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LENNOX LAUNCHES NEW SMART THERMOSTAT FOR OPTIMAL HOME COMFORT

Builder

The new iComfort E30 smart thermostat uses home automation technology to save energy and create an “ideal comfort” temperature.

Lennox has introduced the Lennox iComfort E30 smart thermostat, a new smart home thermostat that uses home automation technology to create the ideal environment for homeowners while also saving energy.

The thermostat automatically adapts to desired temperatures of homeowners after they set an ideal temperature. The iComfort E30’s “Perfect Temp” feature lets homeowners set the ideal temperature, and automatically adjusts heating and cooling to maintain the specified setting. Combined with the Feels Like Temperature feature, which takes into account indoor and outdoor temperature and humidity to make a home feel exactly like the homeowner wants it to, homeowners can precisely choose their preferred home comfort setting.

The iComfort E30 is compatible with any brand of HVAC system, and is also compatible with Amazon Alexa smart home devices for voice control and integration with other smart home technologies. The system can also be paired with the Lennox iHarmony Zoning System, which gives homeowners the ability to achieve optimum levels of comfort in up to four zones within a home and saves energy and money by not having to heat or cool unused areas of the home.

The technology works to save energy and optimizes smart energy use based on the homeowner’s routine with the Schedule IQ Technology, and also uses the GPS on a user’s smart phone to detect when they’re away and automatically set the thermostat to an energy-saving mode and return the home to the desired temperature when a family member starts returning home.

The thermostat also features an Allergen Defender, which monitors air quality and pollen levels outside, and automatically turns on a fan to keep the home’s indoor air cleaner when high levels of pollutants and allergens are detected.

Lauren ShanesyLAUREN SHANESY

Lauren is the Products Editor for Hanley Wood’s residential construction group. She holds two bachelor’s degrees in English Writing and Communications from Clemson University.

LABOR PAIN AND VIDEO GAMES

BUILDER

Here may be the last thing you thought was the reason it’s so hard to attract young adults into the construction trades.

Humpty Dumpty

In April, we asked “Why Don’t Young Americans Want to Do Construction Work?” The demographics support the question.

BuildZoom chief economist Issi Romem analyzed American Community Survey Census and Bureau of Labor Statistics data on the construction labor force and highlighted two demographic challenges, the “aging out” of older laborers, and the failure to start among younger people. Romen scopes the second of the two impediments this way:


“There has been a sharp reduction in the industry’s employment of younger workers. The count of employed workers below age 25 fell by 40.1 percent from 2005 to 2015, and by 20.9 and 13.2 percent in the 25-34 and 35-44 age groups. Unlike Baby Boomers’ progression through the lifecycle, the failure to maintain sufficiently-sized young replacement cohorts is not an economy-wide phenomenon, but is specific to the construction industry. The industry’s shedding of younger workers took place mostly during the downturn between 2005 and 2010, and it has failed to significantly regrow those ranks since. Young workers appear to shun the construction industry.”

Author Tyler Cowen looks from a 40,000-foot view and sees “a populace that has that has drawn inward rather than finding and facing new challenges.” Hence, the title of his latest book, “The Complacent Class, The Self-Defeating Quest for the American Dream.”

National Association of Home Builders economist Rose Quint noted earlier this year that, among the three-out-of-four young adults who have a chosen career field, only 3% of them are interested in the construction trades. For the one in four who are undecided about their career, well over half (63%) say they have no interested in becoming a construction worker at virtually any pay level, essentially because they’re daunted by how hard the work is.

Now, here’s another view, closer to that of Cowen’s “complacency theory,” as to what may be in the way of emerging young adults and the skilled construction trades that could provide many of them a decent, fulfilling livelihood: video games.

You read that right.

Academics from Princeton University, the University of Chicago and the University of Rochester say there’s ample evidence that since 2000, men who would otherwise be working are instead being drawn into immersive virtual worlds, giving up paychecks in the process.

