Power On 50

What a difference two years makes. The industry has officially cooled since 2004, when BUILDER debuted its list of the 50 most influential people in home building. Builders who couldn't keep up with the demand for their product then are now scrambling to sell aging inventory. In 2004, home builders were a shining light in the economy.

And then there were Hurricane Katrina and her nasty cousins, Rita and Wilma. The storms forever changed the physical landscape and the cultural fabric of the Gulf Coast and fueled a call for a new approach to building in coastal areas that are vulnerable to monstrous storms.

This fall, BUILDER's editors met to discuss who should be included on this year's top-50 list. Many of the names we reviewed were familiar—people still exerting considerable power—and roughly half the list is a duplicate of the original. But the top name on our 2004 list, Alan Greenspan, retired as chairman of the Federal Reserve, and No. 2, Franklin Raines, was forced out as chairman and CEO of Fannie Mae. President George W. Bush still made the cut this time, but for an entirely different reason from when he was just ending his first term.

Some names dropped off the list, not because the individuals no longer wield power, but because we felt they had simply stayed the course instead of charging forward, creating opportunities, or redefining the boundaries of innovation. We also made a conscious effort to recognize some new voices. With others, we opted for a wait-and-see approach. It wasn't enough that a person had taken on a major role; we wanted to see what he or she does with it.

If your name is here, it's a testament to your vision and success during difficult times. If it's not, there's still time to make your mark and earn a spot on our next list.

In 2006, the chairman of the Fed continues to hold the key to housing's position in the economy—though builders might wish otherwise. The Harvard- and MIT-educated economist presides over the agency at a time when rising interest rates have curtailed investor interest in housing and cancellations are up. Plus, as ARMs are reset at higher rates, countless homeowners face significantly higher monthly payments—and the possibility of foreclosure.—Pat Curry

While Congress agreed to disagree on immigration reform this year, the Department of Homeland Security cast a chill around builder jobsites with its Immigration and Customs Enforcement branch's crackdowns on employers. Chertoff is also pushing hard to seek criminal penalties against business executives who hire undocumented workers.—Steve Zurier

Howard has won a well-deserved reputation for being a responsible voice for the home building industry. In the past year, the NAHB has pushed to revitalize the FHA, supported a guest-worker program for immigrant workers, and issued a landmark study with the NAACP that addresses barriers to minority homeownership. Howard has been the top NAHB executive since February 2001.—S.Z.

Cusato made our list as designer of Katrina Cottage 1, a 308-square-foot emergency dwelling that actually looks like a house. It can be built more quickly and much more affordably than a FEMA trailer—especially now that Lowe's is selling it in a kit. Cusato's elegant solution for the aftermath of a natural disaster is also the realization of a more far-reaching dream—a well-designed, truly affordable home.—P.C.

When our inaugural list appeared, President Bush made the cut (at No. 3) because builders supported Republican business policies and for his commitment to minority homeownership. He returns to the list this year for his guest-worker plan, a program to help address the need for a stable workforce in such industries as home building. He'll need all the weight of his office to get the new Democratic leadership on Capitol Hill to go along with the plan.—P.C.

Weekley prides himself on making the company's employees a primary focus, and once again, the third-largest private for-profit builder has been listed as one of Fortune magazine's “100 Best Companies To Work For.” Two years ago, Weekley took his entire staff to Maui. Whether that largesse continues through the downturn is anybody's guess, but David Weekley Homes continues to be one of the most inspirational builders in the business.—S.Z.

