“Home is the place where, when you have to go there, they have to take you in.”
— Robert Frost
Note: I will be on vacation, not near a keyboard nor a wifi connection, from Monday, May 22 to Friday, May 26. Thanks to a great team, we’ll continue to deliver Pulse to you during that time. See you Tuesday, May 30. — John McManus
This week’s data is the latest patch in a series of affirming signs. Barring a traumatic blow–political turmoil, global risk, natural catastrophe–housing continues to make its way among the puts and takes of a messy, iffy real world, and is expected to keep doing that. Data shows single-family for-sale builders to be both confident and busy putting starts into WIP, not coming close to keeping pace with a surge of steady and growing demand.
Good. This is what we want.
We don’t want things to be great right now for two reasons. One, is that there’s still a lot to learn from business conditions now–when they’re only good–before we go on to our next lessons. The other is simply this.
As much investment capacity as there is, and thirst for yield on that investment capacity, we don’t have the real estate, operational, or process capacity for great yet.
We’ll get there, maybe. But we’re not there yet.
Great means profitable supply and prudent demand, two phenomena still clouded by uncertainty on both sides of the equation. Great means predictable labor capacity. Great means the smartest, most talented young people find their way into our associates ranks by attraction. Great means lot prices and fees that pencil reasonably with household, jobs, income, and family formation growth. Great means materials costs that can be modeled across time. Great means striking new, previously unimagined balances between what machines and technologies can do and what people are skilled to do. Great means people who can access the credit markets reliably and fairly to step into the American Dream of homeownership.
We’re at good, though. Not great. And, let’s just say that’s a good thing.
One thing, though, that is great, and it’s there whether times are good for builders or malevolent, is this: the giving back.
Recently, a roomful of 400 grown men and women welled with unrepentant tears to see and hear and take in the story of two from among their ranks, and the work they do well beyond the bounds of their organization’s balance sheet. DeNova Homes principals Dave and Lori Sanson’s story–a story of blood, and sweat, and time, and persistence, and money, and winning others into the cause vs. chronic or sudden homelessness, chronic domestic violence, chronic social woes that erode communities and families–speaks especially to the home builder and manufacturer and investor and lender communities. They’re all in it.
In celebrating winners, each year, of the Hearthstone BUILDER Humanitarian Award, we don’t even scratch the surface of the ways each part of that ecosystem of housing’s key partners pour themselves into the mission and purpose that runs concurrent with each of his or her organizations’ profit and loss statement.
The work the Sansons do for HomeAid Northern California stands out for who it helps, yes. Those people who find shelter, safety, a shot at life they otherwise would not have had were it not for the work of the Sansons.
But giving back, as they say, is a gift that keeps on giving, and it doesn’t stop with those in need who are the beneficiaries of the charitable initiatives. Too, those initiatives unify the giving organizations around a purpose, a focus that elevates people’s sense of why they’re doing what they’re doing, and what it’s all about.
Thirdly, giving back has a contagious effect. The gift of being in a position to lend time, effort, money, and leadership to programs that help those in need is not isolated to the very few in our business community. When word of these campaigns comes to light, others get the bug rather willingly and with energy that takes on a life of its own.
Our BUILDER Hearthstone honoree from 2016, Toll Brothers’ Chris Gaffney is larger-than-life living testament to the redemptive fountain-of-youth-like, self-fulfilling powers of full devotion to helping others.
Truthfully, where ever it is we turn in the home building community, we find souls whose pocketbooks, weekends and evenings, and sweat of their brow pour into literally countless initiatives that help the ones in need, the ones who serve and sacrifice for other Americans’ freedom and way of life, the ones we simply “have to take in.”
Here are a few.
Thank you, team Fresh Paint by Garman Homes and CalAtlantic Homes for your efforts here:
A few weeks ago we had the absolute pleasure of surprising, Ebony Onwordi with the news that she’s been selected as the first female recipient of Operation Coming Home. Ebony’s husband, Army Spc. Justin B. Onwordi, died while serving our country. This is the story of two heroes…the fallen hero and the one who continues their story on her own.
Thank you, team Wade Jurney Homes, for your commitment to donate six to eight homes to military families as part of Operation Homefront.
The Homes on the Homefront program began in 2012. Since inception, Operation Homefront has placed more than 550 veterans and their families in mortgage-free homes. Wade Jurney is the second home builder to join the program.
Thank you, team PulteGroup, for the amazing work the organization is doing through its Built to Honor program. This program leverages Pulte’s land development and home building expertise, along with contributions of building trades, manufacturers, and materials suppliers to build homes that meet needs of veterans wounded during their time of service. The program, in just over three years, has delivered more than 40 mortgage free homes, from Philadelphia, to San Jose, to Chicago, to Houston.
Thank you, team Meritage Homes, for your organization’s extensive Meritage Cares roster of charitable initiatives–from Operation Homefront and Packages from Home to Covenant Kids to Ronald McDonald House.
Thank you, Ply Gem, for teaming with Habitat for Humanity and Grammy Winner Darius Rucker to put housing’s affordability “wicked problem” in the spotlight, and better yet, doing something about it.
Thank you, Grace and Ron Covington of Covington Homes, for the example you set as both builders and contributors.
In 2015 Covington Homes was chosen as the St Jude Dream Home Builder for Southern Colorado. Covington Homes embraced the St Jude Cause and incorporated the St Jude Dream Home into our overall business operations and yearly business plan. In its first year as Southern Colorado’ s St Jude Dream Home Builder, Covington Homes helped to raise over $812,000 for St Jude Children’ s Research Hospital in 2016. Grace and Ron and the Covington Homes Team have set a target goal for the 2017 Dream Home at over $875,000 and are working towards the goal of raising over $1 Million dollars for the St Jude Children’ s Research Hospital in 2019.
We’ll continue to make note of others, but there are too many to name, and your gifts to others exceed the power of words to say how grateful we are for what you’re doing. Please use the comments box below to tell us more.
Thank you for being the “they” in Robert Frost’s comment:
“Home is the place where, when you have to go there, they have to take you in.”
