In Storm Path: Coastal Boom
Despite the emergence of the most advanced hurricane warning and evacuation system in history, rapid population expansion has prevented coastal areas from taking steps to minimize damage. Losses from Hurricane Camille — a Category 5 storm that decimated Pass Christian, MS, in 1969 and still ranks as the most powerful storm ever to hit the contiguous United States — were significantly less than those incurred during Hurricanes Andrew in 1992 and Charley in 2004. "People are more inclined to move to the most disaster-prone areas of the country — Florida, Texas and California," observes Insurance Information Institute Chief Economist Bob Hartwig. "Those states that have the greatest appeal for quality of life also happen to be the most dangerous to live in." Stephen Leatherman, director of the Florida International University's Hurricane Research Center, notes that tropical storms in the current era also are capable of causing billions of dollars in damage. Following the $15.5 billion in losses resulting from Hurricane Andrew, officials in South Florida enacted tougher building codes to ensure that new structures would survive 145-mile-per-hour winds associated with Category 4 hurricanes. Experts will leverage this unusually active hurricane season to push for uniform building codes, buried power lines and tax breaks for home owners who install storm shutters in response to the recent wave of storms. (www.csmonitor.com)
Christian Science Monitor (09/16/04) P. 1; Richey, Warren
Home Builders Construct Gains
The supply of homes continues to fall short of demand, helping the home building sector to thrive despite concerns over rising interest rates. Proof of the industry's staying power comes as Meritage Homes outperformed its financial projections for the third quarter. Also buoyed by a 5.46-point gain in trading to $77.18, the company released a 20% profit forecast for next year. Other residential builders, including Standard Pacific and Pulte Homes, also gained momentum during the quarter. (www.investors.com)
Investor's Business Daily (09/17/04) P. B1
Home Buyers Rank Pulte No. 1 in First Power National Survey
The country's biggest residential builder also is tops in terms of customer satisfaction, according to a poll conducted by J.D. Power and Associates. Bloomfield Hills, MI-based Pulte Homes headed the overall national rankings and also came out on top in 14 of the 25 U.S. housing markets, including first-time participant Metro Detroit, where J.D. Power conducted its research. Pulte President and CEO Richard J. Dugas said the company is striving to boost its share of the residential construction market from 3.5% today to as much as 20% by 2024 and to make Pulte a household name. The firm's selection as the very first recipient of J.D. Power's Platinum Award for customer service could very well help the builder in its goals. Winning the honor, according to Dugas, "puts us closer to being on par with the automakers in terms of customer service and name recognition." Pulte was followed in the national rankings by Centex Homes. (www.detnews.com)
Detroit News (09/16/04) King, R.J.
The Not-So-Humble Garage
According to Southern California's Construction Industry Research Board Director Ben Bartolotto, soaring residential prices have prompted home owners to expand their living spaces into the garage. Home owners increasingly are transforming their garages into exercise rooms, media rooms, art studios, master or guest bedrooms and offices, among other things. "People want more breadth of utility for their homes," remarks California-based Realtor® Carole Schiffer. Though professional architects or contractors are not required for conversions, Schiffer says projects that comply with local building codes easily boost property values by upwards of 10%. "Garage: Reinventing the Place We Park" author Kira Obolensky calls the garage "the id of the domestic setting." In fact, many experts acknowledge the feelings of exploration and creativity associated with detached garages. (www.latimes.com)
Los Angeles Times (09/16/04) P. F8; Abramian-Mott, Alexandria
Barriers to Latino Home Buying
The homeownership rate among Latinos lags considerably behind that of the nation as a whole —just 47% versus 68%. Recent focus groups held by the Congressional Hispanic Caucus Institute in 11 cities reveal a number of obstacles that keep Latinos out of the housing market — including high prices, low incomes, the complexity of the home buying process and the inability to save for a downpayment when much of their money is sent to relatives outside of the United States. Industry insiders say Latinos often mistakenly believe they cannot purchase homes without perfect credit or legal citizenship; and many do not realize that lenders now offer low-interest-rate loans, downpayment help and mortgages for borrowers with several co-signers. According to the Congressional Hispanic Caucus Institute, bilingual loan officers and a secondary market for the sale and purchase of loans whose borrowers lack Social Security numbers are also necessary. (www.latimes.com)
Los Angeles Times (09/15/04) P. A26; Hennessey, Kathleen
Results of Truss Fire Tests Rattle Design Assumptions
Unrestrained floor assemblies performed better under standard fire conditions than restrained assemblies during recent laboratory tests conducted as part of a $16 million investigation into building and fire safety at the World Trade Center. The results of the tests on trussed floor assemblies built to resemble those used in the WTC towers surprised building code consultants and experts, since the prevailing assumption is that unrestrained assemblies require more fireproofing than restrained ones. Both types of assemblies, however, performed relatively well during the tests, carrying loads for between one and two hours after deflecting under high temperatures. S. Shyam Sunder, lead investigator for the National Institute of Standards & Technology, which sponsored the tests conducted by Underwriters Laboratories Inc., warned that the results have some limitations in their application to the conditions of the WTC towers on Sept. 11, 2001. "These tests alone cannot be used to determine the actual performance of the floor systems in the [towers'] collapse," Sunder told investigators during the final test on Aug. 25. (enr.construction.com)
ENR (09/13/04) Vol. 253, No. 10, P. 16; Post, Nadine M.
