AUGUST 2014 SPECIAL EDITION

INDOOR/
OUTDOOR
TRENDS
ALSO IN THIS ISSUE
WHAT HOMEBUYERS REALLY WANT / 18
OUTSTANDING OUTDOOR SPACES / 20
ENERGY-EFFICIENT HOMES / 27
the new
way to live

The Volume Program

series 600 multi-slide door
 Finisterra
Gilbert, Arizona

westernvolumeprogram.com

“We use the Multi-Slide and Bi-Fold Doors by Western Window Systems in many of our
model homes throughout Arizona and California. These beautiful doors allow us to
create indoor/outdoor living spaces that inspire our customers.”

Andy Pedersen, K. Hovnanian Homes

[FROM THE PUBLISHER]

SPECIAL EDITION

Outside, In 2012 JESSE H. NEAL AWARD

WINNER AND GRAND
AWARD FINALIST

G
ood design can advance big ideas. And sometimes
when big ideas go mainstream, they continually
improve over time. Such is the case with the 50-year
3030 W. Salt Creek Lane, Suite 201
Arlington Heights, IL 60005-5025
847.391.1000 • Fax: 847.390.0408

trend in home building toward outdoor living. STAFF

In the early 1960s, the Deane Brothers sent a shockwave EDITORIAL DIRECTOR | PUBLISHER
Patrick O’Toole
through the building industry by introducing the garden 847.954.7919; potoole@sgcmail.com

kitchen—essentially a kitchen with a sliding glass door open- EDITOR IN CHIEF

Denise Dersin
ing onto a concrete patio or flagstone pavers. Inside of a year, 703.992.7640; ddersin@sgcmail.com
EDITOR
nearly every builder in America offered a garden kitchen. Truth be told, Mike Beirne
847.391.1051; mbeirne@sgcmail.com
that big idea, the garden kitchen, was in reality an iteration on courtyards MANAGING EDITOR
in traditional Mission Style homes, courtyards that later appeared in the Kyle Clapham
847.954.7965; kclapham@sgcmail.com
midcentury modern homes of Joseph Eichler and other builder-developers CONTRIBUTING EDITORS
Melissa Sersland
in California. Susan Bady | Bob Schultz | Scott Sedam

The point is this: Outdoor living is a big idea that’s been a part of home ASSOCIATE EDITOR
Williette Nyanue
building for decades. That is why today’s new homes frequently blur the DESIGNERS
Kelsey Craig | Robin Hicks
lines between indoor and outdoor spaces like never before. And the design GROUP DIRECTOR – PRINCIPAL
iterations keep coming. Tony Mancini
610.688.5553; tmancini@sgcmail.com
Walk through a new model home today and outdoor living options ASSOCIATE PUBLISHER –
BUILDING GROUP
abound. Appliances, pools, fire pits, waterfalls, deluxe barbecues, flat- John Rogier
847.391.1053; jrogier@sgcmail.com
screen televisions—the list goes on. Walk through a new model home today DIRECTOR OF E-MEDIA
and you will see outdoor living spaces, small and large, throughout the plan, Adam Grubb
317.219.7546; agrubb@sgcmail.com
not just adjacent to the kitchen/great room. You see them off the master, EVENTS MANAGER
Judy Brociek
the guest room, in entry courtyards, and adjoining upstairs landing spaces. 847.954.7943; jbrociek@sgcmail.com
The benefits are well known: fresh air, comfort, sunlight, and a very tan- DIRECTOR OF AUDIENCE
DEVELOPMENT
gible increase in living space. With today’s outdoor living options, a modest Doug Riemer
MANAGER OF EDITORIAL &
two-bedroom, 1,600-square-foot home lives like a 3,200-square-foot second CREATIVE SERVICES
Lois Hince
move-up.
MARKETING DIRECTOR
This special issue of Professional Builder is about the advancements in Michael Porcaro
847.954.7925; mporcaro@sgcmail.com
outdoor living. For builders, outdoor-living know-how translates directly to SUBSCRIPTION INQUIRIES
Circulation Department, Professional Builder
satisfied buyers and increased opportunity for sales and profit. 3030 W. Salt Creek Lane, Suite 201
Arlington Heights, IL 60005-5025
One of the clear takeaways from this package of stories is the importance circulation@sgcmail.com
of product innovation. Glass doors have played an enormous role in open- REPRINTS
Heidi Riedl
ing walls and bringing the outside in. Plumbing and appliance manufactur- 920.397.7056, hriedl@sgcmail.com

ers have followed suit with rugged exterior products suited to fending off CORPORATE
foul weather and pests. CHAIRMAN EMERITUS (1922-2003)
H.S. Gillette
Research from the National Association of Home Builders presented in CHAIRPERSON
K.A. Gillette
this issue offers another clear takeaway. Homebuyers increasingly want an
PRESIDENT / CEO
array of outdoor living features. That desire appears to be growing and will E.S. Gillette
SR. VICE PRESIDENT
certainly be met with further design advancements for more and better Ann O’Neill
outdoor living. We think this issue will put you and your team in the right SENIOR VICE PRESIDENT, CFO
David Shreiner
mindset to make your outdoor living programs more effective. PB SENIOR VICE PRESIDENT
Rick Schwer
VICE PRESIDENT OF CONTENT
Patrick O’Toole, Editorial Director/Publisher & CUSTOM MEDIA
Diane Vojcanin
potoole@sgcmail.com VICE PRESIDENT OF EVENTS
Harry Urban

4 Professional Builder August 2014

Professional Builder SPECIAL EDITION
August

18 20

27

6 INNOVATIVE HOME BUILDERS DRIVE

INDOOR/OUTDOOR LIVING TRENDS
Four builders share how outdoor living spaces
influence their floor plans.

18 WHAT HOMEBUYERS REALLY WANT

A recent survey reveals which outdoor features
are getting the most attention.

