Builders Outlook 2015 Issue 3

Builders utlookwww.elpasobuilders.com 2015: issue 3

Inventory Hampering Home Sales andPushing Prices Higher

Rally Day:2015 Capitol visit encourages membership

Short supplies of existing home inventorycontinued to hold back sales in February theNational Association of Realtors® (NAR) said today,but contributed to the fastest annual gain in homeprices in a year. Weather was also a factor, withlackluster sales in the snow-plagued Northeastoffsetting gains in Sunbelt states.Nationwide sales of existing single-family homes,

townhomes, condominiums, and co-ops rose 1.2percent to a seasonally adjusted annual rate of 4.88million in February from 4.82 million in January.Sales were 4.7 percent higher than in February2014, the fifth consecutive month that year-over-year sales increased. Single-family home sales increased 1.4 percent,

from a seasonally adjusted rate of 4.28 million inJanuary to 4.34 million. This was 5.9 percent higherthan the 4.10 million pace a year earlier. Condoand co-op sales were unchanged from January at arate of 540,000 units and down 3.6 percent fromexisting unit sales in February 2014. The median price of existing-homes overall in

February was $202,600, which is 7.5 percent aboveFebruary 2014. It was the 36th consecutive monthof year-over-year price increases and the largestgain since an 8.8 percent jump last February. Themedian price of a single family home was up 8.1percent from a year earlier to $204,200 and themedian price of an existing condos was $190.200, a2.8 percent annual increase. Inventory, while up slightly in February, remains

0.5 percent below levels one year ago. At the endof February there were an estimated 1.89 millionhomes available for sale compared to 1.90 million ayear earlier. This, however, was an increase of 1.6percent from January although the unsold inventoryremained at a 4.6 month supply given the slightlyincreased rate of sales. Lawrence Yun, NAR chief economist, said sales,

though up modestly in February, have stagnatedsomewhat in recent months. "Insufficient supplyappears to be hampering prospective buyers inseveral areas of the country and is hiking prices tonear unsuitable levels," he said. "Stronger pricegrowth is a boon for homeowners looking to build

additional equity, but it continues to be an obstaclefor current buyers looking to close before ratesrise." A NAR study released in March found that the

disparity between rent and income growth iswidening in metro areas throughout the country andis making it harder for renters to becomehomeowners. "With all indications pointing to a rateincrease from the Federal Reserve this year -perhaps as early as this summer - affordabilityconcerns could heighten as home prices and rentsboth continue to exceed wages," Yun said.The percent share of first-time buyers was 29

percent in February, up from 28 percent in Januaryand the first increase since lastNovember. Individual investors purchased 14percent of homes, down from 17 percent in Januaryand 67 percent paid cash for their home purchases.Cash sales overall accounted for 26 percent oftransactions, down 1 percentage point from Januarybut significantly lower than the 35 percent of cashsales in February 2014. Eight percent of February's sales were

foreclosures and 3 percent were short sales with thetotal of distressed sales unchanged at 11 percentfor the third straight month. Foreclosures sold foran average discount of 17 percent below market

value in February (15 percent in January), whileshort sales were discounted 15 percent (12 percentin January). "Investor sales are trending downward due to the

continued rise in prices and fewer bargainsavailable from distressed properties coming onto themarket," says NAR President Chris Polychron."Furthermore, Realtors® in areas popular to foreignbuyers, such as South Florida and the West Coast,are reporting tempered demand from internationalclients - who typically pay in cash - due to thestrengthening U.S. dollar compared to foreigncurrencies."The typical marketing period for properties in

February was 62 days, down from 69 in January.Short sales were on the market the longest at amedian of 120 days, foreclosures sold in 58 daysand non-distressed homes took 61 days. Thirty-fourpercent of homes sold in February were on themarket for less than a month.February existing-home sales in the Northeast

dropped 6.5 percent to an annual rate of 580,000,but are still 3.6 percent above a year ago. Themedian price in the Northeast rose 3.3 percent froma year earlier to $241,800. Sales were at an annual level of 1.08 million in

the Midwest, unchanged from January and 4.9percent above February 2014. The median price inthe Midwest was $152,900, up 8.8 percent from ayear ago.Yun noted that "Severe below-freezing winter

weather likely had an impact on sales as moremoderate activity was observed in the Northeastand Midwest compared to other regions of thecountry."Sales were up 1.9 percent in the South to an

annual rate of 2.11 million units, 6.0 percent higherthan the previous February while prices rose 8.5percent to a median of $177,900.The West had an increase in sales of 5.7 percent

to a rate of 1.11 million, 2.8 percent higher than ayear ago. The median price in the West was$290,100, a 4.2 percent annual gain.

by: Jann Swanson MND Newswire

The visit to the state Capitol in early March waseye opening for many of the attendees,especially those who went for the first time. TheTexas Capitol is always buzzing when they are insession as so many lobbying groups fromthousands of businesses and interests convergeon the steps. This year the Texas Builders werejust one of a dozen groups visiting therepresentatives and senators hoping to get just afew minutes of their very valuable and seeminglytight schedules.

Read and See more> Page 7

2 Builders Outlook 2015 issue 3

NATURAL GAS IS YOUR KEY TO HOME SALES.By installing natural gas in your new homes and developments, you’re opening the door to added value for potential buyers.

Natural gas kitchens sell themselves, and natural gas furnaces, water heaters and clothes dryers offer greater efficiency and lower operating costs than their electric counterparts.

For more information on how to use natural gas to turn prospects into buyers, contact Eduardo Lucero at [email protected] or (915) 680-7216.

I would personally like to thankeveryone that attended this year's RallyDay in Austin. It was fantastic. We wereable to meet and discuss our concernswith the new 2015 energy coderegulations, and a variety of otherproposed bills, with RepresentativesJoe Pickett, Joe Moody, MaryGonzalez, Marisa Marquez, CesarBlanco, and Senator Jose Rodriguez.They were very welcoming andreceptive of our concerns. Ray andMargaret Adauto did an incredible job ofsetting up the appointments to meetwith each of them, organizing thematerials to present to them, and

escorting us around the capitol. Thankyou both! Also, thank you TropicanaHomes for sponsoring that evening'sdinner at Fogo de Chao. I believe that itwas the most attended Rally Day by theEPAB in a very long time if not ever. Ifyou were with us in Austin, please makesure you tell another member howincredible the experience was and howthey should start making plans to attendin 2017.Our Spring Golf Event is quickly

approaching as is the Parade ofHomes. The golf tournament is on April10th at the Horizon City Golf andConference Center. Thank you to all of

this year's participants and sponors asthis would not be possible without you.This event is always a blast and thisyear's should be more of the same.The Parade of Homes at Rio Valley

Subdivision will be April 18th throughMay 3rd. The preview party will be April17th and tickets are on sale now. Iwould like to thank our Immediate PastPresident and Parade Chair FrankTorres of GMF Homes for all of his hardwork in organizing this event. TheSpring Parade will feature homes byAccent, BIC, New Traditions by MarkWinton, Palo Verde, Pointe Homes, andWinton Flair. I would encourage all

builders to consider participating in thenext Parade of Homes. It not onlyshowcases your home to thousands ofattendees but it also raises money forour association. Thank you also to ouramazing sponsors.Remember that our next General

meeting is April 8th at Noon at the ElPaso Club. Our guest speakers will befrom the El Paso Inc. and WhatsUp!.We invite you to bring a friend in theindustry with you. I look forward toseeing you there!