Under the design guidance of David Kohler, great-grandson of company founder John Michael Kohler, Kohler products have become a favorite among builders and architects, who praise them for their innovation, quality, and style. According to BUILDER's 2006 Brand Use Study, Kohler's bath fixtures and kitchen sinks are the first choice among builders. Kohler has one of the most recognized brands for consumers, and builders were quick to capitalize on that—mentioning their use of Kohler products in marketing materials.—Lynne Meredith Schreiber

Recognized by Barron's as the “undisputed king of high-end housing,” Toll has come a long way since he co-founded the company with brother Bruce Toll in 1967. Despite the ongoing housing slump, Toll's willingness to openly discuss the downturn has kept the company's credibility high with Wall Street journalists and analysts. Toll Brothers remains a bellwether company. Few public builders have had as strong a performance during the past decade: The Fortune 500 ranked Toll Brothers 36th this year in 10-year earnings-per-share growth.—S.Z.

What do you do when your window brand is already the largest and perhaps the most recognizable in the industry? You get bigger. And in the past five years, Andersen has done just that. The company added a custom component in KML Windows in 2001 and last year acquired Eagle Window & Door, a manufacturer of aluminum-clad wood products. This year, Andersen completed its acquisition of vinyl window and door manufacturer Silver Line Building Products.—Nigel F. Maynard

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In a dour moment this past summer, Tomnitz reported glumly that the builder would sell 50,000 houses by the end of the fiscal year, down from an earlier prediction of 58,000. Only at D.R. Horton would 50,000 sales be considered a reason for gloom. In 2005, Tomnitz led the country's largest home builder in surpassing the fabled mark, which no other builder has ever done.—P.C.

Fernandez is the interim senior investment officer for a $15-billion-in-real-estate portfolio for the California Public Employees' Retirement System (CalPERS), the nation's largest public pension system, with assets totaling $210 billion as of Sept. 30, 2006. Among other responsibilities, he oversees an effort that has invested more than $9 billion in CalPERS' Single Family Housing Program since the program's inception in 1991 for financing the construction of more than 8,000 homes in California and 11,000 homes nationwide.—Beth Hughes

Charged with developing a long-term plan to rebuild the devastated Gulf Coast region, Powell oversees tens of billions in federal aid. He also will play a pivotal role in creating consensus among local and state officials on how and where redevelopment will occur. Prior to his appointment in November 2005, Powell was chairman of the Federal Deposit Insurance Corp.—P.C.

Months after Harper was sworn in on Feb. 6, 2006, Canada and the U.S. signed a seven-year softwood lumber deal, ending a bitter trade battle. The deal caps Canada's share of the U.S. lumber market at 34 percent. But Canada can now impose an export tax starting when North American lumber prices fall below $360 per 1,000 board feet of softwood lumber, which will increase lumber costs for American consumers.—B.H.

For months on end, Zelman warned public home builders that they were investing too much in land, that speculation was rampant, and that home prices were out of control. Now that the downturn is upon us, Zelman finds no joy in being right. She says her focus now is to help investors make money on home building stocks in this changed market.—S.Z.

As if it weren't enough that he leads one of the nation's premier sources of information on long-term housing trends, Retsinas now also plays a crucial role in the future of housing the nation's—and the world's—poor. He chairs Habitat for Humanity International's board of directors at a time when that organization is redefining its mission under new leadership.—P.C.

Schiewitz heads JPMorgan's national home building division. For many top builders, he's the man to call when they want to purchase a big chunk of land or another builder. Why? Because he's been involved in more than $25 billion worth of real estate financing transactions, and—helpful in today's market—he knows his way around restructuring problem real estate credits.—B.H.

Ryland is struggling with the downturn like many other home builders, with third-quarter consolidated net earnings down 25.5 percent and home building revenues down 10.1 percent. Unlike other big builders, however, Ryland does not have its assets tied up in land, so the company is not walking away from options or taking large writeoffs. Ryland also grows organically rather than through acquisition, so the company isn't mired in time-consuming and expensive consolidations. Dreier believes that his cautious approach positions his company well for when the market rebounds.—S.Z.

Cisneros has emerged from the ashes of independent counsel investigations to reclaim his rightful place as one of the nation's leading affordable-housing advocates. The former HUD secretary is now best known for heading up CityView, which in the past three years has financed roughly 4,000 homes targeted to low- and moderate-income families.—S.Z.

