ATLANTA, GA - This is how bad the home-building slump has gotten: builders are being encouraged to seek emotional support. These men of pickup trucks, nail guns and steel-toed boots are being urged by their local trade association to talk feelings instead of square feet, to hang on their belts the tools of affirmation and positive visioning.
"It's a need we never addressed before," said David Ellis, executive vice president of the Greater Atlanta Home Builders Association, which earlier this year began telling its 3,300 members help was available if they wanted it. "It's a different time, and we're trying to be responsive to our members' needs."
Nationally, construction of homes and apartments fell in July to the lowest level in more than 17 years. Locally, the number of lots waiting for homes has increased 13 percent over the same period last year, according to Eugene James, the regional director of MetroStudy, which tracks the housing industry. As of July 1, 149,000 lots in 22 metro Atlanta counties were awaiting framing crews.
Measuring vacant available real estate is easier than gauging builder turbulence. Smaller companies simply fold. Larger ones may seek bankruptcy protection, but there is no data on builder bankruptcies. Lawyer Scott Riddle, who tracks local Chapter 11 filings on his blog, sees the mounting evidence of the slow housing market and credit crunch. "I think there has been a significant increase in builder bankruptcies," Riddle said. Which translates into more pressure on builders and developers.
Some have liquidated a company, such as high-profile developer Stephen Macauley, who declared debts of $131 million. Every builder seems to know a colleagues swamped in debt, and a few know friends in the business who have taken their lives.
Charlie Cummins, a counselor and executive coach, is among those trying to get there before the tragedies occur. "We talk with people about the changing industry and how they manage its effect on them and their family," said Cummins, a counselor and executive coach who has worked with the Greater Atlanta Home Builders Association.
Because of doctor-patient confidentiality, it is difficult to say how many builders have opted for the counseling, but Cummins suspects it is few. "They see it as a sign of weakness," said Cummins, a partner in TROVE Consulting.
Tony Perry, who sought bankruptcy protection in December for his Oakwood Homes, thinks talking about the embarrassment and feelings of loss can kickoff the rebound. "The fastest way to get back is to get some emotional help," said Perry, a self-described "recovering builder."
He hasn't sought counseling over the bankruptcy but has drawn on lessons learned in earlier counseling sessions and leaned heavily on his faith. "You can't feel much worse than this," he said of his bankruptcy and of having to move his family to a smaller home. "You can say it's just business, but it didn't feel like just business to me."
Source: Atlanta Journal-Constitution