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Home Buying Aid Boosts Workers' Loyalty
Large companies continue to offer employer-assisted housing programs even though employers currently have the upper hand in the labor market; and, now, small companies are joining the trend as well. Businesses are using employer-assisted housing programs as a way to not only retain their best workers but to also reduce employee turnover and whittle down the costs associated with hiring and training; the loans are relatively inexpensive compared to signing and retention bonuses, raises and other benefits. Employer-assisted housing programs generally offer loans of $2,500 to $8,000 or more — which generally are forgivable after five years — for a downpayment on a first home or on a property located closer to the workplace, and they are designed to provide employees with a strong incentive to stay with the company. Fannie Mae says it has helped more than 300 companies set up employer-assisted housing programs since 2000. (www.wsj.com/)
Wall Street Journal (03/04/03) P. B5; Bailey, Jeff
On Top of Mt. Slag, Homes Sprout
As land becomes more and more scarce, developers from New Jersey to California increasingly are building upscale residences on property that previously catered to industry. One example of the trend is evident in Pittsburgh, where a housing community perches atop a 25-story industrial slag heap. Dubbed Summerset at Frick Park, the homes range in price from $200,000 to $700,000. When it reaches buildout, the 'New Urbanist' development —complemented by parks and public trails — is expected to have 710 residences in four different models. Redevelopment of abandoned industrial sites, called brownfields, is not new to Pittsburgh — a city whose steel industry has bequeathed a legacy of mills, factories and dump sites. The Washington's Landing project, for instance, was built on the contaminated site of a defunct rendering plant on Herr's Island in the Allegheny River; the brightly colored townhomes that now occupy the site were purchased for $140,000 in 1996 but have since more than doubled in value. Summerset and Washington's Landing have served as test cases for residential redevelopment of industrial property, according to Mark Johnson, editor of the Brownfield News. The U.S. government has allocated $200 million in development incentives for brownfield development this year, and Pennsylvania — along with Michigan, New Jersey and Massachusetts — has sweetened the pot by pledging that developers will not be subject to future liability if they remediate their sites to meet current state standards. (www.nytimes.com)
New York Times (03/06/03) P. D1; Ermann, Lynn
Top Ten Undervalued Towns
Home prices are taking off, and nowhere is this more true than in the most popular destinations nationwide. However, each of the10 biggest U.S. metropolitan areas includes undervalued communities that possess the desirable traits of a major city minus the lofty pricing. 'Undervalued towns are towns with many premium qualities — like good public schools, low crime rates and educated neighbors — but where median home prices are surprisingly low compared to other area towns,' explains Location Inc. President Andrew Schiller, who analyzed Census Bureau data to identify the leading undervalued towns in the country's biggest metro regions. Those communities included Scotch Plains, NJ, in the New York metro area; Silver Spring, MD, in the Washington, DC, market; Havertown, PA, in the Philadelphia region; Sharon, MA, in the Boston area; Mundelein, IL, in the Chicago market; and Lathrup Village, MI, in the Detroit area. Also making the list were Simi Valley and Dublin, CA, for the Los Angeles and San Francisco metro regions, respectively, and Colleyville and Sugar Land, TX, for the Dallas-Fort Worth and Houston markets. (cbs.marketwatch.com)
CBSMarketWatch.com Online (02/28/03) Kerch, Steve
Construction Spending Up 1.7%
Construction spending rose 1.7% to an annualized value of $877.9 billion during the month of January, led by the home building sector. Residential construction climbed 2.5% as low interest rates kept activity at a high level. However, nonresidential construction slipped again, with new office building down 4.9% for the month. One bright spot was industrial construction, which increased for a fourth consecutive month. (www.investors.com)
Investor's Business Daily (03/04/03) P. A1
Real Estate Industry, Feds Team Up on New Terrorism Info Bank
Government officials have teamed up with property industry professionals in creating the Real Estate Information Sharing and Analysis Center (ISAC), whose purpose is to facilitate the exchange of data on terrorist threats and building security issues between the public and private sectors. This clearinghouse of sorts will offer a bilateral flow of data between the National Infrastructure Protection Center and the Real Estate Roundtable. Real Estate ISAC spokesman Cary Brazeman stated, 'The federal government will help building owners and operators make better sense of the warnings and alerts they issue.' The new entity is expected to be operational later this spring with the debut of the Real Estate ISAC Web site. (www.Globest.com)
GlobeSt.com (02/28/03) Murray, Barbra
Playa Vista Project Pushes Wired Homes
The developers of Playa Vista, a 3,246-home project on 1,086 acres in western Los Angeles, have teamed up with CompUSA Inc. and LinkSys Group Inc. to create a community with an advanced Internet infrastructure. Every single-family home, townhouse, condominium and rental apartment in Playa Vista will feature four plug-in jacks in each room, which will provide access to high-speed Internet, cable and phone services. According to Internet Home Alliance spokeswoman Kristine Stewart, 'At some point, everyone will have Internet access and will know how to use these technologies and expect to have them in the home.' In fact, an increasing number of home builders are installing high-speed cables so that residents can create smart homes where even the appliances are networked. As part of the Playa Vista partnership, CompUSA will offer consulting services and discounts on computer products to new residents. Meanwhile, LinkSys will provide the wireless and broadband networking hardware and wireless 'hot spots' in the community's coffee shops and parks — which will let residents surf the Web, check e-mail and send wireless messages from their mobile computers. (www.investors.com)
Investor's Business Daily (03/04/03) P. A4; Deagon, Brian
A Mortgage That Stays With You, Not Your House