It's not The Related Group's upscale Florida developments, such as Portofino Tower or Trump Hollywood, that make Pérez most proud; it's his impact on affordable housing. The Related Group is Florida's leading condo developer and one of the country's top real estate development firms. Pérez began his career building multifamily homes in Miami's Little Havana neighborhood. Today, he's among the nation's most influential builders and entrepreneurs.—L.M.S.

Susanka's series of Not So Big books sparked an architectural design movement that resonated with consumers who valued quality over square footage. Many builders had opted for a bigger-is-better approach. Then, land prices went berserk, forcing them to design for smaller lots and higher density—and to look to veterans such as Susanka for advice and inspiration.—P.C.

In an industry where big deals happen every day, the biggest deal of the year was the $1.05 billion purchase of California-based John Laing Homes by Dubai's Emaar Properties, one of the largest real estate development companies in the world. Born into poverty, Alabbar today is a trusted aide to Dubai's crown prince, a vice chairman of Dubai Bank, and the head of the second-largest private home builder in the U.S. in terms of gross revenues ($1.6 billion).—P.C.

When people in the building industry hear the term “fiber cement,” they usually think James Hardie. That's partly because Hardie has been manufacturing cement-based building products for well over 100 years. But people mostly know James Hardie for its siding products, which quite literally have changed the face of housing. The formulation—developed back in the '80s—is well loved by architects and builders for its noncombustible, low-maintenance, and, yes, hardy properties.—N.F.M.

Gray oversees underwriting units that offer specialized insurance for home builders. He was instrumental in developing Subguard, which indemnifies large general contractors, construction managers, and design/build firms with annual subcontractor/supplier expenditures of $50 million or more. Subguard covers direct and indirect costs resulting from performance default by an unbonded contractor or subcontractor.—B.H.

Kim is widely considered the most bullish of the home building stock analysts. While most analysts talk doom and gloom, Kim says that the downturn has bottomed out and that, as the news improves, builder stocks will rebound in the short term. For the long run, Kim says public builders have strong fundamentals, including market-share growth, improved balance sheets, and geographic diversity. Kim may be out on a limb, but his views are well respected.—S.Z.

Locked in a classic fight for retail dominance with Lowe's, The Home Depot this year increased its emphasis on providing materials and services to professional builders. It acquired several companies within its professional builder unit, Home Depot Supply. Sales from the unit accounted for 13 percent of the company's consolidated sales in the second quarter of 2006. Plus, at Nardelli's direction, the company is spending $350 million for increased staffing, training, and bonuses for providing good service.—P.C.

Critics may complain about his $69 million annual compensation package, but Mozilo has been dedicated to expanding homeownership for millions of Americans. He's a board member of the National Housing Endowment, the charitable arm of the NAHB, and he sits on the board of Homes for Working Families, a group dedicated to finding homeownership opportunities for public employees and service-sector workers.—S.Z.

Barry oversees what is arguably the world's largest manufacturer of residential building products brands, including such well-known names as KraftMaid Cabinetry, Delta Faucet, and Hansgrohe. The company also has a division that sells and installs insulation, cabinetry, fireplaces, and other products.—N.F.M.

Being CEO of HomeAid, the nation's leading provider of housing for the homeless, is more about healing the world than it is about building. In her 20-year career, Eaton has whipped major corporations into shape and been recognized for her human rights efforts, including developing scholarship programs and teaching compassion to kids. HomeAid has built housing for more than 60,000 Americans in 125 housing projects, with another 58 under way.—L.M.S.

Ratner is the third generation of his family to lead Forest City Enterprises, a publicly traded, $7.8 billion, Cleveland-based real estate developer. His family legacy is the classic American dream come true: After emigrating to the U.S. from Poland in 1920, the Ratners built a thriving lumberyard business. Today, the Forest City name appears on some of the most well-known commercial and residential projects in the country, including the Stapleton airport redevelopment in Denver.—L.M.S.

