Spending on construction projects ticked down in January, slipping 0.1% from the previous month to a seasonally adjusted annual rate of $538.7 billion, but remained 7.1% higher than the previous year, according to data released today by the U.S. Census Bureau. Once residential improvements, a poorly estimated category, are subtracted, the drop deepens to 0.3%.

The report was still a good one for home builders, however, as the decline came from private nonresidential and public sectors, while privately funded residential construction increased spending by 1.8%. Without improvements, residential spending was up 2.2% for the month, and new, single-family construction was up even higher with a gain of 2.5% to log the eighth consecutive month of improvements.

Spending on private multifamily homes was up 0.7% for the month. On a year-over-year basis, private spending was up for both single-family and multifamily projects, gaining 5.5% and 20.0%, respectively.

Other sectors were less promising. Private nonresidential spending was down 1.5% for the month, with the bulk of the loss attributed to drops in the manufacturing and power industries, although both were up more than 25% year-over-year.

Public construction spending was also down in January with a drop of 0.2%. Public residential spending was down 3.4% on a monthly basis and 27.7% lower year-over-year. Several infrastructure sectors saw significant gains, however, such as water supply (up 10.2%) and transportation (up 2.5%). And while January’s numbers were down, public construction estimates for November and December were revised up, resulting in a 6.8% gain for the past six months.

1. New Boom. Gen Yers are having families, and they’ll need homes. (In 2010, 48% of new homes had 4 bedrooms). This age group seems to be drawn to sleek and contemporary houses with modern, rectilinear designs—in other words, the opposite of what their parents brought them up in.

2. Boomer Bust. Boomers still have purchasing power, but for many, the economy has thrown a wrench in the plan to move into active adult communities. Instead, boomers are opting for multi-generational setups.

3. Make it a Double. Showers for two are in demand, often displacing bathtubs.

4. Sun Spots. Increasingly, production homes are being designed with reversible roof plans to accommodate solar collectors.

5. Workhorse House. Smaller, 30-foot-wide production homes with alley-loaded garages have great selling power at present, says Jerry Gloss.

6. NIMBY No More. Workforce housing for firemen, teachers, medical workers, and policemen is coming to a neighborhood near you, and NIMBYism won’t cut it, says Michele Evans. A big population of essential workers needs to live near where they work, because they can’t afford the fuel costs involved in long commutes.

7. Do the Right Thing. Evans notices a demand for responsible architecture: homes with manageable upkeep and down payments, as well as eco features like rain catchment, solar panels, and bigger windows.

8. Façade Facelifts. For a high market segment that won’t rebound easily, rehab and renovation are the order of the day. It’s not just on the inside: Homes are getting updates in the form of a new skin with modern vernacular.

9. Less than Xeri. In dry climates especially, there’s a push for xeriscaping, as well as for indigenous plants, restoring lots to how the land once was. There’s also a realization that, in many cases, lawn upkeep just doesn’t make sense.

10. Gray Power. Putting senior housing out in the middle of nowhere isn’t acceptable anymore. Seniors need an address in an active, thriving area for many reasons: They’re closer to amenities, they can walk, and they can help with childcare, because it’s often the grandparents who are watching kids after school.

11. Micro-’Hoods. Mike Woodley pointed out that right now in the U.S., more people than ever before live alone. Urban infill projects that serve as mini- neighborhoods make sense. Community-oriented, they include inviting outdoor spaces, playful use of color on the exterior, and community gardens.

12. Take a Walk. Multifamily residential building in transit-oriented places is one aspect of the infill theme. The draw here is clear, both for those starting out and those scaling down: A thriving infrastructure that’s already in place, less need for a car, and more chances to walk and bike.

13. Amazing Amenities. Apartment buildings are turning resort-like, boasting features like concierge services, screening rooms, fitness centers, yoga rooms, and e-lounges for business. Square footage of the apartments themselves has decreased in exchange for kitted-out common areas.

