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New HBAI president grew up around the trades

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Keith Butz takes his new role as the  president of the Home Builders Association  of Iowa very seriously. He  sees it as a way to give back to an  industry that has given him so much,  and because of that, he wants to  make sure the needs of his constituency  are not forgotten during  this year’s legislative session.  What does your new position entail?  Our state association has about  2,500 members all across Iowa. I  become their spokesperson and leader  in regard to how the homebuilding  industry functions within the state.  One of the biggest things the association  does is watching and lobbying  state government.

Why is this something you  wanted to get involved with?

I’ve been in the business for almost  20 years.This is a way to give back to an  industry that has been good to me.  We’re a heavily regulated industry.With  all the building codes, there’s a lot that  goes into it, a lot of government oversight.  I enjoy being able to learn the  concerns of our members and working  to alleviate those concerns.

What are the main  goals you hope  to accomplish as  president?

My goal this year  is to get our  members to  realize and  understand  that it’s the  grassroots effort of getting  to know who  your city council representatives  are, who your planning and  zoning people are and who your building  inspectors are. Then you have to  develop a relationship with those people.  That makes our lives easier because  those are the people that make the decisions  that affect our industry and can  make it more costly to produce housing.  Basically, for every $1,000  increase in the price of a  home, across the United States  it pushes 300,000 people out of  the market.You don’t think a $1,000  increase is that much, but it can keep  people from realizing the American  dream of home ownership.

Do you have any fears that the  housing bubble is about to burst?

I’m not worried. Obviously, from  2003 to 2005 we had an extraordinary  market, where the pace of  building and consumer purchasing  of homes was at an all-time high.  It’s something we knew was not  going to be a sustainable rate.What  we’re seeing now is not a bursting  of a bubble; it’s getting back to  normal, a correction in the marketplace.  But interest rates are  still extremely favorable. Six percent  on a 30-year mortgage is  cheap.When I first started in the  business we had 12 percent  rates and we thought that was  great.We’ve got a little too much inventory  right now, but I think by midsummer  you’ll see that get cleaned  up and the market will get back to  a 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 the  roller coaster, it’s really  breathtaking. But sooner or  later you’ve got to come back  down to reality. You can’t sustain that  growth forever.We had a lot of builders  who were selling units about as fast as  they could and they just put a little too  much inventory in front of the public.  When the brakes came on, instead of  being able to sell your units before  they’re finished, now you might sit on  them for six, eight, 10 months after  they’re completed. And even  though new construction has  slowed down a lot, our remodelers  are extremely busy. I  think instead of purchasing a  new home, many people  have decided to instead stay  where they are and make changes to  their existing home.

How did you get into this business?

I grew up around the trades. My dad  was in the structural steel business. I  had an uncle who was an electrical  contractor and two others who were  carpenters.That’s how I spent my summers  growing up. I had a hobby of  doing things myself at home, and  friends started asking me to help them  with projects. Eventually, a friend of  mine and I got the brilliant idea to start  doing remodeling work.

What was your worst job?

I worked one summer for a roofing  contractor scraping the old shingles off  roofs. It was hot and miserable.

What is the best advice  you’ve been given?

To treat people the way you’d like to  be treated yourself.Treat them with dignity  and respect. And be honest. It’s  extremely important to deal with people  in our business that way.

Did you build your current home?

No, the house I’m in right now is  one that I’ve completely remodeled.  I’ve gutted every room, and there are  still projects ongoing. It’s an older  home in Windsor Heights, and we just  want the inside of it not to look like a  50-year-old house.