Zanola Company

New Homes Getting Smaller

Katie — Thu, 01 Jul 2010 16:59:23 +0000

It’s a trend that has been anecdotally known since the beginning of 2009, but the National Association of Home Builders is backing up our hunch with census data.

“After increasing continually for nearly three decades, the average size of single-family homes completed in the United States peaked at 2,521 square feet in 2007. It was essentially flat in 2008, then dropped in 2009, so that new single-family homes were almost 100 square feet smaller in 2009 than in 2007.”

This trend happened once before in the recession of the early 1980s. While that size back was temporary, the NAHB expects the recent smaller home phenomenon to continue.

“The decline is related to phenomena such as an increased share of first-time home buyers, a desire to keep energy costs down, smaller amounts of equity in existing homes to roll into the next home, tighter credit standards and less focus on the investment component of buying a home. Many of these tendencies are likely to persist and continue affecting the new home market for an extended period.”

In our extensive demographic research for various projects around the St. Louis area, we have found that home buyers, while desiring less square footage, are requesting higher finish levels and more amenities to counteract fewer bedrooms and bathrooms.

Coca Cola Syrup Plant

Katie — Mon, 24 May 2010 17:55:59 +0000

A building permit in the amount of $11 million was applied for recently for the former Coca-Cola Syrup Plant at 8125 Michigan. A year ago the Post Dispatch reported the possibility of lofts and a ground-floor Lemp Brewery in the building.

Looks like the new River City Casino may be prompting development in the farthest reaches of South City.

2009 Interactive Permit Data Map

Katie — Mon, 26 Apr 2010 16:16:14 +0000

The Census building permit database contains data on permits for residential construction issued by about 21,000 jurisdictions collected in the Census Bureau’s Building Permits Survey. Monthly data are available from January 1997 through September 2009 for about 9,000 jurisdictions that respond to the monthly survey. The remaining jurisdictions report annual data only. The following map provides totals of available monthly data for building permits for the year 2009.

{Click Map to Open Interactive Link}

St. Louis Home Builders to Watch

Katie — Mon, 05 Apr 2010 17:18:35 +0000

New home starts are forecasted to increase in 2010. A select few home builders got a head start by increasing sales during 2009.

Payne Family Homes, an apparent new favorite for home buyers, increased from 13 starts in 2008 to starting 36 new homes in 2009. Only exceptional builders can brag about increased sales in 2009. Payne Family Homes starts soared 64%, positioning Payne as the 2009 fastest growing home builder in St. Charles County.

Declining Inventory Levels

Katie — Tue, 16 Mar 2010 20:27:23 +0000

Joe was featured in last week’s St. Louis Business Journal with a comment on declining inventory levels in the St. Louis, Missouri metro area. Our research shows that the trajectory of the St. Louis, Missouri market new home inventory is on course to be back to normal levels in most areas by the 3rd or 4th quarter of this year.

Read the full article here.

New Home Inventory Levels Improve, but Now What?

Katie — Tue, 09 Mar 2010 03:18:08 +0000

New home inventory in the St. Louis, MO market has been steadily declining since November 2008. In fact, new homes that are finished but unoccupied are back to March 2006 levels. Lowering these inventory numbers has been of the utmost importance in builder survival, price integrity and overall market improvement.

However, there is another, sneakier number lurking behind new home inventory - developed lot supply. In theory, as the supply of finished, empty homes begins to dwindle, we will logically need to begin breaking ground on the abundant developed lot supply.

Unfortunately, things aren’t exactly working out that way.

The numbers from the March 2010 Housing and Subdivision Analysis are in and of the 1,508 developments being tracked by MarketGraphics, 63.6% are inactive. No construction activity in the past four months. How exactly are we to eat up developed lot supply without construction activity? The hard truth is that the remaining 36.3% of developments are harboring ALL of the market’s activity.

Why?

Consumers don’t see the majority of developments as viable new home options due to improper marketing, an underdeveloped sense of community, shoddy maintenance and an overall desolate atmosphere.

It’s time to take stock of what your community is conveying. Energy? Activity? Community? Or tumbling tumbleweeds?

The good news is that about half of inactive subdivisions are fixable with a little TLC, outreach and landscaping. It’s easier than you think, give Zanola Company a call for an immediate analysis.

