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Building Industry News

Builder show draws largest Crowd in 10 years

2019: Issue 2

EPAB members, leadership experience industry’s latest and greatest

IBS
More than 67,000 home building
professionals from around the world filled
the exhibit halls of the Las Vegas
Convention Center as NAHB hosted the
75th anniversary of the International
Builders’ Show (IBS) Feb. 19-21.
IBS and the Kitchen & Bath Industry
Show (KBIS) once again combined for the
annual Design & Construction Week®
(DCW), which drew a total of more than
100,000 attendees.
“As the International Builders’ Show
celebrates 75 years, it remains the premier
event for the housing industry,” said Geoff
Cassidy, NAHB senior vice president of
exhibitions and meetings. “With the largest
attendance in 10 years, we’re proving once
again that IBS is the only place to
experience such a diverse collection of
innovative products, education sessions
and networking opportunities all in one
place.”
Exhibit space for IBS also expanded
from last year’s 583,000 square feet to
more than 608,000 square feet, where
nearly 1,500 exhibitors displayed the latest
in building products and technology.
In all, DCW featured more than 2,000
exhibitors occupying more than one million
square feet of indoor and outdoor spaces.
Many of the exhibitors noted the increased
foot traffic this year.
The experience during the three days of
the show has been great. It’s been very
busy and a lot of fun interacting with so
many builders, contractors and other
vendors,” said Blake R. Edwards, a senior
product marketing manager for Lennox.
“We’re getting a lot of good insights from
those who came here, and we’re also
giving them a lot of valuable feedback in
return.”
In addition to meeting suppliers and
seeing product demos throughout the
three-day show, attendees networked with
peers and attended any of more than 130
education sessions led by experts on a
wide range of industry topics.
“Everywhere you go at IBS, there’s
something to see, something to learn,” said
Brandon Hines, owner of Hines Homes in
Maumelle, Ark. “The show floor was very
impressive, and honestly, a little
overwhelming at first because there’s just
so many interesting products to learn
about and people to meet. But for me, the
most beneficial part [of IBS] has been the
education sessions. We’re focused on
growing and improving our business, and
each session we attended provided us
specific ideas on how we can achieve
that.”
Next year, IBS and Design &
Construction Week will return to Las
Vegas, Jan. 21-23, 2020.
The products and services on display the the International Builders Show
were beyond ‘cool’ this year as snow and inclimate weather challenged
attendees. See more photos page 8

International Builder Show (IBS)
shines in frigid weather
By Ray Adauto
Several years ago, the NAHB board of
directors scheduled the IBS for Chicago.
The talk about going to Chicago in winter
was met with a hailstorm of concerns and
outright vetoes. Who wants to go to a cold
wintery place from sunny anywhere else?
Apparently not enough vendors so the
contracts were cancelled, and Las Vegas
and Orlando became the official IBS cities.
The two cities have hosted IBS in rainy
weather, wind storms, lightning and Mother
natures other furies, but no one had
counted on a snow storm in Vegas. Ok, so
for those folks in the Midwest, or eastern
coast this snow storm was nothing but for
Las Vegas it was, like El Paso, a near
show stopper.
The 2019 IBS was once again mega
sized and bold. Thousands of displays of
all sizes filled every inch of the Las Vegas
Convention Center and spilled onto the
Westgate Hotel next door. NAHB had to
rent space at the Westgate in order to hold
meetings as well as the opening
ceremonies. It was an easy walk from the
convention floor to the Westgate where
competitions by student chapters of the
NAHB worked to win design challenges. It
was also the home for the Texas
Association of Builders Area caucus, the
official meeting for TAB at IBS.
The show was billed as the 75th annual
meeting of the Board of Directors and it
was all business the first several days of
the conference. Randy Noel, Chairman of
the Board of NAHB met the Texas
delegation and welcomed us. He
reminded us of the need to be prepared for
growth while always keeping an eye out for
troubled waters. “I think that our home
builders and other members are doing very
well today, but we also know that we have
to stay on top of other things in order to be
secure in our future,” Noel told the
Outlook. “It’s important that we share our
world with the younger generation and
prepare them for the opportunities our
industry offers,” he said. What Mr. Noel,
who is from New Orleans, said we must
look to train new skill sets, to encourage
home ownership, and to elect people who
believe in what we do. “I think we have to
continue to push our educators to get
students into the trades, into the home
building business, and off to a great
career,” said Immediate Past Chairman
Granger MacDonald of Texas.
There were 130 sessions available to
members to attend prior to and during IBS.
Preparations are in full swing for the 2020
show scheduled January 21-23, 2020 in
Las Vegas.

429
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PRSRT STD
2 Builders Outlook 2019 Issue 2

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 3
President’s
2019 Issue 2 Builders Outlook

Message ‘Let’s Get it Started in Here!’

