The survey suggests resiliency and a willingness to adapt among builders who now understand the industry isn’t going through temporary turmoil, but rather permanent changes. They see now it’s time to evolve or suffer certain peril.

Builder’s Ted Cushman writes,

“…Our survey asked about how builders have changed their practices to cope with the challenging market. This year’s answers are in line with years past: Builders continue to value-engineer, build smaller, or try out new market segments or product types.”

It begs the question: What has your business done to evolve? How has the housing market impacted the way you do business?

Builder Confidence on Rise in January
For Residential Pros
“The National Association of Home Builders is reporting that builder confidence in the market for newly built, single-family 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 Wednesday, January 18. This is the highest level the index has attained since June of 2007.”

The Lean Designer: The best way to prepare for a plan review
Housing Zone
“As many of you know by now Professional Builder is holding three days of plan reviews by some of the top designers and architects in the country during the International Builders Show. I am honored to be part of that group and very much look forward to the event. Here are some juicy insider tips to help you take advantage of the opportunity…”

Seven Steps to Choosing the Perfect Circular Saw
Fine Homebuilding
“We recently reviewed 14 sidewinder circular saws and found seven features that separate the good from the not-so-good. Let’s take a closer look.”

The good news: The NAHB/Wells Fargo Housing Market Index, which measures U.S. home builder sentiment, rose to a score of 25 — the fourth consecutive month of improvement and the highest score since June 2007.

The not-so-good news: A score of 25 still indicates a generally poor sentiment and its down from the 50 score of April 2006 — the last time the index was considered generally favorable.

“Builders are seeing greater interest among potential buyers as employment and consumer confidence slowly improve in a growing number of markets,” David Crowe, chief economist at NAHB, said in a statement. “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.”

To view charts and tables from January’s index – including results by region – go here.

If you had to score sentiment (1-100) in your area, what number would you choose? How does that compare to recent months?

But builders should take heed of Builder Magazine‘s list of 10 business trends to look for in 2012 as they gather themselves and strategize for the year ahead. After all, one shift in strategy could be all it takes to navigate the murky waters many experts and economists are forecasting.

Here’s  some of the more intriguing trends from Builder’s list:

Energy Efficiency Isn’t a Fad
And that’s a good thing for the everyday builder, because demand for energy efficient products and building materials should lower prices. More importantly, energy efficiency can sell a home. John Caulfield writes, “A high-performance house is no longer an anomaly; it’s become a requirement for selling products to customers who may not know much about HERS regulations, but can read their monthly electricity and water bills. Many of the industry’s largest production builders market their homes as energy efficient. But they are also competing against smaller builders that hopped on the high-performance bandwagon years ago and have been able to tout the quality of their houses for a while.”

Inclusionary Marketing
We know the Internet has emboldened consumers to take the reins and research every last purchase like never before. That’s no different when it comes to buying homes. Luckily, the building industry is leveraging the power of social media to create efficient, cost-effective selling tools. Caulfield writes, “The web is where more buyers begin their searches, and the online connection that builders make with prospects and homeowners has never been more critical to selling and referrals. That fact was reinforced when Zillow.com, the real-estate search engine with 22 million visitors per month, in June introduced a new function on its site that gives greater visibility to new homes that are available in markets around the country.”

Modular Momentum
Urban infill projects have created opportunity for modular manufacturers to break into the housing sector. Caulfield writes, “More contractors and developers [are] looking for ways to rein in construction costs seem willing to at least give modular a second look. And several of the industry’s leading module manufacturers believe their time has come.”

To read more of Builder Magazine’s predictions for 2012, visit BuilderOnline.com.

 NAHB Builder Confidence Index increases in October
Calculated Risk
“The National Association of Home Builders (NAHB) reports the housing market index (HMI) increased in October to 18 from 14 in September. Any number under 50 indicates that more builders view sales conditions as poor than good.”

How new energy codes could affect every remodeler
Professional Remodeler
“A home is an investment. The value of that investment is determined by the housing market. Energy efficiency equates to lower operating costs. Lower operating costs means savings and that savings makes a home more desirable to potential buyers, thereby increasing the value of a home as an investment.”

According to new research from Professional Remodeler, optimism is waning among builders who once thought remodeling might provide a steady revenue stream while new construction slumps.

Among optimists, there were many reasons to support the theory. Chiefly, with home prices down, owners are expected to be more likely to make alterations and stay put rather than take a significant loss on a re-sale.

Well, owners might be staying put, but the shaky job market and bullish economy has owners staying patient, awaiting a brighter forecast before sinking more money into their home.

Jonathan Sweet writes,

“… Pessimism is a marked contrast from the end of 2010, when remodelers were very hopeful about 2011. At that time, 64 percent said they expected their revenue to increase and only 15 percent expected business to slow.

“Unfortunately, a stubbornly weak economy and continuing pressure on the housing market combined to make reality a lot less attractive, with only 29 percent of remodelers reporting their business picked up this year compared to 2010 and 42 percent saying that revenue was down.

“‘We need a bit of a burst to generate some demand out there,’ says Kermit Baker, director of the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University. ‘Folks are just nervous about getting into home improvement projects with the economy as weak as it is.’”

Remodeling may not be the promised land we once thought it could be, but there’s still reason for optimism, according to the National Association of Home Builders.

The NAHB’s latest forecast projects remodeling to increase 12 percent in 2012.

“’Some of what we’re seeing from the boom and bust trauma we’ve lived through, people are taking a second look and saying we’re just going to fix this up,’ says NAHB economist Robert Denk. ‘Moving into something new looks like a bigger gamble than it did a few years ago, so they plan on staying longer.’”

