Keith Butz takes his new role as thepresident of the Home Builders Associationof Iowa very seriously. Hesees it as a way to give back to anindustry that has given him so much,and because of that, he wants tomake sure the needs of his constituencyare not forgotten duringthis year's legislative session.What does your new position entail?Our state association has about2,500 members all across Iowa. Ibecome their spokesperson and leaderin regard to how the homebuildingindustry functions within the state.One of the biggest things the associationdoes is watching and lobbyingstate government.
Why is this something youwanted to get involved with?
I've been in the business for almost20 years.This is a way to give back to anindustry that has been good to me.We're a heavily regulated industry.Withall the building codes, there's a lot thatgoes into it, a lot of government oversight.I enjoy being able to learn theconcerns of our members and workingto alleviate those concerns.
What are the maingoals you hopeto accomplish aspresident?
My goal this yearis to get ourmembers torealize andunderstandthat it's thegrassroots effort of gettingto know whoyour city council representativesare, who your planning andzoning people are and who your buildinginspectors are. Then you have todevelop a relationship with those people.That makes our lives easier becausethose are the people that make the decisionsthat affect our industry and canmake it more costly to produce housing.Basically, for every $1,000increase in the price of ahome, across the United Statesit pushes 300,000 people out ofthe market.You don't think a $1,000increase is that much, but it can keeppeople from realizing the Americandream of home ownership.
Do you have any fears that thehousing bubble is about to burst?
I'm not worried. Obviously, from2003 to 2005 we had an extraordinarymarket, where the pace ofbuilding and consumer purchasingof homes was at an all-time high.It's something we knew was notgoing to be a sustainable rate.Whatwe're seeing now is not a burstingof a bubble; it's getting back tonormal, a correction in the marketplace.But interest rates arestill extremely favorable. Six percenton a 30-year mortgage ischeap.When I first started in thebusiness we had 12 percentrates and we thought that wasgreat.We've got a little too much inventoryright now, but I think by midsummeryou'll see that get cleanedup and the market will get back toa more normal pace.
So you enjoyed it while it lasted,but you knew it couldn't last forever?
When you get to the pinnacle of theroller coaster, it's reallybreathtaking. But sooner orlater you've got to come backdown to reality. You can't sustain thatgrowth forever.We had a lot of builderswho were selling units about as fast asthey could and they just put a little toomuch inventory in front of the public.When the brakes came on, instead ofbeing able to sell your units beforethey're finished, now you might sit onthem for six, eight, 10 months afterthey're completed. And eventhough new construction hasslowed down a lot, our remodelersare extremely busy. Ithink instead of purchasing anew home, many peoplehave decided to instead staywhere they are and make changes totheir existing home.
How did you get into this business?
I grew up around the trades. My dadwas in the structural steel business. Ihad an uncle who was an electricalcontractor and two others who werecarpenters.That's how I spent my summersgrowing up. I had a hobby ofdoing things myself at home, andfriends started asking me to help themwith projects. Eventually, a friend ofmine and I got the brilliant idea to startdoing remodeling work.
What was your worst job?
I worked one summer for a roofingcontractor scraping the old shingles offroofs. It was hot and miserable.
What is the best adviceyou've been given?
To treat people the way you'd like tobe treated yourself.Treat them with dignityand respect. And be honest. It'sextremely important to deal with peoplein our business that way.
Did you build your current home?
No, the house I'm in right now isone that I've completely remodeled.I've gutted every room, and there arestill projects ongoing. It's an olderhome in Windsor Heights, and we justwant the inside of it not to look like a50-year-old house.
