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Building Industry News

Builder show draws largest Crowd in 10 years

2019: Issue 2

EPAB members, leadership experience industry’s latest and greatest

IBS busy and a lot of fun interacting with so
More than 67,000 home building many builders, contractors and other
professionals from around the world filled vendors,” said Blake R. Edwards, a senior
the exhibit halls of the Las Vegas product marketing manager for Lennox.
Convention Center as NAHB hosted the “We’re getting a lot of good insights from
75th anniversary of the International those who came here, and we’re also
Builders’ Show (IBS) Feb. 19-21. giving them a lot of valuable feedback in
IBS and the Kitchen & Bath Industry return.”
Show (KBIS) once again combined for the In addition to meeting suppliers and
annual Design & Construction Week® seeing product demos throughout the
(DCW), which drew a total of more than three-day show, attendees networked with
100,000 attendees. peers and attended any of more than 130
“As the International Builders’ Show education sessions led by experts on a
celebrates 75 years, it remains the premier wide range of industry topics.
event for the housing industry,” said Geoff “Everywhere you go at IBS, there’s
Cassidy, NAHB senior vice president of something to see, something to learn,” said
exhibitions and meetings. “With the largest Brandon Hines, owner of Hines Homes in
attendance in 10 years, we’re proving once Maumelle, Ark. “The show floor was very
again that IBS is the only place to impressive, and honestly, a little
experience such a diverse collection of overwhelming at first because there’s just
innovative products, education sessions so many interesting products to learn
and networking opportunities all in one about and people to meet. But for me, the
place.” most beneficial part [of IBS] has been the
Exhibit space for IBS also expanded education sessions. We’re focused on
from last year’s 583,000 square feet to growing and improving our business, and
more than 608,000 square feet, where each session we attended provided us
nearly 1,500 exhibitors displayed the latest specific ideas on how we can achieve
in building products and technology. that.”
In all, DCW featured more than 2,000 Next year, IBS and Design &
exhibitors occupying more than one million Construction Week will return to Las
square feet of indoor and outdoor spaces. Vegas, Jan. 21-23, 2020.
Many of the exhibitors noted the increased The products and services on display the the International Builders Show
foot traffic this year. were beyond ‘cool’ this year as snow and inclimate weather challenged
The experience during the three days of attendees. See more photos page 8
the show has been great. It’s been very

International Builder Show (IBS) coast this snow storm was nothing but for The show was billed as the 75th annual who is from New Orleans, said we must
shines in frigid weather Las Vegas it was, like El Paso, a near meeting of the Board of Directors and it look to train new skill sets, to encourage
By Ray Adauto show stopper. was all business the first several days of home ownership, and to elect people who
Several years ago, the NAHB board of The 2019 IBS was once again mega the conference. Randy Noel, Chairman of believe in what we do. “I think we have to
directors scheduled the IBS for Chicago. sized and bold. Thousands of displays of the Board of NAHB met the Texas continue to push our educators to get
The talk about going to Chicago in winter all sizes filled every inch of the Las Vegas delegation and welcomed us. He students into the trades, into the home
was met with a hailstorm of concerns and Convention Center and spilled onto the reminded us of the need to be prepared for building business, and off to a great
outright vetoes. Who wants to go to a cold Westgate Hotel next door. NAHB had to growth while always keeping an eye out for career,” said Immediate Past Chairman
wintery place from sunny anywhere else? rent space at the Westgate in order to hold troubled waters. “I think that our home Granger MacDonald of Texas.
Apparently not enough vendors so the meetings as well as the opening builders and other members are doing very There were 130 sessions available to
contracts were cancelled, and Las Vegas ceremonies. It was an easy walk from the well today, but we also know that we have members to attend prior to and during IBS.
and Orlando became the official IBS cities. convention floor to the Westgate where to stay on top of other things in order to be Preparations are in full swing for the 2020
The two cities have hosted IBS in rainy competitions by student chapters of the secure in our future,” Noel told the show scheduled January 21-23, 2020 in
weather, wind storms, lightning and Mother NAHB worked to win design challenges. It Outlook. “It’s important that we share our Las Vegas.
natures other furies, but no one had was also the home for the Texas world with the younger generation and
counted on a snow storm in Vegas. Ok, so Association of Builders Area caucus, the prepare them for the opportunities our
for those folks in the Midwest, or eastern official meeting for TAB at IBS. industry offers,” he said. What Mr. Noel,

2 Builders Outlook 2019 Issue 2


Money-savingdisc ountstha tbenefit

you, your business and your family
2019 Issue 2 Builders Outlook

Message ‘Let’s Get it Started in Here!’

