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A HOMEBUILDING INDUSTRY PUBLICATION Dallas • Fort Worth | January 2020 FOUNDATION FUNDAMENTALS 2019 HEADLINES-- YEAR IN REVIEW IS CUSTOMER SERVICE FREE? A Year In Review Trend-Setting, Award-Winning and Thought-Provoking Individuals and Teams Lead DFW’s Talented Home Building Industry23 Building Savvy As we reflect back on all of 2019’s featured contractors, I see several recurring themes. Savvy builders are hands-on, intentional and work well with others. I am personally inspired by their focus, integrity and talent, and hope that this year’s selections also motivated you. By the way, as we plan our line-up for 2020, don’t be shy about nominating your company. It is purely an honor, no cost is involved, but being selected for the honor can be a huge marketing plus when prop- erly promoted. We can share some ideas about that! Each January starts a new editorial calendar for our Focus Sections. Throughout the year we explore the latest schools of thought and latest products as we embark on the journey that starts with the foundation. Next is the framing, followed by a style report on exterior design. Then it’s on to a performance series beginning with window and door performance, then insulation and mechanical systems. The hot trends and new products for surfaces, kitchens, baths, and outdoor spaces come next before we wrap up another year with updates on home technology and finishing touches. As much as things change around us, some things stay the same; one of the constants is the process for building a firm and solid home foundation, another is common sense about customer service. On the other hand, some things need to change, including housing policies. You’ll find thoughts on all that and more inside! We’d like to take this opportunity to recognize and thank my sponsors and our local experts who con- tribute timely editorial to keep us all savvy about our industry. Enjoy! And we wish you a Happy and Prosperous New Year! Beverly and Steve Smirnis beverly@buildingsavvy.com steve@buildingsavvy.com (817) 975-7235 Another Year in the Books for Building Savvy Dallas/Fort Worth! [from the publishers]4 Building Savvy Architectural Photography Ad Imagery (214) 497-4655 adimagery.com Attorneys Brackett & Ellis, P.C. 817- 360-7236 BELaw.com Banking, Home Loans, Insurance Colonial Companies (817) 877-9522 GoColonial.com Brick Acme Brick 817-685-9641 brick.com/DFW Cabinetry Innovation Cabinetry 844-303-5150 InnovationCabinetry.com DISCLAIMER: Any articles included in this publication and/or opinions expressed therein do not necessarily reflect the views of N2 Publishing but remain solely those of the author(s). The paid advertise- ments contained within the Building Savvy magazine are not endorsed or recommended by N2 Publishing or the publisher. Therefore, neither N2 Publishing nor the publisher may be held liable or re- sponsible for business practices of these companies. NOTE: When community events take place, photographers may be present to take photos for that event and they may be used in this publication. SAVVY’S A-LIST Ceramic & Porcelain Tile DalTile (972) 484-0334 daltile.com Digital Marketing Atomic Design and Consulting 972-668-3867 AtomicDC.com Energy Inspection Fox Energy Specialists 817-546-0160 FoxEnergy Specialists.com Fireplaces- Garage Doors Trinity Fireside 972-215-7675 TrinityFireside.com Flooring & Countertops Polyflow Custom Floor Coatings 817-319-9697 polyflowfloors.com Foundation Repair Perma-Pier Foundation Repair of Texas (214) 637-1444 permapier.com Industry Associations NARI Dallas 214-943-6274 NariDallas.org Insurance Hotchkiss Insurance Agency 972-512-7755 HIALLC.com Lots and Land The Lansford Group Realty 214- 263-5858 PropertySavvyDFW.com Marketing N2 Publishing 214-727-4103 N2Pub.com Structural Warranties StrucSure 817-726-6880 StrucSure.com Staging Modern Design Staging (817) 825-5599 moderndesignstaging.com Tax Strategy Ed Guerrero CPA 210-490-7100 GuerreroCPA.com Title Services First American Title Company 817-918-2321 firstam.com/title/tex/ dallas-fort-worth 5 We lead the industry in change. No matter the location or complexity of your development, we offer customized services to fit your specific needs, including credit reporting, appraisals, property valuation, flood determination, document preparation, maps imaged data, and more. You care about your customer, and so do we. We even work with you to offer property & casualty insurance, home warranties and other convenient products to your buyer. ©2017 First American Financial Corporation and/or its affiliates. All rights reserved. | NYSE: FAF | 45147780917 CONNECTION PARK 4795 Regent Blvd., Mail Code: 2003, Irving, Texas 75063 (817) 918-2321 SMARTER PROCESSES SIMPLER SYSTEMS FASTER CLOSINGS6 Building Savvy Heather Laminack of Ferrier Builders was inducted as pres- ident of the Greater Fort Worth Builders Association by Fort Worth Mayor Betsy Price. Laminack (previously Heather Ferrier) is the first female president at GFWBA. She is the fourth genera- tion in her family to specialize in construction. FALL WAS A TIME FOR INSTALLING AND RECOGNIZING LEADERS