strengthen our voice at the local level? For the next 6 months. About the same number closely how macro trends, increasing costs
now, when people ask: Why should I be a of us are neutral in regards to hiring full- and geopolitical uncertainty may have an
member? We say: Education, Networking, time employees or capital spending. impact on our local market. This means
Benefits including contracts, manuals and Negative expectations were very minimal at that more than ever we need to be united
Rebates, information and news letters and less than 5%. Originally, our intent was to as an association and prepared to weather
most importantly to support our lobbying release these results monthly to our any storm.
efforts at the national, state and local members only. However, announcing the So, what can you do this year to help the
levels. results to the media will generate attention EPAB thrive? Attend the meetings,
EPAB will continue working towards our for our association and strengthen our participate in EPAB events, help a member,
goals of strengthening our relationships ability to disseminate our message in the join a committee, advertise in our
with city officials in the metropolitan area as community, so I decided to do so in the publications, sponsor events, answer our
well as expressing our positions to the form of a press release. The outcome of surveys, and get to know or do business
Legislature in regards to lowering our cost our survey confirms other local positive with other members. You get out of your
of doing business and limiting regulatory economic indicators such as the 4% membership what you put into your
Sergio Cuartas burdens. We are also actively working with unemployment, improved retail sales and membership.
President other local nonprofit organizations related increased employment opportunities. An important upcoming event is Rally
El Paso Association of Builders to our industry, asking: how we can use the Gasoline prices and interest rates remain Day on March 20th at the State Capitol
strength of our numbers to help our low, while our market maintains 4 months building in Austin. A number of the
As the Black Eyed Peas say, “Let’s Get it businesses? of inventory of homes, a relatively low leadership will be attending – please
Started in Here”! 2019 is moving quickly, Last month We released the results of number. The median price of homes consider joining us!
and in order to make our association thrive our EPAB Business Confidence Survey. 21 continues to increase, and is currently at As always, you may send your feedback,
moving forward, we need to start taking percent of our members responded approx. $158,000. (The above numbers are comments or suggestions to Ray or email
bold action now. (statistically significant and respectable for new homes and re-sales). The local them directly to me at
First, I would like to acknowledge those participation for being the first time we do economic data cited comes from the scuartasbichomes@gmail.com.
who have been taking action: Thanks a lot something like this). At least two thirds of Borderplex Business Barometer, Jan 2019, Thank you for your membership and
to Randall Smith for his education session those who responded believe that business The University of Texas at El Paso. Have a great month ahead!
on the impact of changes in the tax law conditions and sales will be positive during We still have to be cautious and watch
held at our EPAB on Thursday January 2/27/19 6:14 PM Page 1
24th from 3 to 5 pm. We all received love,
power or money for participating. More
education and networking sessions are to
come. Stay tuned!
Thanks also to Scott and Structure Home
Warranty for not only sponsoring our first
Real Texas Builders Awards, but
additionally pledging to sponsor our event
year after year for the foreseeable future.
Thanks to all who entered a category. The
event was worthy for us being the first of
this nature and I sincerely hope next year
we will have more participation. Kudos to
Don Rassette and Edmundo Dena for
pushing this idea forward and to Ray and
Margaret for making it happen. Many
others are working behind the scenes to
make our EPAB better. Thanks to them as
well.
We look forward to future events and
initiatives from the following committees
which have formed. The committee chairs
are named below along with their email
addresses. Thanks to all the committee
chairs for their service to our association. I
highly encourage all our members to
participate in the committees with ideas,
time or resources. Please contact the
chairs directly with any questions or
suggestions.
Community Outreach: Angelique Roman
aroman@sierratitle.com.
Associates Council: Luis Rosas
luis.rosas@hubinternational.com.
Education: Patrick Tuttle
patrick@patricktuttle.com.
Market Intelligence: Trevor Turner
tturner@rassettehomes.inc.
Membership: Jaime Gonzalez
Jaime@mybluesagehome.com.
Industry Promotion: Ted Escobedo
ted@snappypublishing.com. DESIGN WITH NATURAL GAS IN MIND.
Government affairs / Land Council
Sal Masoud DRE@delrioengineering.net.
Golf Tournaments: Sam Shallenberger
Nothing is more attractive to homebuyers than the right mix of comfort and value. You can

spshallenberger@morsco.com.
provide both when you build homes that have natural gas.

Finance Committee: Kathy Carrillo

kcarrillo@westernheritagebank.com.
Natural gas furnaces, water heaters and clothes dryers offer greater efficiency and lower

Young Designers Scholarship:

operating costs than their electric counterparts, and natural gas kitchens sell themselves.

John Chaney: jchaney@hercmail.com.

In addition to the above teams, we have
Let us help you plan for natural gas right from the start.

created a Strategic Long-Range Planning

Committee composed in first instance by
For more information:

the Executive Board including Edgar

ElPasoNewBusiness@TXGas.com

Garcia, Sal Masoud and myself. We will be

William Nieves: 915-496-6126

recruiting more committee members to help

us think about the long-term sustainability
of our home builders’ association, revising
Jorge Sejera: 915-680-7216
Builder
Builder Services atslimgas-metroElPaso@onegas.com
slimgas­metroElPaso@onegas.comoror 1­866­206­9587.
Please continue to direct service line and meter set requests to the Texas Gas Service

our mission, our three-year vision and our

Hotline at 1-866-206-9587.
values in the months to come. A key
question we will be asking is: how can we
serve, engage and retain our members so
that we can grow our membership and
4
Executive’s
Message
Ray Adauto,
Executive
Vice President
EPAB
An unexpected side-effect for builders
One never realizes what can affect our
businesses or industry either positively or
in the negative. At our meetings at the
International Builders Show we heard
some disturbing statistics that is
impacting builders and associates in a
dramatic costly way. No, it’s not lumber,
oil, or steel. It’s not labor shortages or
robotics. It’s something that has become
one of the country’s biggest health
problems, opioids. Those drugs that
doctors prescribe for pain are killing our
people and hurting the industry. Here’s
some facts to ponder: Every hour eight
people overdose on opioids. Of those
eight at least three who overdose work in
the construction industry. And two of
those are from home building. The ‘why’
is just as telling.
In home building traditionally
construction workers are most male and
younger. Adults 18-25 are the most likely
to abuse opioids than any other age
group. Statistically about 15% of
construction workers have used drugs for
non-medical reasons.
WHAT YOU NEED. WHEN YOU NEED IT.
SERVICE YOU CAN COUNT ON
NORTH HILLS
12121 DYER STREET | EL PASO, TX 79934
915.218.5800
Builders Outlook 2019 Issue 2
NAHB has compiled the costs and they
are staggering to the home building
industry. The construction sector spends
$1billion a WEEK on workers
compensation. Opioids promised rapid
pain relief to allow a quicker return to
work. Each construction worker with an
untreated substance abuse disorder costs
an employer $6800 per year in excess
costs including absenteeism and turnover
costs. An employee with a substance
abuse issue can cost as much as
$60,000 per year. But when that
employee is in recovery the industry
saves nearly $2400 per year.
Looking at causes is easy. Workers
don’t have health insurance, they get
hurt, they seek quick relief so they can
get back on the job, and they tend to
become abusers. Statistically each one
of us is paying somewhere down the line.
Expect to hear a lot more on this issue. At
the EPAB we will make you aware of
education opportunities.
Opioid abuse must be curbed.
BMC products and services are designed to
increase your productivity and support all-around
excellence on the jobsite. No one in the industry
has a portfolio that can match it.
DISTRIBUTION SERVICES | TRUSS MANUFACTURING
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LAS CRUCES
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575.526.9238
 National
2019 Issue 2 Builders Outlook 5