14. Lean and Mean. A good 50% of construction waste is brought onsite through plans and specs, says Todd Hallett. He advocates intensive planning on the front end, insisting on teamwork, and designing in 2-foot increments.

15. In the Pocket. Taking the place of the formal study are pocket offices and desk spaces set underneath stairways, in unused closets, and in transitional spaces.

16. Core Strength. Mike Rosen of Martin Architectural Group is taking prefab to a deeper level. His firm is using a method called Corewall, where the mechanicals of a home are factory built and then brought to the site. This centralizes them in the factory—ideally, the bugs get worked out beforehand—and in the home, where they’re all brought to the middle of the house.

17. A Room of One’s Own. It need not be big; sometimes a small room makes you feel cozy and more comfortable, says Steve James. But every home needs a quiet place to go—or to send teenagers with laptops.

18. Take It Outside. Outdoor living with an indoor attitude includes fireplaces, wood-burning ovens, super-comfy furniture, and a roof overhead so the space can be used rain or shine.

19.Dial Up the Density. Scott Adams of Bassenian Lagoni is having success with first-time buyers opting for small, single-family homes (1,000 to 1,800 square feet) on small lots that are built densely (15 homes to the acre).

20. It Never Hurts To Ask. On the subject of density, Adams suggested that community development officials are willing to listen a lot more than they were a few years ago. Projects built for density that might not have been previously possible may get more latitude these days.

What’s the most important change you’ve made to your house plans in the past year?

Starr Tingle owns Sanctuary Homes in Kentucky, a 15-year-old builder that completes 10 to 12 homes a year.

The largest change we’ve made has been simplifying the box. We’ve eliminated waste such as corners and turns in the foundation and unnecessary square footage. That’s allowed us to put money saved into better, more luxurious finishes and curb appeal. While we only put one vanity sink in the master bath, we now put a granite top on the vanity. We are upgrading the kitchen backsplash to natural stone or glass tile. In the spare bath, rather than installing a one-piece tub/shower unit, we’ve begun using a tub and tiling the walls with a natural stone and saving money by purchasing the materials at a big-box store. Kitchens and baths are where we want to appeal to our female buyers. For our male buyers, we are building only Energy Star–qualified homes and finishing the basement. This formula, plus striving to keep one merchandised show home on display have resulted in more signed contracts and fewer lookers.

One of the most important design changes we’ve made this past year is creating a greater sense of flexibility and flow throughout the home. This is evident in our new great room–centered floor plans, which seamlessly blend the family room, kitchen, and dining area to create an expansive space. With highly appointed kitchens and oversized islands, the area becomes the command center of the home. Offering more room for bulk-item storage, food preparation, entertaining, or simply relaxing with family members, this feature has truly resonated with prospective homeowners. In addition to a greater flow between living and dining spaces, Standard Pacific Homes has strategically placed windows and glass doors to make the outdoors more visible and accessible. Not only does this increase natural lighting and enhance the home’s beauty, but it also creates better connectivity with our outdoor living areas, maximizing the usable square footage of each home.

Over the past year we have introduced several new designs and efficiency innovations. We have seen a trend toward multigenerational housing and now offer an optional in-law or guest suite in all of our floor plans. These optional spaces range from a single bedroom to a bedroom suite with a full bath. Many people are building this feature into their homes for either an elderly parent or an adult child returning to the nest. We have also introduced a new family gourmet kitchen, which features a large central island that can be used as a family gathering place. The kitchens are well-appointed with extra cabinets and upgraded stainless steel appliances. All of our homes are now constructed using our Energy$mart program. This program guarantees energy efficiency that not only meets the national Energy Star standards, but substantially surpasses them. Our Energy$mart homes have an average HERS score in the lower 60s.