They’re Baaaack!

Katie — Tue, 23 Feb 2010 20:39:27 +0000

Have you noticed? I heard three in a row last night.

New home development commercials are back on the airwaves. Radio seems to be the medium of choice with typical high-energy 30 second spots touting new prices in the low $100’s and tax-credit-over-soon urgency.

It’s a good thing. The return of the ad budget means builder confidence is increasing and the deer-in-the-headlights syndrome has run its course.

That means it is time to shake off the hanging Tyvek, breathe in the (hopefully soon) spring air and get to work. Scared? No worries, Zanola Company can help. We’ve created a program to help clear the cobwebs and jump start your new, fresh outlook.

Introducing the Development Re- Energy Program. Read more below and call Zanola Company to request a personal evaluation.

Kansas City Breaking Economic Barriers

Katie — Thu, 11 Feb 2010 19:18:13 +0000

Kansas City Breaking Economic Barriers Kansas City’s Troost Avenue is an economic dividing line similar to our own “north/south of Delmar” dilemma. Kansas City, however, is openly and actively working on a solution to dismantle the geographic border. Through the “Green Impact Zone”, our northwestern neighbor is creating housing, employment and energy efficiency in an otherwise blighted community.

“Today the neighborhoods east of Troost Avenue still bear the marks of disenfranchisement: abandoned homes, an unemployment rate that’s as high as 53 percent in some census tracts and gun violence that takes many young lives.

Tomorrow, this area could be a center of green jobs, retrofitted energy-efficient homes, a green transportation system and hopeful residents if Congressman Emmanuel Cleaver’s plans for using American Recovery and Reinvestment Act (ARRA) funding come to full fruition.

U.S. Rep. Cleaver, D-Missouri, has developed an ambitious plan for a “Green Impact Zone” to be established in a 150-block area east of Troost Avenue. He convinced the Kansas City Council to vote 13 to 0 to allocate millions of dollars of ARRA money and considerable city effort to this part of the city. And he’s rallied dozens of community organizations, residents and even businesses to work on making it happen. Now Cleaver’s office and the team from the community are submitting applications to numerous Recovery Act programs, supplementing work that’s already begun to bring a greener, healthier environment to this area and jobs to its residents.

At the heart of the plan for the Green Impact Zone is a massive home weatherization project that would put area residents to work conducting energy audits and weatherizing the 2,500 homes in the Zone neighborhoods.”

Source (http://www.greenforall.org/blog/what-a-recovery-fueled-201cgreen-impact-zone201d-can-do-for-a-troubled-city)

What can we learn from Kansas City’s program? How can we apply this to St. Louis’ drama filled Northside Project? Thoughts?

2009 New Home Permit Summary

Katie — Fri, 29 Jan 2010 20:44:58 +0000

The numbers are in and counted and 2009 was a roller coaster year for new home permits. Seven out of ten of the MarketGraphics tracked St. Louis area counties exited 2009 with a higher number of new home permits than they began the year with, but what’s ahead for 2010?

What do the numbers tell us and what is ahead?

1. We can expect modest increases on a month to month basis in 2010.

2. Homebuyers like buying in subdivisions where others are also buying. An ever increasing percentage of starts are going to a smaller number of subdivisions.

3. Underperforming communities need to be re-energized with buyers. Otherwise, these communities will be de-selected fast and will have no buyers.

New Jersey Retirement Homes Promote Temporary Stays

Katie — Tue, 19 Jan 2010 19:51:24 +0000

A few New Jersey retirement communities have begun offering rooms to senior citizens whose care taking adult children are away on vacation. This allows the adult-living community to recoup lost dollars resulting from unoccupied units. In uncertain economies, senior citizens are reluctant to leave their current homes, adversely affecting independent and assisted living developments.

Leasing empty rooms to seniors who need temporary care not only helps profit but it allows the community the opportunity to create loyal future residents. Positive experiences in their temporary stay can hasten the move into the community and bring more referrals than the most seamless traditional ad campaign.

If you can get past the mental guilt factor associated with the idea of “kenneling” a loved one while touring Europe, it’s a brilliant idea. One that St. Louis Independent and Assisted Living Developments should consider immediately, not only in times of trouble but 100% occupancy. Consider creating temporary stay units designed especially for this purpose.