Green is All the Rage

With last month's anniversary of Earth Day (coinciding nicely with spring), everything is turning green, and real estate is no exception. Worldwide, buyers are increasingly looking to buy or build homes that are good for the environment. According to Time Magazine, homes in London account for 44% of the city's carbon emissions. In response builders plan to open the city's first large-scale zero-carbon housing development to be located in London's Docklands. All 200+ homes will hook up to a combined heat and power plant that turns wood chips into electricity and hot water. Solar panels and wind will provide additional power. The project will have organized car and bike clubs to reduce commuting emissions. And the cost? Just 5% higher than a traditional housing development. Read more about how to reduce your "carbon footprint" with Time's Green Guide to an Earth-Friendly Home. Use the "drag" tool to examine options to cut carbon emissions on a room-by-room basis.

Taken from the NAR International News Report for May

The Home of the Future?

I stumbled upon a very interesting article this recently. It was a study done by the National Association of Home Builders and it notes how the “average home” has changed drastically in characteristics within the past 5 decades.

Back in the 1950’s we saw a lot of smaller Ranch & Bungalow style homes with typical living space of under 1000 sq ft. Those homes usually were 2 or 3 bedrooms and had only one bath. The basement was a place to “do your laundry” and “store your things” and “simple” was the theme.
Today we’ve seen that “typical” home shift to 3 or more bedrooms, 2 or more bathrooms, finished lower level rec rooms and more, all with comfort and ease for the busy family in mind.

What does the future hold? The NAHB has made some future projections as to what they feel the home of the future holds.
Average Home in 2015
2,330-square-foot, two-story home with 2½ to 3½ bathrooms and 4 bedrooms
One-story entry foyer
One-story family room (no loft or volume ceilings, etc.)
Living room will vanish or become parlor/retreat/library
Nine-foot ceilings on first floor; eight- to nine-foot ceilings on second floor
Exterior walls of vinyl or fiber cement siding or brick
Staircase located in foyer
Front porch
Patio
Fiber optic network, programmable thermostat, structured wiring system, multiline phone system
Both shower stall and tub in master bathroom
Toilet in master bath will have separate enclosure

What about “upscale homes”?
Upscale Home in 2015
More than 4,000 square feet
Two-story home with 3½ to 4½ bathrooms and 4 or more bedrooms
Two-story entry foyer
One- or two-story family room
Likely to have formal living room, but living room may be replaced by parlor/retreat/library
Nine-foot ceilings on first floor; nine- to ten-foot ceilings on upper floors
Exterior of stone, brick, stucco or fiber cement siding
Stairs in the back or side of the house
Front porch, rear porch, patio and deck
Two master bedroom suites
Outdoor kitchen with grill, sinks, refrigerator, cooking island
Outdoor fireplace, pool/spa, audio/tv equipment, lighting
Programmable thermostat, structured wiring, multiline phone system, multi-zone HVAC, remote control fireplaces, instant hot water in bathrooms/kitchens, lighting control system, monitored burglar/fire/toxic gas alarm system

Just something to keep in mind if you’re looking to build in the near future.

Housing Starts Drop 14.3 Percent in January as Builders Manage Inventories of Unsold Homes

Washington - February 16, 2007) - Total housing starts declined 14.3 percent in January as builders worked down their inventories of unsold homes, according to figures released by the Commerce Department today. The pace of construction for the month slowed to seasonally adjusted annual rate of 1.408 million units. This was 37.8 percent below the January 2006 pace.

"Builders are doing what they should be doing in the market today," said Brian Catalde, president of the National Association of Home Builders (NAHB) and a home builder from Playa del Rey, Calif. "NAHB's surveys of single-family builders have been showing a steady increase in confidence regarding the demand side of the market since last fall, and with sales for new homes stabilizing, builders are working to control their inventories and position themselves for the upcoming spring buying season."

"Home sales apparently stabilized late last year, but the overhang of unsold housing inventory still is quite heavy," said NAHB Chief Economist David Seiders. "Builders have been cutting back on starts of new units to bring supply and demand back into balance."

"We expect housing starts to bottom out in the first quarter of this year before embarking on a gradual recovery path," Seiders said.

Single-family housing starts decreased 11.2 percent to a seasonally adjusted annual rate of 1.108 million units in January. This was 38.9 percent below the pace of single-family starts a year earlier. Multifamily housing construction was down 24.1 percent for the month to a seasonally adjusted annual rate of 300,000 units in January. The decrease followed a 34.4% increase in multifamily construction the month before.

Builders decreased the pace of permit issuance by 2.8 percent in January to 1.568 million units, a level that was 28.6 percent below a year ago. Single-family permit issuance was down 4.0 percent to a pace of 1.121 million units for the month. This was 32.6 percent below a year earlier.

The pace of multifamily permit issuance increased 0.4 percent to 447,000 units for the month. This was 15.8 percent below the January 2006 pace.

Regionally, housing starts decreased in three of four regions across the country in January. Construction of new homes and apartments was down 15.2 percent in the Midwest, 11.8 percent in the South and 28.5 percent in the West. Favorable weather patterns in the Northeast in January helped boost starts there by 8.9 percent. All four regions, however, reported a pace of construction well below a year earlier.

EDITOR'S NOTE - Visit HousingEconomics.com, the online publication from the NAHB Economics Group, for housing in-depth market analysis, forecasts, housing statistics and more. Visit www.housingeconomics.com for details.

ABOUT NAHB - The National Association of Home Builders is a Washington-based trade association representing more than 235,000 members involved in home building, remodeling, multifamily construction, property management, subcontracting, design, housing finance, building product manufacturing and other aspects of residential and light commercial construction. Known as "the voice of the housing industry," NAHB is affiliated with more than 800 state and local home builders associations around the country. NAHB's builder members will construct 80 percent of the more than 1.56 million new housing units projected for 2007, making housing one of the largest engines of economic growth in the country.