As we’ve said before, it’s risky to put too much stock into these surveys and projections given the level of unpredictability in the housing market and all of the variables that affect it. There’s something to be said for sentiment, however. How do you envision remodeling business will pan out in 2012?

I Still Have Hope
QR Market Memo
“Fortunately for me, I have found a way through this. I guess tough times can either make or break anybody. So far, I am determined to do whatever I have to do. The real strength that I needed throughout these years of business survival had to come from within. Even now as economic news worsens and we face a very long journey before us, inner motivation is an absolute. Without it we have no hope. There it is. No matter what else drops away, I still have hope. As long as hope remains I can keep going.”

Stronger Lure for Prospective Home Buyers
Wall Street Journal
“Home prices and mortgage rates have fallen so far that the monthly cost of owning a home is more affordable than at any point in the past 15 years and is less expensive than renting in a growing number of cities.”

Giving thanks is not just for Thanksgiving!
Housing Zone
“That fact that you are still in the game is really amazing. We conduct business completely different than what we did in 2005, we take nothing for granted, and we have learned new skills and attitudes that will be the platform for our future success when our market returns to 2001 levels.”

Or, roofs, rather.

Accessory dwelling units (ADUs) are popping up across the country. As secondary homes built on residential lots, ADUs are sometimes referred to as backyard cottages, granny flats or mother-in-law apartments. They are small in stature, but generally long on savings due to their energy efficient size and features. The only real compromise? Say goodbye to your backyard.

According to Tuesday article in the New York Times, several areas of the country are adjusting their housing ordinances to promote the building of ADUs.

“According to the American Planning Association, at least four states — California, Massachusetts, Vermont and Washington — have enacted laws encouraging or requiring changes to the zoning rules to permit the so-called accessory dwelling units, also called A.D.U.’s. Architects said that parts of Oregon, Colorado, Texas and Virginia had also become more accommodating.”

Sam Hagerman is the owner of green builder Hammer & Hand, which is based in Portland, Ore., a city that’s seen a rapid resurgence of ADUs of late. ADUs were more common before World War II. The post-World War II changed the ideal from tightly woven neighborhoods to a desire for privacy and sprawling land lots.

“Your typical accessory dwelling unit is inherently ‘eco-friendly’ because it’s small and embedded in an existing neighborhood, usually with easy, walkable access to parks, schools, shops and transit,” Hagerman said. “Now if you take the size and location of that typical ADU and make it extremely efficient, then you can create something special – a sustainable home.”

Next week, Hagerman and Hammer & Hand will host an open house to show off its recently completed Alameda Ridge ADU, which features:

1.    Thermally-broken insulated slab. The ADU’s foundation is built on top of 4 inches of EPS geofoam.
2.    Liquid-applied air barrier. A vapor permeable, weather resistant air barrier forms a continuous layer on exterior sheathing through into all window and door openings.
3.    High performance insulation. High-density cellulose, low-density spray foam, and polyiso foam contribute to the structure’s superinsulated envelope.
4.    Ductless mini-split. A high-efficiency Mistubishi inverter heat pump system heats the ADU.
5.    Integrity and Marvin windows and doors. This high-quality millwork provides beauty and durability that also performed well in the project’s airtightness testing.
6.    Extensive testing. The team performed the requisite Earth Advantage and Energy Star testing, plus extra Hammer & Hand testing using theatrical fog and a blower door fan to verify the performance of the air barrier.

ADUs may create an exciting area of opportunity for builders willing to refill their pipeline with new, interesting work.

These small homes might just turn out to be a big deal.

Prequalifying Clients
Qualified Remodeler
“There is an old saying that if you don’t know where you’re going, any road will take you there. Similarly, in the remodeling industry, if you don’t know what your business focus is, any client will do. In today’s marketplace, where finding remodeling jobs can be a struggle, accepting clients you avoided in the past may be a necessary evil. However, a group of remodeling contractors in Cincinnati stresses the importance of staying true to your business and yourself.”

Apple’s Visionary Redefined Digital Age
New York Times
Use an iPad on the jobsite as many builders do? Take a moment to remember the driving creative force of Apple.

States With the Highest (and Lowest) Homeownership
24/7 Wall St.
“The dream of owning a home has become increasingly unattainable for many Americans, and the situation is not likely to improve soon, as the collapse of the housing market and the recession continue to take their toll. That is the disturbing conclusion to be drawn from the US Census Bureau’s newly released report ‘Housing Characteristics: 2010,’ an overview of the national home market at the end of the last decade. One of the highlights of the report is a list of the states that have the highest and lowest percentage of homes occupied by their owners. 24/7 Wall St.’s review of the data found that homeownership rates were high in thinly populated states and those with low home prices, while homeownership was low in states with expensive homes and large cities.”

Lens Masters: Do you hire professionals to shoot your projects?
Daily 5 Remodel
“We are all photographers, or at least photo-takers, these days. For remodelers, the development is helpful: It’s easier than every to document projects before, during and after construction. But does amateur photography come with a risk to remodelers?”

Can Architecture Help the Elderly Age Gracefully?
Fast Company
“Architecture and aging. It seems like the only connection between the two would be some vague master’s thesis. But a multidisciplinary field involving sociologists, urban planners, and psychologists has sprung up to answer questions of whether architecture can aid the elderly, one of the fastest growing demographics in the developed world.”

FourPlans: Best Sellers Under 2,000 Square Feet
Builder Magazine
“The ongoing popularity of small floor plans is evidence that small is the new big. In response, here are four of today’s bestsellers. Small enough to sell, eye-catching enough to garner major attention, these plans shouldn’t be underestimated.”