Builder confidence in the market for newly built, single-family homes continued to climb for a fourth consecutive month in January, rising four points to 25 on the NAHB/Wells Fargo Housing Market Index (HMI), released on Jan. 18.

The latest survey brings the HMI to its highest level since June of 2007. Each of the HMI's three component indexes also posted a fourth consecutive increase, with the component gauging current sales conditions up three points to 25, (its highest point since June of 2007), the component gauging sales expectations in the next six months rising three points to 29 (highest since September 2009) and the component gauging traffic of prospective buyers up three points to 21 (also highest since June 2007). This good news comes on the heels of several months of gains in single-family housing starts and sales, and is yet another indication of the gradual but steady improvement that is beginning to take hold in an increasing number of housing markets nationwide. The HMI also posted gains in all four regions in January, including a nine-point gain to 23 in the Northeast, a one-point gain to 24 in the Midwest, a two-point gain to 27 in the South and a five-point gain to 21 in the West. 

According to NAHB Chief Economist David Crowe, builders are seeing greater interest among potential buyers as employment and consumer confidence slowly improve in a growing number of markets, and this has helped to move the confidence gauge up from near-historic lows in the first half of 2011. “That said, caution remains the word of the day as many builders continue to voice concerns about potential clients being unable to qualify for an affordable mortgage, appraisals coming through below construction cost, and the continuing flow of foreclosed properties hitting the market,” he noted. Read NAHB's press release or view the HMI tables at www.nahb.org/hmi. You can also watch NAHB CEO Jerry Howard talking about the HMI in an interview with Fox Business News.  Contact: Rose Quint (800-368-5242 x8527)  

Newly released figures from the U.S. government this week reveal that single-family housing starts increased for a third consecutive month in December to hit a seasonally adjusted annual rate of 470,000 units -- their fastest pace since April of 2010. The good news of this 4.4% gain was somewhat masked by the overall rate of housing starts reported for the month, which fell 4.1% to 657,000 units due to a big dip on the multifamily side. However, NAHB Chief Economist David Crowe hastened to explain that the 20.4% decline in multifamily starts to a seasonally adjusted annual rate of 187,000 units in December simply brought that sector back to trend, and that apartment production is continuing to gain strength after posting a greater-than 50% rebound in 2011 from the pace set in 2010. Otherwise, said Dave, "This report is in keeping with our expectations for slow but steady improvement in the single-family market," where production hit its lowest yearly rate since the 1940s in 2011. Speaking of the year 2011 as a whole, combined single- and multifamily housing production was pegged at 606,900 units, which was 3.4% better than the overall number in 2010. Regionally speaking, December housing starts (combined single- and multifamily units) rose 54.8% in the Midwest but posted a 41.2% decline in the Northeast, a 3.0% decline in the South and a 17.6% decline in the West. Also reported by the Commerce Department, December permit issuance held virtually flat at a 679,000-unit rate in December, with single-family permits up for the third month in a row, by 1.8% to 444,000 units, and multifamily permits down 3.7% to 235,000 units for the month. Regionally, permits rose 5.8% in the Midwest, held unchanged in the West, declined 6.5% in the Northeast and edged down 0.6% in the South in December. Read NAHB's press release for more, or view the government's full report online. Contact: MondayMorningQuestions@nahb.org.

NAHB CEO Jerry Howard and Chief Lobbyist Jim Tobin joined with Maryland home builders Marty Mitchell and NAHB Past President Bob Mitchell for an important discussion this week with Reps. Steny Hoyer (D-Md.) and Chris Van Hollen (D-Md.) on key housing issues. Topics of the discussion included the need for congressional action to restore the flow of credit for new housing production and to ease burdensome and unnecessary regulations. The NAHB representatives also expressed the need to expedite the rule-making process regarding qualified residential mortgages in order to provide certainty and stability to the marketplace, as well as the need to advance housing finance reform efforts while retaining a federal backstop for housing to keep home mortgages affordable and readily available. Members of the NAHB Board of Directors will hear more about this discussion when we meet in Orlando, as part of our advocacy report on NAHB actions on housing finance reform.  

Each year, the Occupational Safety and Health Administration compiles an annual list of the top 10 most frequently cited standards across all industries. The majority of standards that OSHA has now identified as the most frequently cited are directly applicable to the construction and residential home building industries. Employers who were cited for violations in 2011 may have noticed that the penalties were higher than in the past. The average serious violation penalty for 2011 was $2,132 — more than double the average of $1,053 for 2010. OSHA last year also issued 215 citations totaling at least $100,000 — up from 164 citations issued in 2010.

