Builders

utlook

www.elpasobuilders.com

2015: issue 3

Inventory Hampering Home Sales and

Pushing Prices Higher
Short supplies of existing home inventory
continued to hold back sales in February the
National Association of Realtors (NAR) said today,
but contributed to the fastest annual gain in home
prices in a year. Weather was also a factor, with
lackluster sales in the snow-plagued Northeast
offsetting gains in Sunbelt states.
Nationwide sales of existing single-family homes,
townhomes, condominiums, and co-ops rose 1.2
percent to a seasonally adjusted annual rate of 4.88
million in February from 4.82 million in January.
Sales were 4.7 percent higher than in February
2014, the fifth consecutive month that year-overyear sales increased.
Single-family home sales increased 1.4 percent,
from a seasonally adjusted rate of 4.28 million in
January to 4.34 million. This was 5.9 percent higher
than the 4.10 million pace a year earlier. Condo
and co-op sales were unchanged from January at a
rate of 540,000 units and down 3.6 percent from
existing unit sales in February 2014.
The median price of existing-homes overall in
February was $202,600, which is 7.5 percent above
February 2014. It was the 36th consecutive month
of year-over-year price increases and the largest
gain since an 8.8 percent jump last February. The
median price of a single family home was up 8.1
percent from a year earlier to $204,200 and the
median price of an existing condos was $190.200, a
2.8 percent annual increase.
Inventory, while up slightly in February, remains
0.5 percent below levels one year ago. At the end
of February there were an estimated 1.89 million
homes available for sale compared to 1.90 million a
year earlier. This, however, was an increase of 1.6
percent from January although the unsold inventory
remained at a 4.6 month supply given the slightly
increased rate of sales.
Lawrence Yun, NAR chief economist, said sales,
though up modestly in February, have stagnated
somewhat in recent months. "Insufficient supply
appears to be hampering prospective buyers in
several areas of the country and is hiking prices to
near unsuitable levels," he said. "Stronger price
growth is a boon for homeowners looking to build

Rally Day:
2015 Capitol visit
encourages membership
The visit to the state Capitol in early March was
eye opening for many of the attendees,
especially those who went for the first time. The
Texas Capitol is always buzzing when they are in
session as so many lobbying groups from
thousands of businesses and interests converge
on the steps. This year the Texas Builders were
just one of a dozen groups visiting the
representatives and senators hoping to get just a
few minutes of their very valuable and seemingly
tight schedules.
Read and See more> Page 7

additional equity, but it continues to be an obstacle

for current buyers looking to close before rates
rise."
A NAR study released in March found that the
disparity between rent and income growth is
widening in metro areas throughout the country and
is making it harder for renters to become
homeowners. "With all indications pointing to a rate
increase from the Federal Reserve this year perhaps as early as this summer - affordability
concerns could heighten as home prices and rents
both continue to exceed wages," Yun said.
The percent share of first-time buyers was 29
percent in February, up from 28 percent in January
and the first increase since last
November. Individual investors purchased 14
percent of homes, down from 17 percent in January
and 67 percent paid cash for their home purchases.
Cash sales overall accounted for 26 percent of
transactions, down 1 percentage point from January
but significantly lower than the 35 percent of cash
sales in February 2014.
Eight percent of February's sales were
foreclosures and 3 percent were short sales with the
total of distressed sales unchanged at 11 percent
for the third straight month. Foreclosures sold for
an average discount of 17 percent below market

value in February (15 percent in January), while

short sales were discounted 15 percent (12 percent
in January).
"Investor sales are trending downward due to the
continued rise in prices and fewer bargains
available from distressed properties coming onto the
market," says NAR President Chris Polychron.
"Furthermore, Realtors in areas popular to foreign
buyers, such as South Florida and the West Coast,
are reporting tempered demand from international
clients - who typically pay in cash - due to the
strengthening U.S. dollar compared to foreign
currencies."
The typical marketing period for properties in
February was 62 days, down from 69 in January.
Short sales were on the market the longest at a
median of 120 days, foreclosures sold in 58 days
and non-distressed homes took 61 days. Thirty-four
percent of homes sold in February were on the
market for less than a month.
February existing-home sales in the Northeast
dropped 6.5 percent to an annual rate of 580,000,
but are still 3.6 percent above a year ago. The
median price in the Northeast rose 3.3 percent from
a year earlier to $241,800.
Sales were at an annual level of 1.08 million in
the Midwest, unchanged from January and 4.9
percent above February 2014. The median price in
the Midwest was $152,900, up 8.8 percent from a
year ago.
Yun noted that "Severe below-freezing winter
weather likely had an impact on sales as more
moderate activity was observed in the Northeast
and Midwest compared to other regions of the
country."
Sales were up 1.9 percent in the South to an
annual rate of 2.11 million units, 6.0 percent higher
than the previous February while prices rose 8.5
percent to a median of $177,900.
The West had an increase in sales of 5.7 percent
to a rate of 1.11 million, 2.8 percent higher than a
year ago. The median price in the West was
$290,100, a 4.2 percent annual gain.
by: Jann Swanson MND Newswire

Builders Outlook

NATURAL GAS IS
YOUR KEY TO HOME SALES.
By installing natural gas in your new homes and developments, youre
opening the door to added value for potential buyers.
Natural gas kitchens sell themselves, and natural gas furnaces, water heaters
and clothes dryers offer greater efficiency and lower operating costs than
their electric counterparts.
For more information on how to use natural gas to turn prospects into
buyers, contact Eduardo Lucero at ealucero@txgas.com or (915) 680-7216.

2015 issue 3

2015 issue 3

Builders Outlook

Presidents Message
Edgar Montiel
President,
El Paso Association
of Builders

I would personally like to thank

everyone that attended this year's Rally
Day in Austin. It was fantastic. We were
able to meet and discuss our concerns
with the new 2015 energy code
regulations, and a variety of other
proposed bills, with Representatives
Joe Pickett, Joe Moody, Mary
Gonzalez, Marisa Marquez, Cesar
Blanco, and Senator Jose Rodriguez.
They were very welcoming and
receptive of our concerns. Ray and
Margaret Adauto did an incredible job of
setting up the appointments to meet
with each of them, organizing the
materials to present to them, and

Springing into action at EPAB

escorting us around the capitol. Thank
you both! Also, thank you Tropicana
Homes for sponsoring that evening's
dinner at Fogo de Chao. I believe that it
was the most attended Rally Day by the
EPAB in a very long time if not ever. If
you were with us in Austin, please make
sure you tell another member how
incredible the experience was and how
they should start making plans to attend
in 2017.
Our Spring Golf Event is quickly
approaching as is the Parade of
Homes. The golf tournament is on April
10th at the Horizon City Golf and
Conference Center. Thank you to all of

this year's participants and sponors as

this would not be possible without you.
This event is always a blast and this
year's should be more of the same.
The Parade of Homes at Rio Valley
Subdivision will be April 18th through
May 3rd. The preview party will be April
17th and tickets are on sale now. I
would like to thank our Immediate Past
President and Parade Chair Frank
Torres of GMF Homes for all of his hard
work in organizing this event. The
Spring Parade will feature homes by
Accent, BIC, New Traditions by Mark
Winton, Palo Verde, Pointe Homes, and
Winton Flair. I would encourage all

builders to consider participating in the

next Parade of Homes. It not only
showcases your home to thousands of
attendees but it also raises money for
our association. Thank you also to our
amazing sponsors.
Remember that our next General
meeting is April 8th at Noon at the El
Paso Club. Our guest speakers will be
from the El Paso Inc. and WhatsUp!.
We invite you to bring a friend in the
industry with you. I look forward to
seeing you there!