GFWBA members nominated individuals and government entities for several award categories at their 2019 Munici- pal Awards Night, featuring keynote speaker United States Senator Ted Cruz. The Spirit of Cooperation Award was given to Paul Ward, the chief building official for the City of Southlake, for his reasonable and practical interpretations and applications of city codes and ordinances, and for his shared commitment to provide safe, comfortable and affordable housing. The Com- munity Spotlight Award was presented to the City of Justin for its advocacy for the homebuilding industry and the consum- er, and for helping to create winning solutions to community challenges. The Partnership Award was given to the Honorable Cary Moon, a city council member for the City of Fort Worth, for his advocacy of reasonable policies, codes and ordinances that impact and/or govern the homebuilding industry. The Individual Spotlight Award was presented to Don Shelton of Bush Rudnicki Shelton, for his advocacy for the homebuilding industry and the consumer, and for helping to create winning solutions to com- munity challenges. The Lifetime Achievement Award was given to United States Representative Kay Granger, for her public service contributions in helping North Texans attain home ownership. [association news] Justin Webb, CGB, CGP, CMP, GMB, of Altura Homes was in- stalled as the president of the Dallas Builders Association Mike Garabedian, Paul Ward, Kosse Maykus7 Building Savvy • Nearly 200 high school students from seven area construction trades programs took part in hands-on demonstrations at the Dallas Builders Show last November. An opening session by Paige Shipp of MetroStudy underscored the need for con- struction labor and the bright prospects that young workers have for employment in the industry. The student attendees rotated through seven hands-on product demonstrations from association members and the Building Officials Associa- tion of Texas, and worked on their soft skills by participating in mock interviews led by Dallas BA members. • The Dallas Builders Association has established a scholarship fund benefiting students enrolled in Collin College’s construc- tion management program. Since the program began last fall, it has enrolled 63 students and is poised for continued growth as it moves to its new home at the college’s technical campus now under construction. Many students are working in low- wage jobs, trying to support themselves and their families en route to a better life in our industry. An investment in their future pays huge dividends for them and member companies who hire them after graduation. Tuition for Collin County res- idents is $54 per credit hour and $100 per credit hour for all other Texas residents. • The Home Builders Institute (HBI) Military and Veterans pro- gram is designed to help transitioning military and veterans at every stage of the employment continuum. Participants are assessed, trained, certified and placed in a quality con- struction job. • Iowa’s Student-Built House Program provides high school and college students technical experience in the building trades to strengthen the workforce development pipeline in Iowa. Students enrolled in the program receive college credit and a 10-hour OSHA certificate. The Greater Iowa City Area HBA, in partnership with Kirkwood Community College, provided a Student-Built House to a new owner through Reach For Your Potential, a nonprofit organization that assists adults with dis- abilities. The HBA and home-building industry have a chance to develop the next generation of tradespeople • Half of payroll workers in construction earn more than $47,290, and the top 25 percent make at least $66,290, according to the 2018 Bureau of Labor Statistics Occupation- al Employment Statistics Survey data and analysis by NAHB. Year-over-year, median wages in construction outpaced the national median wages, 3.2 percent versus 2.5 percent. • The Home Depot Foundation and the Home Builders Insti- tute (HBI) recently expanded their partnership to address the skilled labor shortage by launching a youth trades training program. The program and its industry-recognized Pre-Ap- prenticeship Certificate Training (PACT) curriculum is available to 11th- and 12th-grade students in approximately 25 high schools in nine states. The program will expand to more high schools in 2020. HEADLINES SHOW PROMISING RESULTS FROM FOCUSED EFFORTS TRAINING TOMORROW’S WORKFORCE [state of the market]8 Building Savvy Key Subjects of DFW is Hot: The 2019 Best Real Estate Markets report for personal finance website WalletHub ranked Frisco, Denton, McKinney, Carrollton and Allen among the Top 10 hottest home markets in the nation. That means half of the country’s best markets are in North Texas. Affordability is a Concern: Developers are paying more to purchase lots; Texas ranks among states with the most significant increase in lot values. Median single-family lot prices in 2018 outpaced inflation (4.4 percent versus 2.4 percent) and reached a new record high, with half of the lots selling at or above $49,500, according to NAHB’s analysis of the Census Bureau’s