OSHA’s top 10 most frequently cited standards across all industries in FY 2011 were:

1. Scaffolding, general requirements (29 CFR 1926.451)
2. Fall protection (29 CFR 1926.501)
3. Hazard communication standard (29 CFR 1910.1200)
4. Respiratory protection (29 CFR 1910.134)
5. Control of hazardous energy (lockout/tagout) (29 CFR 1910.147)
6. Electrical, wiring methods, components and equipment (29 CFR 1910.305)
7. Powered industrial trucks (29 CFR 1910.178)
8. Ladders (29 CFR 1926.1053)
9. Electrical systems design, general requirements (29 CFR 1910.303)
10. Machines, general requirements (29 CFR 1910.212)

In a Sept. 16, 2010 webinar on preparing for OSHA inspections, Brad Hammock of Jackson Lewis LLP reminded builders that there are a few things they can do to reduce or eliminate the chances of being cited by OSHA. For example, before a compliance safety and health officer ever sets foot on the job site, they should: 

• Review their safety program 
• Understand any national and local emphasis programs 
• Develop procedures for an OSHA visit and train their employees in those procedures 
• Have records (300 Logs, training records, etc.) readily available and up-to-date 
• Make sure their workers are properly trained on the safety requirements of the job site

For more information on complying with OSHA regulations, visit www.nahb.org/SAFETY or contact Marcus Odorizzi at 800-368-5242 x8590.

A new benefit for NAHB members is our “Legal Tips” section on www.nahb.org that includes regularly updated postings from our Legal Research Program. During its 37 years of continuous operation, the Legal Research Program has responded to thousands of our members' legal questions covering a wide range of subjects related to residential construction and business operations for home builders, remodelers and associates.

The program strives to provide accurate legal information in plain language that is easily understood. Current topics include:

* Website images and copyright infringement

* Voluntary Affirmative Marketing Agreements

* Immigration law compliance and subcontractors

* Cancellation requirements for home improvement contracts

* Pre-contract language for protecting plans submitted with bids

Please note that the responses appearing in “Legal Tips” have been modified to protect the identity and privacy of the members making the original requests for information. NAHB members can access "Legal Tips" by visiting www.nahb.org/legaltips. For more information on “Legal Tips,” or to make individual requests for legal information from the Legal Research Program, contact David Crump at 800-368-5242 x8491.

As the third anniversary of the National Green Building Standard approaches, the number of green-certified homes and developments continues to grow exponentially along with interest in sustainable design and construction — and an increasing preference for certification to the standard. The vast majority of the certifications have been through the National Green Building Certification Program administered by the NAHB Research Center. At latest count, 7,444 single-family homes and townhomes, apartment and condominium units, residential subdivisions and remodeling and renovation projects had been certified to the standard or its precursor, the Model Green Home Building Guidelines. Particularly remarkable is the increase in multifamily projects certified to the standard, with as many as 24 new projects applying for certification each week. According to the NAHB Research Center, interest in green certification for multifamily projects is especially growing in urban areas, including Chicago, New York and Washington, D.C. Meanwhile, single-family certifications continue to do well, especially east of the Mississippi River, where home builders in a growing number of markets are certifying to the standard not just to stand apart from the pack — as was the case just two years ago — but to stay competitive with other companies that see green certification as part of the cost of doing business. Read much more about this growing trend in this special report from the latest edition of Nation's Building News. Contact: Kevin Morrow (800-368-5242, x8375)

One of NAHB’s most important social media platforms — our Facebook Fan page — now has approximately 23,000 followers, pushing the association’s online networking and connections to a wider audience of industry leaders and experts. “Our strategy for Facebook is to offer our members and the public a great resource for industry news and analysis,” said Chad Davis, NAHB’s director of social media. “Some of that is provided by NAHB’s own staff,” he said, “but we also pull from blogs, trade publications, major media outlets and, of course, from Facebook pages run by our local home builders associations.” In general, NAHB Facebook followers are a mix of individuals and companies interested in staying up-to-date on the latest housing and economic news. To keep our members and their association on the cutting edge, NAHB has striven to establish social media as a mainstream means of communication both among each other and across the home building industry. Of course, NAHB is also expanding builders' reach in the social media universe through our Twitter feed and LinkedIn groups. More than 5,660 people have signed up for the members-only LinkedIn group, while the Friends of NAHB on Linkedin — open to members and non-members — now has 10,500 participants. LinkedIn serves as a networking venue for members to discuss issues online, while the Twitter account — @NAHBhome with 9,280 followers currently — provides headlines and breaking news blasts. This page on NAHB’s website provides a complete listing of the association’s social networks. One final note is that NAHB has also launched a Google+ page. It has content that is similar to what appears on Facebook, but stories can be targeted to specific audiences. For more information, please contact Chad Davis at 800-368-5242 x8328.

We were very sad to learn this week of the passing of NAHB Senior Life Director David Thomas Burleson on Wednesday, Jan. 18, in Fort Meyers, Fla., at the age of 77. Dave was a prominent developer and businessman who headed the Dave Burleson Construction Co. in Knoxville, Tenn. He was a longtime, active member of NAHB who served as a Trustee of the National Housing Endowment and was a Past President of the HBA of Greater Knoxville and of the HBA of Tennessee. Dave also served on the NAHB Executive Board and served on numerous NAHB committees through the years, including Nominations, Conventions & Meetings, Public Affairs, State & Local Government Affairs and Associate Members. For his many contributions to our industry, he was inducted into the Tennessee Building Industry Hall of Fame in 1994. We will miss him greatly, and our thoughts are with his family at this difficult time. Please visit this link for a more complete obituary.