Davis Homes will shut operations

[Newsjock]

Source: Indianapolis Star

Indianapolis-based Davis Homes on Wednesday became the latest casualty of a national downturn in new home construction that’s seen housing starts in the metro area plummet by more than 40 percent since 2005.

The company’s surprise announcement that it’s closing is a clear sign the area’s weakened housing market isn’t improving and that other builders are in for hard times for months to come, housing experts said.

... The sluggish market already has forced more than 30 of the nation’s top 200 homebuilders to close since 2007, according to Builder magazine. And a long-standing housing slump could have wide-ranging economic consequences for consumers and businesses, driving down housing values, eliminating construction jobs and slowing demand for new appliances and other furnishings.

... “We had to either drop prices substantially or just not sell anything,” he said. The falloff in new home demand “really took a toll and just kept getting worse and worse, and it continues to get worse right up to today,” Davis said Wednesday.

Read more: http://www.indystar.com/apps/pbcs.dll/article?AID=/20080723/BUSINESS/807230442

[IndianaGreen]

1. This is really bad news for our home construction workers!

Davis Homes' houses weren't bad at all.

[spag68]

2. As a retired construction worker

this scares the crap out of me. I studied labor history at Pitt in 1975 to 77 time frame and this is eerily similar to efforts to not only take back wealth from workers, but to put pressure on the remaining workers to reduce wages. The fat cats get everything they want,by eliminating smaller competitors, and the really fat cats, the banks get a govt. bailout, works every time.

[Captain Angry]

3. As an unemployed tech worker, I couldn't agree more.

My job was sent to India in 2006. In 2007, it was brought back because the idiots who sent it didn't realize my job couldn't be done in India. You can't expect very nice and intelligent people to support a product they can't see due to government export restrictions.

When the job was brought back to the USA in 2007, it went to somebody making half what I did.

The company is now setting it up so new hires get worse benefits than current employees. I've never heard of that one before. A current employee can have a 6% match on their 401(k), but a new hire will only get 4% ever.

[grilled onions]

4. If builders Had Built Homes For All Family Budgets...

This would not have such an ending. Not everyone wants nor can afford five bedrooms,mud room,home theatre etc. Years ago some actually built TWO bedroom homes--basic models for singles,newlyweds,empty nesters. There is still a huge market for such homes but builders only see dollar signs and each time they build they escalate the size as well as the price. Even starter homes today have gone way beyond basic models. There isn't anything wrong with building some of these fancy models but the lower budgets should also be represented.