strengthen our voice at the local level? For the next 6 months. About the same number closely how macro trends, increasing costs
now, when people ask: Why should I be a of us are neutral in regards to hiring full- and geopolitical uncertainty may have an
member? We say: Education, Networking, time employees or capital spending. impact on our local market. This means
Benefits including contracts, manuals and Negative expectations were very minimal at that more than ever we need to be united
Rebates, information and news letters and less than 5%. Originally, our intent was to as an association and prepared to weather
most importantly to support our lobbying release these results monthly to our any storm.
efforts at the national, state and local members only. However, announcing the So, what can you do this year to help the
levels. results to the media will generate attention EPAB thrive? Attend the meetings,
EPAB will continue working towards our for our association and strengthen our participate in EPAB events, help a member,
goals of strengthening our relationships ability to disseminate our message in the join a committee, advertise in our
with city officials in the metropolitan area as community, so I decided to do so in the publications, sponsor events, answer our
well as expressing our positions to the form of a press release. The outcome of surveys, and get to know or do business
Legislature in regards to lowering our cost our survey confirms other local positive with other members. You get out of your
of doing business and limiting regulatory economic indicators such as the 4% membership what you put into your
Sergio Cuartas burdens. We are also actively working with unemployment, improved retail sales and membership.
President other local nonprofit organizations related increased employment opportunities. An important upcoming event is Rally
El Paso Association of Builders to our industry, asking: how we can use the Gasoline prices and interest rates remain Day on March 20th at the State Capitol
strength of our numbers to help our low, while our market maintains 4 months building in Austin. A number of the
As the Black Eyed Peas say, “Let’s Get it businesses? of inventory of homes, a relatively low leadership will be attending – please
Started in Here”! 2019 is moving quickly, Last month We released the results of number. The median price of homes consider joining us!
and in order to make our association thrive our EPAB Business Confidence Survey. 21 continues to increase, and is currently at As always, you may send your feedback,
moving forward, we need to start taking percent of our members responded approx. $158,000. (The above numbers are comments or suggestions to Ray or email
bold action now. (statistically significant and respectable for new homes and re-sales). The local them directly to me at
First, I would like to acknowledge those participation for being the first time we do economic data cited comes from the
who have been taking action: Thanks a lot something like this). At least two thirds of Borderplex Business Barometer, Jan 2019, Thank you for your membership and
to Randall Smith for his education session those who responded believe that business The University of Texas at El Paso. Have a great month ahead!
on the impact of changes in the tax law conditions and sales will be positive during We still have to be cautious and watch
held at our EPAB on Thursday January 2/27/19 6:14 PM Page 1
24th from 3 to 5 pm. We all received love,
power or money for participating. More
education and networking sessions are to
come. Stay tuned!
Thanks also to Scott and Structure Home
Warranty for not only sponsoring our first
Real Texas Builders Awards, but
additionally pledging to sponsor our event
year after year for the foreseeable future.
Thanks to all who entered a category. The
event was worthy for us being the first of
this nature and I sincerely hope next year
we will have more participation. Kudos to
Don Rassette and Edmundo Dena for
pushing this idea forward and to Ray and
Margaret for making it happen. Many
others are working behind the scenes to
make our EPAB better. Thanks to them as
We look forward to future events and
initiatives from the following committees
which have formed. The committee chairs
are named below along with their email
addresses. Thanks to all the committee
chairs for their service to our association. I
highly encourage all our members to
participate in the committees with ideas,
time or resources. Please contact the
chairs directly with any questions or
Community Outreach: Angelique Roman
Associates Council: Luis Rosas
Education: Patrick Tuttle
Market Intelligence: Trevor Turner
Membership: Jaime Gonzalez
Industry Promotion: Ted Escobedo DESIGN WITH NATURAL GAS IN MIND.
Government affairs / Land Council
Sal Masoud
Golf Tournaments: Sam Shallenberger
Nothing is more attractive to homebuyers than the right mix of comfort and value. You can
provide both when you build homes that have natural gas.

Finance Committee: Kathy Carrillo
Natural gas furnaces, water heaters and clothes dryers offer greater efficiency and lower

Young Designers Scholarship:

operating costs than their electric counterparts, and natural gas kitchens sell themselves.

John Chaney:

In addition to the above teams, we have
Let us help you plan for natural gas right from the start.

created a Strategic Long-Range Planning

Committee composed in first instance by
For more information:

the Executive Board including Edgar

Garcia, Sal Masoud and myself. We will be

William Nieves: 915-496-6126

recruiting more committee members to help

Jorge Sejera: 915-680-7216
us think about the long-term sustainability
of our home builders’ association, revising Builder
Builder Services
slimgas­metroElPaso@onegas.comoror 1­866­206­9587.
Please continue to direct service line and meter set requests to the Texas Gas Service

our mission, our three-year vision and our

Hotline at 1-866-206-9587.
values in the months to come. A key
question we will be asking is: how can we
serve, engage and retain our members so
that we can grow our membership and
Builders Outlook 2019 Issue 2


Ray Adauto,
Vice President

An unexpected side-effect for builders

One never realizes what can affect our NAHB has compiled the costs and they
businesses or industry either positively or are staggering to the home building
in the negative. At our meetings at the industry. The construction sector spends
International Builders Show we heard $1billion a WEEK on workers
some disturbing statistics that is compensation. Opioids promised rapid
impacting builders and associates in a pain relief to allow a quicker return to
dramatic costly way. No, it’s not lumber, work. Each construction worker with an
oil, or steel. It’s not labor shortages or untreated substance abuse disorder costs
robotics. It’s something that has become an employer $6800 per year in excess
one of the country’s biggest health costs including absenteeism and turnover
problems, opioids. Those drugs that costs. An employee with a substance
doctors prescribe for pain are killing our abuse issue can cost as much as
people and hurting the industry. Here’s $60,000 per year. But when that
some facts to ponder: Every hour eight employee is in recovery the industry
people overdose on opioids. Of those saves nearly $2400 per year.
eight at least three who overdose work in Looking at causes is easy. Workers
the construction industry. And two of don’t have health insurance, they get
those are from home building. The ‘why’ hurt, they seek quick relief so they can
is just as telling. get back on the job, and they tend to
In home building traditionally become abusers. Statistically each one
construction workers are most male and of us is paying somewhere down the line.
younger. Adults 18-25 are the most likely Expect to hear a lot more on this issue. At
to abuse opioids than any other age the EPAB we will make you aware of
group. Statistically about 15% of education opportunities.
construction workers have used drugs for Opioid abuse must be curbed.
non-medical reasons.