No time to get to that recent construction expo or missed out on the big one: GreenBuild Toronto October 2011? Fear not, the virtual era we now live in has, well um….expanded to expos too! We at Capital Craftsmen think this is a fabulous way for our staff to continue learning and want to encourage our sub-contractors and business partners to also attend (virtually of course). Here is a summary of what you can expect on October 20th:

The Sustainable Construction Expo, presented by BASF, is a virtual tradeshow that will highlight product and educational offerings from BASF Construction North America and a selection of its industry allies and experts. 

Access information from leading industry experts, product suppliers, design professionals, specifiers, engineers, contractors, building owners and facility managers to help move the needle on improving the sustainability of the built environment. 

Why is BASF Construction North America doing this?
It often surprises people, even those in the building industry, to learn how much chemistry goes into construction. We want to showcase the role our chemicals have in helping to create durable, energy-efficient and cost-effective buildings, residences and infrastructure.

What better way to demonstrate our commitment to sustainable construction than to host a virtual tradeshow, where no one has to travel and nothing is printed? 

Our goal is to provide a forum to share information between leading industry experts, product suppliers, design professionals, specifiers, engineers, contractors, building owners and facility managers to help move the needle on improving the sustainability of the built environment.

Home remodeling is on the rise. And no wonder. Owners having trouble selling their homes in this real estate market want to give them as much buyer appeal as they can afford. Others are deciding that if they can’t move, they might as well make the most of the house they may be calling home for a long time.

After a year of decline in home remodeling, the number of homeowners saying they plan to remodel in the next 12 months increased from last year, according to RemodelOrMove.com, a website that provides homeowners remodeling options and has conducted semiannual surveys of owners since 2005.

In tough economic times, it’s important to make smart decisions. Here’s what to consider before you pick up the hammer:

1

The biggest bang for your buck

Before you even come up with a plan, consider how long you will live in the home. If you only plan to stay for a few years, you may not be able to earn back the cost of a major renovation. Short-term owners should consider simple cosmetics, such as refinishing floors, painting and updating fixtures and lighting. “They are little things that don’t cost much but can really update a room,” says Eric Cappeller, head of estimating with Capital Craftsmen .

If you plan to stay in the home for five years or longer, then a major renovation or even a kitchen or bathroom renovation provide the best return on your investment.

“Owners can enjoy a nice modern kitchen and bathroom,” says Caroyln Chappelle, associate broker at Warburg Realty in New York. “Down the road if they want to sell the home, they’re in good shape, because it’s kitchens and bathrooms that sell homes.”

One of the biggest mistakes that people make is to renovate one room perfectly and leave another as existing, she says. In general, renovating should bring a property up to the value of comparable apartments. A good rule of thumb is that you shouldn’t try to improve the value of your home more than 25% of its current value.

2

Financing the project

Before you start renovating, estimate the cost and decide how you will pay for it.

Lenders advise to apply for a higher limit of home-equity credit than clients initially ask for. You do not have to use all of it, but a least you have a cushion if you underestimate the budget.

Borrowing is not the only way to finance a remodeling job. If your project is inexpensive and you have adequate savings, tapping them is the easiest way to go. Many clients use their credit cards for projects under a few thousand dollars.

Owners can finance a kitchen or bath renovation or add a deck that way. Major projects may be better off with a personal loan, a home-equity loan or line of credit.

Sharp declines in home values mean many owners have no equity to tap. For those who do, financing home improvements with a home-equity loan makes sense because the interest is tax-deductible.

3

Are you covered?

Before you start a project, make sure the contractor and subcontractors have adequate insurance coverage. Ask if the contractor has workers’ compensation, which covers lost wages and pays for medical and rehabilitation expenses if workers are injured. If not, an injured worker can sue you, says the Insurance Information Institute.

If you are adding an extra room, you will need to increase your home insurance coverage. Don’t wait until the renovation is completed to contact your insurance agent. If the addition is damaged or destroyed before insurance coverage has been increased, you may be responsible for the cost of repairing or rebuilding it.