Your Online Showroom for

New Homes

Builders Outlook

2015 issue 3

Perspective
Ray Adauto,
Executive
Vice President
EPAB

There are a lot of tough issues

facing the new home building industry
right now. It is something that is hard
to put your finger on because even the
brightest minds in the world are not in
agreement as to what is causing some
of them. Id like to put my spin on
what I think is happening, so bear with
me as I look at it through my eyes.
Allow me this: the overall economy is
not good. It is trying to recover from a
bad 2014 and I believe that it doesnt
matter what work you do or what
industry youre in the same is true.
Retail, food service, advertising,
manufacturing, electronicsI hear the
same thing over and over. Its tough
out there and its not getting any
easier. I support the local eateries and
all I hear from those folks is that costs
keep going up and competition is
heating up, especially from franchises
or chains. I also hear that they have
trouble paying their taxes, hiring help,
and taking home any profits. And
please dont get them started on the
regulations and regulators, because
youll get an earful. Like our industry
the restaurant industry must stay
engaged with local, state, and national
issues and politics. They find the

A different spin on why the housing market

is not spinning upward
same kind of silliness and
vindictiveness that we do in some of
those politicians and inspectors so its
incumbent on them to stay in touch
with the politics of business. My good
friend Leo Duran, the proprietor of L&J
Caf is engaged. He tells me stories
about their issues that mirror ours.
Leo is working hard to make sure that
his business and those of the local
restaurateurs are at the table in Austin
rather than as the main course. Sound
familiar right? So my first theory on
our current issues is that we are not
alone. Doesnt make it any better but
it also tells me that theres an
undercurrent of the same permeating
all businesses. Theres something
wrong here because as we all know,
using the restaurants as an example,
try getting into one on Friday or
Saturday nights, especially if you have
a party of six or more. (Ok, so some
of these places dont or wont take a
reservation, as you already know).
Where is that money coming from?
Heres thought number two: theres a
huge underground economy working in
El Paso. So, you think, whats wrong
with that? In home building it cant be
used to qualify for a loan. Theres no

mortgage company willing to take your

word for it that you have money stuffed
in your abuelitas coffee can. Nope,
you have to have records, bank
records, credit card records, tax
records. The money in the can isnt
legit. And so you have the money
circulating at bars, eateries, the movies
and on cable TV. Thats why you see
so many payment centers in places
like Albertsons and Fox Plaza, places
you can pay your utilities with cash.
But then you cant qualify because you
cant claim that cash as legit when you
apply for a home loan. The other
problem, associated with cash is that it
eventually runs out. One day youre
flush, the next youre eating leftovers.
Story of El Paso, and surprisingly the
story of other places as well. Housing
isnt doing well in Albuquerque or
Tucson, not doing well in Las Vegas
either. Probably not doing well in
Phoenix either but certainly not doing
well in California. But I bet they have
the same problem getting a table or
standing in line at the clubs and
restaurants. Its a cash thing there as
well.
So if we know some of the problems
what do we do about them? Ah, thats

the genie that has yet to come out. Its

one that eludes us from time to time.
But a clue should be that we are living
in a time of confusion and uncertainty.
You have to hedge your bets, you cant
use yesterday as a template, but
rather you have to adjust that template
on a daily basis.
This coming Parade of Homes
has more moderate priced homes, all
with some very cool amenities, but
different from past Parades. These are
homes that built for our economy, one
that our folks can buy and can qualify
for. Its a shift but it is directly a result
of the economy. No builder is going to
build a taj mahal spec home in these
times, even for a Parade.
Ive offered some food for thought,
so now its your turn. Let me know if I
gave you something to ponder or if you
have solutions to your thoughts on the
subject. Id welcome an op-ed piece to
share other ideas and potential
solutions. Afterall, its the economy we
live in, not the one we hope for.

2015 issue 3

Builders Outlook

Industry News
Builder Confidence
Drops Two Points
in March
Builder confidence in the market for
newly built, single-family homes in
March fell two points to a level of 53
on the National Association of Home
Builders/Wells Fargo Housing Market
Index (HMI) released today.
Even with this slight slip, the HMI
remains in positive territory and we
expect the market to improve as we
enter the spring buying season, said
NAHB Chairman Tom Woods, a home
builder from Blue Springs, Mo.
The drop in builder confidence is
largely attributable to supply chain
issues, such as lot and labor shortages
as well as tight underwriting
standards, said NAHB Chief
Economist David Crowe. These
obstacles notwithstanding, we are
expecting solid gains in the housing
market this year, buoyed by sustained
job growth, low mortgage interest rates

and pent-up demand.

Derived from a monthly survey that
NAHB has been conducting for 30
years, the NAHB/Wells Fargo Housing
Market Index gauges builder
perceptions of current single-family
home sales and sales expectations for
the next six months as good, fair or
poor. The survey also asks builders
to rate traffic of prospective buyers as
high to very high, average or low to
very low. Scores for each component
are then used to calculate a seasonally
adjusted index where any number over
50 indicates that more builders view
conditions as good than poor.
Two of the three HMI components
posted losses in March. The
component gauging current sales
conditions fell three points to 58 while
the component measuring buyer traffic
dropped two points to 37. The gauge
charting sales expectations in the next
six months held steady at 59.
Looking at the three-month moving
averages for regional HMI scores, the
Northeast and South each posted a

two-point drop to 43 and 55,

respectively. The Midwest rose two
points to 56, while the West fell seven
points to 61.

Housing Starts Fall

17 Percent in
February
Nationwide housing starts dropped
17 percent to a seasonally adjusted
annual rate of 897,000 units in
February, according to newly released
data from the U.S. Commerce
Department.
This drop is not surprising based on
our recent surveys, but our builders
continue to show cautious optimism in
the months ahead, said NAHB
Chairman Tom Woods, a home builder
from Blue Springs, Mo.
Februarys numbers indicate that
wavering consumer confidence
continues to impact the housing
recovery, said NAHB Chief Economist
David Crowe. Buyers are waiting for a

stronger, more reliable economy

before making a home purchase, and
builders are responding to their
reluctance. Even with this months
drop in production, we expect the
housing market to move forward this
year in step with an improving
economy.
Single-family housing production fell
14.9 percent to a seasonally adjusted
annual rate of 593,000 in February
while multifamily starts dropped 20.8
percent to 304,000 units.
Combined single- and multifamily
starts decreased in all regions of the
country, with the Northeast, Midwest,
South and West posting respective
declines of 56.5 percent, 37 percent,
2.5 percent and 18.2 percent.
Overall permit issuance was up 3
percent in February to a rate of 1.092
million. Single-family permits
decreased 6.2 percent to 620,000
units while multifamily permits rose
18.3 percent to a rate of 472,000 units.
Regionally, the Midwest, South and
West registered permit gains of 6.1
percent, 7.3 percent and 2.2 percent,
respectively, while the Northeast
posted a 17.4 percent loss.