20 OUTSTANDING OUTDOOR SPACES

How homes at all price points include outdoor
living spaces.

27 ENERGY-EFFICIENT HOMES
ON THE COVER: 2014 Housing Giants gear up for new
The bi-fold doors on this North Scottsdale, Ariz., home mandates with high-performing homes.
open the back wall to a lavish outdoor living area. The
home is part of K. Hovnanian Homes’ Line K at Pinnacle
Peak Place.
PHOTO BY: PATRICK TRAYLOR; ART DIRECTION: JEFF KESAR, WESTERN WINDOW SYSTEMS

www.ProBuilder.com Professional Builder 5

 INNOVATIVE HOME
BUILDERS DRIVE

INDOOR/
OUTDOOR
PHOTO COURTESY OF WARMINGTON RESIDENTIAL

TRENDS
Four builde
builders from California
to Massachusetts
Massach have made
outdoor living
liv spaces a focal
point of their latest floor plans.
 [LIVING TRENDS]

By: Melissa Sersland, Contributing Editor

J
im Boyd, regional president of Toll
Brothers in Orange, Calif., saw the
indoor/outdoor design trend coming
on strong about three years ago.
Now there’s no going back.
“It’s really improved our architecture,” Boyd
says. “This is becoming a national trend. It’s
going to become a big part of all of our archi-
tecture going forward.”
Toll Brothers offered multiple outdoor
living spaces in the homes in its new com-
munity, Baker Ranch, which opened this year.
Warmington Residential in Southern California
and Infinity Home Collection in Denver did
the same in their newest communities, which
opened in April and January, respectively.
“[Outdoor living] is a big part of what
brings people to our community,” says
Mike Williams, vice president of sales for
Warmington Residential. “It creates quite
a buzz. It’s grassroots marketing, bringing
prospective buyers to our site.”
For Daniel Green of the Green Company in
Plymouth, Mass., blurring the lines between
indoors and outdoors is the “whole focus of
our homes right now.”
Incorporating outdoor living spaces is an old
concept; some of Green’s models are based
on Bostonian brownstones built in the 1700s.
But with the advent of larger outdoor living ar-
eas and greater, seamless access, new homes’
outdoor rooms are changing.
Homes built in the ’80s and ’90s incorpo-
rated large windows so homeowners could
feel they were outside, though the delineation
between indoor and outdoor was clear. “That
has evolved to the next step,” Green says.
“We’re integrating the indoors and outdoors.
People want to enjoy the fresh air, the sun-
Loggias in this light, and the experience of being outdoors
Warmington but also experience the comforts of the things
Residential home you do indoors.”
open the great room The key is, Green says, “How do you go
to the outdoors on indoors and outdoors and not notice you’re
either side. making that transition?”

www.ProBuilder.com Professional Builder 7

 [LIVING TRENDS ]
INFINITY HOME COLLECTION BRINGS INDOOR/OUTDOOR
SPACES TO DENVER
Indoor/outdoor spaces are drawing homebuyers to Infinity
Home Collections’ Avanti series, which opened in January.
The Avanti homes, which start from $700,000 to $900,000
and are around 3,500 square feet, offer a covered outdoor
room adjoining the great room, dining room, and kitchen.
The homes are designed to provide an easy access point
from indoors out. Avanti plans include a long, dramatic wall
that will accommodate a 12-foot to 20-foot stacking slider,
depending on the floor plan. That creates a dramatic effect
when you enter through the front door, says John Hovde,
chief operations manager for Infinity. And with 300+ days of
sunshine in the Denver area and the Avanti’s covered outdoor
room, the spaces can be used year-round.
“It’s a big deal and getting to be a bigger deal,” Hovde
says. “It makes the home feel bigger and live bigger. We’ve
always tried to embrace the indoor/outdoor concept and offer
a space that was contiguous.”
While some buyers prefer a private outdoor space, others
prefer a more open, sociable area. A space in the back may
cater to the family and is shielded from the street and neigh-
bors to offer privacy. Infinity also offers a public space in the
front of the home.
PHOTOS: JEFFREY ARON
BUILDER: INFINITY HOME COLLECTION; ARCHITECTURE: WOODLEY ARCHITECTURAL GROUP;
Large windows at the back of the
home create a dramatic effect when
you walk through the front door,
Hovde says. The kitchen, dining, and
living rooms of this Haus series home
all look out to the covered patio.
8 Professional Builder August 2014
The company follows the old saying that “people buy what
they see,” so Infinity provides plenty of opportunity to dem-
onstrate how its outdoor spaces can be used.
“We’re seeing people spend more money on luxuries and
upgrades than we have in the past,” Hovde says.
That can include fireplaces, ceiling fans, lighting, and TV
spaces, all of which are offered to buyers a la carte. Although
Infinity offers some basic packages to furnish the outdoor
room, Hovde says a one-size-fits-all solution didn’t make sense.
“One of the things we’ve found is that these spaces are so
personal that trying to predetermine what those spaces are is
a mistake,” he says. “We try to present a blank canvas and let
people do with them as they see fit.”
Fire pits have been a big hit, normally accompanied by a
nearby sitting area. “We see people use them in the fall out
there roasting marshmallows or just sitting around the firepit,”
Hovde says.
Hovde says more than half of homebuyers decide to include
the stacking glass doors, and the interest in the doors is grow-
ing. Infinity plans to introduce them as an option in some of its
other series of homes: Vue, which starts in the low $600,000’s,
and Haus, which starts in the low $700,000’s.
 [LIVING TRENDS]

Infinity recently introduced stacking glass doors in its new Avanti series. Following high demand, Infinity will introduce the doors as an option in its
other series of homes, such as this Vue home. The glass doors would then become an access point to the covered patio.