What’s more, these men are reporting higher levels of happiness compared with those who work, and they’re drawing on the support of mom and dad to stay there. The paper warns these men’s absence from the labor force is likely to negatively affect their employment and earnings prospects for the rest of their lives.

Addicted to not working hard? One can relate, in a way, but then you move on and do what you’ve got to do to make your way in life, no?

John McManusJOHN MCMANUS

John McManus is an award-winning editorial and digital content director for the Residential Group at Hanley Wood in Washington, DC. In addition to the Builder digital, print, and in-person editorial and programming portfolio, his accountability for the group includes strategic content direction for Affordable Housing FinanceAquatics InternationalBig Builder, Custom Home, the Journal of Light ConstructionMultifamily Executive, Pool & Spa News, Professional Deck Builder, ProSales, Remodeling, Replacement Contractor, and Tools of the Trade.

Bathroom Design Tips

Back to Basics: A Guide to Simple Bathroom Renovations

Basic doesn’t have to mean boring. Follow these steps to create minor changes that will have a major impact

Remodeling a bathroom doesn’t always means tearing it apart and starting over. You can relate this to clients who want a new look for their bathroom but lack the means–or the desire–for a major remodel by offering suggestions on how to remake the bathroom without tearing out cabinets and ripping up flooring.

The bathroom is a personal space, but also an area where homeowners want a nice, inviting décor, especially in a guest bath. Some new trends in bathroom remodel are simple yet elegant. Your clients will have some fresh ideas that go back to the basics.

Neutral Doesn’t Have to Mean Boring
Current trends in bathrooms include using neutral colors. White and gray color schemes are simple but also create a clean look. Your clients may like the idea of crisp white, soft creams, various shades of beige, or a cloudy gray to create a bathroom that is relaxing yet beautiful.

Neutral colors don’t have to fall flat if you add some accessories that complement the color scheme. Remind your client that an elegant bathroom with neutral colors can coordinate with anything, so it’s a great investment.

Brass and Gold Fixtures Are Back in Style
Brass and gold fixtures may seem like your Grandma’s bathroom, but they are making a comeback. Instead of offering ideas to clients in shiny polished chrome, go for the more traditional and classic with matte and spun gold fixtures.

Your clients will like the warm, homey feel these colors add to their bathroom. Adding these warmer tones to a bathroom also adds coziness to the room. Remind them also there is a bonus to dumping the shiny chrome—fewer fingerprints and water spots, because these classic fixtures hide them well.

Technology Is Taking Over Bathrooms
Technology can help your clients go the bathroom barefoot and not endure a cold floor, or put more luxuries right at their fingertips. Heated floors and other technological advances make the bathroom more functional for clients.

Heating systems under the flooring not only warm feet on chilly mornings, but also reduce noise and may be good for allergy sufferers because there are no exposed air currents blowing dust around the room. Have homeowners also consider that underfloor heating can be a good investment.

Other ideas your client may like include warmers for robes and towels, toilets with heated seats and lids that automatically open and close, under-counter refrigerators for medications, or maybe even a beverage center.

These ideas are not for all clients, but for those who are technologically savvy or have certain medical conditions, these renovations may be ideal.

Floating Vanities and Open Shelving Are In
Open storage and floating vanities are great ways to save space and create a more open atmosphere for your clients. Open storage also keeps bathroom necessities easily accessible.

Floating vanities are not only spacious but can add glamour to the bathroom. You can choose from a variety of styles for your clients, depending on the look desired. There are so many designs and styles of floating vanities that you’re sure to find one that fits the look your client is going for.

Some floating vanities also offer additional storage to help save even more space and allow for a cleaner or more modern look.

Vanity Lighting Adds Functionality and Style
Better lighting is always a plus, and for female clients it may be a necessity. While traditionally bathroom vanities consist of a countertop, mirror and medicine cabinet, adding specialty lighting can transform the area.

