event Sponsor($2000)

Supporting Sponsor ($300)

EVENT SPONSOR

Member: $2000

Non-Member: $2500

SUPPORTING SPONSOR

Member: $300

Non-Member: $500

Everything on Supporting Sponsor list, PLUS radio interview, booth space, logo on staff t-shirts and all printed advertising, mention in radio advertisements, option to have your company’s banner hung at show entrance and studio quality videos to promote your business!

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. Lunch is provided for ALL sponsors!

Non-Member

Sponsor ($500)

SPONSOR INFORMATION

PAYMENT METHOD:

Please Indicate how you would like to pay for your sponsorship.

*If you select credit card, our office will call for your card information.

Supporting Sponsors:

Bag Sponsor:

PLEASE EMAIL COMPLETED FORM BY MONDAY, SEPTEMBER 18 TO JUDIENCBIA@GMAIL COM OR CALL 440 934 1090

PLEASE NOTE: A PERSONAL CHECK OR PERSONAL CREDIT CARD IS REQUIRED FOR THE BUILDPAC DONATION OF $25/PER PERSON ATTENDEE NAMES

NAME:

NAME:

CREDIT CARD #:

NAME ON CARD:

EMAIL:

NAME:

NAME:

IS THIS A PERSONAL CREDIT CARD? Y N

EXP DATE: SEC CODE: ZIP

PERSONAL CREDIT CARD INFORMATION

CREDIT CARD #:

NAME ON CARD:

EMAIL:

EXP DATE: SEC CODE ZIP CODE

A RESERVATION MADE IS A RESERVATION PAID

MORTGAGE ACTIVITY LOW AS RATES Remain Above Seven Percent

Per the Mortgage Bankers Association’s (MBA) survey through the week ending September 8th, total mortgage activity decreased 0.8% from the previous week and the average 30year fixed-rate mortgage (FRM) rate rose six basis points to 7.27%. The FRM rate has remained above 7% since the start of August.

The Market Composite Index, a measure of mortgage loan application volume, fell by 0.8% on a seasonally adjusted (SA) basis from one week earlier. Purchasing activity increased 1.3%, while refinancing activity decreased 5.4% week-over-week.

BY: JESSE WADE

Interest rates remained above seven percent for the sixth consecutive week. The combination of higher rates and low existing for-sale inventory have hampered potential buyers as the purchase index remained historically low. The seasonally adjusted purchase index was 27.5% lower than one year ago while the seasonally adjusted refinancing index was 31.1% lower than one year ago.

The refinance share of mortgage activity fell from 30.0% to 29.1% over the week, while the adjustable-rate mortgage (ARM) share of activity rose to 7.5% from 6.7%. The average loan size for purchases was $410,900 at the start of September, down from $413,600 over the month of August. The average loan size for refinancing decreased from $255,900 over the month of August to $255,400. The average loan size for an ARM was up at start of September to $833,000 while the average loan size for a FRM fell to $329,200.

Company Name (as it will appear in show)

Booth spaces are LIMITED and available on a 1st Come, 1st Served Basis! 2023 SOLD OUT - Act now to secure your booth!

BOOTH INFORMATION

Will you need electricity? _______ YES _______ NO

Electric is optional and available on a 1st Come, 1st Served Basis!

______# 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 upon receipt of a 50% deposit or payment 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 Printed Name

Please Indicate how you would like to pay for your booth space.

___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 5077 Waterford Dr., Suite #302 Sheffield Village, OH 44035

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: A service charge of 15% per month is applicable on all balances after 30 days. In the event any unpaid amount is placed for collection, client and/or agent agree to pay all collection costs, including reasonable attorney’s fees.

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.

2022 SINGLE-FAMILY Starts by Census Division

BY: JING FU

According to NAHB analysis of the Survey of Construction (SOC), new single-family starts decreased in 2022. Nationally, 1,018,495 new single-family units started construction in 2022, 10% fewer than the number of units started in 2021. It marked the first decrease since 2011 but was still the second highest count since the Great Recession.

