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55+ Housing Market Remains Solid in Second Quarter 4
Builder Confidence Trending Higher as Interest Rates Move Lower 6
Real Estate Statistics 6
Member Advantage 7
2019 BCAOC Golf Scramble 8 - 10
New Home Sales Solid in July; June numbers Strongly Revised Upward 11
New Members & Membership Renewals / Cancellations 11
Housing Journal Requests Photos 11
Statement from NAHB Chairman on Final ESA Regulations 12
Get Yourself Noticed! 13
Build Your Business 13
Coming Events 13
NMHBA Rebates 14
2002 International Builders’ Show Registration Now Open 15
Member Luncheon 15
Discount Pricing for BCAOC Members 16
Home Construction Slowing in Manufacturing Areas 17
Single-Family Starts Continue Modest Improvement in July 18
Apartment & Condo Market Bounces Back To Positive Territory 2nd Qtr 18
from the city. We will sendout emails when we getthe new date. This will be agreat outing for the wholefamily, plan to attend.
Sincerely,Ken McGinnisPresident, BCAOC
A Message from thePresident
Cover to Cover
2
Greetings All,
The luncheon was a success and attendance was good. Thanks toeveryone who showed up and offered input. This will be a goodthing for all our members as we all need skilled craftsmen.
The member appreciation day is scheduled for September the 7thbut has been temporarily postponed. The construction at Washing-ton park has caused the delay and we are waiting to get a new date
Ken McGinnis
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Local Legislative Contact InformationCITY COMMISSIONERSDistrict 1 Mayor-Pro-Tem Jason Baldwin(575) 921-1093 • [email protected]
District 2 Nadia Sikes(575) 491-7910 • [email protected]
District 3 Susan L. Payne(575) 491-0211 • [email protected]
District 4 Josh Rardin(575) 434-0720 • [email protected]
District 5 Alfonso “Al” Hernandez(575) 921-3632 • [email protected]
District 6 Dusty Wright(505) 430-3395 • [email protected]
Mayor at Large Richard A. Boss, Mayor(575) 214-0024 • [email protected]
STATE OFFICIALSDistrict 32 Senator Cliff R. Pirtle(575) 626-7046 • [email protected] 33 Senator Bill Burt(575) 434-1414 • [email protected] 34 Senator Ron GriggsCell: (575) 439-1331 • [email protected] 51 Representative Rachel A. BlackCapital Phone: (505) 986-4467 •Cell: (575) [email protected] 56 Representative Zachary CookCell: (575) 937-7644 • [email protected] 53 Representative Willie A. MadridCapital Phone: (505) 986-4436 •Cell: (916) [email protected] 54 Representative Jim TownsendCell: (575) 703-0153 • [email protected]
COUNTY COMMISSIONERSDistrict 1 Gerald MatherlyOffice: (575) 437-7427Cell: (575) [email protected]
District 2 Couy GriffinOffice: (575) 437-7427Cell: (575) [email protected]
District 3 Lori BiesOffice: (575) 437-7427Cell: (575) [email protected]
BCAOC 2019 Board Members and OfficersExecutive Board of Directors:
President: Ken McGinnis, Classic Builders, Inc.
President Elect: Jon Gutierrez, Coble Constructors
Past President: McChristie Curry, White Sands Construction, Inc.
Associate Vice President: Rick McCracken, Morrison Supply Company
Secretary/Treasurer: Jackie Higgins, Morrison Supply Company
Builder’s Trust Representative: McChristie Curry, White Sands Construction, Inc.
Associate Directors:Jeri Melton, Roy’s Welding
Jimmy Deer, Pioneer Abstract & Title Co. of Alamogordo, Inc.
Lee Ann Bain, First National Bank
Abe Moore, Darnold Plumbing
Deborah Romero, First National Bank
Builder DirectorsHarris Blankenship, National Construction, Inc.
Gerald Matherly, Highlander Construction
Catlin Curry, White Sands Construction
Dusty Wright, General Hydronics
Mike Drunzer, Drunzer Construction, Inc.
Advisory Committee:Randy Rabon, Mesa Verde Enterprises, Inc.
Allen Gorby, Jack Wayte Construction Company, Inc.