Incorporating an indoor/
outdoor living space
makes a home “live
bigger,” Hovde says.

www.ProBuilder.com Professional Builder 9


[LIVING TRENDS]
CHRISTOPHER MAYER
MERCHANDISER: RYAN YOUNG INTERIORS; LANDSCAPE ARCHITECT: SUMMERS MURPHY; PHOTO BY:
BUILDER/DESIGNER: TOLL BROTHERS; ARCHITECT: WOODLEY ARCHITECTURAL GROUP; INTERIOR
This optional California room at the Parkview at Baker Ranch includes an outdoor seating area
and an outdoor kitchen and dining area. While Toll Brothers merchandises the spaces, the builder
has yet to develop packages for these options.
TOLL BROTHERS INCORPORATES COURTYARDS, CALIFORNIA ROOMS
IN ORANGE COUNTY, CALIF.
Toll Brothers’ new community, Baker Ranch, takes advantage
of Orange County’s temperate climate to showcase multiple
outdoor rooms, including courtyards, “California rooms,”
and covered decks. These homes are 2,200 to 3,300 square
feet, and range from $725,600 to $1,136,000. Half of the Baker
Ranch plans include a covered “luxury California living space”
as standard, while the other half includes the room as an op-
tion for $15,000.
“We’re finding people love being outdoors, and they’re
using this area as an extension of their family rooms and great
rooms,” Boyd says.
The “California room” is open on at least two sides to the
outdoors, accessible through optional 22-foot to 24-foot
10 Professional Builder August 2014
YOUNG INTERIORS; LANDSCAPE ARCHITECT: SUMMERS MURPHY; PHOTO BY: CHRISTOPHER MAYER
BUILDER/DESIGNER: TOLL BROTHERS; ARCHITECT: LSA ARCHITECTURE; INTERIOR MERCHANDISER: RYAN
glass doors. The great room and dining areas have views
and access to the California room. Toll Brothers also offers a
second-floor California room in some of its plans overlooking
the backyard.
To make the space feel like another room in the home, Toll
Brothers uses the same hard surface flooring material indoors
and out. In its models, Toll Brothers features art on the walls
and a TV space. Smooth stucco is applied to the walls, and
the space can be wired for indoor conveniences. Heaters
located in the ceilings make the rooms usable on cooler days.
The cost for a 12-foot by 16-foot space can vary from $15,000
to $25,000, Boyd says. A fireplace package is also offered from
$2,500 to $4,500.

Toll Brothers’ Ridgecrest plan at Baker Ranch includes a
standard courtyard attached to the home on three sides. The
courtyard is immediately visible through the covered entry,
and views continue from the foyer to the great room. To tie
the outdoor space to the rest of the home, the same tile from
the foyer continues into the courtyard.
“The idea was to utilize the square footage of the home
and the lot to make it feel like a place that was truly indoor/
outdoor,” Boyd says. “(The outdoor rooms) feel like additional
rooms of the house.”
The result has been a “tremendously positive reaction”
from homebuyers and interest from architects, suppliers,
and consultants. The outdoor spaces are “pretty easy to
sell. Everyone looks at it and gets it,” Boyd says. “Once you
see that great space, it’s hard to give it up,” he adds. And
merchandising the spaces (think outdoor bars, furniture, TVs,
pools and fireplaces) gives homebuyers a place they won’t
[LIVING TRENDS]
This Toll Brothers Sorrento at Amalfi Hills
home includes a lavish outdoor living space
including a pool, outdoor kitchen, and dining
and sitting areas.
want to do without.
As Toll Brothers expands its outdoor living options, the
company has learned how to make California rooms more
functional in other climates. For a reprieve from the Nevada
heat, Toll Brothers encloses the space entirely with glass doors
so the room can be air-conditioned.
While its models are fully merchandised, some including
fireplaces, pools, outdoor furniture, cooking areas, or bar
set-ups in the courtyards, Toll Brothers has yet to develop
packages for these options. There’s been so much interest in
the courtyard bar set-up the company decided to develop a
bar package, though the details for that are not yet available.
The company is also working on a pool option.
One challenge on smaller California lots has been the dif-
ficult choice between the “California room” and a backyard.
Buyers can choose which area to cut, but in many cases, Toll
Brothers has sacrificed a little space from each.
www.ProBuilder.com Professional Builder 11
 [LIVING TRENDS]
WARMINGTON RESIDENTIAL’S LOGGIAS EXTEND
THE HOME OUTDOORS
Warmington Residential’s newest community, Warmington at
Stellan Ridge, opened in April, and both of its plans include
one or more loggias or covered patios, standard. In each,
a loggia is accessed through the great room. Loggias, or
outdoor spaces connected to the home on three sides, are
available off the great room, master bedroom, and a front
bedroom. Homebuyers can extend the 6-foot great room log-
gia to 14 feet for $12,000.
As part of the great room loggia, Warmington also offers
an optional outdoor counter space shared with the kitchen.
A folding window connects residents indoors to an outdoor
bar space. The window is 8 feet wide and 4.5 feet tall. The
window costs $500 and will vary depending on the type of
countertop the homebuyer would like.
“It’s really what California living is all about,” Williams says.
Warmington offers television niches in its outdoor spaces
for $500. Expanding the tile flooring to the outdoor space
costs $24,000 to cover the 750 square feet. Homebuyers can
also include optional glass doors to provide access to one or
multiple sides of the loggia.
The doors allow Warmington to highlight a central
Indoor/outdoor living
spaces are a huge draw for
homebuyers, Williams says.
PHOTOS COURTESY OF WARMINGTON RESIDENTIAL
12 Professional Builder August 2014
courtyard design featured in its high-end Legacy collection,
making the courtyard and great room feel and flow like one
large room. Using a similar flooring material inside and out
provides continuity.
“It’s a great visual for people to understand the useful-
ness,” Williams says.
“It’s a hot topic for us,” Williams says. “It’s a big part of what
brings people to our community. Homebuyers are excited
about a more updated design for the floor plan and updated
products that make them feel like making the move.”
The key to selling the spaces is simply showing them,
Williams says. Warmington makes sure to merchandise the
spaces so homebuyers can get the full impact of how they
can live and truly become indoor/outdoor. His sales team
opens the doors on good weather days and plays music over
the speakers in the home and the courtyard, turning the
home into a “tropical paradise.”
To succeed at indoor/outdoor design, Williams says there
needs to be coordination between each.
“What’s most important is to design it right, so it flows
inside and out,” Williams says.
 [LIVING TRENDS]

Stacking glass doors open the wall of this living and dining room to an outdoor living space and loggia. There must be coordination between the
indoor and outdoor spaces for the design to be successful.