Exxon Mobil Corp., the world's largest publicly traded company, posted record profits of $36.13 billion for 2005 on Tillerson's watch. Those numbers sparked a public outcry as regular unleaded gas hovered around $3 a gallon. The upside to this direct kick in the wallet? A renewed interest in infill and transit-oriented developments, as builders and buyers look to offset high energy costs.—B.H.

Schultz has been preaching the sales training gospel for years. In the boom times, when agents got cramps from writing so many contracts, he may have felt like The Beatles' Father McKenzie, writing the words to a sermon no one wanted to hear. But today, people are starting to understand that new-home sales is hard work—and are hanging on his every word.—P.C.

Dowling is the go-to guy for home builders seeking capital through means as varied as equity or debt underwritings, mergers and acquisitions, mortgage financing, municipal bond financing, and asset-backed securitization. For more than a decade, he's worked in the bank's real estate investment banking group, where he's developed a client base of approximately 1,800 national, regional, and local builders and has capital commitments to the home building sector of roughly $13 billion.—B.H.

As the president and CEO of BRIDGE Housing Corp., California's leader in affordable housing, Galante guides the creation of sustainable communities “that enhance and uplift the neighborhoods around them.” Under her leadership, BRIDGE now strives to provide residents with education and practical training, among other qualities important to an enduring community.—L.M.S.

The husband-and-wife team has been building environmentally responsible homes and communities for more than 35 years through their privately held, Louisville, Colo.–based company. The home builder has long shown that buyers respond well to sustainable and energy-efficient practices and includes them in all its communities, which feature integrated neighborhoods of condominiums, town-houses, and single-family homes. Way ahead of the curve, all McStain homes comply with Energy Star and Built Green Colorado guidelines, promote water efficiency, and are designed to promote indoor air quality.—B.H.

Richey began his career at 18 as a plumbing warehouseman; he co-founded RCR Cos. eight years later, in 1977. One of the largest plumbing contractors in the West, with 13 locations in California, Nevada, and Arizona, RCR was the first contractor in the country to have its quality-control program certified by the NAHB Research Center.—L.M.S.

Lowe's Cos.' 1,225 stores rank second behind The Home Depot's 2,000, but they carry a large and varied stock of appliances, and their kitchen and bath department is a hit with homeowners. Lowe's has now inked a licensed agreement with designer Marianne Cusato to be the exclusive retailer of housing plans and associated building materials for her versions of Katrina Cottages. Four designs of the cottages will be initially available in Lowe's stores in Mississippi and Louisiana. Materials are said to cost $55 per square foot or less.—N.F.M.

Buster has personally designed more than 100 communities in the Chicago area alone, and he and BSB are poised to deliver The New American Home at the International Builders' Show in February. The Des Moines, Iowa–based company has offices in 15 cities nationwide, making it one of the few national design firms. BSB is widely considered a pioneer in designing modern lifestyle–based communities for production home builders.—S.Z.

Smithers is helping small builders level the playing field with Custom Builders USA, a buying group that pools the collective purchasing power of its members to negotiate volume discounts from suppliers. Together, the builders rival the buying power of the 25th-largest production builder in the country, and CBUSA members average a savings of $5,000 to $6,000 per house on materials.—P.C.

Few home builders put affordable housing on the front burner like Hill. He chaired the first National Homeless Conference, served six years as the vice chairman of the AFL-CIO Housing Investment Trust, and earlier this year became a board member of Homes for Working Families, a national policy group addressing the nation's housing affordability crisis. Hill was recognized with a Hearthstone BUILDER Lifetime Public Service Award by this magazine in 2004.—S.Z.

Builders notoriously spurn information technology, but Gebes and BuilderMT keep finding ways to win new customers. The software company has grown an average of 37 percent per year over the past three years and now supports more than 600 production builders. Some of BuilderMT's best-known products are its Internet portal for subs and suppliers, work-flow software, and a scheduling application that runs on a BlackBerry.—S.Z.

