Two For Tuesday + | November 19, 2024


#1 NAHB Economist Provides Forecast for 2025 and Beyond

During the recently held 21st Century Building Expo & Conference, National Association of Home Builders (NAHB) Chief Economist Dr. Rob Dietz shared his latest insights on issues affecting the home building industry. Dietz, an expert on the U.S. economy, housing, tax, and trade policy, provided recent economic data at both the state and national level. Some of the key takeaways included the following:

  • The national economy appears to be slowing, but North Carolina tends to outperform the national average
  • Personal savings rates are falling
  • Mortgage rates will continue to ease down to under 6%
  • Government deficits are growing
  • Housing prices continue to rise due to lack of supply
  • Percentage of white-collar workers in the building industry continues to rise as a result of increased regulatory compliance challenges

My take:  A lot of these metrics are as expected. But having them delivered by Rob Dietz never disappoints. Highly knowledgeable and clear in his delivery of the subject matter, the two things he mentioned that resonated with me were (1) U.S. birth rate is likely to pick up over the next decade and (2) immigration policy changes will have a direct effect on the supply of workers in the construction industry. Both items are part of the subject matter we should all have at our fingertips as we move forward in our industry. The first will guide future demand and the second will relate to our ability to meet it.    


#2 Charlotte Water Initiates Interbasin Transfer (IBT) Modification Request

Last week Charlotte Water Director Angela Charles provided REBIC members with a presentation about its current Interbasin Transfer (IBT) Modification Request. It’s imperative that we understand that, with this action, the largest public water and wastewater utility in the Carolinas is not seeking to withdraw more water from the Catawba River Basin, but instead asking to increase the amount of water it may transfer to the Rocky River.

The IBT modification is needed because Charlotte Water is currently at 79% of its limit. Based on population projections, the current IBT amount could be exceeded as early as 2028.

The request has initiated a long multi-step process which involves and affects numerous stakeholders including REBIC. We really encourage you to view the proposal and then anticipate updates as the process continues.

 

My take:  As early as 2028? That already feels like yesterday to me. Since time is passing quickly, please take the time to familiarize yourself with this topic. We are presenting it to you early on in the process because the outcome of the deliberations will determine whether future water supply needs will or won’t meet the needs of development occurring on the eastern side of the basin divide which includes much of Mecklenburg County. If you only have time to review one presentation today, make this the one (see above).


#3 Charlotte’s Planning Director Engages with Local Builders at Event

During last week’s HBA Land Development Council meeting, Charlotte Planning Director Alyson Craig, in a bold and important meeting, provided an update on City Planning and Development activities. Her presentation touched on the following areas:

  • Growth Framework
  • UDO Text Amendments, Affordable Housing, & Residential Refinements
  • Community Area Planning
  • Alignment Rezoning
  • Challenges

During the course of her presentation, Craig highlighted language contained in the most recent Unified Development Ordinance (UDO) Clean-Up Text Amendment (#4) that increases the allowance of duplexes, triplexes, and quadraplexes in certain zoning districts. She also mentioned existing density bonuses, both for height and length, already contained within the ordinance and indicated the department would be open to considering additional changes that would encourage the development of additional affordable units.

Craig concluded her remarks by encouraging members to weigh in with comments on the Policy Map prior to the upcoming November 29th deadline. Once the new map is adopted, likely in the spring of 2025, the next step will be city-wide Alignment Rezoning.

 

My take: Alyson did a superb job addressing our group last week with the intention of discussing particulars that can only be addressed through meaningful collaboration. It was clear to many of us in attendance that she truly understands that we need more housing supply in order to meet current and future demand, even though getting there can often be a difficult process. She has a tough job balancing many disparate interests. We are grateful for her willingness to get engaged and stay engaged with us as we continue to strive for more certainty and clarity on these and other important issues.  


#4 City of Statesville Engaging Stakeholders on Unified Development Code Rewrite

Statesville Soars is an ongoing project aimed at updating the City of Statesville’s Unified Development Code (UDC) in an effort to implement the 2045 Land Development Plan. Elements of the project include restructuring and modernizing the current UDC, clarifying development review procedures, adding modern uses, and incorporating more graphics and illustrations. Consultants hired by the city recently concluded a round of stakeholder interviews that included members of the development community as well as elected officials. Some of the feedback included the following thoughts:

  • Growth in Statesville had been very limited prior to the adoption of the 2045 Land Development Plan
  • Several opportunities for adaptive reuse projects
  • Development approval process needs more clarity and certainty
  • Inconsistent application of permit fees has been a challenge
  • Emphasizing how, in many cases, development standards are too stringent and result in poor outcomes
  • Housing for employees is desperately needed
  • Faster permitting should be a goal of the Planning Department
  • Infrastructure costs often constitute 28% of the cost of housing

 

My take: If you take a look at the summary of the stakeholder interviews (link is above) you’ll see the name of James Pressly, President of the Pressly Residential Group.  James and his father, David, have been involved in the industry for many years as members of the Canopy Realtor® Association and the Home Builders Association of Greater Charlotte. We are thankful James takes the time to stay involved as this project moves ahead. We at REBIC look forward to providing the kind of support necessary to achieve an outcome for Statesville that results in its local economy achieving significant growth and supporting the industry in delivering varying housing types for many different home buying consumers.  

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