FHB Logo Facebook LinkedIn Email Pinterest Twitter Instagram Plus Icon Close Icon Navigation Search Icon Navigation Search Icon Arrow Down Icon Video Guide Icon Article Guide Icon Modal Close Icon Guide Search Icon Skip to content
Subscribe

In every issue you'll find...

  • Expert insights on techniques and principles
  • Unbiased tool reviews
  • Step-by-step details to master the job
  • Field-tested advice and know-how
Subscribe Now!
Subscribe
  • How-To
  • Design
  • Tools & Materials
  • Videos
  • Blogs
  • Forum
  • Magazine
  • Members
  • FHB House
  • Podcast
  • Join
  • Log In
Subscribe
Building Business

A Week of Mixed Signals, with a Lift in Hiring

By Richard Defendorf
Nonfarm payroll employment month-over-month changes, seasonally adjusted, from October 2008 through October 2010.

 

Yes, it has been a crazy week. And while the election results raise more questions than they answer about what, if any, additional economic remedies Congress might squeeze through the partisan ringer over the next 18 months, the clock continues to tick on the immediate economic realities for homebuilders. 

 

Meritage Homes Corporation, for example, reported a $1.2 million third-quarter profit compared to a net loss of $17 million during the same period in 2009, although the Scottsdale, Arizona-based company’s net home sales were 36% lower than those of the year-prior period, reflecting in part a 12% decline in sales in average active communities, from 170 in the third quarter of 2009 to 149 during third-quarter 2010.

 

The builder, which has had three consecutive profitable quarters, expects to break even in the fourth, when closing revenue is expected to drop, leaving the company with a profit for the year and topping analyst expectations.

 

Energy efficiency and expiring tax breaks

Amid a backdrop of flat third-quarter numbers for its Remodeling Market Index (RMI) – which came in at 40.8, up from 40.7 in the second quarter – the National Association of Home Builders exhorted homeowners to take advantage of federal tax credits for 30% of the cost, up to $1,500, of energy efficiency upgrades, including installation of certain types of insulation, windows, roofs, water heaters, heat pumps, air conditioners, and furnaces. 

 

There’s a tone of urgency to the NAHB message because, even though the association has been lobbying lawmakers to extend the credit (and lobbying for a return of the now-expired section 45L tax credit for construction of new, energy-efficient homes), the upgrade credit is set to expire on December 31. Homeowners who get the work done before the end of the year qualify. 

 

The beginning of a hiring trend?

The static RMI numbers are blamed on the overall economic semi-paralysis that has been dragging down the rest of the building industry, although on Friday the Department of Labor came out with numbers on hiring – the obviously crucial recovery indicator and consumer-confidence booster – that veered toward the positive. 

 

In October, even though the government cut 8,000 jobs and the unemployment rate remained at 9.6% for the third consecutive month, nonfarm payrolls rose by 151,000 jobs – their first gain since May – while private hiring rose by 159,000 jobs. Some observers speculate, of course, that the increase is being driven by hiring in anticipation of the holidays, although it’s not yet clear that’s the case, or, for that matter, that the momentum can be sustained. Still, the increases were more than double what analysts expected.

 

“It’s still probably not enough to get the (Federal Reserve) convinced the unemployment rate is going to go down or inflation is going to go up,” John Canally, an economist at LPL Financial in Boston, told Reuters news service. “But this is certainly a good kick-start.”

 

 

Sign up for eletters today and get the latest how-to from Fine Homebuilding, plus special offers.

Signing you up...

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
See all newsletters
See all newsletters

×

Get home building tips, offers, and expert advice in your inbox

Signing you up...

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
See all newsletters
See all newsletters

New Feature

Fine Homebuilding Forums

Ask questions, offer advice, and share your work

Log in or create an account to post a comment.

Sign up Log in

Become a member and get full access to FineHomebuilding.com

More Building Business

View All
  • Tools for Managing Home-Building Financials
  • How to Hire and Retain Good Tradespeople
  • A Better Way to Budget in Residential Construction
  • Will the Costs of Residential Building Go Down?
View All

Up Next

Video Shorts

Featured Story

Industry-First Cordless Rebar Cutter and Bender

A brushless motor and 36v batteries power Metabo HPT’s cordless rebar bender and cutter.

Featured Video

A Modern California Home Wrapped in Rockwool Insulation for Energy Efficiency and Fire Resistance

The designer and builder of the 2018 Fine Homebuilding House detail why they chose mineral-wool batts and high-density boards for all of their insulation needs.

Related Stories

  • Fine Homebuilding – Aug/Sept 2022, Issue #309
  • Keep Craft Alive Podcast: Ep.14, Ryan Shanahan, Birdsmouth Design-Build
  • Find a Female Tradesperson With Matriarchy Build
  • Schneider Electric Recalls Line of Electrical Panels

Discussion Forum

Recent Posts and Replies

  • |
  • |
  • |
  • |
  • |
  • |
View More Create Post

Highlights

Fine Homebuilding All Access
Fine Homebuilding Podcast
Tool Tech
Plus, get an extra 20% off with code GIFT20

"I have learned so much thanks to the searchable articles on the FHB website. I can confidently say that I expect to be a life-long subscriber." - M.K.

