Cellar: Affordable Housing is

Cellar: Homebuilders in Northeast Florida have enjoyed 10 years of steady growth, and in 2005 activity was off the charts. I think most of us in the industry knew we wouldn't be able to sustain the level of growth we saw in 2005, so the slowdown last year wasn't a big surprise.

The leveling off will enable us to regain some equilibrium and, hopefully by the middle of 2007, most builders will have sold down their inventories and we'll begin to see more activity.

While no one can predict with absolute certainty what the future holds, I believe over the next 10 years Northeast Florida will continue to thrive. We've become a destination location because of our national exposure, our climate and our economy. An estimated 2,000 people are moving here each month, and they all need a place to live.

What are the biggest challenges your industry faces in providing affordable housing? How can those challenges be overcome?

Cellar: Housing in Jacksonville remains among the most affordable in the state, yet we know that increases in the price of homes make it more difficult for many in our workforce to afford a home of their own.

Contributors to this problem include the rising cost of land and government regulations and fees. As the supply of land decreases, its cost goes up. That's just a basic business principle. And, as government imposes more regulations on developers, the cost to develop land goes up.

In one county in our area, impact fees on a new home total about $10,000. For some people, these added costs price them right out of the market.

I realize there's no easy answer to this problem. Regulations are intended to protect the environment and wildlife, and impact fees are intended to ensure development pays for itself. But we must somehow balance those factors with the need to provide affordable housing to all segments of the population, keeping in mind that teachers, firefighters and law enforcement personnel are among the hard-working members of our community who are having a difficult time affording a new home.

I think we need to put more effort into forming partnerships between the public and private sectors to resolve these challenges.

Green building is becoming more popular among buyers. Is the industry moving toward a commonly accepted definition of what exactly constitutes a green-built home?

Cellar: We're working toward a commonly accepted definition of green building. I think most of us agree in principle what constitutes green building, and we're now working on the details.

Certainly, green building is a growing trend. It's a concept that's been around for several years, and it's gaining momentum as people begin to realize that not all our resources can be replenished readily. NEFBA has made great strides in providing a framework for builders to come to a consensus about what constitutes a green-built home, and just how important these measures are to future generations.

Our Green Built Homes of Florida initiative, in conjunction with JEA, is a model program, and it demonstrates the compounding effect of working together toward a common goal. JEA needed to find ways to reduce energy consumption, and we wanted to be on the leading edge of that effort because the greatest gains can be made during the construction process.

What do you think buyers are looking for in a new home? Do you think their expectations and demands are different today than they were five or 10 years ago?

Cellar: Homebuyers today, in general, have higher expectations today than they did 10 or 15 years ago. They want top-of-the-line products, and they're more knowledgeable than in the past.

They also seem to be looking for homes that require less maintenance and that offer more convenience. Lifestyle influences a buyer's choices, too. The trend today is toward staying home more, so you see homes adapted to entertainment: large kitchen-family room areas for having friends and families visit, home theaters and media rooms, in-home offices. All those cocooning trends are priorities for many homebuyers.

Many also are requesting high-tech homes-the term being used is smart homes-with bundled wiring packages, computer nooks and all the gadgets and technology available. Yet, along with the desire to be high-tech, people want their homes to have the look and feel of traditional neighborhoods, with wrap-around porches and garages to the rear. It's a return to the past, but it has a practical side, too. With the high cost of land, the smaller lot size is a big plus.

Over time, Northeast Florida real estate has appreciated on a steady basis. How do you see appreciation going forward?

Cellar: We experienced an unusual rate of appreciation in 2004 and 2005, and that created somewhat of a frenzy as homeowners began to think of their homes as a commodity. Real estate has always been a good long-term investment, and it's probably the largest investment most people will ever make.

Beyond being an investment, though, a home is a place to live, a place to raise your family. People need to stop looking at what a home is worth month by month, and look at it over a five- or 10-year period. Northeast Florida real estate is a solid investment, not a get-rich-quick scheme.

I encourage people to buy a home where they can comfortably raise their families in a community that fits their lifestyles. Given the attractiveness and benefits of our area and the projected in-migration to Florida over the next 10 years, the value should be there in the long term.