32015 issue 3 Builders Outlook

Edgar MontielPresident,El Paso Association of Builders ‘Springing’ into action at EPAB

President’s Message

Your Online Showroom for New Homes

There are a lot of tough issuesfacing the new home building industryright now. It is something that is hardto put your finger on because even thebrightest minds in the world are not inagreement as to what is causing someof them. I’d like to put my spin onwhat I think is happening, so bear withme as I look at it through my eyes. Allow me this: the overall economy isnot good. It is trying to recover from abad 2014 and I believe that it doesn’tmatter what work you do or whatindustry you’re in the same is true.Retail, food service, advertising,manufacturing, electronics…I hear thesame thing over and over. It’s toughout there and it’s not getting anyeasier. I support the local eateries andall I hear from those folks is that costskeep going up and competition isheating up, especially from franchisesor chains. I also hear that they havetrouble paying their taxes, hiring help,and taking home any profits. Andplease don’t get them started on theregulations and regulators, becauseyou’ll get an earful. Like our industrythe restaurant industry must stayengaged with local, state, and nationalissues and politics. They find the

same kind of silliness andvindictiveness that we do in some ofthose politicians and inspectors so it’sincumbent on them to stay in touchwith the politics of business. My goodfriend Leo Duran, the proprietor of L&JCafé is engaged. He tells me storiesabout their issues that mirror ours.Leo is working hard to make sure thathis business and those of the localrestaurateurs are at the table in Austinrather than as the main course. Soundfamiliar right? So my first theory onour current issues is that we are notalone. Doesn’t make it any better butit also tells me that there’s anundercurrent of the same permeatingall businesses. There’s somethingwrong here because as we all know,using the restaurants as an example,try getting into one on Friday orSaturday nights, especially if you havea party of six or more. (Ok, so someof these places don’t or won’t take areservation, as you already know).Where is that money coming from?Here’s thought number two: there’s ahuge underground economy working inEl Paso. So, you think, what’s wrongwith that? In home building it can’t beused to qualify for a loan. There’s no

mortgage company willing to take yourword for it that you have money stuffedin your abuelitas coffee can. Nope,you have to have records, bankrecords, credit card records, taxrecords. The money in the can isn’t“legit”. And so you have the moneycirculating at bars, eateries, the moviesand on cable TV. That’s why you seeso many “payment centers” in placeslike Albertson’s and Fox Plaza, placesyou can pay your utilities with cash.But then you can’t qualify because youcan’t claim that cash as legit when youapply for a home loan. The otherproblem, associated with cash is that iteventually runs out. One day you’reflush, the next you’re eating leftovers.Story of El Paso, and surprisingly thestory of other places as well. Housingisn’t doing well in Albuquerque orTucson, not doing well in Las Vegaseither. Probably not doing well inPhoenix either but certainly not doingwell in California. But I bet they havethe same problem getting a table orstanding in line at the clubs andrestaurants. It’s a cash thing there aswell.So if we know some of the problemswhat do we do about them? Ah, that’s

the genie that has yet to come out. It’sone that eludes us from time to time.But a clue should be that we are livingin a time of confusion and uncertainty.You have to hedge your bets, you can’tuse yesterday as a template, butrather you have to adjust that templateon a daily basis. This coming Parade of Homes™

has more moderate priced homes, allwith some very cool amenities, butdifferent from past Parades. These arehomes that built for our economy, onethat our folks can buy and can qualifyfor. It’s a shift but it is directly a resultof the economy. No builder is going tobuild a taj mahal spec home in thesetimes, even for a Parade. I’ve offered some food for thought,so now it’s your turn. Let me know if Igave you something to ponder or if youhave solutions to your thoughts on thesubject. I’d welcome an op-ed piece toshare other ideas and potentialsolutions. Afterall, it’s the economy welive in, not the one we hope for.

Perspective

Ray Adauto,Executive Vice PresidentEPAB


A different spin on why the housing market is not spinning upward


Builder ConfidenceDrops Two Points in March Builder confidence in the market for

newly built, single-family homes inMarch fell two points to a level of 53on the National Association of HomeBuilders/Wells Fargo Housing MarketIndex (HMI) released today.“Even with this slight slip, the HMI

remains in positive territory and weexpect the market to improve as weenter the spring buying season,” saidNAHB Chairman Tom Woods, a homebuilder from Blue Springs, Mo.“The drop in builder confidence is

largely attributable to supply chainissues, such as lot and labor shortagesas well as tight underwritingstandards,” said NAHB ChiefEconomist David Crowe. “Theseobstacles notwithstanding, we areexpecting solid gains in the housingmarket this year, buoyed by sustainedjob growth, low mortgage interest rates

and pent-up demand.”Derived from a monthly survey that

NAHB has been conducting for 30years, the NAHB/Wells Fargo HousingMarket Index gauges builderperceptions of current single-familyhome sales and sales expectations forthe next six months as “good,” “fair” or“poor.” The survey also asks buildersto rate traffic of prospective buyers as“high to very high,” “average” or “low tovery low.” Scores for each componentare then used to calculate a seasonallyadjusted index where any number over50 indicates that more builders viewconditions as good than poor.Two of the three HMI components

posted losses in March. Thecomponent gauging current salesconditions fell three points to 58 whilethe component measuring buyer trafficdropped two points to 37. The gaugecharting sales expectations in the nextsix months held steady at 59.Looking at the three-month moving

averages for regional HMI scores, theNortheast and South each posted a

two-point drop to 43 and 55,respectively. The Midwest rose twopoints to 56, while the West fell sevenpoints to 61.

Housing Starts Fall17 Percent inFebruaryNationwide housing starts dropped

17 percent to a seasonally adjustedannual rate of 897,000 units inFebruary, according to newly releaseddata from the U.S. CommerceDepartment.“This drop is not surprising based on

our recent surveys, but our builderscontinue to show cautious optimism inthe months ahead,” said NAHBChairman Tom Woods, a home builderfrom Blue Springs, Mo.“February’s numbers indicate that

wavering consumer confidencecontinues to impact the housingrecovery,” said NAHB Chief EconomistDavid Crowe. “Buyers are waiting for a

stronger, more reliable economybefore making a home purchase, andbuilders are responding to theirreluctance. Even with this month’sdrop in production, we expect thehousing market to move forward thisyear in step with an improvingeconomy.”Single-family housing production fell

14.9 percent to a seasonally adjustedannual rate of 593,000 in Februarywhile multifamily starts dropped 20.8percent to 304,000 units.Combined single- and multifamily

starts decreased in all regions of thecountry, with the Northeast, Midwest,South and West posting respectivedeclines of 56.5 percent, 37 percent,2.5 percent and 18.2 percent.Overall permit issuance was up 3

percent in February to a rate of 1.092million. Single-family permitsdecreased 6.2 percent to 620,000units while multifamily permits rose18.3 percent to a rate of 472,000 units.Regionally, the Midwest, South and

West registered permit gains of 6.1percent, 7.3 percent and 2.2 percent,respectively, while the Northeastposted a 17.4 percent loss.