Plots and Ploys: Going Green
The growth of green building continues to be stymied by steep construction costs, a lack of awareness about its benefits and a lengthy payback period, according to a survey of more than 700 building owners, developers, architects, engineers and consultants. Nonetheless, most respondents expect to be involved in more green projects over the next three years, found the poll — which Bayer Consulting conducted in July for Turner Construction. About 40% of respondents have not worked on green building projects, but those who have estimate that the approach tends to cost 20% more than traditional construction. The report describes green building as projects that "use design and construction practices to significantly reduce or eliminate negative effects on the environment and occupants." (www.wsj.com)
Wall Street Journal (09/15/04) P. B4; Muto, Sheila
Class B Office Space Eyed for Residential Conversions
In Boston, more and more owners of Class B office buildings are touting their properties as the ideal investment for developers looking for residential conversion opportunities. A glut of office space and a need for more places to live in the city have created an environment where office landlords can divest a vacant property and developers can profit by converting the former workspaces into prime rental apartments and for-sale condominiums. Spaulding & Slye Colliers' Jeffrey Swartz observes, "It's a definite trend, especially the smaller to medium-size rehabilitations." Meredith & Grew Vice President Leigh Freudenheim cautions, however, that not all Class B office properties are appropriate for conversion to living space. He explains that such projects do involve a certain amount of risk on the part of developers. The payoff, though, comes in the $500- to $1,000-per-square-foot value for residential units in a city like Boston. That compares to current office rents in the mid- to high-$20s per square foot. (www.boston.bcentral.com)
Boston Business Journal Online (09/13/04)
Feng Shui Inspiring Sales
Many home sellers are using feng shui to improve the flow of energy through their abodes and to attract buyers. This ancient Chinese art involves the strategic placement of various objects and the removal of excess belongings. "Sell Your Home Faster With Feng Shui" author and real estate broker Holly Ziegler says buyers are drawn to properties that have good feng shui, which is "about feelings and how you feel in a space." Though the National Association of Realtors® does not monitor the number of agents who belong to the feng shui movement, the group reports that classes are held at meetings across the country. In addition to attracting buyers, feng shui helps sellers enhance the appearance of their homes without costly renovations. (www.injersey.com/app)
Asbury Park Press (09/13/04)
Special Financing Is Available for Energy-Efficient Homes
Homes that are deemed energy-efficient by a professional energy rater qualify for special mortgages that allow buyers to purchase more costly homes as they put the money they save on their utility bills toward their monthly payments. Lenders even offer loans that include the costs of energy-efficient upgrades. According to the Environmental Protection Agency, the number of buyers eligible for home financing would rise by 7% if their properties were rated for an energy-efficient loan. Research also reveals that residential values jump $20 for every $1 shaved off annual energy bills. Those interested in energy-efficient financing should consult the Residential Energy Services Network of lenders, real estate agents, builders and other real-estate professionals, which lists such programs on its Web site. The Federal Housing Administration and the U.S. Department of Veterans Affairs, among others, offer energy-efficient mortgages; and Fannie Mae and Freddie Mac have agreed to purchase such loans from a multitude of lenders. (www.orlandosentinel.com)
Orlando Sentinel (09/12/04) P. J15; Sheinkopf, Ken
Fixed-Rate Mortgages Allowing Millions More to Become Home Owners
