FEATURES

  • BD040501258L1.jpg (90)

    Keep Your Options Open

    Smaller companies are finding creative ways to give customers the personalization they crave, while minimizing the organizational burdens that can drain staff and siphon profits.

     
  • BD040501250L1.jpg (90)

    Launch Countdown

    Just what are the critical elements of a successful launch? What falls under the category of .must-do. and what can fall by the wayside as merely an option?

     
  • BD040501244L1.jpg (90)

    Stone Work

    Manufactured stone has been around for several decades now, but in recent years, the cement-based material has come of age, both in terms of technology and in its warm reception by residential designers and builders.

     
  • Growing Locally

    Last year was an amazing year for home builders in the country's top 50 metropolitan areas.

     
  • Playing The Percentages

    In real estate, some regions constantly pay off for builders, while others struggle to break even.

     
  • BD040501204L1.jpg (90)

    Waiting For A Better Hand

    Multifamily builders kept -- and keep -- building, increasingly so, even in some areas where demand has been lackluster.

     
  • BD040501198L1.jpg (90)

    After The Bust

    In the last couple years, the "monsoon" of bad news hitting manufactured home builders has been especially devastating.

     
  • BD040501188L1.jpg (90)

    Staying In The Game

    Numbers provide only a partial picture of the Next 100 companies, many of which are more dynamic, creative, financially sophisticated, and profitable than one might expect.

     
  • Going For Broke

    While the overall housing market increased just 8 percent, as measured by total starts, the BUILDER 100 delivered 393,178 U.S. homes, a 14 percent increase over 2002.

     
  • Builder 100: Gambling On The Future

    Last year, with war looming and the economy slumping, everyone expected builders' luck to shift, just slightly, after a string of stellar years. But housing stayed hot.

     
  • BD040501133L1.jpg (90)

    Year-Round Retreat

    AT FIRST GLANCE, IT'S HARD TO SEE HOW THE Carneros Inn in Napa, Calif., could have any connection to the tenets of new urbanism. The 27-acre, $57 million resort property boasts the first of two dozen for-sale homes, 96 guest cottages, a spa, and a first-class restaurant. Instead of the usual alley-loaded garages, front porches, and other new urbanism signatures, the site is marked by swaths of lavender and hilltop views of the Napa River, neighboring vineyards, and the Mayacamas Mountains. And forget the average amenities of most planned communities. Here, homeowners have full access to everything the resort has to offer, plus in-home catering, wine tastings, and maid service.

     

EDITOR'S NOTE

  • The Big Picture

    EVERY YEAR AT THIS TIME WE LIST THE 100 LARGEST builders in America. It's an impressive list, redolent with accomplishment. A quick glance shows that four builders now produce roughly 30,000 or more units annually, a level thought unsustainable even 10 years ago. A record 21 companies broke the $1 billion mark in revenue.

     

INSIDE STORY

  • Sales Tax Blues

    AS THEIR BUDGETS SHRINK, STATES are looking for new ways to fill their coffers. For builders and developers, that may translate into an increased chance of an audit on their tax payments.

     
  • No Free Leads!

    Late last year some small businesses were up in arms, charging that search engine Google changed its algorithm to favor large companies and portals. The reality, says analyst group eMarketer, is that all the major search engines now tend to list the large portals because they have the most links and site traffic.

     

GROUNDBREAKERS

  • Plastic Wisdom?

    A world-renowned expert on environmental design, William McDonough published a book titled Cradle to Cradle, which lays out in detail the tenets of closed-loop production, in the context of preserving the environment. It's interesting to note that the book is printed on synthetic paper made with inorganic resins. It can be recycled the same way a yogurt container is. You can order the book directly from Amazon.com or Booksense.

     
  • BD040501075L1.jpg (90)

    Clear Vision

    IT MIGHT SURPRISE YOU TO KNOW JUST how far and wide into the resources chain a single product, such as a vinyl window, can extend. Everything counts on the environmental report card, from the oil used to keep the welder pumping, to the chemicals used to clean the floors in the plant, to the mixing of the polyvinyl chloride, to the disposal of the window 50 years down the line.

