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House Builder Symbol Stock Price (June 23) Stock Price (June 24) Stock Price (June 30) Stock Price (August 4) CREDIT: LONDON STOCK EXCHANGE

Barratt Dev. BDEV 577.50 446.60 405.40 425.40
Persimmon PSN 2,098.00 1,520.00 1,447.00 1,672.00
Redrow RDW 426.60 341.90 312.80 329.40
Berkeley Group BKG 3,285.00 2,593.00 2,523.00 2,582.00
Taylor Wimpey TW 192.40 137.50 132.30 151.30

Stock market. British stocks fell dramatically after the Brexit vote in early June.

ECONOMIC IMPACT U.S. CONDITIONS

Only the largest homebuilders are publicly traded, but they are Over here in the United States, the concerns about labor shortages are
also the companies that move the larger market. How did they fare echoed by American homebuilders, as are the statements about access
after the vote to leave the E.U.? So far, things have not been good. to capital. Stock prices directly affect a small minority of homebuilders,
According to an article on MarketWatch, the day after the vote was but indirectly affect millions of people’s portfolios. This November,
one to forget. The market open saw builder stocks plummet by the United States obviously does not face the same decision as the
double digits. As the day progressed, there was a bit of recovery, but U.K. did recently. But as the saying goes, if we don’t learn from history,
the day ended with sizable losses. But what’s happened now that the we’re doomed to repeat it. There may be policy lessons that can be
market has gotten past its knee-jerk reaction? The table above speaks learned from this historic decision by one of our strongest allies. GB
for itself (the prices are in pence). While it is true all five stocks are
up from their lowest price, the best-case scenario on this table is a Share of Builders Reporting Labor Shortages in 2016
21.4 percent reduction in value a full six weeks after the vote.
Carpenters-Rough 23% 49%

Carpenters-Finished 22% 48%

Framing Crews 27% 41%

Bricklayers/Masons 16% 41%

Painters 10% 40%

Electricians 9% 39%

Plumbers 11% 36%

Roofers 9% 36%

Excavators 8% 36%

HVAC 7% 35%

Weatherization Workers 6% 32% Serious Shortage CREDIT: NAHB

Building Maintenance Manager 5% 28% Some Shortage

Leaving the E.U. Because Britain relies on migrant construction Labor shortage. Builders reporting a labor shortage have risen to
workers, the country faces the possibility of a more severe labor 46 percent in 2014, 52 percent in 2015 and 56 percent in 2016,
shortage. according to a report by the National Association of Home Builders.

As if the news wasn’t bleak enough, financial services firm COURTESY OF
Canaccord Genuity said “other risks the sector could be facing are
the rise in unemployment, the negative macro shock on U.K. gross The Green Builder Coalition
domestic product and a sharp fall in net migration might affect future
household formation trends.” The Green Builder Coalition is a not-for-profit association
dedicated to amplifying the voice of green builders
Believe it or not, there is a bit of good news. Canaccord Genuity and professionals, driving advocacy and education for
felt “the sector is in good shape, in terms of having strong balance more sustainable homebuilding practices.
sheets and showing capital discipline.” Barratt Developments PLC, For more information, visit GreenBuilderCoalition.org
the biggest U.K. house builder by sales, felt the way to navigate the
turbulent times was through quality. “There is a structural under- For more information, contact Executive Director Mike Collignon at
supply of quality homes in the U.K., and we have a clear strategy to mcollignon@greenbuildercoalition.org.
address this,” Barratt says.

www.greenbuildermedia.com September/October 2016 GREEN BUILDER 59