PUBLISHER'S NOTE
Hello B&D readers in print and online,
The Fourth of July holiday is upon us already
- how is that possible? This year is flying by. Some
would undoubtedly argue this is a good thing, given
the state of the economy and housing in particular.
There have already been 4.5 million U.S. homes sold
this year - this is because the expired tax credit
caused a rush to market. The expected hangover is
now upon us as the anticipated lull in construction to
meet lower demand post credit is here.
Demand is expected to increase again later in the fall and this should see
construction of residential units start up again. The second quarter has given
back the previous quarters’ gains as the stock market wrestles with European
debt, falling consumer confidence and the BP oil spill. The long feared
double dip recession is no longer a wolf in the woods, but rather a wolf at
the door. What to do?
Every CFO has his or her own ideas on how to survive the downturn.
Managing costs, retaining cash and carefully managing your balance sheet
are the preferred approaches. The homes you decide to build will also have
a lot to say about your near term results. The current model still calls for a
smaller, more compact sustainable and affordable single family home. There
is inexpensive conforming mortgage money available to buyers with good
credit and construction lending is another matter. For all the noises banks are
making to the contrary, financing construction is terribly difficult to secure.
Evidence of this was strong during PCBC in San Francisco earlier in June.
A very nicely produced show did well to attract the 11,000 plus attendees
who participated in the more muted affair. The chat around the show was
of unemployment numbers, financing and product selection. There was
significant interest in the Hybrid Core Home which was built and displayed
on the show floor. A more affordable and time saving system than a
completely stick built unit, the Hybrid Core Home is traditionally built on site
around a central manufactured core that includes the major areas of kitchen,
master bath and bedroom.
With more than 80 fully developed floor plans currently available the very
clever construction, methods allow for a typical 35 percent savings and a
two month build out from start. Cost-effective, quality solutions like this are
exactly what is needed right now. Within this multifamily themed issue, we
are pleased to showcase four of the nominees at the recent Gold Nugget
awards. Innovative designs with user-friendly amenities are presented at every
turn. These particular homes run the gamut from affordable, for rent and
high-end. Congratulations to each of the builder teams involved.
Please note you can now use the reader service cards within to renew
your subscription and to also request free literature from the manufacturers
and service providers who grace these pages. Please support the fine
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subscription within the past two years, you will regretfully fall off the mailing
list, so please subscribe today and keep B&D coming. Thank you!
Work hard and I will see you in the marketplace.
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