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2019 Issue 2 Builders Outlook 5

Builder News

NAHB Announces
Best of IBS Product
Winners at 2019
Builders’ Show
The National Association of Home
Builders (NAHB) named the winning
products in its seventh annual Best of
IBS Awards during the NAHB
International Builders’ Show® (IBS) in
Las Vegas. The awards were presented
during a ceremony on the final day of
the show.
This year’s Best of IBS Awards
received more than 300 entries. Decided
by a panel of 31 independent judges
made up of attending reporters and
building professionals, the awards were
given in nine categories, plus an overall
Best in Show award.
Awards were given to exhibitors with a
product or line that shows the best
combination of design, functionality and
innovation, as well as its usefulness to
consumers and/or home builders.
The winners were:
Best in Show Winner:
Easy Connect Joining System by
Andersen Windows, Inc.
Best Kitchen Product:
Cafe 4-in-1 Oven with Advantium
Technology by GE Appliances
Best Bath Product:
Redi Your Way by Tile Redi USA, LLC
Best Energy Efficient Product:
POWERHOUSE™ 3.0 Solar Shingle by
RGS Energy
Best Green Building Product:
Heatlok HFO by Demilec Spray Foam
Best Home Technology Product:
Leviton Load Center Wi-Fi enabled
Circuit Breaker by Leviton Manufacturing
Best Indoor Living Product:
Heat & Glo Foundation Series Luxury
Gas Fireplace by Heatilator, Heat & Glo
and Majestic (Hearth & Home
Best Outdoor Living Product:
CAMO DRIVE by CAMO Fasteners and
The Soho by Hampstead
Best Window and Door Product:
Easy Connect Joining System by
Andersen Windows, Inc.
Most Innovative Building Material
Product: NTI GF200 Combi-Furnace by
NTI Inc.
“Judges evaluated an impressive array
of more than 300 product entries in nine
categories up for consideration for this
year’s Best of IBS Awards,” said Buddy
Hughes, NAHB Conventions and
Meetings Committee Chairman. “The
competition was fierce, but these
winners truly represent the best of the
best in terms of innovation, design and
functionality of the products going into
today’s homes.”
Awards were given to exhibitors with a
product or line that shows the best
combination of design, functionality and
innovation, as well as its usefulness to
consumers and/or home builders.
For more information on the Best of
IBS Awards, visit
Recession Watch:
Builders Outlook 2019 Issue2

& Banking Will Another Downturn Rock the Housing Market?
Montana, Idaho, Colorado, and Utah. Folks need The exception is the luxury market, where
places to live, after all. landlords will have the most trouble finding
But the current higher mortgage rates make it tenants.
harder for folks to buy homes. Meanwhile, "Luxury will feel the pain first,” says Willett.
inflation results in higher land, materials, and There could be some longer-term
construction labor costs. That typically translates consequences as well as fewer rental
into fewer new homes going up. developments are typically built when the
“For builders, it means that demands will fall economy sputters, so when things are a bit rosier,
back in some markets and they will pull back," there may be fewer units available to fill demand.
says Dietz. Depending on how long the recession lasts,
Renters won't be spared by a recession some condo buildings that can't find buyers may
Cash-strapped tenants hoping for a rent break eventually go rental. That's most likely in places
likely won't get lucky even if the economy does with an oversupply of housing, such as Miami,
start to slump. Rent price growth is likely to slow Miller says.
or even stall as fewer folks are going to be "[The last] financial crisis was unique with an
dropping big bucks on housing, says Greg Willett, unprecedented number of foreclosures, home
chief economist at RealPage, a property price declines, and a stunning drop in
management technology and analytics company homebuilding," says Dietz. “The question is
focused primarily on rentals. But it's not likely to whether we’re going to experience a soft landing,
fall. a bumpy landing, or a crash landing."