Lakisha Woods
Named NAHB Chief
Marketing Officer
A W A R D E D

TEXAS BUILD E R O F THE Y E AR

2013

We build so you can GROW

The National Association of Home

Builders (NAHB) today announced the
promotion of veteran staff member
Lakisha Woods, CAE to Chief
Marketing Officer.
This position will oversee all
revenue-generating programs
unrelated to NAHB's International
Builders Show exhibit space sales.
Such activities will include sponsorship
sales and partnerships with major
national companies. The position also
will identify new business opportunities
and handle NAHB branding and public
image initiatives.
Lakisha Woods brings a wealth of
expertise to this important leadership
position, said Jerry Howard, NAHBs
chief executive officer. Increasing nondues revenue and managing our brand
are critical ventures, and I have no
doubt Lakisha will excel in these
capacities. She inherits an
exceptionally talented staff who are
equally committed to serving NAHB
and our members.
Woods assumes this top marketing
position after 10 years as vice
president of NAHBs publishing and
affinity programs. In this capacity, she
and her team developed member
benefit programs, created and sold
online subscription services, and
published resources for home builders.
Prior to joining NAHB, Woods was the
executive director of marketing and ebusiness for the Associated General
Contractors of America.
NAHB has long been the
recognized leader for housing
advocacy, Woods said. I now have
the privilege of working with a
collaborative and professional team to
further the NAHB brand while
delivering real value to builders,
remodelers and home buyers.

Builders Outlook

2015 issue 3

The Economy

Higher Wages: When and Why?

Last year 3.2 million net new jobs
were created, the best performance
since 2000, and total employment is
now several
million higher
than it was
before the
recession began.
In addition, the
unemployment
rate which is
5.7% continues
to fall and should
be at or near 5%
Elliot Eisenberg
by year end, a
level economists
consider full employment. All of this
good news, yet serious problems
remain. The labor force participation
rate (LFRP) is at levels last seen in
1978, which makes the unemployment
rate look better than it really is and
after adjusting for inflation, wages have
been declining for years. What is
going on?
The LFPR peaked at 67.3% in
January 2000 and had had already
fallen to 66% by the start of the Great
Recession in January 2008, suggesting
that other forces beyond the weak
economy were already at work pushing
it down. That said, by the end of the
Great Recession in June 2009, the
LFPR was down just half-of-onepercentage-point to 65.5%. Normally, it
then would have started rising as the
improving economy pulled unemployed
workers back into the labor force from
the ranks of the unemployed. Instead,
the LFPR went into free fall, hitting a
low of 62.8% in October 2013 where it

has remained since.

The decline in the LFPR from 66% to
62.8% not only represents a loss of
four and a half million workers, but also
has no historic precedent. That said,
much of the decline was inevitable.
About half the decline is due to
demographics. That is the number of
Baby Boomers who are retiring is
currently vastly outpacing the number
of new entrants into the labor market.
Exacerbating this trend is that todays
youngsters are better educated and
thus spend longer in school than earlier
generations, further delaying their
entrance into the world of work.
Another quarter of the decline is due
to the severity of the recent recession,
and the remaining 25% decline is
simply unexplained. These might be
people who are obtaining additional
education, receiving disability
insurance and may or may not work
again, those who have become
unemployable and those who simply
gave up. Whatever the cause,
knowing how many people in this
category return to work is critical to
understanding what lies ahead.
Some have returned, some will
return and some will never return.
However, no matter what happens to
those persons, close to 10,000 Baby
Boomers retire every day. As a result,
the fact that the LFRP has not fallen
since October 2013 suggests these
discouraged workers are returning.
Were that not the case, the LFRP
would have continued falling. So flat
really is the new up!
Looking to the future, the greater the

ElPasoDisposal

772-7495

number of these discouraged workers

who return to the labor force, the
slower the decline in the
unemployment rate will be, the higher
the LFRP will be but perhaps most
importantly, the slower wage growth
will be. And thats the kicker. By
contrast, if discouraged workers stop
returning to the labor force, the
unemployment rate will fall faster and
wages will start rising more quickly but
it would also mean that millions of
previously employed persons have
given up on work and that is very bad.
Ideally, discouraged workers will

ome
Your New H va

Su Casa Nue
e best time
NOW is th
new
ur
yo
to buy
Paso!
home in El

Ahora es el
ra
tiempo pa
comprar
eva
una casa nu
en El Paso!

continue returning and wages will

remain flat for a while longer but will
eventually start rising. Unfortunately,
my guess is that relatively few
discouraged workers who have not yet
returned will. As a result, expect wage
growth to start rising sooner, probably
by year end.
Elliot Eisenberg, Ph.D. is President of
GraphsandLaughs, LLC and can be
reached at Elliot@graphsandlaughs.net.
His daily 70 word economics and policy
blog can be seen at www.econ70.com

Help support the

El Paso
Association of
Builders and
reach your target
market!

Reserve your advertising space in the 2015 edition of

Your New Home/Su Casa Nueva

Showroom:
2131 Missouri
915 533 6045

fax 533 6096

Thomas R. Brown, Owner

The most complete home buying guide in both

English & Spanish

This issue will include:

New mortgage information
Unique dual language layout
Great advertising opportunities
Call Margaret today at 778-5387