Doug Nelson, Tool Box, LLC
Sylvia Tillbrook, Otero County Administration
G.B. Oliver, Alamogordo Chamber of Commerce
Jake Boles, USA Insurance
Josh Rardin, Rardin’s Contruction
The Building Contractors Association of Otero County is a nonprofit
voluntary trade association affiliated with the New Mexico Home
Builders Association and the National Association of Home Builders.
The association seeks to represent and serve the diversified needs of its
members who consist of large, small volume and custom home builders,
developers, and remodelers, as well as industry-related suppliers, sub-
contractors, & professionals.
As the voice of the housing industry in Otero County, the association’s
primary mission is to represent those involved in and served by the
building industry in our region, and all those in pursuit of the Ameri-
can Dream.
This will be accomplished by spearheading a combined effort of all in-
dustry-related groups in addressing the quality of life in the community.
The Building Contractors Association of Otero County will work to
achieve the following goals:
• Educate our membership, our industry and the public
• Actively participate in legislative & regulatory affairs
• Provide the forums that encourage quality construction and
innovative products.
We responsibly serve our community by being the positive influence
on the building industry.
WASHINGTON, Aug. 1 - Builder confidence in the single-family55+ housing market remained solid in the second quarter with areading of 71, edging down one point from the previous quarterdue to softness in traffic of prospective buyers, according to theNational Association of Home Builders' (NAHB) 55+ Housing Mar-ket Index (HMI) released today.
The 55+ HMI measures two segments of the 55+ housing market:single-family homes and multifamily condominiums. Each seg-ment of the 55+ HMI measures builder sentiment based on a sur-vey that asks if current sales, prospective buyer traffic andanticipated six-month sales for that market are good, fair or poor(high, average or low for traffic).
"Although the single-family HMI fell slightly, builder sentimentstill remains strong for this segment of the market," said KarenSchroeder, chair of NAHB's 55+ Housing Industry Council and vice
president of Mayberry Homes in East Lansing, Mich. "In fact, thereading of 71 is just one point off from the all-time high of 72 fromthe previous quarter. We expect the 55+ housing market to con-tinue on a positive path moving forward."
For the three index components of the 55+ single-family HMI,present sales remained even at 76, expected sales for the next sixmonths increased one point to 78 and traffic of prospective buy-ers fell five points to 56.
The 55+ multifamily condo HMI rose two points to 59. Two ofthree index components posted increases from the previousquarter: Present sales and expected sales for the next six monthsincreased three points to 61 and 65, respectively, while traffic ofprospective buyers dropped two points to 50.
All four components of the 55+ multifamily rental market wentup from the first quarter: Present production and future expectedproduction both increased six points to 64, while present demandjumped 12 points to 73 and future expected demand rose 10points to 73.
"Demand for 55+ housing remains solid, as demonstrated in thesurge for 55+ rental demand," said NAHB Chief Economist RobertDietz. "Builder sentiment for the for-sale 55+ housing market alsoremains in positive territory, supported by low inventory of ex-isting homes. However, it is being constrained by developmentcosts and their impact on affordability."
For the full 55+ HMI tables, please visit www.nahb.org/55hmi.
55+ Housing Market Remains Solid in Second Quarter
BCAOC Executive BoardRick McCracken, Associate Vice PresidentOffice (575) [email protected]
Jackie Higgins, Secretary/TreasurerOffice (575) [email protected]
McChristie Curry, Builders Trust RepresentativeOffice (575) [email protected]
McChristie Curry, Past President (2018)Office (575) [email protected]
Ken McGinnis, PresidentOffice (575) [email protected]
John Gutierrez, President-ElectOffice (575) [email protected]
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5
Postponed Until Further Notice
Postponed due to construction at Washington Park
6
(Based on information from the Otero County Association of REALTORS®, Inc. Multiple Listing Service)
RESIDENTIAL PROPERTIES
Active .....................................443
Under Contract ...................155
Sold ...........................................79
LAND
Active .....................................455
Under Contract ....................20
Sold .............................................6
COMMERCIAL
Active .......................................62
Under Contract .......................5
Sold .............................................0
RESIDENTIAL PROPERTIES – SITE BUILT & NEW CONSTRUCTION ONLY
Number Sold.................................................70
(0) New Construction (70) Site Built
Avg. Sold Price...................................$157,295
Med. Sold Price ................................$142,750
Avg. Days on Market ..................................66
Sold in Alamogordo .............51
Sold in Cloudcroft ..................7
Sold in Tularosa ......................4
Sold in Mayhill..........................5
Sold in La Luz ...........................2
Sold in High Rolls .....................1
Real Estate Report – July 2019
Builder Confidence Trending Higher as Interest Rates
Move LowerWASHINGTON, Aug. 15 --Builder confidence in the market fornewly-built single-family homes rose one point to 66 in August,according to the latest National Association of HomeBuilders/Wells Fargo Housing Market Index (HMI) released today.Sentiment levels have held at a solid 64-to-66 level for the pastfour months.
