ORLANDO, Fla. — Realty News Report, the only Houston-based media outlet attending the recent national builders convention in Florida, reports signs of a construction rebound gaining traction across the United States. The National Association of Home Builders’ International Builders’ Show drew roughly 80,000 professionals — including home builders, remodelers, developers, designers and trade partners — to the Orange County Convention Center Jan. 10–12, 2017. The event highlighted market trends, design awards and leadership changes that signal a steady, if measured, recovery in residential construction.
Multifamily Housing Market Moderates but Remains Strong
Experts at the convention indicated that apartment construction would moderate in 2017 after several years of elevated activity. NAHB Senior Economist Robert Denk described multifamily starts as “extremely volatile” but noted that the sector is cooling from recent historical highs as demand shifts toward a more sustainable pace. Key indicators, such as vacancy rates and rent inflation, still point to healthy production, but the extraordinary growth phase is easing.
Denk forecasts a modest decline in multifamily production from its 2015 peak of approximately 395,000 units. Panelists also emphasized a persistent imbalance between the need for affordable rentals and available supply. Steven Lawson, president of The Lawson Cos., pointed out that demand for affordable rental housing already exceeds supply and will grow as Millennials fully enter the housing market and aging Baby Boomers with limited savings seek reasonably priced housing options, often dependent on Social Security.
Houston Luxury Townhouse Development Earns National Design Honor
Winfield Gate, a high-end, London-inspired townhouse development near downtown Houston, received national recognition as Multifamily Community of the Year in the National Association of Home Builders’ 2016 Best in American Living Awards. The project, which echoes the formal architecture of Winfield House in London, consists of 20 luxury units built four and five stories high with elevators on a compact 1.3-acre site near River Oaks. Designed by Preston Wood & Associates LLC and developed by Winfield Gate Partners LLC of Houston, the project had an average sales price of about $1.9 million and reflects demand for distinctive, urban-inflected high-end housing in select markets.
NAHB Elects Texas Builder as Chairman
Granger MacDonald of Kerrville, Texas, was elected NAHB chairman for 2017. MacDonald brings four decades of experience in home building and development as chairman and CEO of the MacDonald Companies, a diversified enterprise with nearly 50 completed and managed neighborhoods across Texas. His leadership at the trade association is expected to emphasize practical solutions for workforce, lot supply and financing challenges that influence housing production nationally.
Houston Builder Recognized for Leadership in Green Building
Scott Frankel, co-president and principal of Frankel Building Group in Houston, received the 2016 Best in Green (BIG) Young Professional of the Year award from NAHB during the International Builders’ Show. The annual BIG award honors emerging leaders who advance sustainable building practices, energy efficiency and green design in residential construction. Frankel’s recognition underscores growing attention to environmental performance and resource-efficient building practices among a new generation of construction professionals.
Custom Building Excellence Highlighted
Luis Jauregui, owner of Jauregui Inc. in Austin, was named 2016 NAHB Custom Home Builder of the Year by the association’s Custom Home Builders Committee. Jauregui’s firm operates a fully integrated design-build model with a 30-member in-house team that includes site and project managers, estimators, real estate specialists, architects, landscape architects and interior designers. The award recognizes his firm’s cohesive process and consistent delivery of custom, client-focused homes.
Single-Family Starts Expected to Rise Gradually in 2017
Speakers at the convention projected a steady, gradual increase in single-family housing starts for 2017, driven by three main constraints: lots, labor and lending. NAHB forecasts anticipated a 4.9 percent rise in single-family starts to about 1.16 million units year-over-year. Mortgage rates were projected to average roughly 4.5 percent in 2017 and to climb toward 5.3 percent in 2018, according to NAHB Chief Economist Robert Dietz.
Dietz emphasized labor shortages as a key limiting factor, noting that the building industry’s share of unfilled jobs stood at about 2.7 percent — slightly higher than the 2.5 percent peak recorded during the previous boom. The construction workforce is aging, with a median age near 42, and the industry must recruit younger workers to expand capacity. Lots are also constrained; around 64 percent of builders reported a low or very low supply of buildable lots, a lingering effect of the recession-era slowdown in land development. Finally, increased lending, particularly to smaller builders who produce a substantial share of single-family homes, will be necessary to sustain growth.
CoreLogic Chief Economist Frank Nothaft noted recent upward pressure on mortgage rates, while Nationwide’s chief economist David Berson suggested that modest rate increases would likely be offset by stronger wage gains and job growth, supporting housing demand even as borrowing costs rise.
55-plus Market Continues to Expand
The convention also highlighted ongoing growth in the 55-plus housing market. Paul Emrath, NAHB’s vice president for survey and housing policy research, noted sustained gains in builder confidence for the 55+ single-family market. NAHB’s 55+ Single-Family Housing Market Index registered year-over-year improvements from 2012 through 2015 and remained in positive territory through 2016. As Baby Boomers age, demand is rising for smaller, single-level homes that accommodate aging-in-place needs while still offering space for visiting family and entertaining friends.
The International Builders’ Show emphasized that while the housing recovery remains uneven across segments and geographies, momentum continues. Manufacturers, builders and policymakers face common challenges — securing skilled labor, expanding available lot inventories and maintaining access to capital — but the outlook heading into 2017 was cautiously optimistic, with steady demand for both entry-level and specialized housing products.
Jan. 22, 2017 Realty News Report Copyright 2017