2015 ISSUE 3

Builders

Builders Outlook

utlook on the scene |

Rally Day
Continued from page 1

By Ray Adauto, EPAB

Our day started with a great visit with

State Senator Jose Rodriguez who
welcomed our early members. The meeting
was very cordial and found the Senator very
well versed in the issues we presented him.
I want to thank all of you for making the trip
to my office and presenting me with your
issues, the Senator told the group. You
are always to the point and I appreciate that
very much, he continued. Indeed the visit
was quick but loaded with the primary
issues we along with the Texas Association
of Builders needed to bring to him. Bobby
Bowling IV, Randy Bowling, Greg Bowling
and our president Edgar Montiel each had
time with the Senator as the group awaited
the arrival of the larger group flying in that
morning. I think that Senator Rodriguez
has a keen grip on what we stand for and
for what new home construction means to
his constituents, said Bobby.
From that meeting the group assembled
in the Rotunda as the entire delegation from
the EPAB arrived ready to go on the hunt.
Our first assignment was a group picture
taken indoors for the first time in years
because of the rain and cold outside. The
group then met with our senior
representative Joe Pickett, who as always,
welcomed everyone into his larger than life
office. His chief of staff Michael Breitinger,
the former director of the Downtown
Development Association also was there.
This is one of the largest groups that Ive
seen you have in the time Ive been in
office, said Mr. Pickett. I know most of
you from a long time ago, including Rudy
Guel, who keeps tabs on me pretty closely,
Pickett continued. Rudy just smiled and
enjoyed the spotlight pointed straight at him.
The visit to each of the other State Reps
lasted all afternoon long. Representatives
Marisa Marquez, Joe Moody, Mary
Gonzalez and first termer Cesar Blanco all
welcomed our delegation with open arms
and questions. Im thrilled that the builders
have placed my HB 74 as a priority as this
is the first time any organization has made
a statewide commitment to any of my bills,
said Representative Gonzalez. TAB looked
at the hundreds of bills affecting housing
and selected five to push to the entire
legislature and Representative Gonzalezs
bill made the list. Im going to frame this
and place it on my wall to show others that
my legislation is important, Gonzalez
mused. Our group was so large that we
held the meeting with Representative
Gonzalez in the hall way, much to surprise
of her neighbors. She was heard telling the
other reps that she was blown away by the
size of our group. Only El Paso has the
commitment to come and visit likes this,
she said.
Our visit to the Capitol over the group met
at the Driskill Hotel, home of the TAB Rally
Day events, and shared some private time
with visiting Representatives and their
staffs. Our next Rally Day wont happen
until 2017 when the legislature convenes
again. Meanwhile members of the
association continue to trek to Austin to
make sure our message, and the voice of
the industry, is heard until the final gavel.

Special Report

Residential Construction Employment across States and

Congressional Districts according to 2013 Census
By Natalia Siniavskaia, Ph.D.
Economics and Housing Policy Group
National Association of Home Builders
HousingEconomics.com

The most recent American

Community Survey (ACS) data show
that, including self-employed, 8.9 million people worked in construction in
2013. NAHB estimates that out of this
total, close to 3.5 million people
worked in residential construction,
accounting for 2.4 percent of the US
employed civilian labor force. These
numbers reflect modest job gains that
took place since 2011 when construction employment bottomed out.
Nevertheless, the industry employment levels remain far below the
peaks reached during the housing
boom when more than 11 million
worked in construction, and home
building employed more than 5 million
people, including self-employed workers.
New NAHB estimates also allow
analyzing the distribution of home
building jobs across states and congressional districts. Congressional
district estimates are particularly useful to highlight the importance of
home building to voting constituency
residing in the district. The NAHB
estimates show that the average congressional district has close to 7,900
residents working in residential con-

struction but that number is often significantly higher and actually exceeds
16,000 in Montanas single
Congressional district.
New NAHB home building employment estimates only include workers
directly employed by the industry and
do not count additional jobs created
through the ripple effect when building
material suppliers, furniture producers, landscaping and other dependent
industries hire workers in response to
shifting demand for their products and
services triggered by residential construction.
Data Sources and Methodology
NAHB estimates of residential construction employment by state and
congressional district rely on the two
main sources of data: the American
Community Survey from the US
Census Bureau and the Quarterly
Census of Employment and Wages
(QCEW) compiled by the U.S. Bureau
of Labor Statistics (BLS).
The ACS surveys households rather
than businesses and, consequently,
covers self-employed workers in addition to workers employed by private
companies, government and nonprofit groups. Because of this broader
employment definition, the ACS
employment numbers exceed the
estimates based on surveys of businesses with payroll employees, such

as the QCEW, but count voting constituencies and reflect the political
importance of home building more
accurately. In addition, the ACS
employment estimates are available
not only by state and metro area but
also by congressional district, something that no other employment data
source can offer.
Counting self-employed is particularly important in the construction
industry where they traditionally make
up a larger share of the labor force. In
fact, the construction sector registers
one of the highest shares of selfemployed among all industries.
According to the 2013 ACS, one out
of four construction workers is selfemployed, while an economy-wide
average does not reach 10 percent of
the employed labor force.
The drawback of the ACS is its limited construction industry information,
particularly, it does not differentiate
between residential and non-residential construction. In contrast, the
Quarterly Census of Employment and
Wages data specify whether employees work in commercial or residential
building. Furthermore, the QCEW differentiates between residential building construction, land subdivision and
residential specialty trade contractors.
The QCEW data come from quarterly
tax reports filed by employers covered by various unemployment insur-

ance programs, and, in essence,

amounts to a virtual census of businesses with payroll employees.
However, it completely misses selfemployed workers.
The 2013 QCEW data show that
residential specialty trade contractors
account for close to 71 percent of all
private payroll jobs in the home building industry (see Figure 1). This is
consistent with a 2012 NAHB survey
showing that two-thirds of single-family builders subcontract out at least 75
percent of their work. Residential
building construction (which includes
single-family and multifamily builders,
whether they build on their own land
or land owned by a homeowner or
investor, and residential remodelers)
accounts for 27 percent. The remaining 2 percent are in land subdivision.
To account for self-employed workers and, at the same time, have
access to the detailed industry structure information, NAHB Economics
combines data from the ACS and
QCEW. First, the share of residential
construction is estimated for each
state based on the QCEW data.
Residential building construction, residential specialty trade contractors and
land subdivision are combined to form
residential construction, or home
building. The resultant state shares
are then applied to the ACS data to
break construction workers into resi-

Builders Outlook Issue 3 2015

dential and non-residential. The estimates assume that, within each state,
the share of construction workers who
work in the home building industry is
the same whether they are selfemployed or working as employees of
a construction company. This, probably, results in a somewhat conservative estimate, because the selfemployed share in residential construction, especially, in remodeling, is
likely to be greater than in non-residential.
Construction Self-Employed
through the Housing Boom and
Bust
The 2013 ACS shows that 8.9 million workers were employed by the
construction industry in 2013. This is
still 2.2 million fewer jobs than in
2006, at the peak of the housing
boom, but, nevertheless, reflects the
second year of steady albeit minor job
gains (see Figure 2).
The ACS data also highlight the
high reliance of the industry on selfemployed workers. The high selfemployment rates in construction
reflect a common practice of builders
and remodelers to maintain relatively
small payrolls and rely on subcontractors for a large share of the construction work. Interestingly, self-employment rates in the construction industry were rising during the housing
downturn and increased from 24 percent in 2006 to more than 26 percent
in 2010. Once the situation stabilized
and construction started gaining jobs,
the self-employment rates reversed
their course in 2011 and fell below 25
percent by 2013 (see Figure 2).
During the downturn builders and
remodelers who were no longer able
to maintain a steady work flow may
have tried to manage costs by eliminating payroll positions and joining
the ranks of the self- employed. It is
also possible that some construction
employees laid off during the downturn were able to stay in the industry
by striking out on their own. The most
recent data suggests the opposite hiring trends started to emerge, with
construction picking up new payroll
jobs but losing self- employed construction workers. The ACS data
show that from 2011 to 2013, construction gained close to 400,000 private payroll jobs but lost selfemployed workers. This helps explain
why builders have reported more
extreme labor and subcontractor
shortages than commonly cited numbers based only on payroll employment suggest.
Residential Construction
Employment across States
NAHB estimates that, out of 8.9 million people working in construction in
2013, close to 3.45 million people
worked in residential construction,
accounting for 2.4 percent of the US
employed civilian labor force. This
represents the second consecutive
year of modest employment gains for
home building. However, the number
of residential construction jobs
remains well below the peak levels
the industry reached in 2006 when,