Lakisha WoodsNamed NAHB ChiefMarketing Officer The National Association of Home

Builders (NAHB) today announced thepromotion of veteran staff memberLakisha Woods, CAE to ChiefMarketing Officer.This position will oversee all

revenue-generating programsunrelated to NAHB's InternationalBuilders’ Show exhibit space sales.Such activities will include sponsorshipsales and partnerships with majornational companies. The position alsowill identify new business opportunitiesand handle NAHB branding and publicimage initiatives.“Lakisha Woods brings a wealth of

expertise to this important leadershipposition,” said Jerry Howard, NAHB’schief executive officer. “Increasing non-dues revenue and managing our brandare critical ventures, and I have nodoubt Lakisha will excel in thesecapacities. She inherits anexceptionally talented staff who areequally committed to serving NAHBand our members.”Woods assumes this top marketing

position after 10 years as vicepresident of NAHB’s publishing andaffinity programs. In this capacity, sheand her team developed memberbenefit programs, created and soldonline subscription services, andpublished resources for home builders.Prior to joining NAHB, Woods was theexecutive director of marketing and e-business for the Associated GeneralContractors of America.“NAHB has long been the

recognized leader for housingadvocacy,” Woods said. “I now havethe privilege of working with acollaborative and professional team tofurther the NAHB brand whiledelivering real value to builders,remodelers and home buyers.”

TEXAS BUILDER OF THE YEAR

2013

A W A R D E D

We build so you can GROW

Industry News

Last year 3.2 million net new jobswere created, the best performancesince 2000, and total employment is

now severalmillion higherthan it wasbefore therecession began.In addition, theunemploymentrate which is5.7% continuesto fall and shouldbe at or near 5%by year end, alevel economists

consider full employment. All of thisgood news, yet serious problemsremain. The labor force participationrate (LFRP) is at levels last seen in1978, which makes the unemploymentrate look better than it really is andafter adjusting for inflation, wages havebeen declining for years. What isgoing on? The LFPR peaked at 67.3% in

January 2000 and had had alreadyfallen to 66% by the start of the GreatRecession in January 2008, suggestingthat other forces beyond the weakeconomy were already at work pushingit down. That said, by the end of theGreat Recession in June 2009, theLFPR was down just half-of-one-percentage-point to 65.5%. Normally, itthen would have started rising as theimproving economy pulled unemployedworkers back into the labor force fromthe ranks of the unemployed. Instead,the LFPR went into free fall, hitting alow of 62.8% in October 2013 where it

has remained since. The decline in the LFPR from 66% to

62.8% not only represents a loss offour and a half million workers, but alsohas no historic precedent. That said,much of the decline was inevitable.About half the decline is due todemographics. That is the number ofBaby Boomers who are retiring iscurrently vastly outpacing the numberof new entrants into the labor market.Exacerbating this trend is that today’syoungsters are better educated andthus spend longer in school than earliergenerations, further delaying theirentrance into the world of work. Another quarter of the decline is due

to the severity of the recent recession,and the remaining 25% decline issimply unexplained. These might bepeople who are obtaining additionaleducation, receiving disabilityinsurance and may or may not workagain, those who have becomeunemployable and those who simplygave up. Whatever the cause,knowing how many people in thiscategory return to work is critical tounderstanding what lies ahead. Some have returned, some will

return and some will never return.However, no matter what happens tothose persons, close to 10,000 BabyBoomers retire every day. As a result,the fact that the LFRP has not fallensince October 2013 suggests thesediscouraged workers are returning.Were that not the case, the LFRPwould have continued falling. So flatreally is the new up! Looking to the future, the greater the

number of these discouraged workerswho return to the labor force, theslower the decline in theunemployment rate will be, the higherthe LFRP will be but perhaps mostimportantly, the slower wage growthwill be. And that’s the kicker. Bycontrast, if discouraged workers stopreturning to the labor force, theunemployment rate will fall faster andwages will start rising more quickly butit would also mean that millions ofpreviously employed persons havegiven up on work and that is very bad. Ideally, discouraged workers will

continue returning and wages willremain flat for a while longer but willeventually start rising. Unfortunately,my guess is that relatively fewdiscouraged workers who have not yetreturned will. As a result, expect wagegrowth to start rising sooner, probablyby year end.

Elliot Eisenberg, Ph.D. is President ofGraphsandLaughs, LLC and can bereached at [email protected] daily 70 word economics and policyblog can be seen at www.econ70.com


El Paso Disposal

772-7495

Showroom: 2131 Missouri

915 • 533 • 6045 fax • 533• 6096

Thomas R. Brown, Owner

The Economy

Higher Wages: When and Why?

Elliot Eisenberg

Your New Home/Su Casa Nueva

The most complete home buying guide in both

English & Spanish

This issue will include:• New mortgage information• Unique dual language layout• Great advertising opportunities

Call Margaret today at 778-5387

NOW is the best time

to buy your new

home in El Paso!

Ahora es el

tiempo para

comprar una casa nueva

en El Paso!

��

��

��

��

�� Your New Home

Su Casa Nueva

Reserve your advertising space in the 2015 edition of

Help support theEl PasoAssociation ofBuilders andreach your targetmarket!

72015 ISSUE 3 Builders Outlook

Builders utlook on the scene |Rally DayContinued from page 1

By Ray Adauto, EPABOur day started with a great visit with

State Senator Jose Rodriguez whowelcomed our early members. The meetingwas very cordial and found the Senator verywell versed in the issues we presented him.“I want to thank all of you for making the tripto my office and presenting me with yourissues,” the Senator told the group. “Youare always to the point and I appreciate thatvery much,” he continued. Indeed the visitwas quick but loaded with the primaryissues we along with the Texas Associationof Builders needed to bring to him. BobbyBowling IV, Randy Bowling, Greg Bowlingand our president Edgar Montiel each hadtime with the Senator as the group awaitedthe arrival of the larger group flying in thatmorning. “I think that Senator Rodriguezhas a keen grip on what we stand for andfor what new home construction means tohis constituents,” said Bobby.

