MarketWatch: Multifamily Housing Starts Up
Friday, January 19, 2007
News from Marketwatch: "Government statistics released this week showed a pickup in the construction of multifamily housing. But the data most likely was influenced by a warm December. And it's just as possible that January's cold snap in many parts of the country could create a reversal in the next set of numbers.
So says Mark Obrinsky, chief economist for the National Multi Housing Council. He expected to see December housing starts, released on Thursday, to be higher than usual. Starts of multifamily housing jumped 42%, according to the Commerce Department.
Truth is, the underlying story in multifamily housing is that markets around the country are starting to normalize, industry observers say.
The craze of condo construction is coming to an end. Renters aren't fleeing apartments to dive into homeownership as they had been in previous years. Rents are rising modestly, and are predicted this year to rise at, or a bit higher than, the rate of inflation.
In fact, many say that we're several years away from the real sea change in multifamily housing. When large numbers of echo boomers, children of the baby boomers, move out of the dorms and into their first apartments, more supply of rental units may be needed. Around the same time, their parents may be interested in downsizing from a house to a condo.
A demographic trend like that could create a genuine spike in building, one that lasts beyond a warm holiday season."
Bookmark the Contractor Update to keep up on the latest news, information, and trends in the Construction Industry.
So says Mark Obrinsky, chief economist for the National Multi Housing Council. He expected to see December housing starts, released on Thursday, to be higher than usual. Starts of multifamily housing jumped 42%, according to the Commerce Department.
Truth is, the underlying story in multifamily housing is that markets around the country are starting to normalize, industry observers say.
The craze of condo construction is coming to an end. Renters aren't fleeing apartments to dive into homeownership as they had been in previous years. Rents are rising modestly, and are predicted this year to rise at, or a bit higher than, the rate of inflation.
In fact, many say that we're several years away from the real sea change in multifamily housing. When large numbers of echo boomers, children of the baby boomers, move out of the dorms and into their first apartments, more supply of rental units may be needed. Around the same time, their parents may be interested in downsizing from a house to a condo.
A demographic trend like that could create a genuine spike in building, one that lasts beyond a warm holiday season."
Bookmark the Contractor Update to keep up on the latest news, information, and trends in the Construction Industry.
Labels: Construction Industry, Construction News, Housing Starts
Miami Herald: Construction Suffers
Wednesday, January 17, 2007
From the Miami Herald on the Construction Job outlook in Florida: "Construction jobs have taken the most direct hit. Job growth in the industry throughout the state has slowed from a peak of 12.8 percent in mid-2004 to 5 percent in November, according to the most recent state figures. Palm Beach County home builder DiVosta Building plans to lay off half of its 552 workers next month."
"Cement maker Titan America has seen a 20 percent drop in its concrete block business alone, which is almost solely for residential building. At full tilt last year its Pennsuco plant in Medley was running three shifts to keep up with demand. In the fourth quarter, it cut back to just one shift at the block plant."
"'Obviously, construction is in a pretty significant slowdown,' said Florida division president Hardy Johnson. The company has shifted its focus from providing for residential sector clients to commercial builders and for Department of Transportation work."
"'I think that '07 is going to be a flat year for us,' he said."
"Cement maker Titan America has seen a 20 percent drop in its concrete block business alone, which is almost solely for residential building. At full tilt last year its Pennsuco plant in Medley was running three shifts to keep up with demand. In the fourth quarter, it cut back to just one shift at the block plant."
"'Obviously, construction is in a pretty significant slowdown,' said Florida division president Hardy Johnson. The company has shifted its focus from providing for residential sector clients to commercial builders and for Department of Transportation work."
"'I think that '07 is going to be a flat year for us,' he said."
Labels: Construction Industry, construction jobs, Construction News
Be The Expert
Monday, January 15, 2007
Would you like free advertising? Free publicity? How would you feel if you could hear your company's name on the radio, in print, or even on television at no charge? There are ways to make this happen but it will take some initiative.Whether you live in a small town or a large city, it is a great idea to become an expert on your segment of the industry. I don't mean that you need to take classes to get better at your job. I'm going to assume you already know how to do your job and do it better than your competitors. When I say "become an expert", I'm talking about selling yourself and your abilities by letting people in the media know you're the expert. If you're the best and no one knows it, does it matter?
If your local newspaper has a Home or Real Estate section, take the editor out to lunch. Let the editor know you're the expert in your construction, remodeling, or repair field. Let the editor know you'll pass along information on trends you are noticing or news you've heard. Become a source of story ideas. Let the editor know you're available if they need a quote or statement on a breaking news story. By keeping that relationship up, you'll find your name and your company's name in print on a regular basis.
Create an audio tape with you answering questions on your specialty. Performing can be a daunting prospect but if you practice, be yourself, and talk about what you know you might be able to create a credible audition tape. Send that tape in to your local talk radio station - they might have a time slot to fill and have an interest in airing a home improvement show.Here's an example of a local expert - on the radio station KOST FM in Los Angeles, they have an "Experts on Demand" on their website. The designer for Zeffrey's Custom Woodwork is interviewed on getting the right custom cabinets installed.
If you're not interested in performing "on air", you might be able to write a newspaper or website column. If you know you can write about your job, answer questions, and inform readers it could be a great way to gain free publicity for your company by being an expert in your field. Construction Deal even has several website blogs where you could pass on information to our readers. It gives you a chance to show and share your knowledge and give free publicity to your company. Joe Welch of Stained by Design has provided us with several articles on acid stained concrete and it has sent a lot of business his way. Here are a few samples of Joe proving he's the expert:
Acid Stained Concrete Flooring
More on Acid Stained Floors
Exterior Care: Acid Stained Concrete
If you'd like to contribute to one of the Construction Deal blogs, please let us know. The more the homeowners know about what you do, the easier your job can be. And if you can gain free publicity out of it, that's even better. Once people consider you to be the expert, they will continue to come to you and ask for you help. It's a great way, if you can make the time, to expand your business!
Here's a sample of the other blogs that could use contributions from contractors and service professionals. Take a look at them and see if you have any advice or expert opinion to offer:
Labels: Advertising, Publicity, Small Business Advice, Small Business Expansion