"Even as builders report a firm demand for single-family homes,they continue to struggle with rising construction costs stemmingfrom excessive regulations, a chronic shortage of workers and alack of buildable lots," said NAHB Chairman Greg Ugalde, a homebuilder and developer from Torrington, Conn.
"While 30-year mortgage rates have dropped from 4.1 percentdown to 3.6 percent during the past four months, we have notseen an equivalent higher pace of building activity because therate declines occurred due to economic uncertainty stemminglargely from growing trade concerns," said NAHB Chief EconomistRobert Dietz. "Although affordability headwinds remain a chal-lenge, demand is good and growing at lower price points and forsmaller homes."
Derived from a monthly survey that NAHB has been conductingfor 30 years, the NAHB/Wells Fargo Housing Market Index gauges
builder perceptions of current single-family home sales and salesexpectations for the next six months as "good," "fair" or "poor."The survey also asks builders to rate traffic of prospective buyersas "high to very high," "average" or "low to very low." Scores foreach component are then used to calculate a seasonally adjustedindex where any number over 50 indicates that more buildersview conditions as good than poor.
The HMI index gauging current sales conditions increased twopoints to 73 and the component measuring traffic of prospectivebuyers rose two points to 50. The measure charting sales expec-tations in the next six months fell one point to 70. Looking at thethree-month moving averages for regional HMI scores, the Southmoved one point higher to 69, the West was also up one pointto 73 and the Midwest inched up a single point to 57. The North-east fell three points to 57.
Editor's Note: The NAHB/Wells Fargo Housing Market Index isstrictly the product of NAHB Economics, and is not seen or in-fluenced by any outside party prior to being released to the pub-lic. HMI tables can be found at www.nahb.org/hmi. Moreinformation on housing statistics is also available atwww.housingeconomics.com.
Member Advantage at a Glance www.nahb.org/savings
Version 8.3.2018
Amazon Business - Create an Amazon Business account and gain access to the NAHB Amazon store which offers recommended products
tailored to your industry’s needs while unlocking additional business savings. Sign up here, www.amazon.com/NAHB
Capital One Spark Business Card -With the Spark® Cash credit card, you’ll earn unlimited 2% cash back on every purchase—plus, there is
no annual fee to use your card. Click here to learn more: https://captl1.co/NAHB
Kabbage® created a new way to provide flexible access to small business financing. They use an online application to provide a quick
decision. www.Kabbage.com/nahb has provided access to over $5 billion in funding.”
Houzz –Free access to the concierge service, instant approval into the Houzz Trade Program giving trade-only discounts up to 50% off, plus
special discounts on local advertising. Visit www.houzz.com/NAHBmembers
FCA US LLC - A $500 cash allowance for members, employees and household family members. This offer is good toward many new
models in the Chrysler, Dodge, Jeep®, Ram or FIAT® vehicle lineup and is stackable with most current local or national incentives. Visit www.nahb.org/fca to learn more. Lowe’s - Visit www.LowesForPros.com/NAHB or call 877-435-2440 and register to save 2% on your Lowe’s Accounts Receivable (LAR)
or Lowe’s Business Accounts (LBA) purchases and free delivery on purchases over $500. Save an additional 5% every day at the store when you mention the 5% at time of purchase and when using your LAR or LBA. General Motors – General Motors is proud to offer NAHB Members a Private Offer of up to $1,000 on your next Chevrolet, Buick and GMC
vehicle. Visit www.nahb.org/gm to learn more.
