Power On 50

Three groups in particular have had a major impact on home builders.

While some in the home building industry wield power on their own, others derive their strength from sheer numbers. These three groups have become forces that can't be ignored.

Seventy-eight million strong, the baby boomers have shaped virtually every segment of the economy during their lifetimes. The first 4 million turned 60 this year—that's a birthday party every eight seconds. An even more important number is that boomers now own 91 percent of the nation's net worth, and their impact will continue for years to come. As economist Ted C. Jones of Houston-based Stewart Title Guaranty Co. put it so well, “Boomers are going to age, they'll continue to inherit a chunk of money, and [their] children will inherit what [they] don't spend.”

Without immigrant workers, builders know that residential construction in many markets would grind to a halt. The immigrant community has been faced with a host of unfriendly national, state, and local legislation aimed at illegal aliens. In response, it showed its economic and political clout at demonstrations held this past spring that drew millions in cities nationwide, and through the “Day Without Immigrants” boycott on May 1, which idled many builders' job-sites. Since then, however, highly publicized crackdowns on illegal aliens—and the arrests of employers—have made builders much more cautious about whom they hire.

Not too long ago, many builders asked, “Why pay them a 3 percent sales commission when I have people lined up at my door to buy?” Some savvy builders recognized, though, that the boom couldn't last, that things would be different someday, and that cooperating with real estate agents would pay off in the long run. Someday is, of course, now. Traffic is down, sales are off, cancellations are up, and Realtors—who arrive with people who are actually in the market to buy—remember who was nice to them during the boom days and who told them to get lost.—P.C.

Celebrities make their own mark on housing.

These celebrities have made names for themselves yet again, this time within the world of home building.

The domestic diva has proven that a stint in federal prison did nothing to dim her star power. Partnering with KB Home, Stewart has lent her creative flair, her design team, and her considerable name recognition to a series of homes in KB communities in Cary, N.C.; Atlanta; Houston; Los Angeles; and Daytona Beach, Fla.

An avid—and articulate—supporter of green building, Pitt ponied up the prize money and chaired the design jury for a competition to design an affordable, energy-efficient multifamily project to be built in the Lower Ninth Ward in New Orleans. He also narrated a six-part public television series, Design: e2, that showcased environmentally friendly, sustainable design around the world.

The singer-songwriter-actor has been involved with Habitat for Humanity for years, helping to build homes in New Orleans. Since Hurricane Katrina, Connick has upped his commitment and serves as honorary chairman of “Operation Home Delivery,” Habitat's long-term rebuilding plan for the Gulf Coast. With jazz musician Branford Marsalis, Connick's first major effort under the initiative is Musicians' Village, a community of 81 homes for displaced New Orleans musicians.—P.C.

Builders faced some stiff resistance in 2006.

Public-interest activity against builders this year focused on anti-sprawl issues and the thorny topic of immigration.

The Minuteman Project and the Minuteman Civil Defense Corps, two citizens' groups that oppose illegal immigration, faced off with builders and contractors numerous times in 2006. Minutemen have been known to write down and report the license plate numbers of builders and contractors who hire immigrant workers at day-laborer sites. The groups now operate in dozens of states nationwide.

On a statewide level, the Piedmont Environmental Council (PEC), a public-interest group that represents a nine-county area in Virginia, raised the ire of builders when Gov. Tim Kaine, seeking to link transportation and development issues, appointed two former PEC board members to important state transportation agency and policy posts.

The first appointee was Scott Kasprowicz, Kaine's new co-deputy secretary of transportation; the second was Peter Schwartz, who was named to the Commonwealth Transportation Board. Builders in Northern Virginia were especially upset with the appointments because the two men are viewed by builders as having strong ties to the PEC, which opposes a plan to build more than 33,000 homes near Dulles International Airport—a proposal that was ultimately voted down in early November.

Meanwhile, building interests in Florida were successful last month in their efforts to pass Amendment Three, which would require citizens' ballot initiatives to have at least a 60 percent voter approval as opposed to a simple majority. The reason: An environmental group called Florida Hometown Democracy wants to get a referendum before the voters in 2008 that would require any local land-use decision to be approved by a majority of voters as opposed to elected local leaders. The builders know they may lose in the end, but with the passing of Amendment Three, environmentalists will need a 60 percent vote to change land-use policy.—S.Z.