Builder News

NAHB Announces
Best of IBS Product
Winners at 2019
International
Builders’ Show
The National Association of Home
Builders (NAHB) named the winning
products in its seventh annual Best of
IBS Awards during the NAHB
International Builders’ Show® (IBS) in
Las Vegas. The awards were presented
during a ceremony on the final day of
the show.
This year’s Best of IBS Awards
received more than 300 entries. Decided
by a panel of 31 independent judges
made up of attending reporters and
building professionals, the awards were
given in nine categories, plus an overall
Best in Show award.
Awards were given to exhibitors with a
product or line that shows the best
combination of design, functionality and
innovation, as well as its usefulness to
consumers and/or home builders.
The winners were:
Best in Show Winner:
Easy Connect Joining System by
Andersen Windows, Inc.
Best Kitchen Product:
Cafe 4-in-1 Oven with Advantium
Technology by GE Appliances
Best Bath Product:
Redi Your Way by Tile Redi USA, LLC
Best Energy Efficient Product:
POWERHOUSE™ 3.0 Solar Shingle by
RGS Energy
Best Green Building Product:
Heatlok HFO by Demilec Spray Foam
Insulation
Best Home Technology Product:
Leviton Load Center Wi-Fi enabled
Circuit Breaker by Leviton Manufacturing
Company
Best Indoor Living Product:
Heat & Glo Foundation Series Luxury
Gas Fireplace by Heatilator, Heat & Glo
and Majestic (Hearth & Home
Technologies)
Best Outdoor Living Product:
CAMO DRIVE by CAMO Fasteners and
The Soho by Hampstead
Best Window and Door Product:
Easy Connect Joining System by
Andersen Windows, Inc.
Most Innovative Building Material
Product: NTI GF200 Combi-Furnace by
NTI Inc.
“Judges evaluated an impressive array
of more than 300 product entries in nine
categories up for consideration for this
year’s Best of IBS Awards,” said Buddy
Hughes, NAHB Conventions and
Meetings Committee Chairman. “The
competition was fierce, but these
winners truly represent the best of the
best in terms of innovation, design and
functionality of the products going into
today’s homes.”
Awards were given to exhibitors with a
product or line that shows the best
combination of design, functionality and
innovation, as well as its usefulness to
consumers and/or home builders.
For more information on the Best of
IBS Awards, visit
buildersshow.com/bestofibs.
6
Recession Watch:
Builders Outlook 2019 Issue2

Mortgage
& Banking Will Another Downturn Rock the Housing Market?
Montana, Idaho, Colorado, and Utah. Folks need
places to live, after all.
But the current higher mortgage rates make it
harder for folks to buy homes. Meanwhile,
inflation results in higher land, materials, and
construction labor costs. That typically translates
into fewer new homes going up.
“For builders, it means that demands will fall
back in some markets and they will pull back,"
says Dietz.
Renters won't be spared by a recession
Cash-strapped tenants hoping for a rent break
likely won't get lucky even if the economy does
start to slump. Rent price growth is likely to slow
or even stall as fewer folks are going to be
dropping big bucks on housing, says Greg Willett,
chief economist at RealPage, a property
management technology and analytics company
focused primarily on rentals. But it's not likely to
fall.
The exception is the luxury market, where
landlords will have the most trouble finding
tenants.
"Luxury will feel the pain first,” says Willett.
There could be some longer-term
consequences as well as fewer rental
developments are typically built when the
economy sputters, so when things are a bit rosier,
there may be fewer units available to fill demand.
Depending on how long the recession lasts,
some condo buildings that can't find buyers may
eventually go rental. That's most likely in places
with an oversupply of housing, such as Miami,
Miller says.
"[The last] financial crisis was unique with an
unprecedented number of foreclosures, home
price declines, and a stunning drop in
homebuilding," says Dietz. “The question is
whether we’re going to experience a soft landing,
a bumpy landing, or a crash landing."

By Clare Trapasso | Feb 21, 2019 REALTOR.com
The Great Recession has receded in the
rearview mirror, and pretty much every American
would like to keep it that way, thank you very
much. But we're still all too aware that the whole
financial disaster was precipitated by a deluge of
bad mortgages. Sure, we've had nearly a decade
of booming home sales and prices. But now that
they're slowing their roll, the whispers are starting
to mount: Is another recession around the corner?
About 39% of Americans think the economy is
slowing down, while 17% think we're already in a
recession or depression, according to a recent
Gallup poll.
Yes, we might see a recession soon,
economists say—but there's no need to panic.
That's because the financial factors that helped
cause last decade's crash don't exist this time
around.
"We're just scared because of what happened
last time. And that's not what's going to happen


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Will a recession lower home prices?
Buyers on a budget shouldn't pin their hopes
on a recession to create a vast clearance sale of
deeply discounted properties. Prices aren't
expected to plummet, although they may dip in
more expensive markets. Overall, price
appreciation will likely just continue to slow.
But if the Fed lowers interest rates again to
counteract a poor economy, mortgage rates will
likely go down, too. That will also make it cheaper
to buy a house.
"If there is a recession, the people with stable 