Get home building tips, offers, and expert advice in your inbox

Signing you up...

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
See all newsletters
See all newsletters

Video

View All
  • Podcast 468: PRO TALK With Shutter Manufacturer Rick Skidmore
  • Podcast 462: PRO TALK With Construction Attorney Karalynn Cromeens
  • Podcast 461: Adding a Screened Porch, Insulating a Raised Addition, and Preventing Termites in Exterior Foam
  • Podcast 459: Leaky Attic Stairs, Right-Sizing Heat Pumps, and Vapor Barriers in Dirt Crawlspaces
View All

BOOKS, DVDs, & MERCH

Shop the Store
  • 2021 Fine Homebuilding Archive
    Buy Now
  • Code Check Building 4th Edition
    Buy Now
  • Pretty Good House
    Buy Now
  • Outdoor Projects
    Buy Now
  • Shop the Store

Fine Homebuilding Magazine

  • Issue 309 - Aug/Sept
    • 10 Steps to Install Crown Molding on Cabinets
    • How to Get Sturdy Walls Without OSB
    • Choosing the Right Construction Tape for the Job
  • Issue 308 - July 2022
    • Pretty Good House Book Excerpt: Copper Farmhouse
    • 10 Dos and Don'ts for Electric In-Floor Heat
    • A Sturdy Rail for Outdoor Stairs
  • Issue 307 - June 2022
    • How to Raise a Post-Frame Home
    • Trimming Deck Stairs
    • Evolving an Energy-Efficient Envelope
  • Issue 306 - April/May 2022
    • Framing Stairs to an Out-of-Level Landing
    • Building a Zero-Energy Home for Less
    • Good-Looking and Long-Lasting Traditional Gutters
  • Issue 305 - Feb/March 2022
    • The Steady Surge in Residential Solar
    • The Fine Homebuilding Interview: William B. Rose
    • How Good Is Your Air Barrier?

Fine Homebuilding

Follow

  • twitter
  • facebook
  • instagram
  • pinterest

Newsletter

Get home building tips, offers, and expert advice in your inbox

Signing you up...

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
See all newsletters
See all newsletters

Membership & Magazine

  • Online Archive
  • Start Free Trial
  • Magazine Subscription
  • Magazine Renewal
  • Gift a Subscription
  • Customer Support
  • Privacy Preferences

Taunton Network

  • Green Building Advisor
  • Fine Woodworking
  • Fine Gardening
  • Threads
  • About
  • Contact
  • Advertise
  • Careers
  • Copyright
  • Terms of Use
  • Site Map
  • Do not sell my information
  • Privacy Policy
  • Accessibility
  • California Privacy Rights

© 2022 The Taunton Press, Inc. All rights reserved.

X
X
This is a dialog window which overlays the main content of the page. The modal window is a 'site map' of the most critical areas of the site. Pressing the Escape (ESC) button will close the modal and bring you back to where you were on the page.

Main Menu

  • How-To
  • Design
  • Tools & Materials
  • Video
  • Blogs
  • Forum
  • Reader Projects
  • Magazine
  • Members
  • FHB House

Podcasts

  • FHB Podcast
  • ProTalk

Webinars

  • Upcoming and On-Demand

Account

  • Log In
  • Join

Podcasts

  • FHB Podcast
  • ProTalk

Webinars

  • Upcoming and On-Demand

Popular Topics

  • Kitchens
  • Business
  • Bedrooms
  • Roofs
  • Architecture and Design
  • Green Building
  • Decks
  • Framing
  • Safety
  • Remodeling
  • Bathrooms
  • Windows
  • Tilework
  • Ceilings
  • HVAC

Magazine

  • Current Issue
  • Past Issues
  • Magazine Index
  • Subscribe
  • Online Archive
  • Author Guidelines

All Access

  • Member Home
  • Start Free Trial
  • Gift Membership

Shop the Store

  • Books
  • DVDs
  • Taunton Workshops

More

  • FHB Ambassadors
  • Reader Projects
  • Podcast
  • Customer Support

Account

  • Log In
  • Join

Newsletter

Get home building tips, offers, and expert advice in your inbox

Signing you up...

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
See all newsletters
See all newsletters

Follow

  • twitter
  • facebook
  • instagram
  • pinterest

Join All Access

Become a member and get instant access to thousands of videos, how-tos, tool reviews, and design features.

Start Your Free Trial

Subscribe

FHB Magazine

Start your subscription today and save up to 70%

Subscribe

We hope you’ve enjoyed your free articles. To keep reading, become a member today.

Get complete site access to expert advice, how-to videos, Code Check, and more, plus the print magazine.

Start your FREE trial

Already a member? Log in