Among all nine Census divisions, the South Atlantic, West South Central and Mountain Divisions led the way with the most new single-family units started in 2022. These three divisions represent 20 states and Washington, D.C., approximately 41% of United States, while the number of new single-family housing starts in these three divisions accounted for almost two thirds of the total new single-family housing starts.

In addition, single-family units started in the Pacific Division decreased to 94,158 in 2022, compared to 106,240 new singlefamily starts in 2021. There were 85,569 new single-family units started in the East North Central Division in 2022. While the Pacific Division accounted for 9% of the total new single-family housing starts, the East North Central Division accounted for 8%. The other four divisions, including East South Central, West North Central, Middle Atlantic and New England, accounted for the remaining 17% of the total new single-family housing starts.

In 2022, eight out of the nine divisions had negative growth rate. The East South Central Division was the only division that had positive annual growth rate. The Mountain Division reported the largest drop among the nine divisions, followed by the West South Central Division with a 12% decrease and the West North Central Division with a 12% decrease as well.

Compared to last year, none of the nine divisions had an acceleration in 2022.

THE IMPACT OF HIGHER Interest Rates: Time for a Fed Pause

During the month of August, long-term interest rates increased quickly, with the 10-year Treasury rate rising from 4% to 4.35%. This move was generated by an increasing supply of bonds, ongoing reductions of Fed holdings of Treasuries and mortgage-backed securities (quantitative tightening), renewed hawkish commentary from Federal Reserve officials, and a slight uptick for the CPI measure of inflation. The result was an increase on rates for both builder loans and mortgages, with Freddie Mac reporting an average rate of 7.23% for the 30-year mortgage, the highest level since 2001. The recent gain proved wrong an earlier NAHB forecast that rates for this monetary policy cycle would peak back in the fall of 2022.

However, interest rates have moved lower since late August as additional data points indicate cooling consistent with some disinflation. The 10-year Treasury rate moved below 4.2% as labor market data indicated declines for the total number of job openings for the U.S. economy (falling below 9 million in July) and the construction sector (363,000 in July). These estimates align with a slowing economy brought on by tighter monetary policy. This data should convince Fed hawks that now is the time to pause and let current restrictive monetary policy finish the job. The Fed should want to avoid tightening too much, which is now the greater risk.

Prior to the move in August, higher interest rates were having a slowing effect on the housing market. Total existing home sales fell 2.2% to a seasonally adjusted annual rate of 4.07 million in July per the National Association of Realtors. On a year-over-year basis, sales are 16.6% lower than a year ago. In part, this decline is because of a lack of inventory (just a 3.2-month supply) resulting from the mortgage rate lock-in effect. The vast majority of homeowners with a mortgage have an existing note of less than 5% and would prefer to hold such a low rate.

Despite a multi-decade low for housing affordability, the lack of existing inventory is spurring more demand for new construction. Sales of newly built, single-family homes in July increased 4.4% to a 714,000 seasonally adjusted annual rate. The pace of new home sales in July was up 31.5% from a year ago. In terms of overall inventory, new construction is now 31% of the market, compared to 10% to 15% historically.

BY : ROBERT DIETZ

Builders have helped attract sales via mortgage buydowns and other sales incentives, but also via product shifts. For example, new home sizes continue to fall, reaching a decade low (2,415 square feet) in the second quarter. Consequently, median prices for new singlefamily homes are down almost 9% from a year ago to just under $437,000. Declining demand for larger houses also reduced custom home building starts in the second quarter, which were down 8% year over year to 189,000 total homes over the past year.

Eventually, the Fed will ease rates. Just about 90% of consumer inflation in July was because of rising shelter costs, and real-time measures of rent show a slowdown. As inflation moves lower (even if it is still above the Fed’s 2% target), the necessary inflation-adjusted restrictive interest rate required to reduce inflation will decrease, allowing the Fed to cut the federal funds rate. This will likely occur no later than mid-year 2024. In the meantime, elevated rates for financing for AD&C loans mean that lot supply will be too low as a housing market recovery builds momentum in 2024.