UPS Savings Program & YRC Freight - UPS discounts of up to 36% on a broad portfolio of shipping services. Savings of at least 70%
on less-than-truckload shipments 150 lbs. or more with UPS Freight and YRC Freight. Visit www.1800members.com/NAHB or call 1-800-MEMBERS (800-636-2377) for more information. GEICO - Exclusive NAHB discounts for members on auto insurance. Visit www.geico.com/disc/nahb or call 800-368-2734. Mention
NAHB for auto, homeowners, and commercial auto quotes. 2-10 Home Buyers Warranty - Visit www.2-10.com/NAHB or call 855-280-1328 to receive exclusive access to discounts on select
products, including the Builder Backed Service Program and the systems and appliances warranty. TSYS - Payment solutions with average savings of 16% per year. Web/mobile tools, credit card and eCheck processing and more. Free
"Savings Analysis" call 800-613-0148 or visit www.tsysassociation.com/NAHB. Dell - Up to 30% off on all Dell computers. Call 800-757-8442 and Mention NAHB or visit www.dell.com/nahb.
ConstructionJobs.com - NAHB offers a recruitment tool to all NAHB members in their search for new employees. NAHB members enjoy a
20% discount off standard rates. Visit: https://www.nahb.org/en/members/member-discounts/archived-webpages/nahb-career-center.aspx to
connect with top talent and top employers in the construction industry today.
Hertz - Up to 20% off on rental cars and FREE Gold Plus Rewards membership. Visit www.hertz.com/nahb, or call 800-654-2200 and
use CDP# 51046. Avis - Up to 25% off car rental base rates and FREE Avis Preferred Service membership at www.avis.com/nahb, or call 800-331-1212
and use AWD code G572900. Budget - Up to 25% off car rental base rates and FREE Budget Fastbreak at www.budget.com/nahb, or call 800-283-4387 and use
BCD code Z536900. Office Depot - Office Depot – Save up to 80% in-store or online. Free shipping on orders of $50 or more. Visit
www.officediscounts.org/NAHB or call Jeremy Kirkland for assistance with your business account; 855-337-6811 Ext. 2897
Omaha Steaks - Save 10%, in addition to any online specials. www.OSincentives.com/promo/nahb
FTD - 20% off floral arrangements and gifts at www.ftd.com/nahb or call 800-SEND-FTD use code 17421.
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1st Flight 1st Place – Abe Moore, Mar-cos Doporto, Brian Stagner, ArmandoOrtega
1st Flight 2nd Place – Will Sewell,Marco Terrazas, Ricardo Garcia, JesseBallesteros
1st Flight Tied for 3rd Place – DustyWright, Troy Wright, Ronnie Brownell,Jimmy Turner
1st Flight Tied for 3rd Place – KenMcGinnis, Ryan McGinnis, ChrisMelton, Travis Marshall
2nd Flight 1st Place – Wayne King,Scott Grubbs, Jeff O’Dell, Sylvia Till-brook
2nd Flight 2nd Place – Diana Landers,Steve Landers, Terry Hill, Bret Wood
2nd Flight 3rd Place – McChristieCurry, Eugene Varbel, Luke Edwards,Steve Malett
Last but not least the Best DressedTeam award went to: Tammy Gutierrez,Patty Doporto, Juliette Moore, CyndiStagner
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Beer Goggle Putt –Wayne King
Closest to the Pin #4 –Jeff O’Dell
Closest to the Pin #8 –Troy Wright
Closet to the Pin #13 –Armando Ortega
Closet to the Pin #16 –Steven Rahn
Longest Drive #10 –Armando Ortega
New Home Sales Solid in July, as June Numbers
Strongly Revised UpwardWASHINGTON, Aug. 23 - Sales of newly built, single-family homesfell 12.8 percent to a seasonally adjusted annual rate of 635,000 unitsin July off a strongly revised upward reading in June, according to newlyreleased data by the U.S. Department of Housing and Urban Devel-opment and the U.S. Census Bureau. On a year-to-date basis, newhome sales for 2019 are 4.1 percent higher than the same period in2018.