By Clare Trapasso | Feb 21, 2019 After that, lending laws were considerably
tightened across the board. Borrowers today must
The Great Recession has receded in the be in much better financial shape in order to snag
rearview mirror, and pretty much every American a mortgage.
would like to keep it that way, thank you very "Underwriting is a lot tighter, and the [loans] are //$!-!.)+-!%*./+-!"+-4+0/$*&0./#-!/-%'* 
much. But we're still all too aware that the whole a lot less risky," says Joel Kan, who oversees
financial disaster was precipitated by a deluge of economic and industry forecasting at the
./+*!,-+ 0/.-+)-%'./+*!#(..!-)%/%(!* 
bad mortgages. Sure, we've had nearly a decade Mortgage Bankers Association. "Households are ,+-!(%*/+2++ "(++-%*#,1!-.* )+-!
of booming home sales and prices. But now that in a better position to absorb the shock than they
they're slowing their roll, the whispers are starting were back then."
to mount: Is another recession around the corner? Will a recession lower home prices?
About 39% of Americans think the economy is Buyers on a budget shouldn't pin their hopes
slowing down, while 17% think we're already in a on a recession to create a vast clearance sale of
recession or depression, according to a recent deeply discounted properties. Prices aren't
Gallup poll. expected to plummet, although they may dip in
Yes, we might see a recession soon, more expensive markets. Overall, price
economists say—but there's no need to panic. appreciation will likely just continue to slow.
That's because the financial factors that helped But if the Fed lowers interest rates again to
cause last decade's crash don't exist this time counteract a poor economy, mortgage rates will
around. likely go down, too. That will also make it cheaper
"We're just scared because of what happened to buy a house.
last time. And that's not what's going to happen "If there is a recession, the people with stable  
[again]," says Lisa Sturtevant, a housing jobs will see it [as] a second-chance opportunity
consultant and chief economist at Virginia to buy a home," says Lawrence Yun, chief
Realtors, the state's real estate association. economist of the National Association of
If there is another recession, she says, "most Realtors®. Yun doesn't anticipate a recession this
people are not going to lose their house. Most year, or next. "Prices may [or may not] come
people are not going to lose their jobs.” down. But certainly buyers will be in a better
If a downturn does hit, probably toward the end negotiating position."
of this year or the beginning of next year, most And even in a shakier economy, overall
economists believe it will be brief and not nearly demand for housing, which keeps prices up, isn't
as painful as the last one. They anticipate that going to evaporate. The huge millennial
unemployment, currently at an extremely low 4%, population is getting older, settling down, and
will tick up slightly and there will be fewer new having children—and searching for homes of their
jobs created. But they don't envision widespread own. Those life factors are not likely to change,
layoffs resulting in scores of foreclosures and and they create a massive demand for housing. A
plunging home prices, as we saw in 2008–09. decade ago, it was mostly Gen Xers at that stage,
“We’re at a record-low level of unemployment. a smaller generation with less impact.
The economy can’t stay here," says Chief The places that are most likely to see prices
Economist Danielle Hale of®. She sink are more expensive markets that have
forecasts a recession beginning within the next experienced years of steep price hikes. For
two years. "This one will be mild." example, Silicon Valley's San Jose, CA, could see
Why it looks like we're due for a recession corrections, says Hale.
Although a recession can be precipitated by a Markets with more housing than buyers, such
housing bust, trade war, or global event, this time as Miami, where new developments have been
the U.S. economy may simply become a victim of going up at a breakneck pace, may also soften,
its own success. says Norm Miller, a real estate finance professor
With national unemployment so low, employers at University of San Diego.
have to compete hard for talent by offering higher The luxury market, which is the priciest 5% of S h o w ro o m :
wages. Those increased costs are often passed homes in any area, will also probably be affected. 9400 Gateway East  El Paso, TX  79907
(915) 593-1301  (800) 356-9546
onto consumers. This in turn causes inflation as "There are just more expensive homes [than
goods and services become more expensive. If affordable ones] for sale, and so the luxury
inflation rises much higher than wages, then the
country has a problem.
market is likely to be more vulnerable to price
corrections in the event of a recession," says
Enter the U.S. Federal Reserve. It battles Hale.
inflation by notching up interest rates. The A recession could worsen the housing
downside is that makes it more expensive for shortage
businesses to borrow money to expand or bring One of the signatures of the past recession
on more workers. And that can effectively slow was the overabundance of newly built homes.
down the economy. When the economy collapsed and the buyers
It's like someone blowing too much air into a disappeared, builders across the nation were
balloon—eventually a little needs to be let out or forced out of business basically overnight. New Home Warranties
it'll pop. Similarly, the Fed needs to siphon off a Abandoned construction sites were littered across
little of the economy's helium. It hiked rates four the country. The industry still hasn't caught up
times last year, when the economy was hurtling with the renewed demand, and another recession • A Texas Warranty designed for Texas Builders
along, but this year it may do it only once, if at all. could worsen the situation.
Actually, economic cycles in which the Only about 875,00 single-family homes were
• 10 Year New Home Warranties
economy is growing and more jobs are being built last year, according to the National
• FHA, VA & USDA Approved
created historically don't last more than a few Association of Home Builders. But the nation • Remodelers & Detached Garage Options
years. The longest stretched from 1991 to 2001. needed about 1.1 million to ameliorate the
This summer will mark the longest economic shortage. If another downturn hits, builders will
• Options for General Liability, Builder’s Risk & More
expansion in U.S. history from the trough of the likely construct even fewer homes, says Rob
crisis in June 2009. Dietz, chief economist of the NAHB.
Texas Strong for Over 37 Years!
So the good times eventually must come to That means when the country recovers, we

an end. could experience even greater housing shortages
This slowdown, coming on the heels of a wild than we've seen over the past few years.
run-up in home prices, may feel like déjà vu. But The pace of single-family home construction
the main culprit behind the previous housing growth is already slowing down, from 9% in 2017
market bust was the torrent of subprime to about 3% in 2018. Dietz predicts it will be less
mortgages doled out to underqualified and often than 2% in 2019.
uninformed buyers. When those owners Building is expected to remain strong in places 800.445.8173 ext. 2149
defaulted, it created a domino effect, ultimately with strong population growth, such as the
affecting all corners of the nation's economy. Southeast, Texas, and the mountain states of •
2019 Issue 2 Builders Outlook 7

Elliot Eisenberg

Why Is Wage Growth So Lousy?

Economic & Policy

While the most recent jobs report 3%/year. In the run-up to the housing currently closer to 4%. firms, in part due to the rise of super-
showed the unemployment rate at bust, it was well over 2%. By contrast, The final significant reason for slow firms like Google, Amazon and
4.0% — the lowest rate in almost 50 today’s productivity growth is about 1%! wage growth is a lack of inflation. In the Facebook, which generally buy out any
years — it also showed annual wage As a result, employers are not so eager late 1990s, inflation, as measured by potential competitors, also reducing
gains running at just 3.2%. While that is to raise wages as they tend to reduce the CPI, was 3.5%/year, and was employer options. Last, but certainly
the best rate of growth in over a profits. roughly 4%/year during the housing not least, comes the dramatic rise in
decade, late in the last business cycle, Another major reason is boom. Since 2010, however, inflation state licensing requirements which
wage gains were over 4%, and at the demographics. Twenty years ago, the has been remarkably tame, and has make it much more difficult for
height of the bubble, wage Baby Boomers were all in their prime hovered right around 2%. As a result, employees to work in other states,
gains were over 5% a year. Shouldn’t working years. Today, close to employers have not had to increase even if good jobs in the same field are
the current tight job market result in 11,000/day retire and are being pay that much to keep up with inflation. available.
faster wage growth as employers replaced by Millennials. The problem is If, for example, employers aim to While wage growth is not as strong
compete for increasingly scarce that since Millennials are just starting increase real pay by 1%/year during today as it has been in prior recoveries,
workers? The answer is “not really,” their careers, they earn considerably the housing boom, that would have there are many reasons why. Hopefully,
and it’s for several reasons. less than the retiring Boomers. More meant pay raises of 5%; today, 3% will labor productivity will improve going
The single most important reason for importantly, the number of Millennials do. forward, as that is something that
slow wage growth is weak labor entering the labor force numbers about There are, of course, many other employers and employees both benefit
productivity growth, or the increase in 14,000/day, exceeding by about reasons why wage growth is weak. from. In addition, it would be great to
output per worker per hour. As firms 3,000/day, or 90,000/month, the They include a decline in the strength see states reduce or eliminate licensing
pay workers more, they try to keep number of retiring Boomers. While of unions, the increased prevalence of requirements where possible. And,
their profit margins up by squeezing out older generations have always retired non-compete clauses in employment where that is not possible, encouraging
inefficiencies, and thus pay for the as younger generations have entered contracts, and global supply chains, all reciprocity across state lines would be
higher wages out of increased worker the labor force, never have the two of which reduce the bargaining power a great improvement.
productivity. Back in the 1990s, labor groups been of almost equal size. After of workers. There has also been a
productivity growth averaged about accounting for this, wage growth is steep decline in the number of new