WHO ARE NAHB'S Associate Members?

BY: ERIC LYNCH

Every year since 2008, the NAHB has conducted a member census in order to better understand the composition and characteristics of the people who belong to its organization. Similar to a previous post about builder members, NAHB conducted a related analysis of its associate members. In 2022, 65% of NAHB’s members were associate members—those involved in a wide range of support industries and professions including, among others, trade contractors, manufacturers, retailers/distributors, designers, and architects.

Of the 70,964 associate members, 41% are primarily subcontractor/specialty trade contractors, 13% have a professional specialty, 10% are in financial services, 9% are retail dealerships or distributorships, 5% are wholesale dealerships or distributorships, and 18% have some other type of primary activity (Exhibit 1)

In 2022, associate members had a median of 12 employees on payroll, which is an all-time high. Seven percent of associate members had 1 employee, 17% had 2 to 4 employees, 19% had 5 to 9, 37% had 10 to 49, 7% had 50 to 99 employees, and 12% had 100 or more employees. Two percent had no payroll at all.

The median revenue of NAHB associate members was $2.84 million in 2022, essentially unchanged from the median of $2.86 million in 2021.

In 2022, the median age of NAHB associate members was 56 which is slightly younger than in 2021 (57 years). Four percent of associate members were less than 35 years old, 15% were 35 to 44, 26% were 45 to 54, 35% were 55 to 64, and 19% were 65 or older. For the sixth consecutive year, the share of associate members who identify as female has increased by 1 percentage point to an all-time survey high of 26% (Exhibit 2).

For more details about NAHB associate members and a profile of each type of member, please visit housingeconomics.com or click here for the full article.

Exhibit 1. Share of Associate Members by Primary Business Activity – 2022

Exhibit 2. Female Share of Associate Members: History

NCBIA Hall of Fame Members

FAME Hall of

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 30, 2023.

Hall of Fame Candidate Name:

Title:

Company Name: Address: City/State/Zip: Phone

Nomination Submitted by:

Company: Phone

(continued on reverse side)

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

Dale Yost Inaugural Class 2001

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

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 .

year year

List committees, councils &/or task forces that nominee has served on and indicate chair positions as they apply.

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...

Ex. Clambake

CONGRATULATIONS TO THE 2023-2024

SATURDAY

September 9, 2023

Gates open at 1 PM Game at 2 PM Dinner at 4 PM

T - S H I R T S P O N S O R

2023 Annual Softball Game & Picnic PHOTO GALLERY

Welcome New Members!

Joey McCormick, Bumble Bee Blinds, Primary Associate

(Sponsored by Tim King, K. Hovnanian Homes) 2822 Moon Road Avon, OH 44011 (419) 239-1398

jmccormick@bumblebeeblinds.com

https://bumblebeeblinds.com/west-cleveland-ohio Your Vision. Our Expertise. Providing beautiful window treatments is what we're buzzing about. Let Bumble Bee Blinds West Cleveland experts help you decide on custom, modern window treatments that work for you!

Kimberly Schurdell, Third Federal, Primary Affiliate (Sponsored by Debbie Seeley, Third Federal) 26949 Lorain Road North Olmsted, OH 44070 (440) 734-8188

kimberly.schurdell@thirdfederal.com http://www.thirdfederal.com

Third Federal is a better bank. We’re a bank you can believe in. Honestly. That’s because everything we do centers on offering you better value for your hardearned money: lower mortgage rates, higher savings yields, simple, straightforward products and exceptional, humantouch customer service. We take the complexity out of banking. At Third Federal, what you see is what you get. We shop local and national banks daily to make sure we’re always offering the very best rates and fees. And we never build hidden charges or tricks into our rates or products. We’re straight-forward and honest. It’s the way banking should be.

