Insight on Business

May 2013

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insight on Residential By Tom Groe nfeldt Construction Building up business New home construction is coming back, slowly R esidential construction companies that survived the recession were flexible and hands-on, undertaking significant amounts of remodeling while waiting for the markets to regain some strength, which is happening now. Sort of. "People are still uncertain about the economy and not too many people want to build new homes or buy new homes," says Stiliana Omdahl, director of operations at Alliance Construction & Design in De Pere. One result of the uncertainty, she added, is higher demand for rentals which is driving the construction of multi-family apartment and condominium complexes. Alliance has been doing a lot of remodeling jobs as people sit tight waiting to see what will happen to the economy, she added. "We don't necessarily mind that, but it is always better to build new," she says. Craig VandenHouten, a co-owner of Van's based in Dyckesville, says the outlook is improving. "I am sure seeing a definite increase in people's interest talking about doing things anyway," he says. Getting them to pull the trigger is another story. "But there's more optimism than I have seen in the last two years." House types are changing. Van's is seeing demand for somewhat smaller houses with luxury touches such as granite countertops, wood floors, brick walls and better windows. Steve Brown, of the Steve Brown Group in Green Bay, has just sold five spec homes in the $168,000 range. He attributes his sales success to simple designs, quality of construction and attention to price. "Advanced framing techniques have been around for more than 20 years. They increase the amount of space for insulation, reduce the use of materials and reduce energy costs." – C indi MacSwain, Vanney-MacSwain Home Planning 32 | Insight • M ay 2 013 "I weathered the storm because I got my hands dirty," he explained. "I am a real hands-on contractor; a lot of the people who fell by the wayside were 'telephone' contractors." Brown says he pays close attention to customers and modifies his design to meet current demand, like placing the laundry (area or room) on the first floor, vaulting the ceiling in the livingkitchen-dining area and building a fancier ceiling in the master bedroom so his homes feel bigger than the square footage might suggest. "I decorate in early cheap," he explains. His homes have none of the fancy frills that were common in many spec homes six years ago, unless the buyers request and pay for them in advance. "My objective is an affordable house that people want to buy," Brown says. He sticks to eight-foot ceiling heights – the seven-foot ceilings allowed by law feel like a cave, he says. Exteriors are maintenance-free vinyl siding and w w w. i n s i g h t o n b u s i n e s s . c o m

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