The future of NAHB outlined at IBS (Continued from front page)

The structure of the National The budget is the responsibility of the
Association of Home Builders corporate board that will consist of the
governance structure is changing. senior officer team, fifteen national
After years of reviews and engaged area chairmen, special state directors,
discussion the NAHB Board of two associate leadership reps, fifty-
Directors voted to streamline the one state reps, and past chairs
governance structure. The vote was serving as ex-officio status.
taken in 2018 and will be implemented Today’s NAHB is a bloated
for the 2020 leadership year. Exactly bureaucracy with over 1700 Board
what is changing? According to NAHB Members and over 135 executive
there are several changes coming. board. In addition, there’s committees
First NAHB will convert the current and councils as well as state and local
board into a Leadership Council, members. The future NAHB will have
which will direct the Association on a Corporate board of around 75 and a
industry issues and elect the Leadership Council, the 1700 plus
associations leadership. Secondly currently board members. Randy Noel,
there will be a new streamlined Chairman 2019, said this move will
corporate Board who will be charge make governance much more flexible.
with the administrative operation of “It’s like the Navy, when you have an
NAHB. Third, adopt a process by aircraft carrier it’s a little harder to turn
which committees and their priorities than a landing craft, so we need to
can be easily created or modified to make sure that when issues come up,
address new, emerging issues. Fourth, we can get voting delegates quickly or
document and communicate the maybe even utilizing technology,” Noel
various NAHB leadership roles, said. State and local associations
making certain that leaders know the will be looking at this model and
critical role they play in the success of seeing if it can be used by them as
the NAHB. There will be no change well.
with day to day management with -Ray Adauto, EPAB
oversight from the Senior Officer
10 Builders Outlook 2019 Issue 2

