Problems and Solutions Yield Innovation
At Building Savvy, we strive to be true journalists– the eyes and ears of the home building industry. That means we simply report data and recap recent and relevant news. Sadly, politics often come into play and heated discussions ensue as people take a firm stance one way or another as to the best ways to resolve the issues of pollution, shortages and climate change. Sometimes the strong opinions come from well-meaning people; sometimes they are self-serving. In any case, it is important to look at all sides of the equation and hear each other out on both sides to make informed, or shall we say savvy, decisions.
Accordingly, in this issue, we tell the good the bad and the ugly about in the case for moving to all-electric utilities for residential construction, while we also share the side that’s against building more electric power plants. With our state’s population still expected to nearly double between 2022 and 2070, now is the time to consider and plan so that we have the electric capacity and the water supply to support the growth. The right solution? You decide!
The good news is that out of problem-solution analysis, comes innovation. Just look how far building technology in general has evolved in the past decade. HVAC systems and hot water heaters are far more efficient and way “smarter” than anyone would have thought possible a decade ago. What we now know about water mitigation, air-sealing, indoor air quality and systems-oriented design means a 2022 built home is far better than a 2012 built home. Like new cars, new and updated homes perform better, yes; but they’re better put together and safer, too. Our country’s aging housing stock promises to sustain the remodeling industry as a result.
Additionally, the Savvy Design article in this issue highlights subtle shifts in home style preferences. People tired of the grey, black and white trend rejoice! Monochromatic is finally giving way, it seems. In our all-so-serious world, people need some warmth and color in their lives, say the design experts. “Cool” isn’t cool; “warm” is what’s up when it comes to home surface selections. Beige is IT this season! Go figure! While some more traditional styles creep back in, what continues to stand are clean, straight lines. Subtle and calm trumps flashy and ornate.
Whether you’re a homebuilder, remodeler or supplier, those of us who have been around this industry for a while have seen how far-reaching the ups and downs can be across the board for all of us. We all watched as the Federal Reserve, in clear response to elevated inflation data, surpassed prior expectations in raising the federal funds target rate by 75 basis points–the largest increase for the funds rate since 1994. Mortgage interest rates are closing in on 6% and will continue to climb as further tightening is expected throughout the year. With the effects of a broad economic recession expected to take place in 2023, savvy builders will press on, carefully calculating the timing of their project deliveries, and weighing in continued fluctuations in material and labor costs and delays. Making necessary adjustments to assure a sustainable and profitable business will be ever so important. Those who can provide innovation solutions to answer to the country’s ongoing housing deficit and affordability challenges will come out ahead.
There are plenty of meaty issues to ponder and we discuss a number of them inside. Dig in and enjoy! Stay Savvy!
INDUSTRY NEWS:
Dallas/Fort Worth area builders, remodelers and developer took home an impressive number of top awards in the Texas Association of Builders’ Star Awards program at the Sunbelt show. SEE THE WINNERS LIST HERE.
Home Development Hotbeds: South and East of Dallas, North and East Collin County, Fort Worth
While we know that many of you enjoy our Savvy Trucks & Toys columns just because you are car buffs, another reason for including this column in a home building industry publication lies in the fact that it is often telling to compare two industries that tend to mirror one another as far as trends
are concerned.
READ THE SAVVY DRIVERS’ POST:
Light Trucks Comprise More Than 90% of Auto Industry Sales–
#2s Keep #1s On Their Toes And All Others Vying to Catch Up
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