     

FIRST DRAFT

  • BD040501087L1.jpg (90)

    Site-Sensitive Density

    Q. Our sales and marketing team is concerned that the three-story, stacked-flat condos that we originally proposed for an infill site surrounded by lower-density detached homes will not get local approval and may not meet buyers' expectations (see site plan below). How can we achieve a similar density with equal or higher value that blends into the community?

     

MARKET SMARTS

  • BD040501096bL1.jpg (90)

    Radio Waves

    ANYONE WHO SAYS RADIO IS DEAD SHOULD TALK TO ERNIE Menchaca. As the president of Clearwater Mortgage in Boise, Idaho, Menchaca used the lower-tech medium to become the market expert in shepherding buyers through a bureaucratic federal down-payment grant program that eliminates out-of-pocket costs for qualified purchasers. Placing his ad during drive time on three local radio stations, Menchaca captured an underserved market of first-time and cash-poor prospects. “There's a lot of people starting out who just don't have the down payment they need [for an FHA loan],” he says. A follow-up ad enticed local builders to use the grants to lure traffic and close more sales.

     
  • BD040501096aL1.jpg (90)

    Surreal Sales

    A series of esoteric print ads helps Davidson Development boost traffic and sales of its high-end vacation homes.

     
  • BD040501095L1.jpg (90)

    ‘Lil Beazer's

    IF YOU WANT REAL ESTATE AGENTS TO pay attention to your vacation-home project, feed them pizza every Friday for 10 weeks. Oh, and it might not hurt to offer cash and prize incentives for new prospect visits and sales, as well as free pizza slicers, plastic plates, and serving spatulas as fun and useful memorabilia. That's the tack taken by Beazer Homes to promote its vacation properties near Orlando, Fla.

     

PRODUCTS

  • BD040501114L1.jpg (90)

    Faux Fire

    TO MANY HOME BUYERS, A FIREPLACE is a wonderful thing. It provides real heat, but, even more important, it generates the kind of warmth people feel in their hearts. So it's no wonder that most new homes built today have at least one fireplace. Unfortunately, code requirements sometimes prohibit builders from installing these babies. But there is a solution: an electric fireplace.

     
  • BD040501111L1.jpg (90)

    Loving Laminate Again

    IT'S A GOOD TIME FOR HOME BUYERS WHO are in the midst of choosing a counter-top surface. Their options are endless—from engineered stone and granite to solid surfaces, butcher block, and stainless steel. These pricey materials are wonderful, but for homeowners looking for low price point plus performance, nothing beats the trusty laminate countertop.

     

NATIONAL BEAT

  • Green Scene

    The Model Green Home Building Guidelines will help mainstream green building practices throughout the home building industry.

     
  • Still Stable

    There's no necessary relationship between house prices and overall inflation.

     
  • Stay Connected

    To help people connect throughout the federation, take advantage of all that membership offers, and even sell the homes they build, the NAHB has developed a number of outstanding Internet and online resources for the home building industry and housing consumers.

     
  • NAHB Briefs: May 2004

    - The nation's home builders call on Congress to reauthorize the National Flood Insurance Program (NFIP) for five years and for FEMA to address repetitive loss properties. - The NAHB expresses support for the “Zero Downpayment Act of 2004,” legislation to authorize the FHA to insure no–down-payment mortgages for single-family, first-time home buyers. - The NAHB criticizes the EPA and the Army Corps of Engineers in recent GAO report.

     

HOTSELLERS

  • BD040501128bL1.jpg (90)

    Pearl District Appeal

    Why It Worked: High-rise, brick-and-glass building touts a variety of well-appointed, one- and two-level lofts, one-level flats, and penthouse apartments in the heart of Portland's popular Pearl District.

     
  • BD040501128aL1.jpg (90)

    Attached Alternative

    Why It Worked: The Gables' Cottage Collection has a unique product design—single-family homes attached by rear storage sheds—and offers a well-priced alternative to more standard attached designs.