according to the NAHB estimates,

more than 5 million people worked in
residential construction.
Not surprisingly, the most populous
stateCaliforniaalso has the most
residential construction workers.
Almost half a million California residents worked in home building in
2013, accounting for 2.9 percent of
the state employed labor force. Both
numbers are still significantly down
from the 2006 cyclical peak. At that
time, California was home to more
than 788 thousand residential construction workers. This translates into
a loss of more than 290,000, or 37
percent of home building jobs since
2006.
Despite being one of the states
most severely affected by the housing
downturn and losing almost half of its
home building jobs (see Figure 3),
Florida still comes in second with 295
thousand residential construction
workers. Florida has fewer residents
than Texas and about as many as
New York but owing to its large vacation and seasonal housing stock,
employs more residential construction
workers. In Florida, residential construction workers account for a relatively high 3.5 percent of the
employed state labor. Even though
this share is well above the national
average, it is drastically lower than in
2005 when Florida registered the
highest share among all 50 states
and the District of Columbia, 6.2 percent.
Among the states hardest hit by the
housing downturn and slowest to
restore home building jobs are
Nevada, Arizona, and New Mexico
still showing job losses of 57.3, 51.5,
and 49.7 percent, respectively.
Despite these significant job losses,
home building in Nevada and Arizona
continues to employ a relatively high
share of local workers 2.9 and 2.5
percent of the employed civilian labor
force.
Job losses across the states look
massive but, in general, reflect the
scale of the unprecedented housing
downturn that the industry went
through in recent years. Other measures of residential construction activity, such as total housing starts and
permits, all capture the same familiar
pattern with home building activity
peaking in 2006 or 2007 in some
states, plummeting to a historic low
by 2010 -2011 and only showing a
modest level of recovery in recent
years.
While most states were not yet able
to recover home building jobs lost
during the housing downturn, residential construction in North and South
Dakota, fueled by the local oil fracking
boom, employed more people in 2013
than in 2006. The positive job creation momentum even spilled over to
neighboring Nebraska where home
building generated more jobs in 2013
than in 2006, even though the 2013
level remained below the local
employment peak Nebraska reached
in 2007.
Similarly to Florida, states with high
prevalence of seasonal, vacation
homes, top the state list with the high-

est share of residential construction

workers in 2013. Idaho with almost 4
percent of the employed labor force
working in home building takes the
top spot on the list. In addition to
Idaho and Florida, five other states
register shares of residential construction workers that exceed 3 percent: Vermont (3.8 percent), Montana
(3.3 percent), Maine (3.2 percent),
Utah (3.2 percent) and New
Hampshire (3.1 percent).
Interestingly, construction workers
in these states are more likely to be
self-employed. Notably, Vermont,
Montana, New Hampshire and Maine
have the highest shares of selfemployed construction workers in the
nation, with more than a third of their
construction workforce being selfemployed. In Vermont the share of
self-employed actually exceeds 40
percent. It is likely that long distances
between home building sites in these
states make moving workers between
job sites logistically difficult and
expensive and force local builders to
look for subcontractors more conveniently located to a particular job or
housing start. The New England
states are also know for taking the
longest time to build a house. With
economies of scale hard to reach on
construction sites that are spread
geographically and take longer to
complete, the builders are less likely
to keep payroll workers but rather outsource a larger share of the construction work, thus explaining high selfemployment shares in these states
that go together with elevated shares
of residential construction workers in
local labor force. Nevertheless, these
high shares are below the selfemployment peak levels these states
registered in the midst of the severe
housing downturn.
Residential Construction Workers in
Congressional Districts
The detailed geographic coverage
in the ACS also allows RC employment to be estimated by
Congressional district (see Table 2).
In 2013, the average Congressional
district had around 7,900 residents
working in residential construction,
considerably down from the average
of more than 11,000 workers in 2005.
Figure 4 helps visualize the distribution of RC workers across the
Congressional districts. Perhaps
somewhat surprisingly, many areas
that were once booming and consequently hardest hit by the housing
downturn still show higher than average numbers and shares of residential construction workers.
Montanas lone Congressional district (Rep. Ryan Zinke R) registers
the record number of residential construction workers among all districts
(excluding Puerto Rico) 16,165.
Idahos 1st (Rep. Raul Labrador R)
comes second with more than 15,000
employed in home building. Texass
29th District (Rep. Gene Green D)
that serves the eastern part of the
Greater Houston area is a close third
with just under 15,000 residential construction workers residing there. The
top ten list also includes two districts
in the state of Florida. The 9th district

(Rep. Alan Grayson D) that includes

Eastern Orlando has 14,882 and the
18th (Rep. Patrick Murphy D) in
Southeastern Florida has 14,066 residential construction workers. Two districts from California also made the
top ten list the 29th district (Rep.
Tony Cardenas - D) and 50th (Rep.
Duncan D. Hunter - R) register
14,244 and 13,756 residents working
in the home building industry. The
remaining districts on the top ten list
are Colorados 7th (Rep. Ed
Perlmutter D) and Utahs 4th (Rep.
Mia Love R) each registering
around 14,000 residential construction workers. New Yorks 1st district
(Rep. Lee Zeldin R) concludes the
top ten list with more than 13,000
home building workers residing there.
By design, Congressional districts
are drawn to represent roughly the
same number of people. So generally,
large numbers of residential construction workers translate into high shares
of RC workers in their district
employed labor forces. The 29th
District of Texas has the highest
share of residential construction workers in its employed labor force, 4.8
percent. Floridas 18th and 19th
Districts are close behind with 4.7 and
4.5 percent.
At the other end of the spectrum
there are several districts that contain
parts of large urban areas: the District
of Columbia (Rep. Eleanor Holmes
Norton D), the 12th of New York
(Rep. Carolyn Maloney D), located
in New York City, and Illinoiss 7th
District (Rep. Danny K. Davis D)
that includes downtown Chicago.
Most residents in these urban districts
tend to work in professional, scientific,
and technical services. The District of
Columbia stands out for having the
lowest number of RC workers residing in the district, less than 1,600. At
the same time, it has a disproportionally large share of public administration workers. The 12th District of New
York, as well as the 7th District of
Illinois are home to a very large group
of finance and insurance workers.
Conclusion
The new estimates show that
despite losing thousands of jobs during the housing downturn, the home
building industry employs a substantial number of workers in most parts
of the country. The average
Congressional district has close to
7,900 residents working in residential
construction but the number can be
twice as high or higher, and actually
exceeds 16,000 in Montanas AtLarge Congressional District.
Considering that the estimates only
include workers directly employed by
the industry and do not count jobs
created in related industries through a
home building ripple effect such as
design and architecture, furniture
making, building materials, landscaping, etc. - the true impact of residential construction on local employment
is underestimated.