Rick Davis, president of the Homeownership Alliance, attributes the United States' current all-time high homeownership rate of 68% to the 30-year, fixed-rate mortgage option, which he says "provides long-term financial security to home owners." The alliance, a coalition of trade and housing industry organizations and consumer advocacy groups, has spent the last two years commissioning studies and releasing documents supporting the tradition of 30-year, fixed-rate mortgage financing in the United States. According to the group, this product gives owners the stability of knowing what the size of their monthly payments will be for up to 30 years while also giving them the option of refinancing without paying significant penalties or administrative fees. James Schilling, professor of real estate and urban land economics at the University of Wisconsin-Madison, notes that the refinancing option also contributes to the larger economy by allowing U.S. home owners to spend and invest the extra money they save when they refinance at a lower interest rate. (www.kcstar.com)
Kansas City Star (09/12/04) P. K7
For the Love of Home
U.S. home owners have been devoting a great deal of energy and money to improving their property, boosting remodeling outlays to a record annual pace of $128.5 billion during this year's second quarter. While upgrades can boost property value, a new Wells Fargo survey reveals that most home owners remodel not to boost resale value but to make their residence more attractive and comfortable for themselves. "Creating a comfortable and secure environment at home is becoming more of a priority for consumers," explains Wells Fargo Home Mortgage's Cara Heiden. "Whether it's a home buyer purchasing a newly constructed or existing property or home owners investing in a property they have owned for several years, we are seeing more people center their lives around their home." The Web-based poll of more than 1,300 households indicates that 51% of those surveyed made interior decorating improvements in the past year, or plan to do so in the coming year; 39% have already upgraded their landscaping or intend to; 38% have completed or are planning mandatory maintenance work; and 29% have done or expect to do some exterior decorating. (www.cbs.marketwatch.com)
CBSMarketWatch.com (09/10/04) Kerch, Steve
Development Projects Rise, Thanks to Fed Program Boost
The American Seniors Housing Association recently completed a joint study with the National Investment Center for the Seniors Housing & Care Industries that identified 32,184 units of market-rate housing now in various stages of development at 219 properties nationwide. The tally marks a 12% gain over last year but is still less than 50% of what was constructed during the boom year of 1999. GMAC Commercial Mortgage Corp. executive John Fogarty remarked, "The kind of building you saw five or six years ago has gone away because access to capital [for development] is difficult and there is still equity chasing transactions." At the same time, affordable seniors housing projects are continuing to receive a major influx of funding from state and federal government initiatives, including $1.8 billion in HUD mortgages for senior-care facilities as well as various Fannie Mae and Freddie Mac efforts. (www.commercialpropertynews.com/cpn/search/article_display.jsp?vnu_content_id=1000627725).)
Commercial Property News Online (09/04) Bell, Jennie
Setting Up Your Own Wi-Fi Hot Spot
Mobile workers now have access to portable devices that establish temporary Wi-Fi hot spots via high-speed Internet connections. Some of the products currently available include the Netgear Travel Router, D-Link Pocket Router and SMC Networks Inc.'s EZ Link Wireless Traveler's Kit, which range in price from $50-$84. However, portable routers have a range of just 20-25 feet, while a standard Wi-Fi kit boasts a range of 160 feet or more. (www.wsj.com)
Wall Street Journal (09/14/04) P. D1; Drucker, Jesse
King of the Road — The Mobile SMB
Small businesses with mobile workers have access to scores of wireless devices, so they should determine how much power they need and make a list of must-have features to narrow down their choices. Given that they must also think about security and network integration, small businesses without IT workers on staff would be wise to hire a professional who can help them select the technology that best meet their needs. "While great for productivity, mobile/wireless software is not yet as easy to set up and use as 'plug-and-play' desktop software," remarks iAnywhere Solutions Senior Product Manager Martyn Mallick about the importance of a knowledgeable integrator partner. Companies that plan to expand their operations sometime in the future should opt for flexibility, focusing on devices that can be integrated with databases and other backend systems. (www.SmallBusinessComputing.com)
Small Business Computing (09/08/04) Stone, Adam |