#Real Texas

The El Paso Association of Builders encourages you to work with our members.
Builder members Pacifica Homes, Inc. Bank of Texas Dorney Security
as of January 30, 2019 Juan Jose Vasquez Ray Owen John Dorney
Padilla Homes Baron Supply Dunn-Edwards Paints
Althon Investments, LLC Misael Navarrete David Trammell Nathan Gordon
Jose Luis Martin Palo Verde Homes Barragan & Associates DWS Building Supply
Bain Construction Edgar Montiel Benito Barragan Sabrina Voorhies
Scott Bain Pointe Homes Barraza Drywall Corp. EDLR Plastering
Bella Vista Custom Homes, Inc. Carlos Villalobos Ignacio Barraza Eduardo De La Rosa
Edgar Garcia R.C. Baeza & Associates Barrett Airworks E.F. Building Materials, Inc
BIC Homes, LLC Robert C. Baeza Alexandro Castro Efren Fraire
Sergio Cuartas R.E. Welch Contractor Bassett Woodworks ERA Sellers & Buyers
Blue Sage Homes, LLC Gordon Welch Danny Murillo Karla Rayos
Jamie E. Gonzalez Rassette Homes, Inc. Beasley, Mitchell & Co., LLP ESS Environmental and Safety Solutions
Blue Star Construction Donald Rassette Brad Beasley Jose L. Garcia Ramirez
Carlos Villasana Rio USA Bella Vista Realty Eagle Custom Cabinets
Bowling Construction Freddy Klayel Grisel Ortega Juan Benabidez
Randy Bowling Rosewood Design & Build Belmont's Air Conditioning, Inc. Eagle Roofing Products
Carefree Homes Brianna Barnes Rafael Belmonte Scott Aguilar
Richard Aguilar Santana Custom Homes Big A Construction Edgar's Flooring
Casas De Leon, LLC Fernando Santana Thelma Vasquez Edgar Enriquez
Nick Bombach Southwest Land Development Serv. BMC Select Edmund Esper
Cisco Homes LLC Doug Schwartz David Quintana Edmund Esper
Francisco Arroyos III Spanish Oaks Custom Homes Boise Cascade El Paso Audio Video by Design
Classic American Homes Juan R. Saenz Mike Flores Joe Gutierrez
Priscilla Hernandez The Heritage Group Border Construction Specialties El Paso Building Materials
Crown Heritage Homes David Bingham Ricardo Yvellez Ken Wade
Lydia Mlouhi Trejo Construction Co. Border Solar El Paso Disposal
Cullers & Caldwell Builders Juan Trejo Javier Ruiz Irma Parsons
John Cullers Tropicana Building Corp. Bordertown Carpets El Paso Mortgage Bankers Association
Cullers Homes Bobby Bowling IV Brian M. Abraham Gilbert Pedregon
Jason R. Cullers Tropicana Development Builders Source Appliance Gallery El Paso Times
D B Innovations, LLC Greg Bowling Sandra Lucero Sal Hernandez, Justin Riley
Dan Berry Tropicana Homes Bukaty Financial Companies Group El Paso Truss
Dawco Home Builders Randy Bowling Ruth Rivera Luis Mendiola
Walter O. Lujan Tropicana Properties C. D. Lee/Britton Insurance & Bonding El Paso Water Softeners
Deal-2-Deal Homes Demetrio Jimenez Anthony Landavazo Rebecca Estrada
Delton Deal Uptown Homes, Inc. CMF El Paso Winnelson
Del Rio Engineering, Inc. Francisco Baquera Carlos Munoz Rene Goldfien
Sal Masoud Cabinet Masters Electrolux NA
Diamond Homes, LLC Valance Construction, LLC Mike Robles Adger Colley
Valerie Bacquera Oswaldo Prieto Cadence Lending Group Elizardo Garcia Electric
E. Valencia Land Development LLC Villagi Homes, LLC Carolyn De Leon Elizardo Garcia
Eddie Valencia Kristi Eddings Carpet Warehouse EZE-R-DESIGNS
Eclat Homes & Design Vista Del Sol Architectural Design Erez Belkin Leticia Mata
Veronica Guerra Luis J. Lopez Castillo Electric Farmers Ins. Mercedes Ruiz Agency
Edward's Homes, Inc. Will Harvey Development Jose Del Val Mercedes Ruiz
Eduardo Fernandez Will S. Harvey CEA Engineering Group Felipe Rocha Construction
EPT Bella Custom Dream Homes, LLC Winton/Flair / Accent Homes Jorge L. Azcarate Felipe Rocha
Leti & Javier Navarrete Herschel Stringfield Central Texas Metal Roofing Supply Co.,Inc. Ferguson Enterprises Inc.
EPT Land Communities ZIA Homes of El Paso LLC Ben Garza, III Albert Holguin
David Bogas Preston Brown Centricity First American Bank
Everest Homes Brent R. Morgan Louis Sauceda
Edmundo Dena, Jr. Associate members Century 21 The Edge First Light Federal Credit Union
Fortune Custom Homes as of January 30,2019 Scott Kesner Lorenzo Revelez
Javier Andrade City Bank Texas First National 1870
Gaddy Construction 150 Sunset Bob Kotarski Ernesto Avila
Charles Gaddy Danny Heredia City Lights Firth, Johnston, Bunn & Kerr
GMF Custom Homes, LP 2-10 Home Buyers Warranty Thomas Brown Jay Kerr
Frank Torres James Hebert Citizens Loan Center Forge Factory Strength & Conditioning
Guel Construction 4 Tech A/C Service Jim Easley Edmundo Portillo
Rudy Guel Enrique Hernandez Cognent, Inc. Foxworth Galbraith Lumber
Hakes Brothers LLC 84 Lumber Martin Paredes Dan Villarreal
Chris Hakes Ernie Chavez Commercial Insurance Brokers, Inc. Franklin Building Materials
Hanson Asset Management, LP 915 Siteworks, LLC Ken Foster Ricardo Aguilar /Cristina Sheldon
Russell Hanson Hugo Jasso Conde, Inc. Franklin Door and Trim
Homes by Design A Plus Remodeling & Repairs Conrad Conde Jesse C. Brown
Leslie Driggers Hoard Martin Arroyos Copenhagen Imports G2 Ram Electric
Hunt Communities, LLC ABC Supply Co., Inc. Flemming Carlsen Luis Cano
Kathy Parry Larry Eck CQC Testing and Engineering, LLC GCC Sun City Materials, LLC
ICON Custom Home Builder, LLC A C Refrigeration, LLC Jaime Rojas Antonio "Tony" Chavez
Carlos Garcia Angel Cabrera David Hernandez Cabinets GE Appliances
Industrial Realty Group Incorporated Acme Brick Company David Hernandez Christine R. Villanueva
Brent D. Harris Brent Smith David J. Ellis Fee Office for Sierra Title G & G Enterprises Gen. Contractor
JER Custom Homes, LLC Adams Moulding & Lumber David J. Ellis Juan F. Garcia
Jorge E. Rodriguez Tom Swahlen De La Torre Iron Works GECU- Greater El Paso Credit Union
Kayton Lee Residential, Inc. Agustin Favela Concrete Alfredo de la Torre Danny Galindo
Brianna Barnes Agustin Favela Del Sol Title Company GEPAR-Greater El Paso Assoc. of Realtors
Lloyd Hamilton Construction Alden R & R Services, LLC Hector Phillips Jason Sanchez
