July 9, 2021
NEWS
by NAHB

How have single-family builders reacted to recent shortages and price increases in building materials?
The most common strategies, cited by 62% and 59% of builders, were to raise their prices on their homes frequently and pre-ordering materials, according to a June survey for the NAHB/Wells Fargo Housing Market Index (HMI).
These approaches were followed by price escalation clauses (45%, waiting until late in the construction process before listing spec homes (39%) and cost-plus pricing (32%).

While some of the most dramatic price increases over the past year involved lumber prices, this has caused very few builders to switch away from traditional wood framing, although some are considering it. In particular, 17% are considering switching to steel, 16% to structural insulated panels, 14% to insulated concrete forms and 8% to concrete masonry.
by NAHB

NAHB has published a code adoption kit for the 2021 International Energy Conservation Code (IECC). The purpose of the kit is to help jurisdictions make informed decisions on adoption of the new 2021 IECC residential model energy code, which contains many significant and detrimental changes after a fraught development process.

The 2021 ICC family of model building codes was released earlier this year and is now available to jurisdictions for review and adoption. The development of the 2021 IECC was marked by controversy as a result of a disputed online ballot heavily influenced by block voting from non-code enforcement government officials that was linked to a single voting guide. In the end, several problematic code changes got into the 2021 IECC.
An analysis published by Home Innovation Research Labs clearly establishes that many of these changes are not cost effective for home owners and will negatively impact housing affordability with negligible energy savings benefit.

As an example, the new requirement for added attic insulation in climate zone 2 (R49 vs. previous R38) will save the owner of a 2,600 sq. ft. house about 67 cents per month on average (5kWh per month). Yet the cost to the consumer for the added insulation is over $1,000, making the simple payback period for the added insulation over 100 years.

In addition, many of these changes result in negative monthly cash flow for the home owner (i.e., the combined total for the mortgage and energy bill is higher) and a negative net present value (a metric sometimes used by economists to evaluate a life-cycle benefit of an investment).

NAHB’s code adoption kit for the 2021 IECC residential requirements covers a wide range of issues in the new code, including:
  • List of significant changes to 2021 IECC residential provisions
  • Amendments to 2021 IECC supported with substantiating information and cost-effectiveness data where applicable
  • Cost-effectiveness evaluation of the 2021 IECC code changes including analysis of energy savings and construction costs conducted by Home Innovation
  • A summary table with the status of state adoptions of the IECC around the country

Like other ICC “model” codes, the IECC is designed to be amended by jurisdictions to account for local considerations, such as geography, climate and regional practices. The process for adoption of new building codes varies between jurisdictions based on schedule, governing bodies involved and the degree to which the provisions are amended. The NAHB code adoption kit will serve as a resource for HBAs and other stakeholders as they evaluate the 2021 model codes.
Get Involved! Leadership Position for a Builder Member

The HBA is seeking a Builder Member to serve on the Board of Directors. If you are interested, please contact Kristi at kristi@harrisburgbuilders.com.
EVENTS
Tickets are now available for the PAC Cigar & Bourbon night! This pre-NFL game PAC fundraising event will include dinner and other libations. Mark your calendars to join us at the Sons and Daughters of Italy in Harrisburg on September 9. Tickets are $100 per person. Click the button to purchase your tickets today!
The HBA Pyramid Awards will be held at the Colonial Golf & Tennis Club on August 6, 2021 from 5:00 to 8:00 PM. Registration is now open for those who would like to purchase tickets to attend. Complimentary tickets for each company entry were sent out on June 30, 2021. Additional tickets are $75 per person.
Thank you to Presenting Sponsor F&M Trust and Social Sponsor Swartz Kitchens and Baths for sponsoring this event. You can purchase your tickets online using the above button, or you can email tina@harrisburgbuilders.com to reserve your tickets today!
Today, July 9, is the last day to take advantage of our Early Bird pricing for the Parade of Homes! Make sure you get your applications in by the end of the day to save on your entries! Email jannette@harrisburgbuilders.com for more info.
Mark Your Calendars!!! The Parade of Homes Gala will be on Sep. 22, 2021 at the Best Western Atrium and Ballroom. Tickets will be $75 per person and will go on sale in July; however, remember that each Parade of Homes entry will receive two free tickets to the Gala!
Remember, as a benefit of membership, the Member News and Member Marketplace are available to you. Please send in your submissions (and photos!) by Wednesday every week to