Survey of Construc- tion (SOC) data. Dallas, Irving, Grand Prairie, and Arlington were listed among 16 cities across the nation that are projected to experience significant jumps in home value, causing them to be rated “above national median,” according to a study by GOBankingRates. Home prices in the Dallas area were 2.7 percent higher than in September 2018. That’s a smaller increase than the nation- wide gain, according to the latest report from CoreLogic. Fort Worth’s home prices were up 3.3 percent from September 2018 levels. First-Time Buyer Pool Declining: Historically, first-time home buyers make up about 40 percent of the market; that percentage has slid, with only one-third of homes selling to first-time buyers in last year. Rentals: While homeowners may be less burdened by housing costs, fewer people actually own their homes. The country’s rental population has grown to its largest size ever as rising home prices, and student-loan debt have forced young adults to delay homeownership. Meanwhile cities are coming around to the fact that rentals are okay and buyers want different housing choices. Twenty years after its development, Southlake Town Square is proposing a high-end apartment community for the seven acres on Carroll Avenue south of State Highway 114. The Dallas Morning News reported that the project would include 350 apartments averaging $3,000 in rent a month. StreetLights Residential plans to build 340 apartments in the Viridian community, on North Collins Street north of Inter- state 30. [industry news] Housing Headlines9 Building Savvy While they are purported to like new homes, student debt and a low inventory of affordable homes on the market have influ- enced millennials to purchase cheaper, older homes in need of fixing up. Television has influenced the DIY idea. Dogs are a big reason why millennials say they’re entering the housing market. Savvy builders will tout spacious yards, doggy doors, indoor cameras, nearby walking paths and neighbor- hood dog parks. Catering to a millennial audience means throwing that tra- ditional, cookie-cutter layout out the window in favor of a simpler, much less structured floor plans with efficient, simple and open layouts that allow for customization. Despite the high costs, millennials are still willing to pay more for sustainable items, including solar panels, energy efficient appliances, sustainable building materials, smart thermostats, LEED-compliant lighting, non-toxic paint. Alexa has become a way of life: A 2014 article by Computer World said, “In Star Trek, the main interface to the Enterprise’s supercomputer was voice. A crew member would say: “Computer” followed by some command or question. The computer would talk back. It’s inev- itable that this interface will be extremely effective, appealing and ubiquitous in the future. We’ll talk, and the virtual assistant of our choice will answer, act and respond accordingly.” Huffines Communities completed the final phase of its Hebron 121 Station apartment community in Lewisville north of State Highway 121 near Stemmons Freeway. The 90-acre project now includes 1,700 apartments in the $300 million resort-style rental community. Less restrictive zoning: A single-family home with 3,000 square feet or an apart- ment or condo in a luxurious high-rise tower doesn’t suit everyone. According to Parolek, 59 percent of millennials are looking for missing middle housing in the for-sale and rental markets, versus 39 percent who are looking for single-family homes. Bungalow courts, town homes, duplexes or triplexes and courtyard apartments are some of the alternatives that provide more solutions to an increasingly diverse range of income and generational housing needs. Foreign Buyers: Particularly popular with buyers from Mexico and India, Texas ranked third in the nation for homes sold to international buyers, behind Florida and California. International home- buyer activity added $7.8 billion to the Texas economy from April 2018 to March 2019, according to the Texas Interna- tional Homebuyers Report released by Texas Realtors. Staying Put: Americans are moving at the lowest rate ever, according to recent Census Bureau data. Boomers: The 55-plus market has been supported by strong demand as aging baby boomers continue to seek downsized homes, but with higher-end features and amenities. Great Rates: Mortgage rates have seesawed but remained low. Production Builder Market Share Increasing: In 2000, high-production builders built 16.6 percent of homes in the U.S. The top 20 builders produced 29 percent of all the homes constructed in the country in 2018, according to data from BUILDER magazine. Understanding the millennial buyer: A blog post by Whirlpool states, “Most millennials can’t afford homes over $300,000 and, according to BUILDER magazine, earn an annual income ranging from $18,000 to $43,000. Therefore, this generation will be attracted to economical houses with low down payments and entry-level materials.” The Juno AI Speaker Light with Alexa built in clears the clutter on tables and walls and give home owners the ability to control up to 200 Alexa-enabled smart devices.Next >