-
-

[again]," says Lisa Sturtevant, a housing
consultant and chief economist at Virginia
Realtors, the state's real estate association.
If there is another recession, she says, "most
people are not going to lose their house. Most
people are not going to lose their jobs.”
If a downturn does hit, probably toward the end
of this year or the beginning of next year, most
economists believe it will be brief and not nearly
as painful as the last one. They anticipate that
unemployment, currently at an extremely low 4%,
will tick up slightly and there will be fewer new
jobs created. But they don't envision widespread
layoffs resulting in scores of foreclosures and
plunging home prices, as we saw in 2008–09.
“We’re at a record-low level of unemployment.
The economy can’t stay here," says Chief
Economist Danielle Hale of realtor.com®. She
forecasts a recession beginning within the next
two years. "This one will be mild."
Why it looks like we're due for a recession
Although a recession can be precipitated by a
housing bust, trade war, or global event, this time
the U.S. economy may simply become a victim of
its own success.
With national unemployment so low, employers
have to compete hard for talent by offering higher
wages. Those increased costs are often passed
onto consumers. This in turn causes inflation as
goods and services become more expensive. If
inflation rises much higher than wages, then the
country has a problem.
Enter the U.S. Federal Reserve. It battles
inflation by notching up interest rates. The
downside is that makes it more expensive for
businesses to borrow money to expand or bring
on more workers. And that can effectively slow
down the economy.
It's like someone blowing too much air into a
balloon—eventually a little needs to be let out or
it'll pop. Similarly, the Fed needs to siphon off a
little of the economy's helium. It hiked rates four
times last year, when the economy was hurtling
along, but this year it may do it only once, if at all.
Actually, economic cycles in which the
economy is growing and more jobs are being
created historically don't last more than a few
years. The longest stretched from 1991 to 2001.
This summer will mark the longest economic
expansion in U.S. history from the trough of the
crisis in June 2009.
So the good times eventually must come to
an end.
This slowdown, coming on the heels of a wild
run-up in home prices, may feel like déjà vu. But
the main culprit behind the previous housing
market bust was the torrent of subprime
mortgages doled out to underqualified and often
uninformed buyers. When those owners
defaulted, it created a domino effect, ultimately
affecting all corners of the nation's economy.
jobs will see it [as] a second-chance opportunity
to buy a home," says Lawrence Yun, chief
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economist of the National Association of
Realtors®. Yun doesn't anticipate a recession this
year, or next. "Prices may [or may not] come
down. But certainly buyers will be in a better
negotiating position."
And even in a shakier economy, overall
demand for housing, which keeps prices up, isn't
going to evaporate. The huge millennial
population is getting older, settling down, and
having children—and searching for homes of their
own. Those life factors are not likely to change,
and they create a massive demand for housing. A
decade ago, it was mostly Gen Xers at that stage,
a smaller generation with less impact.
The places that are most likely to see prices
sink are more expensive markets that have
experienced years of steep price hikes. For
example, Silicon Valley's San Jose, CA, could see
corrections, says Hale.
Markets with more housing than buyers, such
as Miami, where new developments have been
going up at a breakneck pace, may also soften,
says Norm Miller, a real estate finance professor
at University of San Diego.
The luxury market, which is the priciest 5% of S h o w ro o m :
homes in any area, will also probably be affected. 9400 Gateway East
El Paso, TX
79907
(915) 593-1301
(800) 356-9546
"There are just more expensive homes [than
affordable ones] for sale, and so the luxury
market is likely to be more vulnerable to price
corrections in the event of a recession," says
www.efbmi.com
Hale.
A recession could worsen the housing
shortage
One of the signatures of the past recession
was the overabundance of newly built homes.
When the economy collapsed and the buyers
disappeared, builders across the nation were
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Abandoned construction sites were littered across
the country. The industry still hasn't caught up
with the renewed demand, and another recession • A Texas Warranty designed for Texas Builders
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Only about 875,00 single-family homes were
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needed about 1.1 million to ameliorate the
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likely construct even fewer homes, says Rob
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Texas Strong for Over 37 Years!
That means when the country recovers, we
HOME
could experience even greater housing shortages
than we've seen over the past few years.
The pace of single-family home construction
growth is already slowing down, from 9% in 2017
to about 3% in 2018. Dietz predicts it will be less
than 2% in 2019.
O F T E X A S
Building is expected to remain strong in places 800.445.8173 ext. 2149
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2019 Issue 2
Economic
Forescast
Elliot Eisenberg
Economic & Policy
Blog
While the most recent jobs report
showed the unemployment rate at
4.0% — the lowest rate in almost 50
years — it also showed annual wage
gains running at just 3.2%. While that is