With 90% of outstanding mortgages boasting interest rates under 8%, there are some concerns that higher interest rates could prompt many home owners to stay put, ultimately hindering the ability of home builders to attract move-up buyers to new subdivisions. Irvine, CA-based real estate consultant John Burns suggests the industry could avoid such a problem with a transferable mortgage that goes with a creditworthy borrower from house to house; with each move, borrowers would incur a transfer fee and pay the difference between the balance on the home loan and the sales price in cash or through a second mortgage. Burns says transferable mortgages would minimize the prepayment risks assumed by mortgage-bond holders; let buyers purchase more costly homes; allow home sellers and home builders to easily unload properties; spark another wave of refinances as buyers rush to take advantage of still-low rates; and create an additional revenue source for lenders in terms of transfer fees. Even so, title and lien issues, weakening credit scores between moves, and investors looking for higher interest-rate loans pose some challenges to this innovative approach. (www.cbs.marketwatch.com)
CBSMarketWatch.com Online (03/04/03) Kerch, Steve
An Unusual Builder's Twist
For about $150 per square foot, home buyers can purchase a framing package from Acton, MS-based Deck House or Seattle-based Lindal Cedar Homes instead of a finished house. The package includes all of the finished wood needed for the home's ceilings, doors, interior trim, stairs, railings, wood siding and cabinetry. The materials, equivalent to between 40% and 60% of the total home price, are delivered to the site and assembled by a local custom builder. Instead of the more common wood stud framing used nationwide, both companies employ a post-and-beam system that lets the roof and exterior walls shoulder part of the building load and allows the owners to place windows and doors wherever they choose. With Deck's package, the builders simply put the panels together; while Lindal's package requires the frames be cut before they are assembled. Regardless of the individual package, builders says they save time and money by receiving all of the lumber at once. After the framing package, buyers need only purchase the foundation, heating and air conditioning system, electrical and plumbing systems, appliances, plumbing fixtures and flooring from their local custom builder. (www.inman.com)
Inman News Features Online (02/28/03) Salant, Katherine
Change of Perspective
The market for high-density housing in the United States is increasing, experts say, and builders are trying to meet this demand with innovative and appealing new residential development. For example, the Watermarke development in Irvine, CA, boasts of 50 units per acre and a host of luxuries that appeal to renters. "People don't mind living in higher-density communities if they get high-quality features and floor plans," says Rob Parker of SARES-REGIS, the builder of the Watermarke community. Watermarke offers hardwood floors, granite countertops, crown moldings, fireplace surrounds and three types of kitchen finishes, Parker says. The need for high-density housing is attributed to a variety of factors, including population growth, family structures and migration patterns. Another important factor is that planners and builders are facing higher housing costs and fewer inventories of land for residential development, says John Martin of Martin & Associates. Many experts say that the lack of affordable housing and a need to revitalize the downtown areas of cities are the two key planning issues confronting the United States. Experts also say that redesigning suburban strip malls so that they feature residential space, retail space and open space will help to limit urban sprawl. (www.multifamilyexecutive.com)
Multifamily Executive (02/03) Vol. 8, No. 2, P. 38; Rombouts, Christine
Wireless Internet Service Quickly Gains Advocates
Providing workers with remote information access through wireless technology is yet another way for businesses to increase productivity. An increasing number of companies are utilizing wireless fidelity (Wi-Fi) technology and wireless Internet service providers to allow employees to work from anywhere with personal computers or laptops equipped with radio cards. Hewlett Packard-Compaq is among the companies preparing to launch notebook computers with standard Wi-Fi capabilities this year, and more hotels and coffee shops are installing fixed wireless broadband networks to provide Internet access to anyone with a Wi-Fi laptop. University of North Carolina Charlotte's Ben Craig Center investment banking services director Mike Wachholz says the technology is becoming more popular due to its low cost. Meanwhile, Elogex Inc. President Travis Parsons believes Wi-Fi networks in central business districts will drive up productivity by allowing workers to access and send documents while in a taxi or on the side of the road. Parsons prefers multi-function devices like the Handspring Treo, which features phone, organization, e-mail and Web capabilities. Its 'always-on' technology and integrated keyboard have increased his productivity and made communication more efficient. (www.charlotte.bcentral.com/charlotte)
Charlotte Business Journal Online (03/03/03) Falk, Brian
Instant Messaging Can Be Useful at Work
Instant messaging (IM) is a valuable tool for virtually any office setting. IM fosters speedy communication between users; and because workers have a real sense that they are connected to the person on the other side, productivity is improved. However, there are also drawbacks to IM. In fact, its always-on capabilities can actually hinder workplace productivity if users engage in social and personal communication. Other potential problems include the threat of viruses and other intrusions due to lack of security; the absence of standards and interoperability between different networks; and the inability to communicate unspoken body language and tones. (www.louisville.bcentral.com)
Louisville Business First Online (02/24/03) Yudakowsky, Chaim
Rentals Go Begging, So Owners Go Condo
With the apartment property sector dealing with the problems of oversupply and waning renter demand, a growing number of multifamily communities are making the conversion to condominiums; and major apartment landlords such as Equity Residential Properties Trust are leading the effort. Apartment landlords have taken their share of hits in this time of weak employment growth, strong home sales and low interest rates; and the result has been that projects that began as rental complexes are now being re-christened as for-sale units before they even hit the market, and longtime rental properties are being switched to condos as well. The conversion trend is particularly noticeable in those markets where home prices have climbed significantly and land for new building projects is scarce. Dale Anne Reiss, head of Ernst & Young LLP's real estate practice, observes that this current conversion trend is similar to one witnessed in the late 1980s. (www.wsj.com)
Wall Street Journal (03/05/03) P. B8; Muto, Sheila
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