10

Builders Outlook

2015 issue 3

Expert Advice

Keeping it SIMPLE: Retirement

Plans for Small Businesses
Joe Bernal
Employees
Benefits of
El Paso

The percentage of workers younger than

40 who considered their retirement program
an important factor in accepting their job
jumped from 28 to 63 between 2009 and
2011, reported Towers Watson. Human
resource managers agree retirement benefits
are important, and 76 percent said they will
increase in importance in the next five years.
Small businesses often lag behind midsized and larger companies in offering
retirement plans to their employees. If the
administrative costs and noncompliance
testing requirements of a regular 401(k)
seem overwhelming, consider offering one of
the SIMPLE retirement plans created
specifically for small employers.
The Simplified Employee Pension (SEP)
Pros:
Easy to establish: Any employer with one
or more employees may establish a SEP
plan, an IRA-based plan funded solely by
employer contributions. The employer adopts
a trust for plan assets and sets up a
separate account for each employee within
the trust. The deadline for establishing the
SEP is the employers tax filing deadline,
including extensions.
Flexible: You can opt to make
contributions or not, as your circumstances
dictate. This makes SEP plans appealing for
employers with variable income. For 2014,
employers can contribute the lesser of
$52,000 or 25 percent of pay.
Simple filing requirements: Employers
must complete IRS Form 5305-SEP or use
an IRS-approved prototype available
through many financial institutions. Once the
plan is in place, the employer has no other
filing responsibilities. No discrimination
testing required.
Tax advantages: Employers can deduct
contributions they make to employees
accounts as a business expense.
Contributions do not count toward the
employees taxable income, and their
savings grow tax-free until withdrawn.
Self-employed employers can contribute to
their own accounts: Subject to certain
conditions.
Cons:
No employee contributions: When plans
allow employee pre-tax contributions,
employees can save more and reduce their
in-come taxes, while also reducing the
employers payroll tax liability.
No catch-up contributions: Some plans
allow participants age 50 and older to
contribute an extra $2,500 per year.
Benefits vest 100 percent immediately:
This could limit the plans usefulness as an
employee retention tool.
No participant loans: Unlike some
retirement plans, SEPs do not permit
participant loans.
The Savings Incentive Match Plan for
Employees (SIMPLE IRA)
Pros:
Simple to set up: Any business with 100 or
fewer employees can set up a plan. Any
employee who earns $5,000 or more during
the preceding year can qualify. To establish a
SIMPLE IRA, employers must file either IRS
Form 5304-SIMPLE or 5305-SIMPLE,
depending upon whether or not the
employee selects the financial institution to
receive plan contributions. Once the initial

paperwork is done, there are no annual

filing requirements for a SIMPLE IRA
plan.
Simple administration: As with the
SEP-IRA, there are generally no filing
requirements and no annual
discrimination testing required.
Employers can elect to contribute either
1) a matching contribution of up to 3
percent of the employees compensation
or 2) a 2 percent nonelective contribution
for each eligible employee. Each
participating employee must receive an
annual statement of the contribution
amounts to their account for the year.
Employees share responsibility for
their retirement: Opting for matching
contributions gives employees more skin
in the gameand more interest in their
retirement plan. Employees make
contributions with pre-tax dollars,
reducing their taxable income.
Plans permit catch-up contributions.
Employees aged 50 and over can make

an additional catch-up contribution of

up to $2,500 for 2014.
Cons:
Employers must make contributions:
Employers usually must contribute to
SIMPLE IRAs every year, as long as the
plan is maintained, regardless of
financial circumstances.
Employees can opt not to contribute: If
you have decided to make yours a
matching contribution plan, employees
can opt not to contribute, minimizing the
value of the plan.
Contributions vest immediately: As with
SEPs, all contributions to the SIMPLE
IRA are immediately 100 percent vested.
No participant loans permitted: As with
SEPS, SIMPLE IRAs do allow inservice
withdrawals, subject to income taxes and
early withdrawal penalties, depending
upon the owners age at the time of
distribution.
With SEPs and SIMPLE IRAs, small

businesses can provide employees with

retirement benefits with very little
administrative cost or expense. To qualify
for either of these plans, you cannot
sponsor any other retirement plan. For
more information on SEPs and SIMPLE
IRAs, go to www.irs.gov/RetirementPlans, or contact us for more information
about these and other retirement plan
options for small employers.
The information presented and
conclusions within are based upon our
best judgment and analysis. It is not
guaranteed information and does not
necessarily reflect all available data. Web
addresses are current at time of
publication but subject to change. This
material may not be quoted or
reproduced in any form without
publishers permission. All rights
reserved. 2014 The Insurance 411
Tel. 877-762-7877.
http://theinsurance411.com.

2015 issue 3

11

Builders Outlook

Housing Trends
Boomerang Millennials:

A recent study of Boomerang

Millennials who move out of their parents
home only to move back in may have
important implications for this key
demographic and what it means for the
housing market.
The National Association of Home
Builders (NAHB) examined recent
research conducted by Judith Dey and
Charles Pierret using data from the
National Longitudinal Study of Youth 1997.
The examination found higher incidence of
re-launch for Millennials with a
Bachelors degree compared to those with
a lower education attainment and higher
incidence of re-launch for Millennials
from higher parental income household
compared to lower parental income
households. A re-launch occurs when a
young adult moves out, returns to the
parental household, and then leaves
again.
Understanding the makeup of those
who return home could shed light on the
timing of the release of what we know is
quite a bit of pent-up demand, said NAHB
Chief Economist David Crowe. The data
may indicate that while this age group is
delaying what we think of as typical
milestones, the combination of resources
and education and what we have found
about their preferences suggest growing
housing demand in the years ahead.
Ninety percent of those born between
1980 and 1984 left home before the age of
27 but then more than half returned to
their parents homes. Of that group, those
with a Bachelors degree or higher had the
highest share of returning to the parental
home at 55.5%. Meanwhile, those born
between 1980 and 1984 with a high school
degree had the lowest share returning to
the parental home at 42.1%. When looking
at parental income, the research reveals
that parents in the top half of the income
distribution
experienced
a
higher
occurrence of boomerang children than
those in the bottom half.
Another important difference is gender:
Twelve percent of men in this age group
never left the parental home, whereas
7.6% of women stayed. And although
women are more likely to boomerang, they
are also more likely to leave again.
Studies continue to show that the desire
to own a home remains strong for these
Millennials. Despite data showing that the

age group is delaying household

formation, they remain a key demographic
in the housing market, and the pent-up
demand is expected to translate into
housing growth in the coming years.