the best rate of growth in over a
decade, late in the last business cycle,
wage gains were over 4%, and at the
height of the dot.com bubble, wage
gains were over 5% a year. Shouldn’t
the current tight job market result in
faster wage growth as employers
compete for increasingly scarce
workers? The answer is “not really,”
and it’s for several reasons.
The single most important reason for
slow wage growth is weak labor
productivity growth, or the increase in
output per worker per hour. As firms
pay workers more, they try to keep
their profit margins up by squeezing out
inefficiencies, and thus pay for the
higher wages out of increased worker
productivity. Back in the 1990s, labor
productivity growth averaged about
Builders Outlook
Why Is Wage Growth So Lousy?
3%/year. In the run-up to the housing
bust, it was well over 2%. By contrast,
today’s productivity growth is about 1%!
As a result, employers are not so eager
to raise wages as they tend to reduce
profits.
Another major reason is
demographics. Twenty years ago, the
Baby Boomers were all in their prime
working years. Today, close to
11,000/day retire and are being
replaced by Millennials. The problem is
that since Millennials are just starting
their careers, they earn considerably
less than the retiring Boomers. More
importantly, the number of Millennials
entering the labor force numbers about
14,000/day, exceeding by about
3,000/day, or 90,000/month, the
number of retiring Boomers. While
older generations have always retired
as younger generations have entered
the labor force, never have the two
groups been of almost equal size. After
accounting for this, wage growth is
currently closer to 4%.
The final significant reason for slow
wage growth is a lack of inflation. In the
late 1990s, inflation, as measured by
the CPI, was 3.5%/year, and was
roughly 4%/year during the housing
boom. Since 2010, however, inflation
has been remarkably tame, and has
hovered right around 2%. As a result,
employers have not had to increase
pay that much to keep up with inflation.
If, for example, employers aim to
increase real pay by 1%/year during
the housing boom, that would have
meant pay raises of 5%; today, 3% will
do.
There are, of course, many other
reasons why wage growth is weak.
They include a decline in the strength
of unions, the increased prevalence of
non-compete clauses in employment
contracts, and global supply chains, all
of which reduce the bargaining power
of workers. There has also been a
steep decline in the number of new
7
firms, in part due to the rise of super-
firms like Google, Amazon and
Facebook, which generally buy out any
potential competitors, also reducing
employer options. Last, but certainly
not least, comes the dramatic rise in
state licensing requirements which
make it much more difficult for
employees to work in other states,
even if good jobs in the same field are
available.
While wage growth is not as strong
today as it has been in prior recoveries,
there are many reasons why. Hopefully,
labor productivity will improve going
forward, as that is something that
employers and employees both benefit
from. In addition, it would be great to
see states reduce or eliminate licensing
requirements where possible. And,
where that is not possible, encouraging
reciprocity across state lines would be
a great improvement.
 BUILDERS OUTLOOK • EPAB ON THE SCENE
The future of NAHB outlined at IBS (Continued from front page)
The structure of the National
Association of Home Builders
governance structure is changing.
After years of reviews and engaged
discussion the NAHB Board of
Directors voted to streamline the
governance structure. The vote was
taken in 2018 and will be implemented
for the 2020 leadership year. Exactly
what is changing? According to NAHB
there are several changes coming.
First NAHB will convert the current
board into a Leadership Council,
which will direct the Association on
industry issues and elect the
associations leadership. Secondly
there will be a new streamlined
corporate Board who will be charge
with the administrative operation of
NAHB. Third, adopt a process by
which committees and their priorities
can be easily created or modified to
address new, emerging issues. Fourth,
document and communicate the
various NAHB leadership roles,
making certain that leaders know the
critical role they play in the success of
the NAHB. There will be no change
with day to day management with
oversight from the Senior Officer
Team.
2019 Issue 2
The budget is the responsibility of the
corporate board that will consist of the
senior officer team, fifteen national
area chairmen, special state directors,
two associate leadership reps, fifty-
one state reps, and past chairs
serving as ex-officio status.
Today’s NAHB is a bloated
bureaucracy with over 1700 Board
Members and over 135 executive
board. In addition, there’s committees
and councils as well as state and local
members. The future NAHB will have
a Corporate board of around 75 and a
Leadership Council, the 1700 plus
currently board members. Randy Noel,
Chairman 2019, said this move will
make governance much more flexible.
“It’s like the Navy, when you have an
aircraft carrier it’s a little harder to turn
than a landing craft, so we need to
make sure that when issues come up,
we can get voting delegates quickly or
maybe even utilizing technology,” Noel
said. State and local associations
will be looking at this model and
seeing if it can be used by them as
well.
-Ray Adauto, EPAB
10
#Real Texas
builders www.elpasobuilders.com
The El Paso Association of Builders encourages you to work with our members.
Builder members
as of January 30, 2019
Althon Investments, LLC
Jose Luis Martin
Bain Construction
Scott Bain
Bella Vista Custom Homes, Inc.