A loggia and staircase

provide access to a
central courtyard in one of
Warmington Residential’s
Legacy homes.

www.ProBuilder.com Professional Builder 13

 [LIVING TRENDS]
BUILDER/DESIGNER: THE GREEN COMPANY; PHOTOS BY: MIKE RIXON
THE GREEN COMPANY OFFERS SUMMER ROOMS, PRIVATE
COURTYARDS IN MASSACHUSETTS
The Green Company builds attached and detached homes in
Massachusetts targeted to empty nesters. Homes in its Fresco
series, opened in 2012, center around a private courtyard,
which adjoins a covered summer room in some plans. Homes
range from 1,400 to just over 2,300 square feet and are de-
signed to give families both an indoor and outdoor oasis.
A Fresco One home with a covered summer room and court-
yard starts around $605,000 in Sudbury, Mass. A Fresco Three
with a courtyard starts around $705,000 to $720,000.
“People are very focused on family time, quiet time, and a
place of sanctuary or retreat,” Green says. “That gave rise to
the interior courtyard so you have a private place to celebrate,
relax, entertain, or just be together. You can make it as private
14 Professional Builder August 2014
An interior courtyard
is the focal point of the
Green Company’s Fresco
homes. Despite cold winter
temperatures, Fresco residents
use the space year-round.
or social as you want to be.”
In the company’s Fresco One home, what appears to be the
front door leads to a covered summer room and private court-
yard. Residents access the true front door along a front porch.
The home also includes a rear deck.
Despite the northeast’s cold winters, homebuyers want ac-
cess to outdoor spaces year-round, Green says.
“We’re hardy out here,” he adds. “We still grill in the winter
time unless it’s a terrible storm. People love the concept.
They’re outside during all four seasons.”
The Fresco homes are designed for entertaining. The main
entertaining spaces, the kitchen and dining area, have views
and access to the private courtyard so those preparing food in

The privacy of the courtyard and outdoor room in this Fresco home allows it to feel like another
room in the home, Green says.
the kitchen are part of the conversation outdoors. “That’s the
concept of what we were trying to create,” Green says.
The enclosed courtyard is interior-focused and its privacy
makes it an extension of the home, Green says.
“In a subdivision, you walk out and see the neighbor’s front
door or backyard,” Green says. “We try wherever possible to
put homes on one side of the street and orient them toward
open space or some kind of environmental amenity, whether
it’s a golf course or mountain view, so homes are not looking
at each other.”
That adds to the whole sensation of the courtyard as an
oasis and a focal point for the family.
To educate its sales force, Green Company executives walk
through the homes with the sales team, indicating value
points.
“Having the senior management team impart their vision to
people who care – that’s the best training,” Green says.
[LIVING TRENDS]
Green says homeowners can spend between $20,000 to
$50,000 on their summer rooms and courtyards to enhance
the space, though you could create a “private, cozy courtyard
in the teens.” Fireplaces, stone, the garden, and an arbor are
all options.
To extend outdoor space at the back of the home, home-
buyers also have the option to extend the original six-foot-
deep deck to 12 feet deep and enclose the space as a
screened three-season porch for about $25,000.
The goal is to convince empty nesters to leave a home
where they’ve raised a family and have a lifetime of memories,
Green said.
“We’re giving them a reason to move, where you can live
how you like to live,” Green said. “Making outdoor spaces an
integral part of the home is an innovation that comes out of
thinking about what people want and reflecting the desire of
the marketplace.” PB
www.ProBuilder.com Professional Builder 15
 The Legacy Collection
Ladera Ranch, California

westernvolumeprogram.com

“It’s one of the best memory points we have in the models as we have incorporated
the indoor and outdoor living together to create a vision that is very popular in today’s
luxury market.”

Kevin Rosinski, Vice President of Toll Brothers, Arizona Division

let the
outside in

The Volume Program

series 600 multi-slide door
WHAT CONSUMER TRENDS
IN OUTDOOR FEATURES

HOMEBUYERS Exterior lighting, a patio, front porch, a lot with trees,

and a deck were the top five outdoor features home-
buyers said they look for in a home. About 37 percent

REALLY WANT of homebuyers said an outdoor fireplace was essential

or desirable, while 33 percent said an outdoor kitchen
was essential or desirable.
Homebuyers give their take on
outdoor living features in a recent OUTDOOR FEATURES
survey by the National Association (Percent of Homebuyers Rating Essential or Desirable)

of Home Builders.
ESSENTIAL DESIRABLE

EXTERIOR LIGHTING 41% 49%

PATIO 27% 56%

I
n a recent National Association of Home Builders
(NAHB) survey, homebuyers revealed the features FRONT PORCH 26% 54%
they are looking for in outdoor living spaces when
LOT WITH TREES 29% 49%
considering purchasing a home. Rated on a scale
from essential to “do not want,” homebuyers selected DECK 22% 55%
the outdoor features that would most impact their deci- REAR PORCH 21% 51%
sion to purchase. The survey showed most homebuyers
have a strong preference for functionality and resale OUTDOOR GRILL 17% 45%

value. Households with children and younger and more LAWN SPRINKLERS 21% 39%
affluent homebuyers showed more interest in outdoor
fireplaces, grills, and outdoor kitchens. PB OUTDOOR FIREPLACE 6% 31%