"Builder confidence continues to trend upward as lower interest ratesprovide for more favorable buying conditions," said Greg Ugalde, chair-man of the National Association of Home Builders (NAHB) and ahome builder and developer from Torrington, Conn.
"New home sales were sharply revised upward in June to a post-re-cession high annual rate of 728,000," said NAHB Chief EconomistRobert Dietz. "While we continue to see volatility in the monthly
numbers, sales continue to trend in a slightly positive direction andare in line with our forecast."
A new home sale occurs when a sales contract is signed or a depositis accepted. The home can be in any stage of construction: not yetstarted, under construction or completed. In addition to adjusting forseasonal effects, the July reading of 635,000 units is the number ofhomes that would sell if this pace continued for the next 12 months.
The inventory of new homes for sale was 337,000 in July, representinga 6.4 months' supply. The median sales price was $312,800. The medianprice of a new home sale a year earlier was $327,500
Regionally, and on a year to date basis, new home sales are 7.2 percenthigher in the South and 9.5 percent higher in the West. Sales are down15.4 percent in the Northeast and 12.4 percent in the Midwest.
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u Alamo Paintu All Family Partners, LLCu Housler Constructionu Uptown Rentalsu White Sands Construction
Membership Renewals
WASHINGTON, Aug. 12 -- Greg Ugalde, chairman of the NationalAssociation of Home Builders (NAHB) and a home builder anddeveloper from Torrington, Conn., issued the following statementafter the administration released its final regulations to reformthe Endangered Species Act (ESA):
"The final reforms to the ESA's Section 7 Consultation require-ments and regulations governing the designation of critical habi-tat are a positive development for landowners whose projectsmay impact endangered species or their designated critical habi-tat. These regulatory changes will streamline the cumbersomeand bureaucratic permitting process and allow federal regulators
to spend more time on species preservation rather than creatingred tape."
ABOUT NAHB: The National Association of Home Builders is aWashington-based trade association representing more than140,000 members involved in home building, remodeling, multi-family construction, property management, subcontracting, de-sign, housing finance, building product manufacturing and otheraspects of residential and light commercial construction. NAHBis affiliated with 700 state and local home builders associationsaround the country. NAHB's builder members will constructabout 80 percent of the new housing units projected for this year.
Statement from NAHB Chairman Greg Ugalde on
Final ESA Regulations
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LUNCHEON DATESNineteenth Hole Golf Course – 11:30 a.m.10/15/19
BCAOC BOARD OF DIRECTORS MEETINGSMorrison Supply – 10:30 a.m. 10/08/19 Rick McCracken
MEMBER APPRECIATION DAYPOSTPONED UNTIL FURTHER NOTICEAbe Moore
ANNUAL MEETING / CHRISTMAS PARTYElks Lodge Ballroom – December 6, 2019Mandy Curry & Cheryl Matherly
Your participation in any or all of theabove would be greatly appreciated!
Save the Date
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WASHINGTON, Aug. 1--The National Association of HomeBuilders (NAHB) officially opened online registration today forthe 2020 NAHB International Builders' ShowR (IBS), the largest an-nual light construction trade show in the world.
IBS will return to the Las Vegas Convention Center, Jan. 21 - 23,where it will again co-locate with the National Kitchen & Bath As-sociation's (NKBA) Kitchen & Bath Industry ShowR (KBIS) for the7th annual Design & Construction WeekR (DCW). The two showsare expected to host more than 2,000 exhibiting brands spanningover a million net square feet of exhibit space, for the largest an-nual gathering of the residential design and construction indus-try.
"It's our goal for the NAHB International Builders' Show to be theevent of the year for our members and industry professionals,"said NAHB Chairman Greg Ugalde, a home builder and developerfrom Torrington, Conn. "Nowhere else will you find top-level ed-ucation sessions, a variety of networking opportunities, specialevents and an exhibit hall full of innovative products all in oneplace. This is truly an event you can't miss."
Attendees with a full conference registration will have access tomore than 130 education sessions led by renowned experts on awide range of industry topics. New this year, Master Workshops,previously known as Master Sessions, will be held on Monday, Jan.20, the day before the show officially kicks off as part of pre-show
education and will be open to all registered show attendees foran additional fee.