From that meeting the group assembledin the Rotunda as the entire delegation fromthe EPAB arrived ready to go on the hunt.Our first assignment was a group picturetaken indoors for the first time in yearsbecause of the rain and cold outside. Thegroup then met with our seniorrepresentative Joe Pickett, who as always,welcomed everyone into his larger than lifeoffice. His chief of staff Michael Breitinger,the former director of the DowntownDevelopment Association also was there.“This is one of the largest groups that I’veseen you have in the time I’ve been inoffice, “said Mr. Pickett. “I know most ofyou from a long time ago, including RudyGuel, who keeps tabs on me pretty closely,”Pickett continued. Rudy just smiled andenjoyed the spotlight pointed straight at him.

The visit to each of the other State Repslasted all afternoon long. RepresentativesMarisa Marquez, Joe Moody, MaryGonzalez and first termer Cesar Blanco allwelcomed our delegation with open armsand questions. “I’m thrilled that the buildershave placed my HB 74 as a priority as thisis the first time any organization has madea statewide commitment to any of my bills,”said Representative Gonzalez. TAB lookedat the hundreds of bills affecting housingand selected five to push to the entirelegislature and Representative Gonzalez’sbill made the list. “I’m going to frame thisand place it on my wall to show others thatmy legislation is important,” Gonzalezmused. Our group was so large that weheld the meeting with RepresentativeGonzalez in the hall way, much to surpriseof her neighbors. She was heard telling theother reps that she was blown away by thesize of our group. “Only El Paso has thecommitment to come and visit likes this,”she said.

Our visit to the Capitol over the group metat the Driskill Hotel, home of the TAB RallyDay events, and shared some private timewith visiting Representatives and theirstaffs. Our next Rally Day won’t happenuntil 2017 when the legislature convenesagain. Meanwhile members of theassociation continue to trek to Austin tomake sure our message, and the voice ofthe industry, is heard until the final gavel.

Special Report

Residential Construction Employment across States andCongressional Districts according to 2013 Census

The most recent AmericanCommunity Survey (ACS) data showthat, including self-employed, 8.9 mil-lion people worked in construction in2013. NAHB estimates that out of thistotal, close to 3.5 million peopleworked in residential construction,accounting for 2.4 percent of the USemployed civilian labor force. Thesenumbers reflect modest job gains thattook place since 2011 when construc-tion employment bottomed out.Nevertheless, the industry employ-ment levels remain far below thepeaks reached during the housingboom when more than 11 millionworked in construction, and homebuilding employed more than 5 millionpeople, including self-employed work-ers.New NAHB estimates also allow

analyzing the distribution of homebuilding jobs across states and con-gressional districts. Congressionaldistrict estimates are particularly use-ful to highlight the importance ofhome building to voting constituencyresiding in the district. The NAHBestimates show that the average con-gressional district has close to 7,900residents working in residential con-

struction but that number is often sig-nificantly higher and actually exceeds16,000 in Montana’s singleCongressional district.New NAHB home building employ-

ment estimates only include workersdirectly employed by the industry anddo not count additional jobs createdthrough the ripple effect when buildingmaterial suppliers, furniture produc-ers, landscaping and other dependentindustries hire workers in response toshifting demand for their products andservices triggered by residential con-struction.

Data Sources and MethodologyNAHB estimates of residential con-

struction employment by state andcongressional district rely on the twomain sources of data: the AmericanCommunity Survey from the USCensus Bureau and the QuarterlyCensus of Employment and Wages(QCEW) compiled by the U.S. Bureauof Labor Statistics (BLS).The ACS surveys households rather

than businesses and, consequently,covers self-employed workers in addi-tion to workers employed by privatecompanies, government and non-profit groups. Because of this broaderemployment definition, the ACSemployment numbers exceed theestimates based on surveys of busi-nesses with payroll employees, such

as the QCEW, but count voting con-stituencies and reflect the politicalimportance of home building moreaccurately. In addition, the ACSemployment estimates are availablenot only by state and metro area butalso by congressional district, some-thing that no other employment datasource can offer.Counting self-employed is particu-

larly important in the constructionindustry where they traditionally makeup a larger share of the labor force. Infact, the construction sector registersone of the highest shares of self-employed among all industries.According to the 2013 ACS, one outof four construction workers is self-employed, while an economy-wideaverage does not reach 10 percent ofthe employed labor force.The drawback of the ACS is its lim-

ited construction industry information,particularly, it does not differentiatebetween residential and non-residen-tial construction. In contrast, theQuarterly Census of Employment andWages data specify whether employ-ees work in commercial or residentialbuilding. Furthermore, the QCEW dif-ferentiates between residential build-ing construction, land subdivision andresidential specialty trade contractors.The QCEW data come from quarterlytax reports filed by employers cov-ered by various unemployment insur-

ance programs, and, in essence,amounts to a “virtual census” of busi-nesses with payroll employees.However, it completely misses self-employed workers.The 2013 QCEW data show that

residential specialty trade contractorsaccount for close to 71 percent of allprivate payroll jobs in the home build-ing industry (see Figure 1). This isconsistent with a 2012 NAHB surveyshowing that two-thirds of single-fami-ly builders subcontract out at least 75percent of their work. Residentialbuilding construction (which includessingle-family and multifamily builders,whether they build on their own landor land owned by a homeowner orinvestor, and residential remodelers)accounts for 27 percent. The remain-ing 2 percent are in land subdivision.To account for self-employed work-

ers and, at the same time, haveaccess to the detailed industry struc-ture information, NAHB Economicscombines data from the ACS andQCEW. First, the share of residentialconstruction is estimated for eachstate based on the QCEW data.Residential building construction, resi-dential specialty trade contractors andland subdivision are combined to form“residential construction”, or “homebuilding”. The resultant state sharesare then applied to the ACS data tobreak construction workers into resi-

By Natalia Siniavskaia, Ph.D.Economics and Housing Policy GroupNational Association of Home BuildersHousingEconomics.com

Builders Outlook Issue 3 • 2015

dential and non-residential. The esti-mates assume that, within each state,the share of construction workers whowork in the home building industry isthe same whether they are self-employed or working as employees ofa construction company. This, proba-bly, results in a somewhat conserva-tive estimate, because the self-employed share in residential con-struction, especially, in remodeling, islikely to be greater than in non-resi-dential.

Construction Self-Employedthrough the Housing Boom andBustThe 2013 ACS shows that 8.9 mil-

lion workers were employed by theconstruction industry in 2013. This isstill 2.2 million fewer jobs than in2006, at the peak of the housingboom, but, nevertheless, reflects thesecond year of steady albeit minor jobgains (see Figure 2).The ACS data also highlight the

high reliance of the industry on self-employed workers. The high self-employment rates in constructionreflect a common practice of buildersand remodelers to maintain relativelysmall payrolls and rely on subcontrac-tors for a large share of the construc-tion work. Interestingly, self-employ-ment rates in the construction indus-try were rising during the housingdownturn and increased from 24 per-cent in 2006 to more than 26 percentin 2010. Once the situation stabilizedand construction started gaining jobs,the self-employment rates reversedtheir course in 2011 and fell below 25percent by 2013 (see Figure 2).During the downturn builders and

remodelers who were no longer ableto maintain a steady work flow mayhave tried to manage costs by elimi-nating payroll positions and joiningthe ranks of the self- employed. It isalso possible that some constructionemployees laid off during the down-turn were able to stay in the industryby striking out on their own. The mostrecent data suggests the opposite hir-ing trends started to emerge, withconstruction picking up new payrolljobs but losing self- employed con-struction workers. The ACS datashow that from 2011 to 2013, con-struction gained close to 400,000 pri-vate payroll jobs but lost self-employed workers. This helps explainwhy builders have reported moreextreme labor and subcontractorshortages than commonly cited num-bers based only on payroll employ-ment suggest.