Lloyd Hamilton, III Alejandro Dena Delek US dba 7 Eleven Goodman Mfg.
LMJ Construction Co., LLC Allbrite Electrical Sonja Scanlan Jorge Guajardo
Mike Lopez Carlos Nunez Demcon Disposal Management, LLC Go Pro Refrigeration
Loyalty Homes Alpha Asphalt Maria Elena (Nena) Gomez Humberto Diaz
Gustavo Loy Gabriel Chavez Desert Quest Plumbing Great American Insurance Group
M A Builders & Design, LLC Alvarado Plastering & Stucco, LLC Hector Gonzalez Julie Tomlinson
Mustafa Ali Jorge Enrique Alvarado Designer's Mart Greater El Paso Chamber of Commerce
Maravilla Homes Amelia's Janitorial Services Valerie Edmiston David Michael Jerome
Victor Robles Amelia Gomez Diaz Services, Inc. H P Roofing & Construction
Medlock Commercial Contractors, LLC Area Iron & Steel Works, Inc. Emmanuel Diaz Heriberto Prieto
Steve Medlock Fred L. Edmonston Jr. Dominguez Insurance Agency Harris Real Estate Group
Metro Homes Atrium Homes Victoria Dominguez Lane Harris
Judith Arrunada Ricardo Bocardo Jr. Garage Doors and More Haskins Electric
Millennium Homes Miguel Moran Charles B. Haskins, Jr.
Dan Ruth
2019 Issue 2 Builders Outlook 11
Hector De La Canal Real Estate Group Lowes Home Improvement Prewire of El Paso, Inc. Spectrum Technologies
Hector De. La Canal Johnny Rodriguez Steven Drury Miled Daou
Hector Phillips fee Office for Sierra Title Loyas Shutters Prosperus Title & Escrow St. Mary's Custom Shutters
Hector Phillips Alfredo Loya Alexandra Jade Hedrick Dolores Lopez
Hercules Industries Magicstone Q Martins Plumbing Startech Heating and Air Conditioning
John Chaney Marco Gomez Jose Martinez Luis Procter
Hernandez Roofing Majestic Realtors Quality Granite Stewart Title of El Paso
Concepcion Hernandez Patti Musshorn Hector Porras Cindy Bilbe
Home of Texas MAK Roofing & Construction RGR Roofing, LLC Stone City Rocks
Amanda Eason Felix Vizarreta Mario Rodriguez Chris Baca
Homes of El Paso Marlo Building Services Ramon Romero Painting StrucSure Home Warranty
Riley Stephens Roberto Martinez Ramon Romero Scott Whisenant
Home Pros Real Estate Group Masco Contract Serv dba Gale Insulation Randall Smith, CPA Supreme Lending
Penny Moore William Homan Randall Smith Lisa Wren
Home Sphere, LLC Masonite International Rebath of El Paso/Las Cruces Su Casa Magazine
Chris Hoag Jesse Carlson/ Bob Westby Lisa Walling Edwin Rosario
HUB International Massey Johnson Remcon Self Storage Sun City International Doors
Luis Rosas Josie Ledesma Will Harvey Jorge Carmona
Imperial Construction McCoy's Building Supplies Rey Construction Sun City Winnelson
Alexandro Garcia Doug Danner Manuel Reyes Dean Moore
IES Residential Merrill Lynch Richman Group Affordable Housing Corp. Sun West Windows and Glass
Joshua Garnica Thomas Gabriel Kevin Hoffman Ernie Hernandez
Interceramic Tile & Stone Gallery Miguel Sanchez Cano Rito Magallanes Team Juan Uribe, LLC
David Holguin Miguel Sanchez Cano Rito Magallanes Juan Uribe
The Iron Snail Inc. Minerva Al-Tabbaa Realtor Rocky Mountain Mortgage Company Texas Gas Services
David Zuniga Minerva Al-Tabbaa Dean Inniss Maria Ortiz
J. B. Laminates Mini Concrete Materials Roe, Brad Texas Title Company
Gina Rodriguez Joe Soto Bradley Roe Steve Raney
J. C. Balcorta Painting Moen Rudolph Chevrolet TFCU
Cruz Balcorta Frank Graf Mike Ruffin Yolie Melendez-Estrada
J. F. Plastering Modern Exteriors SBNG, P.C. The Dorian Group/Ocean Gallery USA
Juan Florez Hector Macias Tyler Smith Miguel Angel Mercado
JFM Enterprises, Inc. Monster Link Marketing S & J Drywall, LLC The Home Systems Heating & Cooling, Inc.
Jaime Flores Raul Mendoza Yair Jalil & Sergio Jalil Jesus Chain
J & H Concrete & Post Tension Moreno Cardenas, Inc. Saldivar Electric, Inc. TRE & Associates
Jorge Herrera Roberto Moreno Martin A. Saldivar Linda Troncoso
Jack White Building Specialties Morrison Supply Sarabias Blue Sanitation Trim Team
Claudia Lardizabal Sam Shallenberger Monica Brown Juan & Kris Hernandez
James L. Ellis, CPA, PC MTI Ready Mix, Inc. Segura Framing United Site Services
Jim Ellis Tony Mullen Erika Segura Ramon Armendariz
Jimmy Garza Emergency Water Removal New American Funding Senercon Border Solar USA General Contractors
Jimmy Garza Tania Guzman Javier Ruiz Javier Olmos
Jobe Materials, LP New Era Foam Senpai Training and Development VMP Painting
Charlie Tellez George Tollen Leonardo Corral Victor Prieto
Joe Bernal Ins. & Financial Services, Inc. New Start Insulation Sergio Herrera Framing Value Stone
Joe M. Bernal Jose Carreon Sergio Herrera Isabel Chacon
Jose Moreno Dry Wall Oropeza Concrete Serrano's Construction Vantage Bank
Jose Moreno Angel Oropeza Juan Serrano Josie Cantu
Juan Carlos Perez Grading Parra's A/C and Heating Service Service Master Commercial Vision Consultants, Inc.
Juan Carlos Perez Aureliano Parra Heidi Avedician Kelly Sorenson
Keenan Supply Pate & Appleby, LLP Sherwin Williams Paint W.W. Sales
Nancy Rivas Richard De Santos Cruz Lopez Eric Hoppes
Keller Williams Patriot Mortgage Sierra Title Company Western Heritage Bank
Susan Flores Randy Bowling Angelique Roman, Marielsa Pulido Kathy Carrillo
Keller Williams Pella Windows Simpson Strong-Tie Company, Inc. WestStar Bank
Mo Goodarzi Jason Bates Ken Donham David Osborn
LOI Engineers Performance Glass & Aluminum Snappy Publishing WestStar Title
Bernardino Olague Hector Hernandez Ted Escobedo Pam Ashworth
L & P Building Supply Commerce Mortgage Soil Mechanics Whirlpool
Denise McConnell Stephen Sepulveda, Gilbert Pedregon Lorenza Escareno Gwen Walker
Legacy Real Estate Serv./TTI Prop. Man. Polar Mechanical LLC Solar Smart Living Wolf Air
Patrick Tuttle Francisco Amezquita Larry Perea Arturo Alcantar
Leon Real Estate Post Tension Steel Southwest Décor El Paso Corporation X Construction
Jorge Leon Dennis Moore Chris Matthews Emmanuel Chavarria
Lone Star Title Co. of El Paso Powerfoam Insulation Southwestern Prewire
Sam Trimble Arnie Pedersen Joe Trejo