IBS will again feature six Centrals that offer specific areas of focuswithin the building industry with their own schedule of events. Avariety of activities are available inside the Centrals includingworkshops, networking events, roundtable discussions and guidedproduct tours of the exhibit hall. The High-Performance BuildingZone will feature real-world construction demonstrations, andIBS Live will host presentations focused on what's next in homebuilding. Additionally, the IBS show floor will feature the CEDIAPavilion, a space showcasing exhibitors who specialize in technol-ogy solutions for the home.
The 2020 show will kick off on the morning of Jan. 21 with anOpening Ceremonies event featuring basketball legend Earvin"Magic" Johnson. That evening, OMNIA Nightclub at CaesarsPalace will host the Official IBS House Party. Other eventsthroughout the week include the Young Pro Party Wednesdaynight at On The Record at Park MGM, followed by the IBS ClosingConcert Thursday night with a performance by award-winningrock band, the Doobie Brothers.
Attendees will also have the opportunity to tour NAHB's officialIBS show homes, The New American HomeR (TNAH) and TheNew American RemodelR (TNAR). The homes are designed toshowcase innovative building technologies, emerging designtrends and the latest building products. The showcase productsin the homes are provided by members of the NAHB LeadingSuppliers Council, and Professional Builder and Professional Re-modeler magazines will once again serve as the media sponsorsof the 2020 show homes.
The NAHB International Builders' Show is not open to the generalpublic. Building industry professionals and their affiliates are invitedto register by visiting the show's website at www.BuildersShow.com.
[Editor's Note: Complimentary registration is available to creden-tialed members of the working press.
Visit www.designandconstructionweek.com/press for more infor-mation or to register.]
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Our Next Membership Luncheon Meeting
will be on
Tuesday, October 15th at 11:30 AM at
THE 19TH HOLE at the
DESERT LAKES GOLF COURSE...
C�e jƣn us!
2020 International Builders' Show Registration Now Open
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Home Construction Slowing in Manufacturing AreasWASHINGTON, Aug. 27 - In a possible sign of economic softeningin the industrial heartland, home construction in the nation'smajor manufacturing areas registered declines on a year-over-yearbasis in the second quarter of 2019, according to the National As-sociation of Home Builders (NAHB) Home Building GeographyIndex (HBGI). When the manufacturing sector was exhibitingstronger growth in 2017, the rate of home construction in countieswith relatively high shares of local manufacturing employmentoutpaced the rest of the nation.
"The HBGI data show that the manufacturing sector of the econ-omy has been gradually losing steam since 2017 and there hasbeen a corresponding drop in new home construction in countieswhere manufacturing employment is most concentrated," saidNAHB Chief Economist Robert Dietz. "This correlation indicatesthat as housing goes, so goes the economy."
The second quarterly release of the HBGI focuses on the housingmarkets in the top manufacturing counties, which represent 10percent of the nation's single-family production output and 6-7percent of multifamily construction.
Home building in these areas posted a decline in the first half of2019, and second quarter data reveal that single- and multifamilyconstruction decreased by 3.8 percent and 4.1 percent, respec-
tively, on a year-over-year basis.
The HBGI is a quarterly measurement of building conditionsacross the country and uses county-level information about sin-gle- and multifamily permits to gauge housing constructiongrowth in various urban and rural regions.
Other notable findings in the second quarter HBGI reveal thatsingle-family construction in rural areas and exurbs are flat, whilethere are noticeable declines in other regions, particularly largemetro suburbs.
"The analysis of the NAHB geographic tracking of home construc-tion trends is a reminder of the challenges that the housing af-fordability crisis presents for larger markets, where a dearth ofbuildable lots and stricter zoning regulations are putting upwardpressure on home prices," said NAHB Chairman Greg Ugalde, ahome builder and developer from Torrington, Conn.
The HBGI also found that apartment construction continues todecline in large metro core and large metro suburban areas.Growth in apartment construction, however, is present in exur-ban, small metro and more rural areas.
Please visit www.nahb.org/hbgi for tables, historic data and details.