OUTDOOR KITCHEN 6% 27%

SOURCE: NATIONAL ASSOCIATION OF HOME BUILDERS, “WHAT HOME BUYERS REALLY WANT,” 2013
OUTDOOR FEATURES – HISTORY
TREND COMPARISONS (Percent of Homebuyers Rating Essential or Desirable)
THROUGH THE YEARS
100%
Interest in several outdoor
features, including exte-
90%
86%

83%

rior lighting, a patio, front 80%

85%

82%

81%
80%

80%
79%

78%
77%

77%

77%

porch, a lot with trees, and

76%
73%

lawn sprinklers, has in- 60%

60%

60%

creased or remained steady

59%
53%

since 2007. Exterior lighting

40%
has been the most desired
37%

feature for outdoor living

spaces since 2004. Patios 20%

have gained traction, while

N/A

interest in outdoor fireplac- 0%

es has fallen. No historical 2004 2007 2012
data exists for outdoor
EXTERIOR LIGHTING FRONT PORCH DECK PATIO
kitchens or grills.
LOT WITH TREES LAWN SPRINKLERS OUTDOOR FIREPLACE

18 Professional Builder August 2014

 [BUYER RESEARCH]

UPSCALE OUTDOOR FEATURES OUTDOOR FIREPLACE

INCOME
BY HOUSEHOLD COMPOSITION OUTDOOR GRILL
LEVELS AND
(Percent of Homebuyers Rating Essential or Desirable) OUTDOOR KITCHEN*
OUTDOOR
80%
FEATURES
Households with 60% 67% 65%
60%
children are more 55%
40%
interested in 43%
38% 39% 37%
33%
outdoor features 20%
30% 28% 28%
such as an outdoor
0%
fireplace, grill, or
kitchen. Younger
and more affluent
homebuyers also
show more interest
in these features. MARRIED COUPLE MARRIED COUPLE ONE-PERSON
SINGLE PARENT
WITH CHILDREN WITHOUT CHILDREN HOUSEHOLD

UPSCALE OUTDOOR FEATURES UPSCALE OUTDOOR FEATURES

BY AGE OF HOUSEHOLD HEAD BY PRICE EXPECTED TO PAY
(Percent of Homebuyers Rating Essential or Desirable) FOR HOME
(Percent of Homebuyers Rating Essential or Desirable)
47% > 35 YEARS OLD

46% 35 TO 44

45% 45 TO 54

32% 55 TO 64
$
23% 65 <
HOME OUTDOOR OUTDOOR OUTDOOR
OUTDOOR PRICE FIREPLACE GRILL KITCHEN*
FIREPLACE

65% > 35 YEARS OLD LESS THAN

31% 57% 27%
$150,000
66% 35 TO 44

66% 45 TO 54

60% 55 TO 64
$150,000 TO
57% 65 < 35% 60% 29%
$249,999
OUTDOOR GRILL

42% > 35 YEARS OLD

40% $250,000 TO
35 TO 44 41% 66% 39%
$499,999
38% 45 TO 54

30% 55 TO 64

23% 65 <
$500,000
OUTDOOR 48% 75% 49%
OR MORE
KITCHEN*
0% 20% 40% 60% 80%

*COOKING, REFRIGERATION, AND SINK

www.ProBuilder.com Professional Builder 19

 OUTSTANDING
OUTDOOR
SPACES

This story is reprinted from Professional Builder, April 2014.

 [OUTDOOR LIVING]

Homebuyers not only value By: Susan Bady, Senior Contributing Editor

outdoor living space, they have

I
t used to be that unless they were building
come to expect it. These outdoor luxury homes, production home builders
environments run the gamut from typically didn’t do much with the outdoor
space. There might be a patio here and a
modest to lavish. deck there and some landscaping in the front
yard. Now, even in moderately priced homes,
builders are integrating formerly underutilized
outdoor space into the rest of the floor plan.
“They’re integrated into the footprint of the
house, which affords them a bit of privacy, and
they’re covered for protection from the ele-
ments,” says Jerry Gloss, principal of KGA Studio
Architects, Louisville, Colo. “You can’t do decks
anymore that are supported by 4-by-4 posts and
look like they’re glued to the back of the house.”
Gloss says every design produced by his office
includes an outdoor space.
In addition to landscaping, hardscaping, and
water features, outdoor spaces can be dressed
up with everything from fire pits and barbecue
BUILDER: BROOKS STREET BUILDERS; ARCHITECT: ROBERT HIDEY, AIA, ROBERT HIDEY ARCHITECTS. PHOTO: TOBY PONNAY PHOTOGRAPHY

grills to full kitchens, flat-screen TVs, and fire-

places. Don Gwiz, principal of landscape design/
build firm Lewis Aquatech, Chantilly, Va., says his
affluent clients are showing a lot of interest in
pizza ovens and smokers.
The extent to which outdoor spaces are acces-
sorized obviously depends on the price of the
house. The point is that such spaces can’t look as
if they were tacked on. And because the outdoor
environment is the first impression visitors get,
“We have to take that element and make it
as creative and elegant, architecturally, as the
home,” says Gwiz. About 80 percent of Lewis
Aquatech’s business is in the Washington, D.C.,
area and involves high-end custom homes. The
company acts as the landscape architect and
space planner for each project and is either the
builder or construction manager.
Epic Development focuses on infill sites in
established neighborhoods near Atlanta. “We
build a number of homes that are $1 million
plus,” says Jim LaVallee, one of the principals.
The Classic Orinda Ranch at Wilder in Orinda, Calif., “Those get a lot more attention to the outdoor
celebrates the al fresco lifestyle with not one but several space. But for $300,000-to-$400,000 houses, we’ll
outdoor spaces, including the fire pit in the foreground. do screened porches and patios and landscap-
Lower-level rooms access the loggia, which overlooks the ing. The spaces may be smaller and incorporate
lawn and has a kitchen and dining area. fewer materials, but it’s still a nice design.”

www.ProBuilder.com Professional Builder 21

 [OUTDOOR LIVING]

BUILDER: EPIC DEVELOPMENT; LANDSCAPE DESIGNER: HEATHER MOLL-

A fireplace and waterfall were designed to be visible
from the home’s main living area and permit views of
the yard behind them. The fireplace was hand-built of
concrete block with a veneer of natural stone.