Homeowners also should visit DisasterSafety.org, where the Institute for Business & Home Safety provides info about building codes and standards. It’s where homeowners can find out how to be sure contractors make their homes hurricane- or wildfire-resistant.

And during the renovation keep all of the receipts for items purchased, such as furniture and electronics, because you will want to make sure you have the right amount of coverage for personal possessions.

4

Ways to save money

Kitchens and bathrooms are the most popular renovation projects. But don’t overlook less-visible improvements that may cut the costs of owning a house.

Updating old plumbing and electrical wiring and disaster proofing your roof may lower your insurance premiums.

Owners of older homes can reduce their energy bills by adding insulation and installing new windows. Federal and state tax credits for certain improvements — such as energy-efficient central air conditioning, heating or water heaters — can lower your costs even more.

In the end, a renovation project’s payoff may be measured best by how much satisfaction it gives the homeowners.

The Chandel-Aire collection from Meyda Custom Lighting integrates lighting and ceiling-fan technology in varied styles and configurations.

Is it a lighting fixture or a ceiling fan? “I really can’t tell you,” says Bob Cohen, president of Yorkville, N.Y.-based Meyda Custom Lighting, commenting on the company’s collection of Chandel-Air fixtures that integrate ceiling-fan technology with custom lighting designs. “But whatever you want to call it, we’re very happy to have come up with it,” he adds.

The design, Cohen relates, came from his wife’s desire for a ceiling fan without the appearance of a typical ceiling-mounted air mover. A prototype of the resulting design was displayed in the showroom adjacent to Meyda’s factory and generated consumer interest and sales.

Although the company’s website displays nearly 40 variations of the Chandel-Air theme, spanning rustic, with trees and pine cones, Craftsman and contemporary designs, there are really no “off-the-shelf” models. Fixtures are customized to fit individual applications. “We’re going to build it when you order it,” Cohen says.

The fixtures range in size from 36 1/2 inches to 60 inches in diameter and can accommodate flat or vaulted ceilings of any pitch or height. Energy-efficient LED or incandescent lighting is available.

The Chandel-Air also is designed as an energy saver, to pull hot air up and keep the space cool in the summer and reversed in the winter to push down hot air and maintain warmth. It operates with an optional two-circuit remote control with three-speed fan control and dimming capabilities. The fan has a 25-degree blade pitch, a blade sweep of 29 inches using five blades and an airflow efficiency (cubic feet per minute per watt) of 50.

The grassroots inspiration behind the Chandel-Air line is central to Meyda Custom Lighting’s philosophy, and, in fact, played a part in the company’s founding. The company, which has been in business for 38 years, grew out of a desire by Robert Cohen’s parents for a custom stained-glass window. His father, a retired butcher and a “master tinkerer,” took a continuing-education class in stained-glass window making, and what began as a hobby turned into a serious business. The lighting business, in turn, grew out of the stained-glass enterprise, and in a further twist of fate, a metal fabricator came to Meyda to explore turning his candleholders into lamps, introducing rustic metal designs to Meyda’s product line. Meyda eventually purchased the fabricator.

Cohen attributes the success of Meyda to its Rust Belt origins. “The only way you could start a business in a place like [this] was to never say no if anybody wanted something. We had a little shop and any time anyone said, ‘can you do this?’ we always said ‘yes,’ and then we had to figure out how to do it. It’s what we’re still doing,” he says.

Not all of Meyda’s projects are small-scale and home-spun, however. The company created a 35-foot-diameter LED chandelier, said to be the largest of its kind, that hangs in a Utica, N.Y., theater. Another fixture, constructed of 3,000 acrylic LED-illuminated rods is installed at Mall Champlain in Brossard, Quebec, Canada. The company also has a line of ceiling fixtures, table and floor lamps, wall sconces, landscape and outdoor lighting, stained glass windows, furniture and displays.