Here - Building Contractors Association of Otero County

Single-Family Housing Starts And Permits Rise In July
Production and permitting of new single-family homes
continued on an upward trajectory in July, according to
newly reported numbers from the U.S. Commerce Depart -
ment today. Meanwhile, substantial declines on the multi -
family side dragged down the overall numbers, with com -
bined single- and multifamily starts down 1 percent to a
seasonally adjusted annual rate of 581,000 units and
combined single- and multifamily permits down 1.8 per -
cent to a 560,000-unit rate.
“With the impending expiration of the first-time home
buyer tax credit at the end of November, July was probably
the last month in which to get homes permitted and started
in time for customers to take advantage of that valuable
incentive,” noted Joe Robson, chairman of the National
Association of Home Builders (NAHB) and a home builder
from Tulsa, Okla. “Builders were responding to improved
demand related to that upcoming deadline and also to the
first signs of an economic recovery.
However, it remains to be seen what happens after the tax
credit expires, and the severe credit crunch that has cur -
tailed many multifamily projects is looming over singlefamily
builders as well. Congress and the Administration
need to take action now in order to maintain the momen -
tum toward a housing and economic recovery.”
“The latest report marks a fifth consecutive month of im -
provement in single-family housing starts and a fourth
consecutive month of improvement in single-family per -
mits,” noted NAHB Chief Economist David Crowe. “This is
exactly in keeping with our latest member surveys, which
indicate that builders are cautiously optimistic about sin -
gle-family sales conditions over the next several months.
That said, the significant drop-off in multifamily construc -
By Ted Garrison
1. Determine what your real commitment to great serv -
ice is. Check with front-line people and customers to
determine what is lip service and what is real.
2. Set up a simple system to gather customer input. If
you already have a system, make sure that the infor -
mation is being used.
3. Benchmark your service. Develop measurements you
can track and compare to general service leaders in
your industry and outside.
4. Measure the lifetime value of a customer to you.
5. Measure the percentage of customers who are repeat
and the number of true referrals you receive from
them.
tion and permitting shown in recent months’ reports may be
a harbinger of the financing challenges facing all home
builders going forward. A severe lack of credit for acquisi -
tion, development and construction financing, along with
other issues tied to low appraisals and the upcoming expi -
ration of the first-time buyer tax credit, could derail the pro -
gress made so far. Government action is required to ensure
that housing can help generate jobs and economic growth
in the days ahead.”
NAHB is calling on Congress to extend the first-time home
buyer tax credit for another year and to offer it to all in -
come-eligible buyers. In addition, NAHB is urging Congress
to help eliminate the credit crunch, correct faulty appraisal
practices and expand Net Operating Loss tax provisions
that can help avoid more layoffs.
Single-family housing starts posted a 1.7 percent gain to a
seasonally adjusted annual rate of 490,000 units in July,
while single-family permits registered a 5.8 percent gain to
458,000 units. Both of these were the highest levels regis -
tered since October of 2008. Meanwhile, multifamily starts
tied a record low set in April of this year, falling 13.3 per -
cent to a 91,000-unit rate. Multifamily permits fell 25.5 per -
cent to 102,000 units.
Due largely to declining multifamily production numbers,
housing starts fell in three out of four regions in July. The
Northeast posted a 16.3 percent decline, while the South
and West posted more moderate declines of 1.4 percent
and 1.6 percent, respectively. The Midwest was the only re -
gion to report a gain, of nearly 13 percent. Meanwhile,
housing permits fell 5.2 percent in the Northeast and 9.2
percent in the South, but gained 14.1 percent in the Mid -
west and 7 percent in the West in July.
85 Possible Actions for Contractors for Better Customer Service
6. Experiment with some off-the-wall service ideas. Work
to uncover needs customers don't know they have.
7. Make a list of ways you can use quality and delivery
to make price unimportant to your customers.
8. Decide how you can use speed and flexibility to de -
liver better service than your competitors.
9. Determine what services customers will be happy to
pay extra for.
10. Measure your customers' definitions of great service.
11. Develop a database of each major customer's specific
Continued on page 14
13