Homebuilder Trends: Going Green or Going Bankrupt [Housing Tracker]

Homebuilder Trends 

Hopes Ride On 'Green' At New Home Show. “Michigan Association of Home Builders: A $10 billion market. That is the potential of the green remodeling market in the state… The association's CEO, Bob Filka came up with the eye-popping estimate using data on population, the number of aging homes in the state and the price of typical green remodeling projects… It’s also one of the driving forces behind Great Lakes Green 2008, a residential construction conference with exhibitors and seminars for homeowners and professionals alike.” (Grand Rapids Press, Aug. 17) 

Builder Files for Bankruptcy. “A central Arkansas builder says the state of the economy is forcing him to file for bankruptcy. AK builders turned in the paperwork this week. One new Shannon Hills resident said. "We've been personally served a lien notice…that they're filing a lien on the house. We're responsible for AK's debts.” AK is the company that built her home… AK Builders, which brought so many homes to Saline County, has now filed for bankruptcy right in the middle of construction of several new homes.” (Fox 16, Aug. 16) 

Provider of Online Free, Green House Plans Branches Out. “FreeGreen, a start-up company that began offering free eco-friendly house plans online last June, has launched a “Builder Line” of plans targeted specifically to the trade. Whereas the company’s inaugural plan offerings were tailored to consumers, the trade line [offers] the stuff builders want most (front elevations, hard core energy calculations, and downloadable construction documents)… With this next iteration of sustainable plan options, the company hopes to expand its presence in the green building universe… FreeGreen’s ultimate goal is to become a clearinghouse for what Wax calls the “triumvirate of builders, architects, and customers, bringing together different parts of the equation to make marriages.” (Builder Online, Aug. 15)

Ryland Rolls Out 6 Homes. “Residential Homes of America has unveiled a price-protection program for buyers at its Walnut Glen single-family development in northwest suburban Island Lake. The plan will give buyers the price differential if the base price of a new residence goes down during the next 12 months. Walnut Glen is planned for 222 single-family houses on lots at least one-quarter acre in size, with prices starting at $296,990.” (Chicago Tribune, Aug. 15)

Uninsured Subcontractors Pose Big Risk. “The July media frenzy over the possible heath risks posed by granite countertops should have prompted homebuilders to… double-check their insurance coverage… There's growing industry concern that homebuilders' risk--and loss potential--is much bigger than most builders would believe—[possibly even] catastrophic in the event of a major class-action suit. Changes within the insurance industry are making it ever more difficult--and expensive--for subcontractors to get insurance. There are fewer insurance providers, and the premiums and deductibles are on the rise, particularly for subs like framers and excavators who have more dangerous jobs and higher accident rates.” (Big Builder Online, Aug. 14)

 

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