Multifamily Dip Drives Housing Starts Lower in June

NAHB Press Release

WASHINGTON, July 17 - Nationwide housing starts declined 9.9 percent to a seasonally adjusted annual rate of 836,000 units in June as construction of multifamily buildings slowed following recent months of strong activity in that sector, according to newly released figures from HUD and the U.S. Census Bureau. Meanwhile, the pace of single-family production held fairly even, with a decline of less than one percentage point.

"While demand for new homes and apartments has grown considerably over the past year, builders are still being very careful not to get ahead of the market, and today's report reflects that cautious approach," said Rick Judson, Chairman of the National Association of Home Builders (NAHB) and a home builder from Charlotte, N.C.

"The large dip in multifamily production in June follows a boost of activity in May, and is consistent with the volatility that has come to characterize that sector as well as the uneven pace of the housing recovery," noted NAHB Chief Economist David Crowe. "That said, the fact that single-family starts and permits both rose in three out of four regions in June is a positive sign that's in keeping with our forecast as well as recent surveys in which single-family builders have registered an increasingly positive outlook."

The annualized rate of multifamily production declined 26.2 percent to 245,000 units in June after a 28.2 percent gain in the previous month. Meanwhile, single-family construction slipped by a marginal 0.8 percent to a 591,000-unit pace. Regionally, combined starts activity declined 12.1 percent in the Northeast, 7.4 percent in the Midwest, 12 percent in the South and 5.4 percent in the West in June.

Building permits, which are an indicator of future building activity, declined 7.5 percent to 911,000 units in June. This was due entirely to a pullback in the multifamily sector, where permits fell 21.4 percent to 287,000 units. Single-family permits registered a marginal 0.6 percent gain to 624,000 units - the best pace in five years.

Regionally, permit issuance was down 4.6 percent in the Midwest, 11.2 percent in the South and 7.2 percent in the West, but rose 5.9 percent in the Northeast in June.

2013 Reniassance Awards Gala Winners & Photos

HONOLULU- The 28th Annual BIA Renaissance Building & Remodeling Awards Gala for 2013 was held May 8 at the Royal Hawaiian Hotel. 38 prizes were awarded by the Building Industry Association of Hawaii and The BIA-Hawaii Remodelers in 11 divisions. The 11 divisions included submissions in construction and design of New & Remodeled Residential, New & Remodeled Commercial, Kitchen & Bath, Landscape & Outdoor Living, Hawaii BuiltGreen™, Historical, Innovative Construction and Public Works. The 38 submitted statewide 2013 entrants from Maui, Molokai and Oahu symbolized the diversity of excellence in quality construction and design of new and remodeled projects. Award of Merit, Grand Awards and Four Overall Grand Awards and the Carl Reppun Award were the highlight of the awards ceremony.

The five top Overall Grand Award and Carl Reppun Award winners, achieving the highest awards of the night, included four on Oahu: Architects Hawaii, Ltd. “WCC Library Learning Commons” in the Hawaii BuiltGreen™ New Commercial Division; Long & Associates Architects and Interiors “Hale Kapena” in the New Residential Division; Armstrong Builders, LLC and Peter Vincent Architects “Subtle Elegance” in the Residential Remodeling Division and Hawaii Architecture, LLP and Complete Construction Services, Corp. “Makiki Heights Residence” receiving the Carl Reppun Award. The Maui entrant achieving top honors was Armstrong Pacific, LLC “Easter Seals at Kahului” for the Overall Grand Commercial Remodeling Division.

There were 24 Grand Award winners and 13 Merit Award winners also honored at the 28th Annual BIA Renaissance Building & Remodeling Awards Gala on May 8.







View winners | View photos from the Awards Gala

Checklist for Finding and Hiring a Builder or Remodeler

By: Karen Nakamura, CEO
      BIA-Hawaii

Doing your homework will help you have a more successful experience.

 Use this checklist to help you select a home builder or home remodeler to work on or build your home:

• Contact the Building Industry Association of Hawaii for the names of member builders and remodelers: info@biahawaii.org or go to www.biahawaii.org. You can also ask family, friends or coworkers for recommendations.
• Make sure the builder or remodeler has a permanent business location and a good reputation with local banks and suppliers.
• Find out how long they have been in the building business. It usually takes three to five years to establish a financially sound business. You want to make sure they will be around after the construction is complete to service any warranties.
• Check out the company's rating and if there have been any complaints filed with your local Better Business Bureau: www.bbb.org. or the Department of Commerce and Consumer Affairs: http://cca.hawaii.gov/resources/
• Make sure the builder has sufficient workers compensation and general liability insurance. If not, you may be liable for any construction-related accidents on your premises.
• Ask the builder to provide you with names of previous customers. If they won't, beware. If they do, ask the customers if they would hire the builder/remodeler again.
• Ask if you can see the builders work, both completed and in progress. Check for quality of workmanship and materials and cleanliness of job site.
• Do you feel you can easily communicate with the builder? Remember you will be in close contact with them throughout the construction process and afterward as you live in your new home.
• Make sure the builder provides you with a complete and clearly written contract. The contract will benefit both of you. If you are having a new home built, get and review a copy of the home warranty and homeowner manual as well.
• Be cautious of unusually low-priced bids. If the builder is unable to pay for the materials and labor as the project proceeds, this may indicate a potential problem. Keep in mind that less expensive does not necessarily mean better!
• Make sure your payments are spelled out progress payments that identify when payment is due upon completion of the specific phase of the work.
• Make sure you sign a lien disclosure statement with the contract.
• Make sure the Notice of Completion is filed in the newspaper this starts the 45 days of the lien period.
• Make sure you get a Certificate of Occupancy and the permit is closed out. When the permit is not closed the work is not recorded with the building department so your plans are not updated. When you need an appraisal, a loan or go to sell, you may have a problem because what is recorded does not match the existing as built. When that happens, there are permit fees, and penalties to get the records corrected.

For more information contact me: ktn@biahawaii.org or call 808-847-4666 x 7502