Whether the client wants lighting for applying making and shaving or lighting that creates a certain atmosphere, the right vanity lights can do both. You can discuss the various types of vanity lighting with clients, such as small pendants, light sconces, and light bars, for example.

Fixtures are just the beginning—creating a certain feel also means choosing the techniques and dimmers to create that specific effect.
You can change the look and atmosphere in a bathroom by using simple ideas that can transform the entire room without making dramatic changes to the structure. Your clients will appreciate the simpler ideas that don’t require a lot of time and money to create the bathroom of their dreams.

Kacey Bradley

Kacey Bradley is the creator of lifestlye blog The Drifter Collective. Her work has also been featured on Elite Daily, Thought Catalog, and the Huffington Post.

Interest Rates on Rise in Canada

Canada hikes rates for first time in seven years amid hot housing market

  • The central bank raised interest rates to 0.75 percent from 0.50 percent – its first hike in seven years
  • Inflation figures have eased over the recent months, but the bank said this was a temporary move
  • Housing market seen by analysts as a pressing issue

Bank of Canada

Patrick Doyle | Bloomberg | Getty Images

The Bank of Canada (BOC) may have taken a big gamble on its economy when adopting a new hawkish tone on Wednesday, according to one economic research company.

The central bank raised interest rates to 0.75 percent from 0.50 percent – its first hike in seven years. Investors had prepared for such move but the BOC took a more hawkish tone than expected, mainly when it came to inflation.

Inflation figures have eased over recent months, but the bank said this was a temporary move and it is already registering some pressure from food, electricity and automobiles.

“The BOC expects excess capacity to be absorbed with inflation returning to 2 percent in 2018. We have a different view on inflation, which we see below 2 percent even in 2018,” analysts at Bank of America Merrill Lynch said in a note on Wednesday, explaining that oil prices will keep headline inflation low.

However, there are other economic worries in Canada. According to David Madani, senior Canada economist at Capital Economics, the BOC’s decision “is a gamble that might have to be reversed before long.”

“With the housing bubble already showing signs of bursting and household debt at extremely high levels, higher borrowing costs will dampen economic growth and pushing core inflation even further below target,” Madani added. Higher interest rates make mortgages more expensive and thus squeeze household incomes.

Bank of Canada Governor on the probability of a rate hike

Bank of Canada Governor on the probability of a rate hike  

In May, the International Monetary Fund (IMF) warned Canada that its housing market imbalances had risen. “The $1.5 trillion (Canadian dollar) mortgage market has been important in sustaining private consumption but households are highly indebted and housing affordability, particularly in Vancouver and Toronto, has become a social issue with many first-time buyers priced out of the markets,” the IMF noted in its report.

Indeed, the housing market seems a pressing issue in spite of many economic positives including gross domestic product (GDP) growth.

Where does it go from here?

Despite the housing market, some analysts believe the BOC will announce further rate hikes. Citi analysts predict two rate hikes this year (including Wednesday’s hike) but no more until the second half of next year. BoAML expects another rate hike in January of next year but says such decisions will be “data dependent”.

Follow CNBC International on Twitter and Facebook.

Builders Starting to Report Shortages of Framing Lumber

Builders Starting to Report Shortages of Framing Lumber

For several years now, the recovery in single-family home building has been hampered by shortages of labor and lots.  Availability of building materials, meanwhile, has not been much of an issue.  But that may be starting to change.

In answer to questions on the May 2017 survey for the NAHB/Wells Fargo Housing Market Index, 21% of single-family builders reported a shortage of framing lumber.  Although still well below the share currently reporting shortages of lots and labor, this nevertheless marks a clear movement on the building materials front since 2014, when no product or material was cited as being in short supply by more than 15% of builders.

That was still true for most building materials in the May 2017 survey.  Next to framing lumber, the most widespread shortages reported in 2017 are for ready-mix concrete and trusses, with 14% of builders currently reporting shortages of each.  The graph below shows all 23 materials and products listed in the 2017 survey, sorted in descending order of the reported shortages.