Residential ConstructionEmployment across StatesNAHB estimates that, out of 8.9 mil-

lion people working in construction in2013, close to 3.45 million peopleworked in residential construction,accounting for 2.4 percent of the USemployed civilian labor force. Thisrepresents the second consecutiveyear of modest employment gains forhome building. However, the numberof residential construction jobsremains well below the peak levelsthe industry reached in 2006 when,

according to the NAHB estimates,more than 5 million people worked inresidential construction.Not surprisingly, the most populous

state—California—also has the mostresidential construction workers.Almost half a million California resi-dents worked in home building in2013, accounting for 2.9 percent ofthe state employed labor force. Bothnumbers are still significantly downfrom the 2006 cyclical peak. At thattime, California was home to morethan 788 thousand residential con-struction workers. This translates intoa loss of more than 290,000, or 37percent of home building jobs since2006.Despite being one of the states

most severely affected by the housingdownturn and losing almost half of itshome building jobs (see Figure 3),Florida still comes in second with 295thousand residential constructionworkers. Florida has fewer residentsthan Texas and about as many asNew York but owing to its large vaca-tion and seasonal housing stock,employs more residential constructionworkers. In Florida, residential con-struction workers account for a rela-tively high 3.5 percent of theemployed state labor. Even thoughthis share is well above the nationalaverage, it is drastically lower than in2005 when Florida registered thehighest share among all 50 statesand the District of Columbia, 6.2 per-cent.Among the states hardest hit by the

housing downturn and slowest torestore home building jobs areNevada, Arizona, and New Mexicostill showing job losses of 57.3, 51.5,and 49.7 percent, respectively.Despite these significant job losses,home building in Nevada and Arizonacontinues to employ a relatively highshare of local workers – 2.9 and 2.5percent of the employed civilian laborforce.Job losses across the states look

massive but, in general, reflect thescale of the unprecedented housingdownturn that the industry wentthrough in recent years. Other meas-ures of residential construction activi-ty, such as total housing starts andpermits, all capture the same familiarpattern with home building activitypeaking in 2006 or 2007 in somestates, plummeting to a historic lowby 2010 -2011 and only showing amodest level of recovery in recentyears.While most states were not yet able

to recover home building jobs lostduring the housing downturn, residen-tial construction in North and SouthDakota, fueled by the local oil frackingboom, employed more people in 2013than in 2006. The positive job cre-ation momentum even spilled over toneighboring Nebraska where homebuilding generated more jobs in 2013than in 2006, even though the 2013level remained below the localemployment peak Nebraska reachedin 2007.Similarly to Florida, states with high

prevalence of seasonal, vacationhomes, top the state list with the high-

est share of residential constructionworkers in 2013. Idaho with almost 4percent of the employed labor forceworking in home building takes thetop spot on the list. In addition toIdaho and Florida, five other statesregister shares of residential con-struction workers that exceed 3 per-cent: Vermont (3.8 percent), Montana(3.3 percent), Maine (3.2 percent),Utah (3.2 percent) and NewHampshire (3.1 percent).Interestingly, construction workers

in these states are more likely to beself-employed. Notably, Vermont,Montana, New Hampshire and Mainehave the highest shares of self-employed construction workers in thenation, with more than a third of theirconstruction workforce being self-employed. In Vermont the share ofself-employed actually exceeds 40percent. It is likely that long distancesbetween home building sites in thesestates make moving workers betweenjob sites logistically difficult andexpensive and force local builders tolook for subcontractors more conve-niently located to a particular job orhousing start. The New Englandstates are also know for taking thelongest time to build a house. Witheconomies of scale hard to reach onconstruction sites that are spreadgeographically and take longer tocomplete, the builders are less likelyto keep payroll workers but rather out-source a larger share of the construc-tion work, thus explaining high self-employment shares in these statesthat go together with elevated sharesof residential construction workers inlocal labor force. Nevertheless, thesehigh shares are below the self-employment peak levels these statesregistered in the midst of the severehousing downturn.Residential Construction Workers in

Congressional DistrictsThe detailed geographic coverage

in the ACS also allows RC employ-ment to be estimated byCongressional district (see Table 2).In 2013, the average Congressionaldistrict had around 7,900 residentsworking in residential construction,considerably down from the averageof more than 11,000 workers in 2005.Figure 4 helps visualize the distribu-tion of RC workers across theCongressional districts. Perhapssomewhat surprisingly, many areasthat were once booming and conse-quently hardest hit by the housingdownturn still show higher than aver-age numbers and shares of residen-tial construction workers.Montana’s lone Congressional dis-

trict (Rep. Ryan Zinke – R) registersthe record number of residential con-struction workers among all districts(excluding Puerto Rico) – 16,165.Idaho’s 1st (Rep. Raul Labrador – R)comes second with more than 15,000employed in home building. Texas’s29th District (Rep. Gene Green – D)that serves the eastern part of theGreater Houston area is a close thirdwith just under 15,000 residential con-struction workers residing there. Thetop ten list also includes two districtsin the state of Florida. The 9th district

(Rep. Alan Grayson – D) that includesEastern Orlando has 14,882 and the18th (Rep. Patrick Murphy – D) inSoutheastern Florida has 14,066 resi-dential construction workers. Two dis-tricts from California also made thetop ten list – the 29th district (Rep.Tony Cardenas - D) and 50th (Rep.Duncan D. Hunter - R) register14,244 and 13,756 residents workingin the home building industry. Theremaining districts on the top ten listare Colorado’s 7th (Rep. EdPerlmutter – D) and Utah’s 4th (Rep.Mia Love – R) each registeringaround 14,000 residential construc-tion workers. New York’s 1st district(Rep. Lee Zeldin – R) concludes thetop ten list with more than 13,000home building workers residing there.By design, Congressional districts

are drawn to represent roughly thesame number of people. So generally,large numbers of residential construc-tion workers translate into high sharesof RC workers in their districtemployed labor forces. The 29thDistrict of Texas has the highestshare of residential construction work-ers in its employed labor force, 4.8percent. Florida’s 18th and 19thDistricts are close behind with 4.7 and4.5 percent.At the other end of the spectrum

there are several districts that containparts of large urban areas: the Districtof Columbia (Rep. Eleanor HolmesNorton – D), the 12th of New York(Rep. Carolyn Maloney – D), locatedin New York City, and Illinois’s 7thDistrict (Rep. Danny K. Davis – D)that includes downtown Chicago.Most residents in these urban districtstend to work in professional, scientific,and technical services. The District ofColumbia stands out for having thelowest number of RC workers resid-ing in the district, less than 1,600. Atthe same time, it has a disproportion-ally large share of public administra-tion workers. The 12th District of NewYork, as well as the 7th District ofIllinois are home to a very large groupof finance and insurance workers.