Nearly Half of Young

Millennials Boomerang
By Josh Miller
Recent analysis of a survey of a
segment of millennials, those born
between 1980 and 1984, found that 90%
moved out of their parents household by
age 27. Of those moving out, however,
over 50% returned. This return is
sometimes referred as Boomeranging,
moving out of a parental home and back.
This experience has implications for
household formation that are at this point
unknown but worth exploring.
BLS research by Judith Dey and
Charles Pierret takes a step in furthering
our
understanding
of
boomerang
households. The authors use data from
the National Longitudinal Study of Youth
1997 (NLSY97) to examine differences in
the return to the parental home by gender,
educational attainment, and parental
household income. The NLSY97 is a panel
survey of a nationally representative
sample of nearly 9,000 youths. The youth
were surveyed on an annual basis from
1997 through young adulthood.
The analysis of Dey and Pierret reveals
that the share of women returning to the
parental home (50.9%) is slightly higher
than the share of men returning to the
parental home (47.7%). There are,
however, two important considerations.
The first is that men are less likely to leave
the parental home in the first place. For
men, 12% never left the parental home,
whereas 7.6% of women never left the
parental home. Secondly, although women
are more likely to boomerang, they are
also more likely to leave again.
Another interesting result from the
research is that nearly one in four men
born between 1980 and 1984 lived at the
parental home at age 27. For women, the
share of women born between 1980 and
1984 living at the parental home at age 27
was lower at 18.9%. One plausible
explanation for the observed differences
by gender is the persistent difference in
age at first marriage by gender. Marriage is

A Promising Sign for Housing

often a critical component of household
formation and leaving the parental home.
The median age at first marriage has
increased steadily for men and women
since the 1960s, however, the median age
at first marriage for men is about 2 years
older than the median age at first marriage
for women.
In terms of leaving the parental home
and educational attainment, the study
reveals differences but no clear
relationship. Instead, those born between
1980 and 1984 with a Bachelors or higher
had the highest share returning to the
parental home at 55.5%. This was largely
driven by the large share (45.7%) with
Bachelors or higher that leave the
parental home, return, and leave again. An
example of this could be a millennial
graduating and living at home for a short
period of time while looking for
employment and leaving again.
Those in born between 1980 and 1984
with a high school degree had the lowest
share returning to the parental home at
42.1%. This group also had the highest
share that left the parental home and
never returned (44.7%).
In terms of returning to the parental
home and parental household income, the
study reveals differences and a positive
association between the two. Those
parents in the top half of the income
distribution
experienced
a
higher

occurrence of boomerang children than

those in the bottom half. Those in the
highest quartile had the highest share
returning home at 54.4%. Again, this was
largely driven by the large share (42.9%)
that leave the parental home, return, and
leave again. Those in the second lowest
quartile of parental household income had
the lowest share returning to the parental
home at 44.7%. The bottom half of the
income distribution, however, had a higher
share that never left parental home in the
first place.
Although this age group is delaying
household formation, millennials represent
a key demographic for the housing market.
Several attitudinal surveys show that the
desire to own a home remains strong for
millennials despite coming of age during
the Great Recession. Understanding the
make-up of those that return home could
shed light on the timing of the release of
this pent-up demand for housing.
If anything, the study by Dey and Pierret
show that many who return to the parental
home leave again. Those leaving again
tend to be educated and from the highest
income distribution. Thus the data may
indicate that while these individuals delay
in terms of achieving typical life
milestones, the combination of resources
and education, plus typical housing
preferences, suggest growing housing
demand in the years ahead.

12

Builders Outlook

Tropicana Homes hosts rally day group

2015 issue 3

Give your customers

the option of the sun
Now more than ever,
El Paso home buyers
are planning for the
future.

Back around December 2014 Greg Bowling

had announced that Tropicana Homes would
be sponsoring the bi-annual Rally Day dinner
in Austin. The fifth version of the traditional
dinner was held at Fogo De Chao, a Brazilian
style Churrascaria, or Brazilian steak house.
Guests were treated to all you could eat salad
bar and non-stop perfectly open fire grilled
cuts of meat. The concept is an easy one:
youre given a token that has a red side and
a green side. Flip to green and the meat
keeps coming. If youre full then turn it over to
red until youre ready for more. It was easy to
see that most everyone kept the green side
up, as evidenced by our green experts Henry
Tinajero, Sam Shallenberger, and Edgar
Montiel. The flow of meat kept coming until
everyone reached that too much point.
We want to make sure everyone who
made the trip got a chance to have a good
meal, good company and most of all our way
of saying thanks for making the trip, said
Greg. There wasnt anything left to chance as
the dinner party got going. From some of the
pictures that were sent out on Facebook and
by email the fun was real and unending. I
always enjoy coming to the dinner because it
gives us an opportunity to unwind and to visit,
said Rudy Guel. This was fantastic and I
want to thank Greg, Randy and Bobby for
sponsoring the dinner, Guel continued.
President Edgar Montiel agreed. This was

Border Solar can help

you oer your
customers solar power
as a sensible
alternative.

awesome and man did we have a great time.

Henry kept us in stitches, Montiel said. It was
reported that the group seconded the notion
of having fun. This was so good, so much
fun, said Molly Gunn, Tropicana Homes. The
association would like to thank Tropicana
Homes for this outstanding dinner. I cant
thank Tropicana Homes enough, President
Montiel echoed.

Crossing to Clean Energy

7365 Remcon Circle

El Paso, TX 79912
(915) 6134168

The future starts

today.
follow us on twitter and
facebook:
BorderSolar

2015 Issue 3

13

Builders Outlook

Membership News

www.elpasobuilders.com
www.epbuilders.org

UPCOMING EVENTS |
APRIL 8
BOARD MEETING
11:00
GENERAL MEETING
12 NOON
EL PASO CLUB
CHASE BANK BLDG. DOWNTOWN

APRIL 10
SPRING GOLF TOURNAMENT
SHOTGUN AT 10:00 AM
HORIZON GOLF CENTER

APRIL 17
PARADE OF HOMES
PRE-VIEW PARTY
6:00 PM 10PM

MAY 13
BOARD MEETING
12 NOON
EPAB OFFICE

APRIL 18 MAY 3
PARADE OF HOMES
RIO VALLEY SUBDIVISION

RENEWALS |
DEMPSEY APPRAISAL
DEL RIO ENGINEERING
EL PASO BUILDING MATERIALS
JOBE MATERIALS, LP
BASKIND & HOSFORD, P.C.
EL PASO TRUSS

SODA SPONSOR

NEW MEMBERS |
MAK ROOFING & CONSTRUCTION
CONTACT: FELIX VIZARRETA
306 E. PAISANO DR., #587
EL PASO, TX 79901
915-691-0532

DESIGNERS MART
EL PASO DISPOSAL
R. C. BAEZA & ASSOCIATES

REAL ESTATE WEEKLY NEWSPAPER

VONANZA CONSTRUCTION, LLC
CEA GROUP
MC COYS BUILDING SUPPLY
CONDE ENGINEERING
PACIFIC DOOR DESIGN

CULLERS HOMES, LLC

CONTACT: JASON R. CULLERS
7170 WESTWIND DR., STE. 101
EL PASO, TX 79912
915-584-5600

Thanks to our MARCH

SODA SPONSOR:
MOUNTAIN VISTA BUILDERS

SPRING GOLF TOURNAMENT

Friday, April 10, 10 am
Presented by

Great Sponorship Opportunities

Still Available.
Call 778-5387 for info. today!

Jaimes
Courier
Service,Inc.