     
  • BD040501127L1.jpg (90)

    Urban Oasis

    Why It Worked: Families are lured by the in-town, Chicago location with large lots, detached garages, and five-bedroom floor plans.

     

OTHER ARTICLES

  • BD040501284L1.jpg (90)

    Flexible Home Networks

    Structured wiring provides the infrastructure and solid backbone, and wireless provides flexibility.

     
  • BD040501274L1.jpg (90)

    Good, Better, Best

    There are some very high-quality home theater packages available for under $10,000 that can generate high gross margins for builders.

     
  • BD040501272L1.jpg (90)

    Tech Gear

     
  • On The Fast Track

    Use these tips for a FAST implementation:

     
  • FAST Fulton

    FULTON HOMES IN PHOENIX HAS ONE OF THE more forward-thinking visions for how builders can use enterprise, resource, and planning software FAST.

     
  • No Small Service

    EVERY BUILDER WANTS TO TOUT A HIGH RATING on a customer service survey as a selling point to a potential customer. The problem for smaller builders is that most don't do enough annual volume to be considered by large national builder surveys such as J.D. Power and Associates.

     
  • Builder Tech

    The latest in builder technology - Aprril 2004.

     
  • What's A Zigbee?

    A wireless standard called 802.15.4 establishes a low data rate network that lets wireless home-control appliances communicate with each other.

     
  • Lessons From The Art Of War

    You may think you know everything about doing battle with the big guys, but, as Sun Tzu says, sometimes you've got to know when to hold them, when to fold them, and when to run.

     
  • Ergonomic Realities

    A NEW STUDY IN BRITAIN SUGGESTS THAT CONSTRUCTION workers are at far more risk of developing repetitive strain injuries (RSI) on the job than office workers. In fact, the study by the Chartered Society of Physiotherapy found workers on construction jobsites are five times more likely to suffer from neck pain and upper limb disorders such as tennis elbow than people who sit at a computer station all day.

     
  • Green Houses

    The St. Johns Housing Partnership and World Island Builders have teamed up to build 32 houses using energy-efficient and green building techniques to make the homes healthier and to minimize the effects of development on the environment. Located in St. Augustine, Fla., the single-family homes will be priced between $103,000 and $117,000. Low-income buyers will benefit from $20,000 to $25,000 in down payment assistance from the housing partnership.

     
  • New Player

    CITIMORTGAGE'S NEW MORTGAGE program may not sound as catchy as sister Citigroup subsidiary Citibank's “live richly” ad campaign, but it means good news for builders.

     
  • Price Hurdles

    WHEN BUILDER REPORTED ON SKYROCKETING plywood and OSB prices in November 2003, the pundits urged calm. They predicted that wood prices would level off by January 2004, and they were right.

     
  • Prop Down

    The San Francisco Chamber of Commerce has rejected the Proposition J initiative that was designed to create more middle-income housing by offering incentives to city developers. Supporters had hoped that the initiative would keep middle-class workers such as teachers and firefighters from leaving the city for less-costly destinations. Opponents, however, said the proposed housing would not be affordable enough.

     
  • Green Light

    According to the NAHB, a total of 18,887 eco-friendly homes were built between 1990 and 2001. In 2002 alone, the number of green homes built totaled 13,224.

     
  • BD040501050eL1.jpg (90)

    Infill Options

    CHANGING DEMOGRAPHICS AND THE RISING cost of land have combined to make cities a red-hot place to live these days, which means the notion of infill is gaining ground among builders. And where there is talk of infill there is, naturally, talk of teardowns. Here's a look at two resources for niche builders interested in infill.

     
  • Hot Topic

    Here are some of the reasons workforce housing has become a hot-buttom issue...

     
  • Workforce Partners

    THE NAHB HAS FORMED AN AMBITIOUS PARTNERSHIP with mortgage finance company Fannie Mae to deliver workforce housing to some 1,000 communities nationwide.

