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Are Construction Job Losses All About Pay?

Fri, 07 Sep 2012 22:15:38 +0000

Despite rising demand for newly built homes, construction employment in August remained flat, stuck at the same paltry pace for the past four months.

The numbers don’t make a lot of sense at face value, given that housing starts are up in both single and multi-family, and builders are reporting big jumps in new orders for homes.

“Since the ‘official’ end of the recession in June 2009, construction employment has fallen 8.2 percent, even though overall employment is up 2.1 percent,” notes Trulia.com’s Jed Kolko. “The share of national jobs in construction (4.14 percent) is at the lowest level since 1946.”

Yesterday we reported on how certain builders in Dallas, TX claimed there were not enough skilled workers to fill the construction jobs they have open. The story garnered a huge response, with most claiming that was impossible, but others noting that it is all about the pay scale. (Read the story:Home Builders Don’t Have Enough Workers to Meet New Demand)

“Only about 20 million out of work construction workers in the country. I think what they really mean is they can’t find enough workers who will do hard construction work for 8 dollars an hour,” wrote one respondent on the blog.

I’m a sub-contractor in South Florida,” wrote another. “The problem here is, the big builders are paying sub-contractors less than what they paid in 1998. On top of that there are more city and OSHA rules to abide by. There is no way for me to employ a crew and pay them what they need to support their families. The only crews that are working are illegals, and the only reason they can survive on these wages is because there living with 2 families in 1 bedroom apartments. That’s not my idea of job creation.”

Builders will argue that the rising cost of construction materials is making it harder for them to raise wages, not to mention that they are still competing with large supplies of cheaper, distressed properties, many of which are relatively new construction.

“Here locally, we’ve measured that the average price of a house has gone up 1.7 percent from last year, which is not nearly enough to cover the 9 percent increase in costs that has occurred since 1st of the year, so it’s coming right out of the margin,” says Stephen Brooks, CEO of Dallas-based Grand Homes.

The argument quickly turns to immigration policies, given that so many construction workers are not U.S. citizens, but it is also a matter of investment in the work force, which we see in so many sectors, like the auto industry, as reported by CNBC’s Phil LeBeau today. Apparently their aren’t enough skilled engineers to do the necessary work on cars. (Help Wanted: Engineers)

Says another blogger: “I’m thinking these folks need to rescrew on their heads on what it will take to grow their businesses, like maybe invest some resources to bring new folks on board and work with them to make sure they have those skills they want long term.”

Questions? Comments? And follow me on Twitter @Diana_Olick

Article source: http://www.cnbc.com/id/48940258?__source=RSS*blog*&par=RSS

Low-End Housing Sees Higher Losses

Tue, 28 Jun 2011 14:19:20 +0000

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As I sit here, less than 24 hours from the next release of the much-followed monthly SP/Case Shiller Home Price Index, I’m confronted with all kinds of varying data and hypotheses on the future track of home prices.

Particularly interesting to me is a new breakdown, by Capital Economics (which watches our market from Toronto, Canada), on how prices are falling faster at the low end than the high end.

At face value I thought this was a no-brainer. Of course the low end is falling faster because that’s where the bulk of the foreclosures are, thanks to the subprime mortgage debacle, which of course targeted first-time and low-income buyers on the low end. I had no idea how large the discrepancy is:

“Since their 2007 peak, prices in the low tier have so far fallen by 45 percent compared with declines of 35 percent and 25 percent in the middle and high tiers respectively,” notes the report.

Even though most of the subprime distress has worked itself through the market, the pressure on the low-end continues because it is the low-end borrowers now who have the toughest entry to the oh-so-tight mortgage market. As the report reminds, proposed risk retention rules will likely mean a 20 percent down payment, which will price many borrowers out of the low end of the market.

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Article source: http://www.cnbc.com/id/43553459?__source=RSS*blog*&par=RSS

Leading Commercial Real Estate Mogul Promises Learning While Earning

Thu, 24 Mar 2011 14:09:09 +0000

Dallas, TX (Vocus/PRWEB) March 24, 2011

Cherif Medawar Real Estate Investing (CMREI), a commercial real estate training and investment opportunity company, announces exciting discounted secured real estate mortgage notes at his free seminars in Los Angeles and San Francisco.

These “Investing” seminars or events promise to teach participants a low risk, low hassle way to invest in real estate cash flow instruments with high benefits and rewards that will lead to the opportunity of making 14% to 40% fairly safe yield per year.

“Owning secured mortgage notes is a proven path to wealth especially if you acquire them at a discount,” said Cherif Medawar, Founder of CMREI.

Since 2009, Medawar has been purchasing hundreds of homes in bulk REOs from banks and asset managers. Medawar then turned around and rehabbed them, then sold them by carrying the financing. Consequently, the End-Buyers (who often do not have the best credit) got to own a home by making low monthly installment payments, often lower than rent in the neighborhood. Medawar presented these Notes for resale at a discount to his student/investors from CMREI and ended up creating a win/win/win business model with over 1000 families getting into homes and 1000 mortgage notes sold at a discount to investors.

The seminar will be a full day in which local Bay Area and Anaheim investors will have the opportunity to understand how this business model works and how they can participate on any level they wish. This process allows the students to truly learn and earn while establishing a steady monthly cash flow with an instant increase in their net worth when they buy any note at a discount off its face value.

Participants can use their retirement accounts or credit lines if they wish to buy the discounted real estate notes that weathered the economy for the past 20 years plus.

Previous students of Medawar have found such great success in Medawar’s business plan that they have expressed their excitement on YouTube.

“He [Cherif] is the real deal,” said Roxanna, a real estate broker in Southern California who attended a Cherif Medawar seminar. “I’m looking forward to bringing my clients, my investors on board, which I have. Now we have lists. We have properties. We have avenues to go to…that we did not have before. So, he’s the real deal. I’m looking forward to it. Thanks, Cherif.”

The first seminar will be held on Saturday, March 26, from 9:00 a.m. – 3:00 p.m at the Santa Clara Marriott in Santa Clara, CA. The second seminar is on Sunday, March 27, from 9:00 a.m. – 3:00 p.m. at the Sheraton Anaheim Hotel in Anaheim, CA.

About Cherif Medawar Real Estate Investing:

For 20 Years Cherif Medawar, Founder of Cherif Medawar Real Estate Investing, has been sharing his successful Real Estate Investing techniques. He now makes it possible not only to learn alongside him but to also invest where he invests and ‘learn while YOU earn’.

Those wishing to learn more and/or get involved with his successful business models including how to get huge cash flows secured by real estate should attend a free presentation held by Cherif Medawar personally. For dates, times and locations please go to: www.events.cmrei.com.

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For the original version on PRWeb visit: www.prweb.com/releases/prwebcherif-medawar/real-estate-seminar/prweb8234925.htm

Article source: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/03/24/prweb8234925.DTL