As president of the Urban Land Institute, the leading think tank in land-use development, Rosan is one of the guiding lights in global real estate decisions. As an architect with 22 years of experience, he brings his “keep it local” perspective to the global conversation. He oversees 130 employees and a $50 million annual budget plus the $30 million ULI Foundation.—L.M.S.

IHP, one of the nation's biggest real estate investment firms, provides equity financing for home builders large and small. The Irvine, Calif., company and its partners have created residential neighborhoods, communities, and projects valued at more than $4 billion since Neff founded IHP in 1992. The group also provides a bonding program for small and medium-sized builders.—B.H.

Pyatok's 22-year-old firm, with headquarters in Oakland, Calif., does well by doing good. It designs high-density, mixed-use developments in low-income areas. The firm has designed more than 30,000 affordable units in projects that incorporate the community's social and cultural needs, a philosophy that wins awards and has earned Pyatok overseas contracts in the Philippines and Malaysia.—B.H.

Owens Corning, best known for its pink fiberglass house insulation, provides builders and contractors free downloadable software to help them design energy-efficient homes to take advantage of tax incentives available through the Energy Policy Act of 2005. The company also offers a duct–energy-efficiency calculator that lets builders quantify the amount of money consumers can save on annual energy costs by using insulated fiberglass ducts in an HVAC system.—B.H.

Lauded for the groundbreaking Seaside, Fla., project (“the most astounding design achievement of its era,” according to Time magazine), Duany has been instrumental in Gulf Coast rebuilding, overseeing the redesign of numerous communities in Louisiana and Mississippi. As a leader of the new urbanism movement, Duany just won't stop until there's an end to suburban sprawl and urban disinvestment.—L.M.S.

With annual sales exceeding $19 billion, 80,000-plus employees, and more than 60 manufacturing and technology research centers around the globe, Whirlpool is the world's largest home appliance manufacturer. The company is now even bigger, thanks to its March 2006 acquisition of Maytag Corp., with its Maytag, Amana, and Jenn-Air brands.—N.F.M.

No doubt you've seen LG's “Life's Good” television ads. And life is indeed good for the Korean conglomerate. Known for its consumer electronics, solid surfaces, and quartz countertops, LG also operates an appliance division that's the third-largest in the world, behind Whirlpool and Electrolux. The company's innovative laundry products, plasma-screen refrigerators, and sleek designs are making serious inroads with American consumers.—N.F.M.

Sometimes, progress is about turning back the clock. At least, that's what Moe might say. The Minnesota-bred lawyer and 13-year president of the National Trust is committed to maintaining the nation's treasures and teaching Americans how saving historic places creates livable communities.—L.M.S.

Lowe heads The E.W. Scripps Co., but he's best known for hatching the idea for Home & Garden Television (HGTV). Scripps created the channel in 1992 after Lowe drew a house in which every room was its own TV show—a natural idea for a guy who often spends his leisure time at home-improvement centers.—L.M.S.

As the home building industry became more frenzied in the past five years, marketing might have seemed superfluous. There were buyers waiting for whatever builders wanted to produce. Now, marketing has become much more sophisticated and targeted, and communications firm Milesbrand continues to set the creative bar exceptionally high. Miles practically wore out the carpet accepting all of his Gold awards at the NAHB's 2006 National Sales and Marketing Awards gala.—P.C.

Three groups in particular have had a major impact on home builders.

While some in the home building industry wield power on their own, others derive their strength from sheer numbers. These three groups have become forces that can't be ignored.

Seventy-eight million strong, the baby boomers have shaped virtually every segment of the economy during their lifetimes. The first 4 million turned 60 this year—that's a birthday party every eight seconds. An even more important number is that boomers now own 91 percent of the nation's net worth, and their impact will continue for years to come. As economist Ted C. Jones of Houston-based Stewart Title Guaranty Co. put it so well, “Boomers are going to age, they'll continue to inherit a chunk of money, and [their] children will inherit what [they] don't spend.”