ConclusionThe new estimates show that

despite losing thousands of jobs dur-ing the housing downturn, the homebuilding industry employs a substan-tial number of workers in most partsof the country. The averageCongressional district has close to7,900 residents working in residentialconstruction but the number can betwice as high or higher, and actuallyexceeds 16,000 in Montana’s At-Large Congressional District.Considering that the estimates only

include workers directly employed bythe industry and do not count jobscreated in related industries through ahome building ripple effect – such asdesign and architecture, furnituremaking, building materials, landscap-ing, etc. - the true impact of residen-tial construction on local employmentis underestimated.

� � � ��

� � � � � ��

� � � ��

� � � � � � ��

� � � �

� ��

��

�

��

� ��


Keeping it SIMPLE: RetirementPlans for Small Businesses

Expert Advice

Joe BernalEmployeesBenefits of El Paso

The percentage of workers younger than40 who considered their retirement programan important factor in accepting their jobjumped from 28 to 63 between 2009 and2011, reported Towers Watson. Humanresource managers agree retirement benefitsare important, and 76 percent said they willincrease in importance in the next five years.Small businesses often lag behind mid-

sized and larger companies in offeringretirement plans to their employees. If theadministrative costs and noncompliancetesting requirements of a regular 401(k)seem overwhelming, consider offering one ofthe SIMPLE retirement plans createdspecifically for small employers.

The Simplified Employee Pension (SEP)Pros:

Easy to establish: Any employer with oneor more employees may establish a SEPplan, an IRA-based plan funded solely byemployer contributions. The employer adoptsa trust for plan assets and sets up aseparate account for each employee withinthe trust. The deadline for establishing theSEP is the employer’s tax filing deadline,including extensions.Flexible: You can opt to make

contributions or not, as your circumstancesdictate. This makes SEP plans appealing foremploy-ers with variable income. For 2014,

employers can contribute the lesser of$52,000 or 25 percent of pay.

Simple filing requirements: Employersmust complete IRS Form 5305-SEP or usean IRS-approved “prototype” availablethrough many financial institutions. Once theplan is in place, the employer has no otherfiling responsibilities. No discriminationtesting required.Tax advantages: Employers can deduct

contributions they make to employees’accounts as a business expense.Contributions do not count toward theemployees’ taxable income, and theirsavings grow tax-free until withdrawn.Self-employed employers can contribute to

their own accounts: Subject to certainconditions.

Cons:No employee contributions: When plans

allow employee pre-tax contributions,employees can save more and reduce theirin-come taxes, while also reducing theemployer’s payroll tax liability.No catch-up contributions: Some plans

allow participants age 50 and older tocontribute an extra $2,500 per year.Benefits vest 100 percent immediately:

This could limit the plan’s usefulness as anemployee retention tool.No participant loans: Unlike some

retirement plans, SEPs do not permitparticipant loans.

The Savings Incentive Match Plan forEmployees (SIMPLE IRA)

Pros:Simple to set up: Any business with 100 or

fewer employees can set up a plan. Anyemployee who earns $5,000 or more duringthe preceding year can qualify. To establish aSIMPLE IRA, employers must file either IRSForm 5304-SIMPLE or 5305-SIMPLE,depending upon whether or not theemployee selects the financial institution toreceive plan contributions. Once the initial

paperwork is done, there are no annualfiling requirements for a SIMPLE IRAplan.Simple administration: As with the

SEP-IRA, there are generally no filingrequirements and no annualdiscrimination testing required.Employers can elect to contribute either1) a matching contribution of up to 3percent of the employee’s compensationor 2) a 2 percent nonelective contributionfor each eligible employee. Eachparticipating employee must receive anannual statement of the contributionamounts to their account for the year.Employees share responsibility for

their retirement: Opting for matchingcontributions gives employees more skinin the game…and more interest in theirretirement plan. Employees makecontributions with pre-tax dollars,reducing their taxable income.Plans permit catch-up contributions.

Employees aged 50 and over can make

an additional “catch-up” contribution ofup to $2,500 for 2014.

Cons:Employers must make contributions:

Employers usually must contribute toSIMPLE IRAs every year, as long as theplan is maintained, regardless offinancial circumstances.Employees can opt not to contribute: If

you have decided to make yours amatching contribution plan, employeescan opt not to contribute, minimizing thevalue of the plan.Contributions vest immediately: As with

SEPs, all contributions to the SIMPLEIRA are immediately 100 percent vested.No participant loans permitted: As with

SEPS, SIMPLE IRAs do allow inservicewithdrawals, subject to income taxes andearly withdrawal penalties, dependingupon the owner’s age at the time ofdistribution.With SEPs and SIMPLE IRAs, small

businesses can provide employees withretirement benefits with very littleadministrative cost or expense. To qualifyfor either of these plans, you cannotsponsor any other retirement plan. Formore information on SEPs and SIMPLEIRAs, go to www.irs.gov/Retirement-Plans, or contact us for more informationabout these and other retirement planoptions for small employers.

The information presented andconclusions within are based upon ourbest judgment and analysis. It is notguaranteed information and does not

necessarily reflect all available data. Webaddresses are current at time of

publication but subject to change. Thismaterial may not be quoted orreproduced in any form withoutpublisher’s permission. All rights

reserved. ©2014 The Insurance 411Tel. 877-762-7877.

http://theinsurance411.com.

A recent study of “BoomerangMillennials” who move out of their parents’home only to move back in may haveimportant implications for this keydemographic and what it means for thehousing market.The National Association of Home

Builders (NAHB) examined recentresearch conducted by Judith Dey andCharles Pierret using data from theNational Longitudinal Study of Youth 1997.The examination found higher incidence of“re-launch” for Millennials with aBachelor’s degree compared to those witha lower education attainment and higherincidence of “re-launch” for Millennialsfrom higher parental income householdcompared to lower parental incomehouseholds. A “re-launch” occurs when ayoung adult moves out, returns to theparental household, and then leavesagain.“Understanding the makeup of those

who return home could shed light on thetiming of the release of what we know isquite a bit of pent-up demand,” said NAHBChief Economist David Crowe. “The datamay indicate that while this age group isdelaying what we think of as typicalmilestones, the combination of resourcesand education and what we have foundabout their preferences suggest growinghousing demand in the years ahead.”Ninety percent of those born between

1980 and 1984 left home before the age of27 – but then more than half returned totheir parents’ homes. Of that group, thosewith a Bachelor’s degree or higher had thehighest share of returning to the parentalhome at 55.5%. Meanwhile, those bornbetween 1980 and 1984 with a high schooldegree had the lowest share returning tothe parental home at 42.1%. When lookingat parental income, the research revealsthat parents in the top half of the incomedistribution experienced a higheroccurrence of boomerang children thanthose in the bottom half.