DUNN; PHOTO: EPIC DEVELOPMENT

PHOTO: BRIAN GASSEL PHOTOGRAPHY
BUILDER/DESIGNER: EPIC DEVELOPMENT.

Small spaces can have a lot of impact. This Atlanta home has a
covered sitting area with a flagstone floor and curtains that can
be drawn for privacy. The adjacent cooking and dining area has an
aggregate concrete surface.

BUILDER: WOODSIDE HOMES; ARCHITECTS: CAROL LAVENDER

AND MICHAEL PITTENGER; PHOTO: WOODSIDE HOMES

A model home at Valencia Park in San Antonio, Texas, has a covered outdoor porch with a fireplace, dining and seating
areas, and a built-in kitchen. The 3,400-square-foot home starts at $422,339.

22 Professional Builder August 2014


Large, fixed screen panels were used to enclose
this porch. The brick fireplace wall offers
privacy and blocks a less-than-desirable view
of construction on the adjacent lot.
A landscape architect designs the outdoor plan based on
parameters provided by Epic. After the first or second round
of design changes, the landscape contractor helps the rest
of the team brainstorm plant selections. “Then we get the
masons involved with hardscaping,” LaVallee says.
BUDGETS AND DREAMS: A DELICATE BALANCE
Gwiz says the challenge with Lewis Aquatech’s projects has
less to do with site constraints than it does with budgets. “The
challenge is how to make [the end result] elegant and beauti-
ful and in keeping with the architecture of the home without
going over budget,” he says.
Lewis Aquatech educates clients about the portions of the
project that will have the most impact, and gives advice on
how to build it in phases for the maximum effect. They may,
for instance, postpone construction of the swimming pool
until phase two, or wait a year before installing upgraded
landscaping and lighting.
“When you do that, you become the steward of the budget.
The phased approach gets implemented much faster once
the homeowner sees [the work getting done], and it starts
coming together,” Gwiz says.
BUILDER: EPIC DEVELOPMENT; ARCHITECT: ERIC RAW LINGS, AIA, RAW LINGS DESIGN;
PHOTO: BRIAN GASSEL PHOTOGRAPHY
Site conditions, such as grading and drainage, all have to be
factored into the budget. Epic Development must figure out
how to retain water on each lot and control the flow from their
site to the neighbor’s. Being an infill builder, Epic also has to
deal with mature trees. “If a tree is 7 inches or more in diam-
eter, it can’t be removed; we have to work around it,” LaVallee
says. “Then there’s the shade canopy. We cannot impact the
critical roots under that tree.”
EVERY PROBLEM HAS A SOLUTION
Such constraints, though, are not insurmountable. Landscape
designer Claudia Schmutzler of Windsor Decks & Gardens in
Corona del Mar and Santa Rosa, Calif., has created attractive
backyards out of spaces that were flood prone or limited in size.
For one home in Newport Coast, Calif., Schmutzler over-
came topographical challenges to transform a bland front
entry into an eye-catching passageway. “The space was only
about 12 feet by 12 feet, with a concrete, curved wall and a
palm tree in a planter which just took up room,” she says.
Schmutzler removed the palm tree and saw-cut a foot around
in order to plant a privacy hedge. She also removed the con-
crete wall, which was so tall it blocked the home’s ocean view
www.ProBuilder.com Professional Builder 23
 [OUTDOOR LIVING]

LANDSCAPE ARCHITECT/CONTRACTOR: LEWIS AQUATECH.

PHOTO: HOACHLANDER DAVIS PHOTOGRAPHY, LLC
This opulent swimming pool and cabana
are on the grounds of a high-end private
residence in Potomac, Md.
PHOTO: CLAUDIA SCHMUTZLER

Problem: A cramped, 12-by-12-foot entry patio in Newport Coast, Calif., surrounded by a

concrete wall that blocked the ocean view. Solution: Windsor Decks & Gardens expanded
the existing space, replaced the concrete wall with a glass wall facing the ocean, and
designed a floating wall of windows with a gate.

BUILDER: VILLAGE HOMES OF COLORADO; ARCHITECT: JERRY GLOSS, AIA, CAASH, KGA STUDIO ARCHITECTS;
PHOTOS: JEFF SCROGGINS PHOTOGRAPHY

This home in Aurora, Colo., has a screened

porch that’s almost like a great room with
its kitchen, dining area, and sitting area.
The screens have a fine mesh that renders
them practically invisible. Center-meeting,
sliding glass doors integrate the indoor and
outdoor spaces.

and dropped off into a steep, 45-degree slope.
Schmutzler built a 12-foot-high retaining wall and extended
the existing space to make room for a table and chairs. A
glass wall with railings took the place of the concrete wall,
permitting unobstructed views. A floating wall of windows and
a new entry gate complete the picture.
LaVallee actually prefers small yards to large ones that re-
quire larger trees, more planting beds, and more patio space
“Your budget drastically increases with large properties,” he
says. “Small yards can deliver a big bang for the buck.” PB