Edgar Garcia
BIC Homes, LLC
Sergio Cuartas
Blue Sage Homes, LLC
Jamie E. Gonzalez
Blue Star Construction
Carlos Villasana
Bowling Construction
Randy Bowling
Carefree Homes
Richard Aguilar
Casas De Leon, LLC
Nick Bombach Southwest Land Development Serv.
Cisco Homes LLC
Francisco Arroyos III
Classic American Homes
Priscilla Hernandez
Crown Heritage Homes
Lydia Mlouhi
Cullers & Caldwell Builders
John Cullers
Cullers Homes
Jason R. Cullers
D B Innovations, LLC
Dan Berry
Dawco Home Builders
Walter O. Lujan
Deal-2-Deal Homes
Delton Deal
Del Rio Engineering, Inc.
Sal Masoud
Diamond Homes, LLC
Valerie Bacquera
E. Valencia Land Development LLC
Eddie Valencia
Eclat Homes & Design
Veronica Guerra
Edward's Homes, Inc.
Eduardo Fernandez
EPT Bella Custom Dream Homes, LLC
Leti & Javier Navarrete
EPT Land Communities
David Bogas
Everest Homes
Edmundo Dena, Jr.
Fortune Custom Homes
Javier Andrade
Gaddy Construction
Charles Gaddy
GMF Custom Homes, LP
Frank Torres
Guel Construction
Rudy Guel
Hakes Brothers LLC
Chris Hakes
Hanson Asset Management, LP
Russell Hanson
Homes by Design
Leslie Driggers Hoard
Hunt Communities, LLC
Kathy Parry
ICON Custom Home Builder, LLC
Carlos Garcia
Industrial Realty Group Incorporated
Brent D. Harris
JER Custom Homes, LLC
Jorge E. Rodriguez
Kayton Lee Residential, Inc.
Brianna Barnes
Lloyd Hamilton Construction
Lloyd Hamilton, III
LMJ Construction Co., LLC
Mike Lopez
Loyalty Homes
Gustavo Loy
M A Builders & Design, LLC Alvarado Plastering & Stucco, LLC
Mustafa Ali
Maravilla Homes
Victor Robles
Medlock Commercial Contractors, LLC
Steve Medlock
Metro Homes
Judith Arrunada
Millennium Homes
Dan Ruth
Builders Outlook
©
Pacifica Homes, Inc.
Juan Jose Vasquez
Padilla Homes
Misael Navarrete
Palo Verde Homes
Edgar Montiel
Pointe Homes
Carlos Villalobos
R.C. Baeza & Associates
Robert C. Baeza
R.E. Welch Contractor
Gordon Welch
Rassette Homes, Inc.
Donald Rassette
Rio USA
Freddy Klayel
Rosewood Design & Build
Brianna Barnes
Santana Custom Homes
Fernando Santana
Doug Schwartz
Spanish Oaks Custom Homes
Juan R. Saenz
The Heritage Group
David Bingham
Trejo Construction Co.
Juan Trejo
Tropicana Building Corp.
Bobby Bowling IV
Tropicana Development
Greg Bowling
Tropicana Homes
Randy Bowling
Tropicana Properties
Demetrio Jimenez
Uptown Homes, Inc.
Francisco Baquera
Valance Construction, LLC
Oswaldo Prieto
Villagi Homes, LLC
Kristi Eddings
Vista Del Sol Architectural Design
Luis J. Lopez
Will Harvey Development
Will S. Harvey
Winton/Flair / Accent Homes
Herschel Stringfield
ZIA Homes of El Paso LLC
Preston Brown
Associate members
as of January 30,2019
150 Sunset
Danny Heredia
2-10 Home Buyers Warranty
James Hebert
4 Tech A/C Service
Enrique Hernandez
84 Lumber
Ernie Chavez
915 Siteworks, LLC
Hugo Jasso
A Plus Remodeling & Repairs
Martin Arroyos
ABC Supply Co., Inc.
Larry Eck
A C Refrigeration, LLC
Angel Cabrera
Acme Brick Company
Brent Smith
Adams Moulding & Lumber
Tom Swahlen
Agustin Favela Concrete
Agustin Favela
Alden R & R Services, LLC
Alejandro Dena
Allbrite Electrical
Carlos Nunez
Alpha Asphalt
Gabriel Chavez
Jorge Enrique Alvarado
Amelia's Janitorial Services
Amelia Gomez
Area Iron & Steel Works, Inc.
Fred L. Edmonston Jr.
Atrium Homes
Ricardo Bocardo Jr.
2019 Issue 2
Bank of Texas Dorney Security
Ray Owen John Dorney
Baron Supply Dunn-Edwards Paints
David Trammell Nathan Gordon
Barragan & Associates DWS Building Supply
Benito Barragan Sabrina Voorhies
Barraza Drywall Corp. EDLR Plastering
Ignacio Barraza Eduardo De La Rosa
Barrett Airworks E.F. Building Materials, Inc
Alexandro Castro Efren Fraire
Bassett Woodworks ERA Sellers & Buyers
Danny Murillo Karla Rayos
Beasley, Mitchell & Co., LLP ESS Environmental and Safety Solutions
Brad Beasley Jose L. Garcia Ramirez
Bella Vista Realty Eagle Custom Cabinets
Grisel Ortega Juan Benabidez
Belmont's Air Conditioning, Inc. Eagle Roofing Products
Rafael Belmonte Scott Aguilar
Big A Construction Edgar's Flooring
Thelma Vasquez Edgar Enriquez
BMC Select Edmund Esper
David Quintana Edmund Esper
Boise Cascade El Paso Audio Video by Design
Mike Flores Joe Gutierrez
Border Construction Specialties El Paso Building Materials
Ricardo Yvellez Ken Wade
Border Solar El Paso Disposal
Javier Ruiz Irma Parsons
Bordertown Carpets El Paso Mortgage Bankers Association
Brian M. Abraham Gilbert Pedregon
Builders Source Appliance Gallery El Paso Times
Sandra Lucero Sal Hernandez, Justin Riley
Bukaty Financial Companies Group El Paso Truss
Ruth Rivera Luis Mendiola
C. D. Lee/Britton Insurance & Bonding El Paso Water Softeners
Anthony Landavazo Rebecca Estrada
CMF El Paso Winnelson
Carlos Munoz Rene Goldfien
Cabinet Masters Electrolux NA
Mike Robles Adger Colley
Cadence Lending Group Elizardo Garcia Electric
Carolyn De Leon Elizardo Garcia
Carpet Warehouse EZE-R-DESIGNS
Erez Belkin Leticia Mata
Castillo Electric Farmers Ins. Mercedes Ruiz Agency
Jose Del Val Mercedes Ruiz
CEA Engineering Group Felipe Rocha Construction
Jorge L. Azcarate Felipe Rocha
Central Texas Metal Roofing Supply Co.,Inc. Ferguson Enterprises Inc.
Ben Garza, III Albert Holguin
Centricity First American Bank
Brent R. Morgan Louis Sauceda
Century 21 The Edge First Light Federal Credit Union
Scott Kesner Lorenzo Revelez
City Bank Texas First National 1870
Bob Kotarski Ernesto Avila
City Lights Firth, Johnston, Bunn & Kerr
Thomas Brown Jay Kerr
Citizens Loan Center Forge Factory Strength & Conditioning
Jim Easley Edmundo Portillo
Cognent, Inc. Foxworth Galbraith Lumber
Martin Paredes Dan Villarreal
Commercial Insurance Brokers, Inc. Franklin Building Materials
Ken Foster Ricardo Aguilar /Cristina Sheldon
Conde, Inc. Franklin Door and Trim
Conrad Conde Jesse C. Brown
Copenhagen Imports G2 Ram Electric
Flemming Carlsen Luis Cano
CQC Testing and Engineering, LLC GCC Sun City Materials, LLC