Another important difference is gender:Twelve percent of men in this age groupnever left the parental home, whereas7.6% of women stayed. And althoughwomen are more likely to boomerang, theyare also more likely to leave again.Studies continue to show that the desire

to own a home remains strong for theseMillennials. Despite data showing that the

age group is delaying householdformation, they remain a key demographicin the housing market, and the pent-updemand is expected to translate intohousing growth in the coming years.

Nearly Half of YoungMillennials BoomerangBy Josh Miller

Recent analysis of a survey of asegment of millennials, those bornbetween 1980 and 1984, found that 90%moved out of their parents’ household byage 27. Of those moving out, however,over 50% returned. This return issometimes referred as “Boomeranging,”moving out of a parental home and back.This experience has implications forhousehold formation that are at this pointunknown but worth exploring.BLS research by Judith Dey and

Charles Pierret takes a step in furtheringour understanding of boomeranghouseholds. The authors use data fromthe National Longitudinal Study of Youth1997 (NLSY97) to examine differences inthe return to the parental home by gender,educational attainment, and parentalhousehold income. The NLSY97 is a panelsurvey of a nationally representativesample of nearly 9,000 youths. The youthwere surveyed on an annual basis from1997 through young adulthood.The analysis of Dey and Pierret reveals

that the share of women returning to theparental home (50.9%) is slightly higherthan the share of men returning to theparental home (47.7%). There are,however, two important considerations.The first is that men are less likely to leavethe parental home in the first place. Formen, 12% never left the parental home,whereas 7.6% of women never left theparental home. Secondly, although womenare more likely to boomerang, they arealso more likely to leave again.Another interesting result from the

research is that nearly one in four menborn between 1980 and 1984 lived at theparental home at age 27. For women, theshare of women born between 1980 and1984 living at the parental home at age 27was lower at 18.9%. One plausibleexplanation for the observed differencesby gender is the persistent difference inage at first marriage by gender. Marriage is

often a critical component of householdformation and leaving the parental home.The median age at first marriage hasincreased steadily for men and womensince the 1960s, however, the median ageat first marriage for men is about 2 yearsolder than the median age at first marriagefor women.In terms of leaving the parental home

and educational attainment, the studyreveals differences but no clearrelationship. Instead, those born between1980 and 1984 with a Bachelor’s or higherhad the highest share returning to theparental home at 55.5%. This was largelydriven by the large share (45.7%) withBachelor’s or higher that leave theparental home, return, and leave again. Anexample of this could be a millennialgraduating and living at home for a shortperiod of time while looking foremployment and leaving again.Those in born between 1980 and 1984

with a high school degree had the lowestshare returning to the parental home at42.1%. This group also had the highestshare that left the parental home andnever returned (44.7%).In terms of returning to the parental

home and parental household income, thestudy reveals differences and a positiveassociation between the two. Thoseparents in the top half of the incomedistribution experienced a higher

occurrence of boomerang children thanthose in the bottom half. Those in thehighest quartile had the highest sharereturning home at 54.4%. Again, this waslargely driven by the large share (42.9%)that leave the parental home, return, andleave again. Those in the second lowestquartile of parental household income hadthe lowest share returning to the parentalhome at 44.7%. The bottom half of theincome distribution, however, had a highershare that never left parental home in thefirst place.Although this age group is delaying

household formation, millennials representa key demographic for the housing market.Several attitudinal surveys show that thedesire to own a home remains strong formillennials despite coming of age duringthe Great Recession. Understanding themake-up of those that return home couldshed light on the timing of the release ofthis pent-up demand for housing.If anything, the study by Dey and Pierret

show that many who return to the parentalhome leave again. Those leaving againtend to be educated and from the highestincome distribution. Thus the data mayindicate that while these individuals delayin terms of achieving typical lifemilestones, the combination of resourcesand education, plus typical housingpreferences, suggest growing housingdemand in the years ahead.


Housing Trends

Boomerang Millennials: A Promising Sign for Housing

Back around December 2014 Greg Bowlinghad announced that Tropicana Homes wouldbe sponsoring the bi-annual Rally Day dinnerin Austin. The fifth version of the traditionaldinner was held at Fogo De Chao, a Brazilianstyle Churrascaria, or Brazilian steak house.Guests were treated to all you could eat saladbar and non-stop perfectly open fire grilledcuts of meat. The concept is an easy one:you’re given a “token” that has a red side anda green side. Flip to green and the meatkeeps coming. If you’re full then turn it over tored until you’re ready for more. It was easy tosee that most everyone kept the green sideup, as evidenced by our green experts HenryTinajero, Sam Shallenberger, and EdgarMontiel. The flow of meat kept coming untileveryone reached that “too much” point. “We want to make sure everyone who

made the trip got a chance to have a goodmeal, good company and most of all our wayof saying thanks for making the trip,” saidGreg. There wasn’t anything left to chance asthe dinner party got going. From some of thepictures that were sent out on Facebook andby email the fun was real and unending. “Ialways enjoy coming to the dinner because itgives us an opportunity to unwind and to visit,”said Rudy Guel. “This was fantastic and Iwant to thank Greg, Randy and Bobby forsponsoring the dinner,” Guel continued.President Edgar Montiel agreed. “This was

awesome and man did we have a great time.Henry kept us in stitches,” Montiel said. It wasreported that the group seconded the notionof having fun. “This was so good, so muchfun,” said Molly Gunn, Tropicana Homes. Theassociation would like to thank TropicanaHomes for this outstanding dinner. “I can’tthank Tropicana Homes enough,” PresidentMontiel echoed.


Tropicana Homes hosts rally day groupGive your customers the ‘option of the sun’

Now more than ever,

El Paso home buyers

are planning for the

future.

Border Solar can help

you offer your

customers solar power

as a sensible

alternative.

The future starts

today.Crossing to Clean Energy

7365 Remcon CircleEl Paso, TX 79912

(915) 613•4168

follow us on twitter and

facebook:

BorderSolar

Membership News

Thanks to our MARCHSODA SPONSOR:

MOUNTAIN VISTA BUILDERS

132015 Issue 3 Builders Outlook

www.elpasobuilders.com www.epbuilders.org

UPCOMING EVENTS |

Jaime’sCourier

Service,Inc.

Jaime’sCourier

Service,Inc.

915-549-4533 or

915-478-2404

Bonded, insured foryour peace of mind.