24 Professional Builder August 2014


7 TIPS
FOR A SUCCESSFUL OUTDOOR PROJECT
• Listen to clients and pay attention to their needs, but keep
their eyes on the prize. Claudia Schmutzler of Windsor
Gardens & Decks, Santa Rosa, Calif., tells her clients, “Let’s
create something that draws you out from the inside.”
• Use premium materials. Schmutzler advocates redwood
for decks because it’s not only beautiful, but offers greater
longevity and resistance to termites and other insects. The
adage “You get what you pay for” definitely applies.
• If the project cost exceeds the client’s budget, suggest
completing it in stages. “Don’t design and build some-
thing that dumbs down the property,” says Don Gwiz of
Lewis Aquatech, a landscape design/build firm in Chantilly,
Va. “It’s better to phase the site work and plant bigger
trees later when the budget and the client’s discretionary
income allow it.”
• Integrate the outdoor space with at least two walls of the
home so that it looks like part of the structure.
• Consider less expensive alternatives that still create an upscale
look. “You can tint and stamp a poured-concrete patio for a
fraction of the cost of using real pavers,” says Rick Bennett of
[OUTDOOR LIVING]
Epic Development, Atlanta. Synthetic stone is another less
costly option that looks amazingly realistic and comes already
formed and ready to put in place. On sloping sites, dry-pack
walls (called keystone walls) offer significant savings over hand-
built, concrete retaining walls faced with stone.
• Consult your landscape architect or contractor about using
more reasonably priced plantings. “I choose plants that are
readily available in local nurseries and hence less expensive,
but use them in creative ways that make them seem atypical,”
says Atlanta landscape designer Heather Moll-Dunn. “I rec-
ommend that several key plants be larger to make the land-
scape seem less ‘brand new’ and give the illusion of age.”
• Bring the masonry and landscape contractors into proj-
ect planning meetings early in the game and negotiate
a larger scope of work. “For instance, if you already have
a vendor that’s putting brick or stone on the front of the
house, they can probably do pavers, patios, and stone
walls,” says Bennett. Buying landscaping and hardscaping
for front and backyards in volume will net you a much bet-
ter price on labor. PB
Windsor Decks & Gardens turned an
overgrown garden into a gourmet cook’s
dream at this Irvine, Calif., home. The redwood
deck unifies the kitchen, wet bar, fire pit, and
various seating areas. Lighting is integrated
into the deck posts.
PHOTOS: CLAUDIA SCHMUTZLER
www.ProBuilder.com Professional Builder 25
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THE LONG ROAD TO
ENERGY EFFICIENCY
A few of our 2014 Housing Giants share their quest to reach the pinnacle
of high-performing homes and increased revenues
By: Kyle Clapham, Managing Editor
T
his year the state that houses one out of eight
Americans enacts a revision of its energy
standard—Title 24 of the California Code of
Regulations—and challenges local builders with
a familiar yet ambitious mandate: By 2020 all new homes
in The Golden State will produce as much energy as they
consume. The number of structures meeting net-zero energy
(NZE) criteria or close to satisfying NZE has multiplied
steadily in the U.S. over the last few years, especially in areas
such as California where market-based incentive programs
and progressive codes encourage renewable-energy genera-
tion and advanced construction practices.
No other state can possibly boast the infrastructure neces-
sary to ensure all of its new homes achieve NZE by the end
of this decade. Nevertheless, California’s reaffirmed plan for
future construction will directly affect more than 38 million U.S.
Wathen Castanos Hybrid Homes, Fresno, Calif., developed energy-efficient product in the depths
of the housing crash and emerged a market leader.
This story is reprinted, in part, from Professional Builder, May 2014.
[ENERGY EFFICIENCY]
residents (the state’s estimated population as of 2013 per the
Census Bureau) as well as numerous local and national builders
(many of which appear in our Housing Giants rankings). These
firms must collaborate with utility companies, consult with
building science groups, and conduct test houses to develop
thorough awareness and application of energy-efficient design
before installing even one solar photovoltaic cell on a roof.
Ideally the national builders in California will embrace the
performance upgrades they learn over the next few years and
implement each sensible modification in their markets around
the country. And local companies outside California will seek out
builders in the state through peer networks and one-on-one site
visits to acquire valuable knowledge about innovative solutions
for constructing energy-efficient homes as code cycles run their
course. But the production of better houses often requires build-
ers to reinvent their entire business model.
Fresno-based Wathen Castanos
phased out its existing model homes
and engineered new energy-efficient
product amid plummeting house values
and historic foreclosure spikes in 2007,
the same year the California Energy
Commission adopted the goal to reach
NZE in all new residences by 2020. The
builder became so devoted to energy
efficiency it even changed the com-
pany name to Wathen Castanos Hybrid
Homes. “We couldn’t unravel from this
right now; it’s something that’s been
built into our DNA,” says president Mike
Nimon, who credits an energy-efficiency
platform for successfully battling the
resale market and differentiating Wathen
Castanos from other companies in the
area. “We know we can compete against
nationals as well as the local builders
with that thinking process.”
www.ProBuilder.com Professional Builder 27
[ENERGY EFFICIENCY]