Without immigrant workers, builders know that residential construction in many markets would grind to a halt. The immigrant community has been faced with a host of unfriendly national, state, and local legislation aimed at illegal aliens. In response, it showed its economic and political clout at demonstrations held this past spring that drew millions in cities nationwide, and through the “Day Without Immigrants” boycott on May 1, which idled many builders' job-sites. Since then, however, highly publicized crackdowns on illegal aliens—and the arrests of employers—have made builders much more cautious about whom they hire.

Not too long ago, many builders asked, “Why pay them a 3 percent sales commission when I have people lined up at my door to buy?” Some savvy builders recognized, though, that the boom couldn't last, that things would be different someday, and that cooperating with real estate agents would pay off in the long run. Someday is, of course, now. Traffic is down, sales are off, cancellations are up, and Realtors—who arrive with people who are actually in the market to buy—remember who was nice to them during the boom days and who told them to get lost.—P.C.

Celebrities make their own mark on housing.

These celebrities have made names for themselves yet again, this time within the world of home building.

The domestic diva has proven that a stint in federal prison did nothing to dim her star power. Partnering with KB Home, Stewart has lent her creative flair, her design team, and her considerable name recognition to a series of homes in KB communities in Cary, N.C.; Atlanta; Houston; Los Angeles; and Daytona Beach, Fla.

An avid—and articulate—supporter of green building, Pitt ponied up the prize money and chaired the design jury for a competition to design an affordable, energy-efficient multifamily project to be built in the Lower Ninth Ward in New Orleans. He also narrated a six-part public television series, Design: e2, that showcased environmentally friendly, sustainable design around the world.

The singer-songwriter-actor has been involved with Habitat for Humanity for years, helping to build homes in New Orleans. Since Hurricane Katrina, Connick has upped his commitment and serves as honorary chairman of “Operation Home Delivery,” Habitat's long-term rebuilding plan for the Gulf Coast. With jazz musician Branford Marsalis, Connick's first major effort under the initiative is Musicians' Village, a community of 81 homes for displaced New Orleans musicians.—P.C.

Builders faced some stiff resistance in 2006.

Public-interest activity against builders this year focused on anti-sprawl issues and the thorny topic of immigration.

The Minuteman Project and the Minuteman Civil Defense Corps, two citizens' groups that oppose illegal immigration, faced off with builders and contractors numerous times in 2006. Minutemen have been known to write down and report the license plate numbers of builders and contractors who hire immigrant workers at day-laborer sites. The groups now operate in dozens of states nationwide.

On a statewide level, the Piedmont Environmental Council (PEC), a public-interest group that represents a nine-county area in Virginia, raised the ire of builders when Gov. Tim Kaine, seeking to link transportation and development issues, appointed two former PEC board members to important state transportation agency and policy posts.

The first appointee was Scott Kasprowicz, Kaine's new co-deputy secretary of transportation; the second was Peter Schwartz, who was named to the Commonwealth Transportation Board. Builders in Northern Virginia were especially upset with the appointments because the two men are viewed by builders as having strong ties to the PEC, which opposes a plan to build more than 33,000 homes near Dulles International Airport—a proposal that was ultimately voted down in early November.

Meanwhile, building interests in Florida were successful last month in their efforts to pass Amendment Three, which would require citizens' ballot initiatives to have at least a 60 percent voter approval as opposed to a simple majority. The reason: An environmental group called Florida Hometown Democracy wants to get a referendum before the voters in 2008 that would require any local land-use decision to be approved by a majority of voters as opposed to elected local leaders. The builders know they may lose in the end, but with the passing of Amendment Three, environmentalists will need a 60 percent vote to change land-use policy.—S.Z.