NEW MEMBERS |

RENEWALS |DEMPSEY APPRAISALDEL RIO ENGINEERING

EL PASO BUILDING MATERIALSJOBE MATERIALS, LP

BASKIND & HOSFORD, P.C.EL PASO TRUSS

REAL ESTATE WEEKLY NEWSPAPERVONANZA CONSTRUCTION, LLC

CEA GROUPMC COYS BUILDING SUPPLY

CONDE ENGINEERINGPACIFIC DOOR DESIGN

DESIGNERS MARTEL PASO DISPOSAL

R. C. BAEZA & ASSOCIATES

SODA SPONSOR |

APRIL 8BOARD MEETING

11:00GENERAL MEETING

12 NOONEL PASO CLUB

CHASE BANK BLDG. DOWNTOWN

APRIL 10SPRING GOLF TOURNAMENT

SHOTGUN AT 10:00 AMHORIZON GOLF CENTER

APRIL 17PARADE OF HOMESPRE-VIEW PARTY6:00 PM – 10PM

APRIL 18 – MAY 3PARADE OF HOMES

RIO VALLEY SUBDIVISION

MAY 13BOARD MEETING

12 NOONEPAB OFFICE

SPRING GOLF TOURNAMENTFriday, April 10, 10 am

Presented by

Great Sponorship Opportunities Still Available.

Call 778-5387 for info. today!

MAK ROOFING & CONSTRUCTIONCONTACT: FELIX VIZARRETA306 E. PAISANO DR., #587

EL PASO, TX 79901915-691-0532

CULLERS HOMES, LLCCONTACT: JASON R. CULLERS7170 WESTWIND DR., STE. 101

EL PASO, TX 79912915-584-5600


Hello Everyone. It is spring time andthis is when we get busy, busy, busy!We have the Spring Pachanga Golfouting sponsored by Haskins Electric atHorizon Golf Course on Friday April10th from 10:00 in the morning until youdrop or go home, your choice. I’d like tothank all of our partners who steppedup to the tee box and we reallyappreciate that. Our Major Partner isHaskins Electric and I’d like to saythanks to Chuck Haskins and his righthand Eric for stepping up. We are soldout of the full 18 teams but we may be

able to accommodate the late somelate comers. The greens are in goodshape and the food is outstanding. Wewill have the TINAS (buckets) filled withyour favorite beverages. If you areinterested please call Margret or Rayand find out if they have room. Now for the BIGGIE of the coming

month: the famous Parade of Homesmanaged by no other than the masterMr. Frank (Paco) Torres. This promisesto be a huge event with the PreviewParty on Friday April 17th. You canpurchase your tickets from Margret or

Ray for the party for the low price of$20.00. Plan on an evening of fun whilelooking at some of the greatest homesfor the money in the BORDERLAND.April always turns out to be a jammedpacked month and this year is noexception. Let’s see what it brings andagain for all of our partners in all theevents a huge Thanks!

Sam ShallenbergerMorrison Supply

Associates Council

�e options builders asked for are right here.Developed with the backing of the strongest insurance carriers serving the Texas building industry, the exclusive TAB endorsed insurance program o�ers new �exible options and rates that aremore competitive than ever before.

Program Highlights

defective, or poor workmanship in your work

Contact your local approved agent today!

www.builderagentnetwork.com

El Paso, Permian Basin and Surrounding Area

www.hubinternational.com

Advertise your business to the home

building industryThe Builders Outlook is the official publication of the El Paso Association of Builders. Ouraward winning monthly newspaper is the only publication to target El Paso home builders andrelated businesses.

Widely distributed throughout the city and available to readers online, the Builders Outlook isan important advertising medium for any business that want to reach this valuable market.

Call 778-5387 today for more information

� execuTive oFFicerS

edgar montiel, President

Palo Verde Homes

carlos villalobos, vice President

Pointe Homes

Don rassette, Secretary/Treasurer

Rassette Homes

Sam Shallenberger, Associates chair

Morrison Supply

Frank Torres, immediate Past President

GMf Homes

ray Adauto, executive vice President

Executive Vice President

Jay Kerr -Attorney of record

Firth, Johnston, Bunn & Kerr

� couNciL/commiTTee cHAirS

Associates council

Sam Shallenberger

Build Pac

Randy Bowling

Land use council

Linda Troncoso

Young Designer Award

John Chaney

remodelers council

Rudy Guel

membership retentiion

Patrick Tuttle

Finance committee

Kathy Carrillo

Henry Tinajero

� ADviSorY To THe BoArD

Jay Kerr, Firth, Johnston, Bunn & Kerr

James Martinez, Law Office of James Martinez

� BoArD oF DirecTorS

Antonio Cervantes, BIC Homes

Beverly Clevenger, Automated Div. 6 Builders

Bret Thompson, foxworth Galbraith Lumber

Bud foster, Southwest Land Development Servises

Dan Ruth, Millienium Homes

Henry Tinajero, West Star Bank

Joe Bernal, Employee Benefits Of El Paso

John Chaney, Passage Supply

John Dorney, Dorney Security

Kathy Carrillo, Pioneer Bank

Kathy Parry, Hunt Companies

Leti Navarette, Custom Dream Homes

Linda Troncoso, TRE & Associates

Robert Najera, Joseph Homes

Ruben Orquiz, MTI Ready Mix

Walter Lujan, Dawco Builders

2014 Builder member of The Year

Frank Torres

GMf Homes

2014 Pat cox Award

Bret Thompson

foxworth Galbraith Lumber

2014 Associated of The Year

Joe Bernal

Employee Benefits Of El Paso

2014 John Shatzman Award

Cindy Bilbe, Stewart Title

Honorary Life members

Mark Dyer

Wayne Grinnell

Don Henderson

Chester Lovelady

Cliff C. Anthes

Anna Gill

Brad Roe

Rudy Guel

E H Baeza

Past Presidents

committed to Serve

ePAB mission Statement:

The El Paso Association of Builders is a

federated professional organization representing

the home building industry, committed to

enhancing the quality of life in our community by

providing affordable homes of excellence and

value.

The El Paso Association of Builders is a

501C(6) trade organization.

© 2015 Builder’s Outlook is published and distributed for the El Paso Association of Builders

by Ted Escobedo, Snappy Publishing [email protected]

El Paso • Texas • 915-820-2800

6046 Surety Dr. El Paso, TX 79905 915-778-5387 • Fax: 915-772-3038

Greg Bowling

Kelly Sorenson

Mark Dyer

Mike Santamaria

John Cullers

Randy Bowling

Doug Schwartz

Robert Baeza

Bobby Bowling, IV

Rudy Guel

Anna Gil

Bradley Roe

Bob Bowling, III

Edmundo Dena

Hershel Stringfield

Pat Woods

� TAB STATe DirecTorS

Randy Bowling

Greg Bowling

Sam Shallenberger

� NATioNAL DirecTorS

Bobby Bowling IV.

Demetrio Jimenez

NATioNAL ASSociATioN oF

Home BuiLDerS

(800) 368-5242

TexAS ASSociATioN oF

BuiLDerS

(800)252-3625

www.elpasobuilders.com www.epbuilders.org

Builders utlook

For All Your Electrical NeedsResidential Specialists

Tract Homes • Custom Homes

915-208-9313

602-708-7560

Total Customer

Satisfaction

Documents

Builders Outlook 2015 Issue 3