For nearly all of these materials and products, the recent history has been relatively stable, with the share of builders reporting shortages moving only a couple of percentage points between 2014 and 2017.  Framing lumber is the single, notable exception.  In 2013, it looked as though a problem with the supply of framing lumber was starting to emerge, but the situation subsequently eased.  Only 8% of builders reported a shortage of framing lumber in July of 2014 and 7% in July of 2015.  But then, the share more than doubled in May of 2017, to 21%—a post-housing recession high.  The last time framing lumber shortages were as widespread as they are now was in October of 2004, at a time when the annual rate of housing starts was hovering around 2.0 million (compared to the current rate of about 1.1 million).

The rising share of builders reporting shortages of framing lumber is consistent with recent increases in prices for softwood lumber.  It is virtually certain that an underlying factor contributing to the shortages and price increases is the ongoing softwood lumber trade dispute between the U.S. and Canada, including the duties on lumber imported from Canada levied by the Department of Commerce in 2017.  NAHB analyzed the economic impact of these duties, the latest of which was announced on June 26, in a previous post.

Market barriers emerge as millennials prepare to buy homes

Market barriers emerge as millennials prepare to buy homes

June 12

Early reports by the Pew Research Center cited millennials (81 million of them) as those individuals born in 1981 and later up until today. Other researchers capped the era at those born between 1981 or 1982 and 1994 or 1995, which would put the youngest millennials at about age 22 or 23 and the oldest at about age 35 or 36.

Generation Z (the generation younger than the millennials) is the next-gen group that some are already calling “digital natives.” (Ilyce sometimes refers to them as the generation born with a “chip” built into their brain.)

In short, the oldest millennials will remember life before Google and what a telephone’s busy signal sounded like. Gen Z (including our own kids) won’t.

Around the world, millennials are considered one of the most consistent generations. Whether you’re a millennial living in Tokyo, Munich or Springfield, Ill., surveys have found that your generation is very similar in the way you behave, the way you use and consume technology, the way you dress and the way you learn.

Much of this has to do with the Internet, as this cohort is the most tech-savvy, and technology has flattened much of the world. Information flows freely, is adapted to life seamlessly, and has profoundly (and quickly) changed life for this generation and their parents. It has certainly changed how people buy, sell, finance and invest in real estate.

According to the 2016 Survey of Home Buyers and Sellers, an annual report published by the National Association of Realtors, first-time buyers now fall directly into the millennial sweet spot: They’re a median 32 years old (if you look at all home buyers, the median age is 44 years old). Their median income is $72,000.

The median price of a first-time buyer’s home purchase is $182,500, although that ranges from just about $161,000 for unmarried couples to $208,500 for married couples. The median down payment is 6 percent, and 60 percent of millennial buyers are childless. Ninety-five percent were either renters or lived with their parents before buying their first home. One percent purchased the home they had previously rented, and 87 percent were born in the United States.

For a while, we’ve watched the real estate industry change to accommodate this new buyer, adopting and discarding new technologies, trying to find a way to communicate faster and more effectively with a generation that seems to prefer texting to talking. This is a generation that feels entirely comfortable soliciting feedback from friends vs. trusting the real estate agent they hired to help them make the single biggest purchase of their lives.

Ironically, just as millennials are ready to buy, interest rates are beginning to rise and home prices are skyrocketing, thanks in no small part to the baby boomers staying in their homes instead of downsizing.

All of which means that this generation, like those before, is finding it’s expensive to buy the home of their dreams.

Ilyce Glink is the creator of an 18-part webinar and e-book series called “The Intentional Investor: How to Be Wildly Successful in Real Estate” as well as the author of many books on real estate. She also hosts the “Real Estate Minute” on her YouTube channel. Samuel J. Tamkin is a Chicago-based real estate attorney. Contact them at ThinkGlink.com.