915-549-4533
or
915-478-2404
Bonded, insured for
your peace of mind.

14

Builders Outlook

2015 issue 3

Associates Council

Sam Shallenberger
Morrison Supply

Hello Everyone. It is spring time and

this is when we get busy, busy, busy!
We have the Spring Pachanga Golf
outing sponsored by Haskins Electric at
Horizon Golf Course on Friday April
10th from 10:00 in the morning until you
drop or go home, your choice. Id like to
thank all of our partners who stepped
up to the tee box and we really
appreciate that. Our Major Partner is
Haskins Electric and Id like to say
thanks to Chuck Haskins and his right
hand Eric for stepping up. We are sold
out of the full 18 teams but we may be

able to accommodate the late some

late comers. The greens are in good
shape and the food is outstanding. We
will have the TINAS (buckets) filled with
your favorite beverages. If you are
interested please call Margret or Ray
and find out if they have room.
Now for the BIGGIE of the coming
month: the famous Parade of Homes
managed by no other than the master
Mr. Frank (Paco) Torres. This promises
to be a huge event with the Preview
Party on Friday April 17th. You can
purchase your tickets from Margret or

Ray for the party for the low price of

$20.00. Plan on an evening of fun while
looking at some of the greatest homes
for the money in the BORDERLAND.
April always turns out to be a jammed
packed month and this year is no
exception. Lets see what it brings and
again for all of our partners in all the
events a huge Thanks!

Advertise your business to the home

building industry
The Builders Outlook is the official publication of the El Paso Association of Builders. Our
award winning monthly newspaper is the only publication to target El Paso home builders and
related businesses.
Widely distributed throughout the city and available to readers online, the Builders Outlook is
an important advertising medium for any business that want to reach this valuable market.

Call 778-5387 today for more information

The options builders asked

for are right here.
Developed with the backing of the strongest insurance carriers
serving the Texas building industry, the exclusive TAB endorsed
insurance program offers new flexible options and rates that are
more competitive than ever before.

Program Highlights
t
i"w
SBUFE
BENJUUFE
JOTVSBODF
DPNQBOJFT
TFWFSBM
PQUJPOT
BWBJMBCMF
t
(-
PFSJOH
DPWFSBHF
GPS
QSPQFSUZ
EBNBHF
UIBU
SFTVMUT
GSPN
GBVMUZ



defective, or poor workmanship in your work
t
(-
MJNJUT
PG
VQ
UP

NJMMJPO
BOE
IJHIFS
BWBJMBCMF
t
&YQBOEFE
QPMJDZ
GPSN
GPS
DPNNFSDJBM
QSPKFDUT
t
#VJMEFST
3JTL
NBTUFS
QPMJDJFT
NPOUIMZ
SFQPSUJOH
BOOVBM
BOE
POF
TIPUT
t
8PSLFST
$PNQ

UXP
IJHIMZ
DPTUFFDUJWF
QSPHSBNT

t
&YDFTT
-JBCJMJUZ
GPS
DPNNFSDJBM
HFOFSBM
DPOUSBDUPST
t
$PNNFSDJBM
6NCSFMMB

Contact your local approved agent today!

El Paso, Permian Basin and Surrounding Area
)6#
*OUFSOBUJPOBM
*OTVSBODF
4FSWJDFT
-BODF
7BO
%FNBO
$-$4

www.builderagentnetwork.com
www.hubinternational.com

Builders

utlook
www.elpasobuilders.com
www.epbuilders.org

6046 Surety Dr. El Paso, TX 79905

915-778-5387 Fax: 915-772-3038
execuTive oFFicerS
edgarmontiel,President
Palo Verde Homes
carlosvillalobos,vicePresident
Pointe Homes
Donrassette,Secretary/Treasurer
Rassette Homes
SamShallenberger,Associateschair
Morrison Supply

TABSTATeDirecTorS
Randy Bowling
Greg Bowling
Sam Shallenberger
NATioNALDirecTorS
Demetrio Jimenez
NATioNALASSociATioNoF
HomeBuiLDerS
(800) 368-5242

TexASASSociATioNoF

JayKerr-Attorneyofrecord
Firth, Johnston, Bunn & Kerr
couNciL/commiTTeecHAirS
Associatescouncil
Sam Shallenberger
BuildPac
Randy Bowling
Landusecouncil
Linda Troncoso
YoungDesignerAward
John Chaney
remodelerscouncil
Rudy Guel
membershipretentiion
Patrick Tuttle
Financecommittee
Kathy Carrillo
Henry Tinajero

ADviSorYToTHeBoArD
Jay Kerr, Firth, Johnston, Bunn & Kerr
James Martinez, Law Office of James Martinez

BuiLDerS
(800)252-3625

2014BuildermemberofTheYear
FrankTorres
GMf Homes
2014PatcoxAward
BretThompson
foxworth Galbraith Lumber
2014AssociatedofTheYear
JoeBernal
Employee Benefits Of El Paso
2014JohnShatzmanAward
Cindy Bilbe, Stewart Title
HonoraryLifemembers
Mark Dyer
Wayne Grinnell
Don Henderson
Chester Lovelady
Cliff C. Anthes
Anna Gill
Brad Roe
Rudy Guel
E H Baeza
PastPresidents
committedtoServe
Greg Bowling
Bobby Bowling, IV
Kelly Sorenson
Rudy Guel
Mark Dyer
Anna Gil
Mike Santamaria
Bradley Roe
John Cullers
Bob Bowling, III
Randy Bowling
Edmundo Dena
Doug Schwartz
Hershel Stringfield
Robert Baeza
Pat Woods

BoArDoFDirecTorS

Antonio Cervantes, BIC Homes

Beverly Clevenger, Automated Div. 6 Builders
Bret Thompson, foxworth Galbraith Lumber
Bud foster, Southwest Land Development Servises
Dan Ruth, Millienium Homes
Henry Tinajero, West Star Bank
Joe Bernal, Employee Benefits Of El Paso
John Chaney, Passage Supply

ePABmissionStatement:
The El Paso Association of Builders is a
federated professional organization representing
the home building industry, committed to
enhancing the quality of life in our community by
providing affordable homes of excellence and
value.
The El Paso Association of Builders is a
501C(6) trade organization.

John Dorney, Dorney Security

Kathy Carrillo, Pioneer Bank
Kathy Parry, Hunt Companies
Leti Navarette, Custom Dream Homes
Linda Troncoso, TRE & Associates
Robert Najera, Joseph Homes
Ruben Orquiz, MTI Ready Mix
Walter Lujan, Dawco Builders

Residential Specialists
Tract Homes Custom Homes

Bobby Bowling IV.

FrankTorres,immediatePastPresident
GMf Homes
rayAdauto,executivevicePresident
Executive Vice President

For All Your Electrical Needs

2015 Builders Outlook

is published and distributed for the
El Paso Association of Builders
by Ted Escobedo, Snappy Publishing
ted@snappypublishing.com
El Paso Texas 915-820-2800

Total Customer
Satisfaction

915-208-9313
602-708-7560