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12 Builders Outlook 2019 Issue 2

Lower interest rates, rising consumer confidence boost builder sentiment

o f E l
Homes aso.comP a s o

Builder confidence in the market for newly-built single-family

homes rose four points to 62 in February, according to the latest In Print & Online
National Association of Home Builders/Wells Fargo Housing
Market Index (HMI) released today in Las Vegas during the 75th Full Market Coverage
annual International Builders’ Show.

“Ongoing reduction in mortgage from excessive regulations, a dearth Promote Your Business TODAY!
rates in recent weeks coupled with of buildable lots, a persistent labor
continued strength in the job market shortage and tariffs on lumber and
are helping to fuel builder sentiment,” other key building materials continue Since 1988
said NAHB Chairman Randy Noel, a to make it increasingly difficult to
custom home builder from LaPlace, produce housing at affordable price
La. “In the aftermath of the fall points.” 915.585.1000
slowdown, many builders are reporting Derived from a monthly survey that
positive expectations for the spring NAHB has been conducting for 30 Proud member of the El Paso Association of Builders
selling season.” years, the NAHB/Wells Fargo Housing
February marked the second Market Index gauges builder
consecutive month in which all the perceptions of current single-family
HMI indices posted gains. The index home sales and sales expectations for
measuring current sales conditions the next six months as “good,” “fair” or
rose three points to 67, the component “poor.” The survey also asks builders
gauging expectations in the next six to rate traffic of prospective buyers as
months increased five points to 68 and “high to very high,” “average” or “low
the metric charting buyer traffic moved to very low.” Scores for each
up four points to 48. component are then used to calculate
“Builder confidence levels moved up a seasonally adjusted index where
in tandem with growing consumer any number over 50 indicates that
confidence and falling interest rates,” more builders view conditions as good

For All Your Electrical Needs

said NAHB Chief Economist Robert than poor.
Dietz. “The five-point jump on the six- Looking at the three-month moving
month sales expectation for the HMI is averages for regional HMI scores, the
due to mortgage interest rates South posted a one-point gain to 63

Residential Specialists
dropping from about 5 percent in while the Northeast dropped two
November to 4.4 percent this week. points to 43. The Midwest and West

Tract Homes • Custom Homes

However, affordability remains a each remained unchanged at 52 and
critical issue. Rising costs stemming 67, respectively.

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14 Builders Outlook 2019 Issue 2

5 Millennial Real Estate Trends in 2019

MARKET WATCH renovating a home to make it their own

More millennials are pursuing and the ability to see past outdated
homeownership now than ever before. wallpaper or a wall that can be easily
The national homeownership rate rose removed.” Keep this in mind as
to 64.4 percent in the third quarter this interest rates continue to rise in 2019
year—an increase of half a percentage (re: trend number one) and you’re
point over a year ago, according to the helping clients who want to get
U.S. Census Bureau. That's largely creative while staying in their price
attributed to the rise in new, first-time range.
home buyers.
4. Clients Who are Well-Researched
Millennial buying trends in 2019 and Prepared
Dana Bull, an agent with Sagan Millennial buyers are doing their
Harborside Sotheby’s International online research and are entering the
Realty who has significant experience market well-prepared. Show your value
working with millennial clients, shares as a REALTOR® in other ways, Bull
five trends to expect in 2019 recommends. “They are relying on real
1. Rising Interest Rates Will estate professionals not to introduce
Prompt Buyers to Change Strategy them to homes, most of which they
Just last week, mortgage rates rose can find online, but to show them what
to a seven-year high, with 30-year can’t be researched: neighborhoods
fixed-rate mortgages averaging 4.94 that are up and coming, which
percent. It’s more than likely that rates National Association of REALTORS® says. “For sellers and agents, catering properties stand to gain value in the
will climb over 5 percent in the new Home Buyer and Seller Generational to two different generations in coming years, and guidance when it
year. This will cause many buyers to Trends Report, 30 percent of marketing homes will also be a comes to negotiations and
pause and reevaluate their purchasing millennials purchased homes for challenge.” inspections.”
power and strategy, Bull says. “Even a $300,000 and higher in the past year,
quarter point has a real impact on up from 14 percent in 2013. That 3. Willing to Put In Sweat Equity 5. Social Media’s Continued Impact
housing affordability,” she says. This means millennials and boomers are Millennials are becoming more savvy Social media will continue to
means you’ll need to take more time to going head-to-head for the same to renovations and repairs, and they influence millennials’ homebuying
help clients analyze deals and homes today. That trend is only going may have HGTV to thank for that, Bull habits, Bull says. This generation relies
understand what their money can buy to continue to grow in 2019, Bull says. “Millennial buyers are still far heavily on online reviews and social
in this shifting market. predicts. Both groups also seek similar more aware of the work, costs, and media presence to make purchasing
amenities, including walkable implications of a renovation than their decisions. A strong online reputation
2. Increased Competition From neighborhoods and smaller home parents would have been,” she says. for real estate professionals is a must
Baby Boomers for Properties sizes with more upgrades, she points “Popular TV shows mean a more in catering to this market, she adds.
As millennials age and grow in their out. “Buyers in different generations— educated millennial buyer who knows Showcasing homes on social media—
careers, they are acquiring more with wildly different points of view—are what to look for in terms of red flags. particularly Instagram—is essential for
purchase power. According to the 2018 competing for the same homes,” she But also has more confidence around appealing to millennial clients.

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Builders Outlook 2019 Issue 2
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Eder Gallardo, Edwards Homes John Cullers
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Kathy Parry, Hunt Companies Mark Dyer
Samira Gonzalez, Icon Custom Home Builders Kelly Sorenson
Laura Loy, Loyalty Homes Rudy Guel
JJ Vasquez Pacifica Homes Brad Roe
Trevor Turner, Rassette Homes Herschel Stringfield
Fernie Santana, Santana Homes Bob Bowling III
Jacob Barde, Tropicana Homes Carlos Villalobos

Associates: EPAB Mission Statement:

Sandra Lucero, Builders Source The El Paso Association of Builders is a federated professional
John Chaney, Hercules Industries organization representing the home building industry, committed
Luis Rosas, HUB International to enhancing the quality of life in our community by providing
Jorge Herrera, J & H Post Concrete & Tension affordable homes of excellence and value.
Joe Bernal, Joe Bernal Insurance The El Paso Association of Builders is a 501C(6) trade
Patrick Tuttle, Legacy Real Estate Service organization.
© 2019 Builder’s Outlook is published and distributed for the
Aaron Rich, Lone Star Title
El Paso Association of Builders





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