Based on a document published in March 1998 by NAHB Research Center:
Builders can make real progress in reducing build cycle time by “building it
the right way the first time.” Cycle time reduction is a natural by-product of fewer mistakes to correct, less adjustments to make, and a streamlined
To get employees and trade contractors to understand the importance of
cycle time, put it into dollars and cents. Every builder can calculate what a
day is worth by looking at some key factors:
- Cost of Money. Whether it is interest on a construction loan or lost
investment opportunities, it takes money to build. And money costs money.
- Contractor Costs. Streamlined production processes allow contractors to complete jobs in less time and to produce more homes with the same crews. While material costs may not change significantly, there are substantial savings in contractor labor costs. Builders can share in the benefits.
- Management Costs. As problems are prevented, staffs become more efficient. Streamlined production processes reduce build time without additional management attention.
- Sales Opportunities. When the standard build schedule satisfies buyers who need homes quickly, new sales opportunities exist.
What is a day worth to your company? You can calculate this by using the attached work sheet:
Image from: Lantzman Lending https://www.lantzmanlending.com/using-direct-money-lenders-construction-project/
- Cost of Money. Whether it is interest on a construction loan or lost
Article posted by builderonline states communities with crystal lagoon amenities show increased sales and value.
An example used in the article mentions Balmoral, a DR Horton community we have the pleasure of working in.
With the addition of crystal lagoons in the community, Balmoral’s sales have skyrocketed by 345%.
Recently, single- and multi-family communities with active or upcoming lagoons have experienced a rapid increase in sales and many are ranked among the top master-planned communities in the country.
In summation, crystal lagoons are adding substantial value for builders and developers by maximizing the value of their development and increasing sales velocity.
Interesting article published on builderonline.com discussing In- and out-migration trends that matter most to home builders, residential developers, and investors planning for 2023 and beyond. Read more at:
Of the ten markets with the most positive domestic net migration*:
- All are in more southern states, with Nashville being the northern-most point
- 50% are on the East Coast
- Texas, Florida, Arizona, and North Carolina are home to two of the top ten each
- Phoenix, the fourth highest for net migration, is the largest as the 11th most populous metro in the country. Tucson, the other Arizona market, broke into the top 10 for net migration this year and is the smallest, landing as the 53rd most populous metro in the US.
Here are some take-aways from data analyzed by Meyers Research director of economic research Ali Wolf, concluding:
Las Vegas, Austin, and Jacksonville hold the top spots for positive net migration and are also among the top performing housing markets so far this year.
Las Vegas is the new #1. Las Vegas has been in the top ten for positive net migration since 2013 gradually moving up. For 2018, Las Vegas bumped Austin, the reigning champ for five consecutive years, down to the second spot. Las Vegas averages about 100 people moving to the metro a day and Redfin search data suggests the new residents are coming mostly from the West Coast, including Los Angeles, the Bay Area, and Portland. This contributed to Las Vegas having one of the best average sales rates per community in 2019, at 3.06, according to Zonda.
Austin hits the relative affordability sweet spot. Austin’s new home communities have the biggest year-over-year jump in average sales rate among top markets year-to-date, up 19% from the same period in 2018. The average new home list price in the metro of $328,000 is 26% higher than the average of the 10 best-selling new home communities over the past three months. In the metro, nearly 61% of households can afford the median-priced new home, a relatively high percentage compared to other top markets due, in part, to two reasons:
- Inbound Austin residents are from expensive coastal cities like New York, DC, Seattle, Los Angeles, and the Bay Area.
- The metro leads the nation in business service job count, up 37% since 2012. These jobs tend to be highly paid.
Jacksonville’s fourth year in the top 10. Jacksonville first appeared on the list four years ago at the fifth spot before moving up to number three last year. The market averages nearly 60 people moving in a day, up 6% from last year. Like Austin, this trend has aided Jacksonville to a place amongst the biggest growth markets year-to-date with an average sales rate of 1.82 per community, up 8% YOY.
WINNERS (AND SOME LOSERS) OF MIGRATION TRENDS
The data allows for trends to be seen in multiple categories, including daily, international, and negative net migration. Here are some other notable takeaways from the newly released stats:
- Consistently in the top 10. 50% of the top net migration markets have been the same over the past six years, including Austin, Raleigh, Nashville, San Antonio, and Charlotte. Orlando, Las Vegas, and Tampa have made the list five out of six times.
- Most daily net migration. Dallas and Phoenix have had the highest daily net migration over the past three years. Tampa held the third spot the past two years before Las Vegas bumped it to fourth last year.
- Top international locations. The inbound international locations have barely changed over the past six years with Miami, San Jose, Orlando, DC, San Francisco, Boston, Seattle, and Houston making the top ten every year. Tampa moved into the top ten for the first time last year, pushing New York out.
- Negative net migration. San Jose, New York, Miami, LA, and Chicago are seeing the biggest negative net migration trends. New York is losing 600 people on average per day, LA: 300, Chicago: 230, Miami: 130, and San Jose: 70.
A big push in April by everyone last month proved our commitment to our clients success & we all win!
April proved to be a record month for us and is one for the record books! Literally the record books as the entire team at Carter & Clark finished April out with a bang and posted a RECORD MONTH IN SALES. April was the highest sales month in the companies history!
Thank you to each of our clients for your trust and loyalty as well as a big thank you to our Carter & Clark team both inside the office and out in the field, without each one of you we could not have achieved this historical milestone.
One of our top clients in the Dallas/Ft. Worth Area has recently released some new house plans! Looking great John Houston Homes!
Click here for more details: http://bit.ly/2Dvx2m7
It is with great excitement that we announce Classica Homes has won the “Best Single-Family Detached Model Home” at the 2019 Nationals.
Classica Homes is a company that prides itself in building exceptional custom homes in Charlotte, North Carolina.
Carter & Clark has worked with Classica Homes since their inception in 2010. It as been a great delight to see Classica’s success throughout the years.
Congratulations on winning the “Oscars” of the home-building world!
It is out pleasure to announce our client spotlight of first quarter goes to D.R. Horton – Louisiana East & West divisions!
Carter & Clark started working with the Louisiana East & West Division fairly recently. However, their business has quickly skyrocketed and grown to become one of the top builders in the state.
We are grateful and proud to be part of your success. Thank you for your business.
We are proud and grateful to announce our top grossing client of the first quarter of 2019 is D.R. HORTON – HOUSTON NORTH DIVISION!
The Houston North Division is the largest division in Texas and one of the largest in the nation at D.R. Horton.
It is pleasure to be your preferred land surveyor and we look forward to keep up the great work!
Carter & Clark