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Single-Family Starts Continue Modest Improvement in JulyWASHINGTON, Aug. 16 - Due to a decline in multifamily produc-tion, total housing starts fell 4 percent in July to a seasonally ad-justed annual rate of 1.19 million units from a downwardly revisedreading in June, according to a report from the U.S. Housing andUrban Development and Commerce Department.
The July reading of 1.19 million starts is the number of housingunits builders would begin if they kept this pace for the next 12months. Within this overall number, single-family starts increased1.3 percent to 876,000 units. The multifamily sector, which in-cludes apartment buildings and condos, fell 16.2 percent to a315,000 pace.
"Despite housing affordability headwinds, builders remain confi-dent about the market and this is reflected in recent modestgains in single-family starts," said Greg Ugalde, chairman of theNational Association of Home Builders (NAHB) and a homebuilder and developer from Torrington, Conn.
"Permits bottomed out in April and single-family starts hit theirlow point in May, and now we are starting to see the gradual im-provement in the market that we've been forecasting," said NAHBChief Economist Robert Dietz.
On a regional and year-to-date basis, combined single-family andmultifamily starts in July rose 3.7 percent in the South. Starts de-clined 5.7 percent in Northeast, 7.9 percent in the Midwest and12.3 percent in the West.
Overall permits, which are a harbinger of future housing production,increased 8.4 percent to a 1.34 million unit annualized rate in July.Single-family permits edged 1.8 percent higher to a 838,000 ratewhile multifamily permits jumped 21.8 percent to a 498,000 pace.
Looking at regional permit data on a year-to-date basis, permitsrose 2.4 percent in the Northeast. Permits fell 7.1 percent in the Mid-west, 0.1 percent in the South and 6.8 percent in the West.
Apartment and Condominium Market Bounces Back
to Positive Territory in Second QuarterWASHINGTON, Aug. 22 - Confidence in the market for new mul-tifamily housing improved in the second quarter of 2019, accord-ing to results from the Multifamily Market Survey (MMS) releasedtoday by the National Association of Home Builders (NAHB). TheMMS produces two separate indices. The Multifamily ProductionIndex (MPI) increased 16 points to 56 compared to the previousquarter. Meanwhile, the Multifamily Vacancy Index (MVI) fell eightpoints to 40, with lower numbers indicating fewer vacancies.
The MPI measures builder and developer sentiment about currentconditions in the apartment and condo market on a scale of 0 to100. The index and all of its components are scaled so that a num-ber below 50 indicates that more respondents report conditionsare getting worse than report conditions are improving.
The MPI is a weighted average of three key elements of the mul-tifamily housing market: construction of low-rent units--apart-ments that are supported by low-income tax credits or othergovernment subsidy programs; market-rate rental units--apart-ments that are built to be rented at the price the market will hold;and for-sale units--condominiums. All three components postedgains in the second quarter: The component measuring low-rentunits increased nine points to 56, the component measuring mar-ket rate rental jumped 22 points to 64 and the component meas-uring for-sale units rose 19 points to 50.
The MVI measures the multifamily housing industry's perceptionof vacancies in existing apartments. It is a weighted average of
current occupancy indexes for class A, B, and C multifamily units,and can vary from 0 to 100, where a number under 50 indicatesmore property managers believe vacancies are decreasing thanincreasing. With a reading of 40, this is the lowest reading sincethe second quarter of 2017.
"Overall, builders and developers are reporting increased confi-dence in the multifamily housing market," said Gary Campbell,CEO of Gilbert G. Campbell Real Estate in Lowell, Mass., and chair-man of NAHB's Multifamily Council. "However, they still have todeal with the high cost of land, labor and regulation, which couldimpact future production."
"Historically, the MPI and MVI tend to move one to three monthsahead of U.S. Census figures for multifamily starts and vacancyrates, but in the second quarter we saw positive gains in both theNAHB and Census measures at the same time," said NAHB ChiefEconomist Robert Dietz. "This is a sign of solid demand for mul-tifamily housing in the second quarter, which was supported bylow unemployment and a healthy number of household forma-tions."
For data tables on the MPI and MVI, visit www.nahb.org/mms.
For more information on the NAHB Multifamily program, pleasevisit NAHB Multifamily:https://www.nahb.org/en/members/committees-and-councils/councils/multifamily-council/nahb-multifamily.aspx.