Jaime Rojas Antonio "Tony" Chavez
David Hernandez Cabinets GE Appliances
David Hernandez Christine R. Villanueva
David J. Ellis Fee Office for Sierra Title G & G Enterprises Gen. Contractor
David J. Ellis Juan F. Garcia
De La Torre Iron Works GECU- Greater El Paso Credit Union
Alfredo de la Torre Danny Galindo
Del Sol Title Company GEPAR-Greater El Paso Assoc. of Realtors
Hector Phillips Jason Sanchez
Delek US dba 7 Eleven Goodman Mfg.
Sonja Scanlan Jorge Guajardo
Demcon Disposal Management, LLC Go Pro Refrigeration
Maria Elena (Nena) Gomez Humberto Diaz
Desert Quest Plumbing Great American Insurance Group
Hector Gonzalez Julie Tomlinson
Designer's Mart Greater El Paso Chamber of Commerce
Valerie Edmiston David Michael Jerome
Diaz Services, Inc. H P Roofing & Construction
Emmanuel Diaz Heriberto Prieto
Dominguez Insurance Agency Harris Real Estate Group
Victoria Dominguez Lane Harris
Garage Doors and More Haskins Electric
Miguel Moran Charles B. Haskins, Jr.
2019 Issue 2 Builders Outlook 11
Hector De La Canal Real Estate Group Lowes Home Improvement Prewire of El Paso, Inc. Spectrum Technologies
Hector De. La Canal Johnny Rodriguez Steven Drury Miled Daou
Hector Phillips fee Office for Sierra Title Loyas Shutters Prosperus Title & Escrow St. Mary's Custom Shutters
Hector Phillips Alfredo Loya Alexandra Jade Hedrick Dolores Lopez
Hercules Industries Magicstone Q Martins Plumbing Startech Heating and Air Conditioning
John Chaney Marco Gomez Jose Martinez Luis Procter
Hernandez Roofing Majestic Realtors Quality Granite Stewart Title of El Paso
Concepcion Hernandez Patti Musshorn Hector Porras Cindy Bilbe
Home of Texas MAK Roofing & Construction RGR Roofing, LLC Stone City Rocks
Amanda Eason Felix Vizarreta Mario Rodriguez Chris Baca
Homes of El Paso Marlo Building Services Ramon Romero Painting StrucSure Home Warranty
Riley Stephens Roberto Martinez Ramon Romero Scott Whisenant
Home Pros Real Estate Group Masco Contract Serv dba Gale Insulation Randall Smith, CPA Supreme Lending
Penny Moore William Homan Randall Smith Lisa Wren
Home Sphere, LLC Masonite International Rebath of El Paso/Las Cruces Su Casa Magazine
Chris Hoag Jesse Carlson/ Bob Westby Lisa Walling Edwin Rosario
HUB International Massey Johnson Remcon Self Storage Sun City International Doors
Luis Rosas Josie Ledesma Will Harvey Jorge Carmona
Imperial Construction McCoy's Building Supplies Rey Construction Sun City Winnelson
Alexandro Garcia Doug Danner Manuel Reyes Dean Moore
IES Residential Merrill Lynch Richman Group Affordable Housing Corp. Sun West Windows and Glass
Joshua Garnica Thomas Gabriel Kevin Hoffman Ernie Hernandez
Interceramic Tile & Stone Gallery Miguel Sanchez Cano Rito Magallanes Team Juan Uribe, LLC
David Holguin Miguel Sanchez Cano Rito Magallanes Juan Uribe
The Iron Snail Inc. Minerva Al-Tabbaa Realtor Rocky Mountain Mortgage Company Texas Gas Services
David Zuniga Minerva Al-Tabbaa Dean Inniss Maria Ortiz
J. B. Laminates Mini Concrete Materials Roe, Brad Texas Title Company
Gina Rodriguez Joe Soto Bradley Roe Steve Raney
J. C. Balcorta Painting Moen Rudolph Chevrolet TFCU
Cruz Balcorta Frank Graf Mike Ruffin Yolie Melendez-Estrada
J. F. Plastering Modern Exteriors SBNG, P.C. The Dorian Group/Ocean Gallery USA
Juan Florez Hector Macias Tyler Smith Miguel Angel Mercado
JFM Enterprises, Inc. Monster Link Marketing S & J Drywall, LLC The Home Systems Heating & Cooling, Inc.
Jaime Flores Raul Mendoza Yair Jalil & Sergio Jalil Jesus Chain
J & H Concrete & Post Tension Moreno Cardenas, Inc. Saldivar Electric, Inc. TRE & Associates
Jorge Herrera Roberto Moreno Martin A. Saldivar Linda Troncoso
Jack White Building Specialties Morrison Supply Sarabias Blue Sanitation Trim Team
Claudia Lardizabal Sam Shallenberger Monica Brown Juan & Kris Hernandez
James L. Ellis, CPA, PC MTI Ready Mix, Inc. Segura Framing United Site Services
Jim Ellis Tony Mullen Erika Segura Ramon Armendariz
Jimmy Garza Emergency Water Removal New American Funding Senercon Border Solar USA General Contractors
Jimmy Garza Tania Guzman Javier Ruiz Javier Olmos
Jobe Materials, LP New Era Foam Senpai Training and Development VMP Painting
Charlie Tellez George Tollen Leonardo Corral Victor Prieto
Joe Bernal Ins. & Financial Services, Inc. New Start Insulation Sergio Herrera Framing Value Stone
Joe M. Bernal Jose Carreon Sergio Herrera Isabel Chacon
Jose Moreno Dry Wall Oropeza Concrete Serrano's Construction Vantage Bank
Jose Moreno Angel Oropeza Juan Serrano Josie Cantu
Juan Carlos Perez Grading Parra's A/C and Heating Service Service Master Commercial Vision Consultants, Inc.
Juan Carlos Perez Aureliano Parra Heidi Avedician Kelly Sorenson
Keenan Supply Pate & Appleby, LLP Sherwin Williams Paint W.W. Sales
Nancy Rivas Richard De Santos Cruz Lopez Eric Hoppes
Keller Williams Patriot Mortgage Sierra Title Company Western Heritage Bank
Susan Flores Randy Bowling Angelique Roman, Marielsa Pulido Kathy Carrillo
Keller Williams Pella Windows Simpson Strong-Tie Company, Inc. WestStar Bank
Mo Goodarzi Jason Bates Ken Donham David Osborn
LOI Engineers Performance Glass & Aluminum Snappy Publishing WestStar Title
Bernardino Olague Hector Hernandez Ted Escobedo Pam Ashworth
L & P Building Supply Commerce Mortgage Soil Mechanics Whirlpool
Denise McConnell Stephen Sepulveda, Gilbert Pedregon Lorenza Escareno Gwen Walker
Legacy Real Estate Serv./TTI Prop. Man. Polar Mechanical LLC Solar Smart Living Wolf Air
Patrick Tuttle Francisco Amezquita Larry Perea Arturo Alcantar
Leon Real Estate Post Tension Steel Southwest Décor El Paso Corporation X Construction
Jorge Leon Dennis Moore Chris Matthews Emmanuel Chavarria
Lone Star Title Co. of El Paso Powerfoam Insulation Southwestern Prewire
Sam Trimble Arnie Pedersen Joe Trejo

