For homebuilders, financing a real estate transaction, oftentimes via an institutional lender, is common place in the industry. But what is land banking and why should it be considered by homebuilders?

Land banking is an off-balance sheet financing structure whereby the land banker purchases fee title to the homebuilder’s desired lots – instead of the homebuilder. Simultaneously, the homebuilder enters into an option agreement with the land banker wherein the homebuilder obtains an option to purchase the desired lots from the land banker. Such option is generally secured by a non-refundable option fee paid by the homebuilder to the land banker.

Homebuilder stocks may be poised to keep rallying, with investor optimism about lower interest rates likely priming them to overlook any possible disappointments in KB Home and Lennar Corp. earnings, JPMorgan’s Michael Rehaut wrote in a note.

A lower 10-year Treasury yield “heals all wounds,” Rehaut said.

Sentiment among U.S. homebuilders climbed to a six-month high in April, another indication that the housing market is gathering momentum during the crucial spring season.

The National Association of Home Builders/Wells Fargo Housing Market Index rose 1 point to 63, matching the median estimate in Bloomberg’s survey of economists, on improvements in present sales and buyer traffic, data released Tuesday showed. Readings over 50 indicate more builders view conditions as good than poor.

Thanks to the new buildings and infrastructure that began construction in 2018, regional residents and visitors should soon be able to get around a lot easier in the New York and New Jersey region and enjoy a host of new living spaces and entertainment options.

Finally, a New York City neighborhood has landed a coveted spot on Bloomberg’s annual ranking of America’s richest zip codes. And no, it’s not Billionaires’ Row where residences have sold for more than $100 million.

Instead, Tribeca -- a neighborhood in downtown Manhattan near the World Trade Center -- is making noise.

Building trades officials and employees embezzled millions of dollars over the past year, raiding the bank accounts of their locals to pay for trips to Las Vegas, lavish jewelry, luxury cars, home renovations and even a new puppy, U.S. Labor Dept. records show.

The term “triple bottom line” was coined in 1994, but it has never been more relevant to the trillion-dollar green construction industry—and to the planet—than it is today.

First applied to socially responsible business, triple bottom line can apply to all kinds of projects in the built environment. The concept incorporates a long-term view for assessing potential effects and best practices through three lenses:

• People (social capital): All the costs and benefits to the people who design, construct, live in, work in, and constitute the local community and are influenced, directly or indirectly, by a project.
• Planet (natural capital): All the costs and benefits of a project on the natural environment, locally and globally.
• Profit (economic capital): All the economic costs and benefits of a project for all stakeholders.

Reprinted courtesy of Taryn Holowka, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.

The Arizona Attorney General recently reached an agreement with Utah-based real estate company Homie which made a splash in the Phoenix market during the fall election with candidate-type signage posted throughout the community urging a “Vote for Homie” as significant change and assured that such change would be “coming to your pocket.” The problem? Confusion to the voter, improper collection of personal data.

Aggressive recruiting tactics have become commonplace in response to skilled trade shortages, and even small organizations and specialty contractors are hiring dedicated recruiters to get bodies through the door and into the field at a frantic pace.

Florida jumped from ninth place to first place on Associated Builders and Contractors’ 2018 Merit Shop Scorecard based on the state’s free enterprise and open competition approach to the construction sector, increased career and technical education opportunities, and job growth rates. Now in its fourth year, the scorecard rates laws, programs, policies and statistics to highlight states that have created the conditions for growth and identify areas where strategic improvements are needed.

Reprinted courtesy of Joanna Masterson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.

U.S. new-home construction picked up in October on a rebound in apartments and other multifamily housing, offering some hope that the market is stabilizing despite rising prices and borrowing costs.