not only to enhance the energy efficiency of new homes but

also to make them easier and more economical to build. “A lot
of times those things help save trades money, labor, cost, and
material besides helping us get a better-performing home,”
Logue says.
Ideal Homes in Norman, Okla., employs a similar arrange-
KB Home uses
ment to troubleshoot inefficiencies and foster loyalty with its
an EPG label to
trades. The company invites subcontractors into the office
present the es-
regularly throughout the year to sit down with the production
timated energy
team and examine potential training issues and any problems
costs and sav-
in the field, such as rising warranty requests. Ideal also tries
ings associated
to compensate trades above the market rate and often will
with its new
partner with the same subcontractors even if their bids prove
houses.
to be higher than comparable labor. “We have found that
when we make changes, they’re fully behind us,” says Steve
Shoemaker, vice president of sales and marketing for Ideal.
STARTING BLOCKS
Before Wathen Castanos could begin constructing energy- MARKET HOMESTRETCH
efficient homes, the company had to find and embrace the KB Home, based in Los Angeles but with communities in 10
latest information about contemporary building technology. different states, formulated an energy performance guide
The management team spent countless hours with consulting (EPG) to inform potential buyers of the estimated energy bills
groups such as IBACOS trying to grasp key building science they could expect to pay living in one of the builder’s new
insights so executives could educate project superintendents homes. Jacob Atalla, senior director of sustainability initiatives
and then train subcontractors. In a sense, Wathen Castanos for KB, likens the EPG label to the miles-per-gallon (MPG)
relearned how to build a house. sticker on a new car. The label not only shows the cost of
“You can be enamored by the idea of [energy efficiency] operating a new KB house but also compares its performance
with how it sells and how you can market it, but you’ve got to with a typical new home and similar floor plan in the same
start at the guts of it,” says Nimon. climate zone. “To date there are 250 other builders—national,
Early in the process Wathen Castanos partnered with Dave regional, and smaller builders around the U.S.—that have
Hegarty, a certified energy consultant and HERS rater, to programs to do something similar,” says Atalla, who cites
determine the most practical elements
of a high-performing home as well as to
formulate a strategy for maximizing the
company’s investment in energy-efficient
construction.
Hegarty says he frequently observes
builders who hop on the energy-effi-
ciency bandwagon to generate more
sales but wonder why their revenue
slips once they begin cutting back on
essential performance features. Being
organized from the start, articulating
the company’s vision to each employee
and trade, and maintaining a dedication
to energy-efficient construction ensures
Wathen Castanos remains near the top
in sales within all of its markets.
Wathen Castanos hosts meetings with
its trades to review the company’s con- Ideal Homes, Norman, Okla., integrates energy-efficient features in its houses as critical pieces of
struction practices and discuss methods a larger high-performing system.

28 Professional Builder August 2014


California’s NZE aspirations as a reason for the company
building 11 net-zero energy houses and several hundred more
near-net-zero homes.
The newest home in ZeroHouse 2.0, the latest net-zero energy
initiative from KB, debuted in February in Lancaster, Calif. “We
actually dubbed it the Double ZeroHouse because not only was
it a total net-zero energy home, but it also had a graywater recy-
cling system,” says Atalla, who credits the Energy Star program
with preparing the company, its trades, and suppliers for the next
cycle of building codes. “Energy Star really is a cornerstone to
many of the green building programs, and that’s why we stick
with it,” he adds.
Another national builder that constructs all new houses
to Energy Star standards, Scottsdale, Ariz.-based Meritage
Homes, elected to jump into energy-efficient construction with
both feet about five years ago at the bottom of the market.
In 2011 the company, which builds homes in eight states,
pledged to build houses that consume half the energy and
water of the average U.S. home and started achieving a HERS
score in the low 60s at all price points. Meritage constructed
its first test-house targeting net-zero energy for Earth Day
three years ago, and the following year the builder began
offering a solar option that could bring homes from HERS 60
all the way down to zero. C.R. Herro, vice president of energy
efficiency for Meritage, says his company remains confident in
its ability to construct all new houses to net-zero criteria, but
the market lacks the immediate financial benefits for buyers
necessary to soften the heightened price tag associated with
many energy-efficient homes.
“The challenge is in taking the $100,000s of offset utilities
that a net-zero home represents and providing that value to
the consumer in a way they understand it,” says Herro, who
estimates Meritage spends around 5 percent more per house
to incorporate energy-efficient features—a number aided by
the builder’s national presence but in the ballpark of figures
for other companies. Movements to value high performance
in the appraisal process and compensate buyers for lower
home-operating costs in mortgage underwriting seek to
evolve the financial process but have been unable to gain
much traction in legislative bodies.
The SAVE Act, a bipartisan bill reintroduced last year in the
Senate, would add the projected energy savings of living in
an energy-efficient home to the prospective buyer’s income
when factoring a debt-to-income analysis. The lender or
appraiser also would have to add the present value of the
energy savings (over the lifetime of the loan) to the value of
the house when determining the loan-to-value ratio, mean-
ing a home appraised at $250,000 today could be worth tens
of thousands more under the SAVE Act. “If we can get those
sorts of transactions to demonstrate and quantify the value,
[ENERGY EFFICIENCY]
Meritage Homes, Scottsdale, Ariz., built its first net-zero test house
three years ago and has since offered a solar option for all markets.
then I believe at the current cost of installing solar that net-
zero energy becomes a no-brainer,” Herro says.
The builder discovered discussing actual energy-efficient
features seldom engaged a potential buyer enough to produce
a sale, but relating the benefits of those upgrades to each spe-
cific consumer group (e.g., Millennials and Boomers, first-time
owners and move-up buyers) further evolved the message and
closed more deals. “We really had to learn to talk to the aver-
age consumer through their optics,” Herro adds.
STRONG FINISH
The continuous drive in areas such as California to enforce
progressive building standards and achieve NZE homes or
an equivalent in the near future should stimulate meaningful
innovations across the country. Builders who take the steps
critical for managing energy-efficient construction today posi-
tion their company to leverage better homes, more sales, and
higher market share tomorrow. In most instances, local utility
companies will even pay building scientists to visit companies
and assist them in attaining homes certified by one of many
reputable energy-efficiency programs, which all administer
requirements that have been developed and proven in the
construction of thousands of U.S. homes, says Herro.
“When these new codes come out, instead of us scrambling
trying to figure them out, we’ve already been extracting ben-
efits by selling consumers better homes, and it doesn’t ruffle
our business plans or our building cycle at all,” he adds. “It’s
not really a choice on whether or not you’re going to build
better homes, it’s when you want to do it; you can either get
ahead of it and get some value for it, or you can be subject to
it as the codes change.” PB
To read the full story, go to probuilder.com.
www.ProBuilder.com Professional Builder 29
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