     
  • It's A Plan

    Suffolk County, New York has appointed a commission to tackle the workforce housing issue. A recent report released by the county found that home prices increased more than 80 percent in the past four years, while incomes have risen only 14 percent. County executive Steve Levy directed the commission to create an inventory of potential sites, streamline the permitting process, and recommend the needed zoning changes and incentives to builders. The median price of a single-family home in Suffolk County is now $326,000—more than double the national median.

     
  • Chain Reaction

    The Harvard University Distribution Study is continuing its research on the changing residential building supply chain. The first round focused on pro dealers and other distributors of building products. The study shows that a variety of market pressures have forced dealers to adopt new strategies in regard to the range of products carried; customer focus; areas served; and the services offered to their customers.

     
  • Real Estate Futures

    TORONTO-BASED AAREAS INTERACTIVE HAS developed a new Web-based tool that allows consumers to search and select builders' homes on the Internet and reserve units and condos with a credit card. “The Web Store helps builders to better market and organize their sales process,” says Angela D'Amico, marketing coordinator for Aareas. The Web Store lets builders do targeted marketing, she says, since builders will know who is searching the site and who is serious about buying a home.

     
  • BD040501048cL1.jpg (90)

    Housing Trust Furor

    HOME BUILDERS IN FLORIDA HAVE JOINED forces with bankers, real estate agents, and low-income housing advocates to fight Gov. Jeb Bush's plan to eliminate the state's affordable housing trust fund and roll it into the general fund.

     
  • Nextel Station

    Nextel's massive ad blitz has hit Las Vegas, where the wireless carrier most used by builders plans to build a 15,000-square-foot technology showcase at the Convention Center stop on the new Las Vegas Monorail. Scheduled to open a few months after the Monorail finally starts running this spring, the new facility will show off Nextel's latest wireless innovations to the 35 million people who annually travel to Las Vegas for trade shows. Nextel plans to target vertical markets as industries come to town, so any construction-related shows will be targeted for builders and the trades.

     
  • Banished Builder

    Ever wonder how best to deal with bad builders who drag the industry's reputation through the mud? Apparently, the Australians play a rough-and-tumble game. When a kitchen company started by George Jorgensen of Brisbane failed financially this year, the authorities yanked his license—forever. That's right: Under new laws, a builder cited for a second financial failure can be banned from the industry for life. What's more, he becomes a major liability. No company in which he serves as a director, secretary, or “influential person” can hold a license, due to his proximity. Now that's what we call tough love, mates.

     
  • March Madness

    Georgia-Pacific has found a buyer for its building products distribution business. In March, the Atlanta-based company announced that Cerberus Capital Management, a private investment firm, will purchase the distribution unit for $810 million. Also in March, public builder Lennar announced it was expanding its presence in Texas. The Miami-based company bought the real estate assets of San Antonio builder Connell-Barron Homes, which closed 130 homes last year, with an average sales price of $244,000.

     
  • Urban Challenge

    Attendees at a recent Urban Land Institute forum said that though infill development is popular, developers are hindered by a variety of factors that prevent them from acquiring separate tracts of land from different owners. Contributing factors include soaring costs, low land inventory, long chains of title, and the need for time-consuming zoning revisions. As a result, building farther out remains cheaper and easier.

     
  • Girl Power

    According to a recent report from the Washington-based Center for Women's Business Research, the number of construction companies owned by females increased 35.5 percent between 1997 and 2002. And, of nearly 279,000 women-owned businesses that posted revenue of $1 million or more in 2002, about 13.4 percent were construction firms.

     
  • Short Fall

    A new study released by the California BIA maintains that the state's complex and uncertain governmental regulations have led to a cumulative shortfall of 500,000-plus homes and apartments since 1995. The study, conducted by Bain & Co., found that there is only a 6 percent probability that a California development will be approved without modifications—compared with Texas and Arizona, where projects are approved 75 percent of the time without modifications.

     
  • BD040501045aL1.jpg (90)

    Open Gateways

    Immigrants followed a predictable path as they arrived in the United States, living first in densely populated urban neighborhoods and eventually moving to the outlying areas. A new study on immigration patterns, though, shows that this tradition is shifting as more immigrants bypass the cities to settle in the suburbs.