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12 Builders Outlook 2019 Issue 2

Lower interest rates, rising consumer confidence boost builder sentiment

o f E l
Homes aso.comP a s o
HomesofElP

Builder confidence in the market for newly-built single-family

homes rose four points to 62 in February, according to the latest In Print & Online
National Association of Home Builders/Wells Fargo Housing
Market Index (HMI) released today in Las Vegas during the 75th Full Market Coverage
annual International Builders’ Show.

“Ongoing reduction in mortgage
rates in recent weeks coupled with
continued strength in the job market
are helping to fuel builder sentiment,”
said NAHB Chairman Randy Noel, a
custom home builder from LaPlace,
La. “In the aftermath of the fall
slowdown, many builders are reporting
positive expectations for the spring
selling season.”
February marked the second
consecutive month in which all the
HMI indices posted gains. The index
measuring current sales conditions
rose three points to 67, the component
gauging expectations in the next six
months increased five points to 68 and
the metric charting buyer traffic moved
up four points to 48.
“Builder confidence levels moved up
in tandem with growing consumer
confidence and falling interest rates,”
from excessive regulations, a dearth Promote Your Business TODAY!
of buildable lots, a persistent labor
shortage and tariffs on lumber and
other key building materials continue Since 1988
to make it increasingly difficult to
produce housing at affordable price
points.” 915.585.1000
Derived from a monthly survey that
NAHB has been conducting for 30 Proud member of the El Paso Association of Builders
years, the NAHB/Wells Fargo Housing
Market Index gauges builder
perceptions of current single-family
home sales and sales expectations for
the next six months as “good,” “fair” or
“poor.” The survey also asks builders
to rate traffic of prospective buyers as
“high to very high,” “average” or “low
to very low.” Scores for each
component are then used to calculate
a seasonally adjusted index where
any number over 50 indicates that
more builders view conditions as good

For All Your Electrical Needs

said NAHB Chief Economist Robert than poor.
Dietz. “The five-point jump on the six- Looking at the three-month moving
month sales expectation for the HMI is averages for regional HMI scores, the
due to mortgage interest rates South posted a one-point gain to 63

Residential Specialists
dropping from about 5 percent in while the Northeast dropped two
November to 4.4 percent this week. points to 43. The Midwest and West

Tract Homes • Custom Homes

However, affordability remains a each remained unchanged at 52 and
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2019 Issue 2 Builders Outlook 13

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915-778-5387 • Fax: 915-772-3038

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 14 Builders Outlook 2019 Issue 2

5 Millennial Real Estate Trends in 2019

MARKET WATCH

REALTOR.com renovating a home to make it their own

More millennials are pursuing
homeownership now than ever before.
The national homeownership rate rose
to 64.4 percent in the third quarter this
year—an increase of half a percentage
point over a year ago, according to the
U.S. Census Bureau. That's largely
attributed to the rise in new, first-time
home buyers.
Millennial buying trends in 2019
Dana Bull, an agent with Sagan
Harborside Sotheby’s International
Realty who has significant experience
working with millennial clients, shares
five trends to expect in 2019
1. Rising Interest Rates Will
Prompt Buyers to Change Strategy
Just last week, mortgage rates rose
to a seven-year high, with 30-year
fixed-rate mortgages averaging 4.94
percent. It’s more than likely that rates
will climb over 5 percent in the new
year. This will cause many buyers to
pause and reevaluate their purchasing
power and strategy, Bull says. “Even a
quarter point has a real impact on
housing affordability,” she says. This
means you’ll need to take more time to
help clients analyze deals and
understand what their money can buy
in this shifting market.
2. Increased Competition From
Baby Boomers for Properties
As millennials age and grow in their
careers, they are acquiring more
purchase power. According to the 2018
National Association of REALTORS®
Home Buyer and Seller Generational
Trends Report, 30 percent of
millennials purchased homes for
$300,000 and higher in the past year,
up from 14 percent in 2013. That
means millennials and boomers are
going head-to-head for the same
homes today. That trend is only going
to continue to grow in 2019, Bull
predicts. Both groups also seek similar
amenities, including walkable
neighborhoods and smaller home
sizes with more upgrades, she points
out. “Buyers in different generations—
with wildly different points of view—are
competing for the same homes,” she
says. “For sellers and agents, catering
to two different generations in
marketing homes will also be a
challenge.”
3. Willing to Put In Sweat Equity
Millennials are becoming more savvy
to renovations and repairs, and they
may have HGTV to thank for that, Bull
says. “Millennial buyers are still far
more aware of the work, costs, and
implications of a renovation than their
parents would have been,” she says.
“Popular TV shows mean a more
educated millennial buyer who knows
what to look for in terms of red flags.
But also has more confidence around
and the ability to see past outdated
wallpaper or a wall that can be easily
removed.” Keep this in mind as
interest rates continue to rise in 2019
(re: trend number one) and you’re
helping clients who want to get
creative while staying in their price
range.
4. Clients Who are Well-Researched
and Prepared
Millennial buyers are doing their
online research and are entering the
market well-prepared. Show your value
as a REALTOR® in other ways, Bull
recommends. “They are relying on real
estate professionals not to introduce
them to homes, most of which they
can find online, but to show them what
can’t be researched: neighborhoods
that are up and coming, which
properties stand to gain value in the
coming years, and guidance when it
comes to negotiations and
inspections.”
5. Social Media’s Continued Impact
Social media will continue to
influence millennials’ homebuying
habits, Bull says. This generation relies
heavily on online reviews and social
media presence to make purchasing
decisions. A strong online reputation
for real estate professionals is a must
in catering to this market, she adds.
Showcasing homes on social media—
particularly Instagram—is essential for
appealing to millennial clients.

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Kathy Parry, Hunt Companies Mark Dyer
Samira Gonzalez, Icon Custom Home Builders Kelly Sorenson
Laura Loy, Loyalty Homes Rudy Guel
JJ Vasquez Pacifica Homes Brad Roe
Trevor Turner, Rassette Homes Herschel Stringfield
Fernie Santana, Santana Homes Bob Bowling III
Jacob Barde, Tropicana Homes Carlos Villalobos

Associates: EPAB Mission Statement:

Sandra Lucero, Builders Source The El Paso Association of Builders is a federated professional
John Chaney, Hercules Industries organization representing the home building industry, committed
Luis Rosas, HUB International to enhancing the quality of life in our community by providing
Jorge Herrera, J & H Post Concrete & Tension affordable homes of excellence and value.
Joe Bernal, Joe Bernal Insurance The El Paso Association of Builders is a 501C(6) trade
Patrick Tuttle, Legacy Real Estate Service organization.
© 2019 Builder’s Outlook is published and distributed for the
Aaron Rich, Lone Star Title
El Paso Association of Builders

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T R E AT Y O U R S E L F
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