STATESMAN SPIKE (500-999 SPIKE CREDITS)

Our SPIKES are Our FOUNDATION

SUPER SPIKE (250-499 SPIKE CREDITS)

ROYAL SPIKE (150-249 SPIKE CREDITS)

RED SPIKE (100-149 SPIKE CREDITS)

GREEN SPIKE (50-99 SPIKE CREDITS)

LIFE SPIKE (25-49 SPIKE CREDITS)

BLUE

(6-24 SPIKE CREDITS)

SuperFleet Mastercard Program Application

FAX Application to 1-760-918-5932 or email to holden.moll@fleetcor.com

For more information contact Holden Moll at 1-760-918-5933

BUSINESSINFORMATION(Required) Pleasetellusaboutyourbusiness:

(Representativeacknowledgesreceivingfuelpricingandpaymentterms) InitialHere:

PleaseReadCarefully:FleetCorTechnologiesOperatingCompany,LLC(“FleetCor”)operatestheSuperFleetMastercardproduct. ThisapplicationismadetoFleetCor. Bysigningthisapplication,Customerauthorizes FleetCortocheckCustomer’screditreferencesandtheinformationonthisapplicationandtoobtainconsumerorcommercialcreditreportstocheckCustomer’screditstanding,bothforthisapplicationandfortheupdates ofCustomer’screditfileandrenewalsofCustomer’sSuperFleetMastercardcard(s).CustomeracknowledgesthatthisapplicationissubjecttoapprovalandacceptanceofCustomerbyFleetCorinLouisiana.Ifthis applicationisapproved,thenCustomerwillbenotifiedofitsavailablecredit/spendlimit,andCustomerwillnotallowitsunpaidaccountbalancetoexceeditscreditlimit. CustomeragreesthatLouisianalawgovernsthe termsandconditionsoftheSuperFleetMastercardcard(s),whichtermsandconditionswillaccompanythecard(s)ifthisapplicationisapproved("CardTerms").Customer’saccepting,signing,orusinganySuperFleet Mastercardcard(s)willconstituteCustomer’sacceptanceofthosetermsandconditionsincluding,withoutlimitation,Customer’sunconditionalobligationtopayforalluseofSuperFleetMastercardcardsprovidedto CustomerandalluseofCustomer’saccounteachbillingcycle,aswellasallinterest,feesandcostsassociatedwithsuchcardsandaccount.Theaccountisnotarevolvingcreditaccount.Customeragreesthatanyliability arisingorresultingfromthemisuse,unauthorizeduse,lossortheftofanyoneormoreofthecardsissuedorofCustomer’saccountshallbefullyborne,assumedandpaidbyCustomerexceptasprovidedbyapplicablelaw andtheCardTerms.CustomeralsoagreesthatCustomerwillexclusivelyusetheSuperFleetMastercardcard(s)forcommercialpurposesandunderstandsthatCustomer’scard(s)maybecanceledifCustomeruses themforpersonal,family,orhouseholdpurposes.IntheeventthatCustomer’saccountisturnedovertoacollectionagencyoranattorneyforcollection,Customeragreestopayallsuchcosts,feesandexpensesofsuch agencyorattorney,including,withoutlimitation,courtcostsandout-of-pocketexpenses.Bysigningbelow,Customerconfirmsthateverythingithasstatedinthisapplicationiscorrectandthatthesigningauthorized representativeisdulyauthorizedtoenterthisrelationshiponbehalfofcustomer.

IagreetotheTermsofthisApplication(Pleasecheckbox)o

Requiredforallbusinessesexcludingpubliccorporations,non-profits,governmentsandeducationalinstitutions. Requiredforallpersonsowning25%or moreof business. PleaseusetheAppendixtorecordadditionalowners.

Does this person have significant responsibility for managing the legal entity listed above? Yes  No 

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