May 2023 Builder Buzz

Building Buzz is a publication of the Bismarck-Mandan Home Builders Association.

PROFESSIONALS BUILDING OUR COMMUNITY THROUGH PROMOTION OF SINCE 1958.

JOE HILLERSON, PRESIDENT Boulder Homes PO Box 1421 Bismarck, ND 58502 (701) 400-5554 boulderhomesnd@gmail.com

ANDREW MELDAHL, 1 ST VICE PRESIDENT Pinnacle Homes and Design 214 Riverwood Ave Mandan, ND 58554 (701) 426-0237 andrew@pinnaclehomesnd.com

RORY ANDERSON, 2 ND VICE PRESIDENT Verity Homes 3100 N 14th St, Ste 1 Bismarck, ND 58503 (701) 391-0093 rory@verityhomes.com

JOE VETTER, SECRETARY & TREASURER

Joe Vetter Construction 2523 Powder Ridge Cir Bismarck, ND 58503 (701) 258-9394 joevetterjvc@gmail.com

JAMIE SCHMIDT, PAST PRESIDENT Investcore, Inc. 1601 N 12th St. Suite 605 Bismarck, ND 58501 (701) 223-3030 jamie.schmidt@investcore.com

VICKI MORAN

Hallmark Homes 3200 Rock Island Place, Suite 4 Bismarck, ND 58504-7717 (701) 471-7634 hallmarkhomes@outlook.com

CHIEF EXECUTIVE OFFICER

Dawn Watson dawn@bmhba.com

Office: 701-222-2400

Cell: 701-390-5049

MCKENZIE LAWLER

Dakota OutdoorScapes 8351 Hwy 1804 N Bismarck, ND 58503 (701) 595-0890 mckenzie@ndscapes.com

LORI WILLSON

Northern Plains Plumbing, Heating & Air 2510 Vermont Ave Bismarck, ND 58504

(701) 222-2155 lori@northernplains.net

RON STOTZ CAVES

1365 Tacoma Ave, Suite 1 Bismarck, ND 58504 (701) 751-1162 rons@cavesnd.com

NATHAN TODD

Northwest Contracting 2840 Valley Forge St Bismarck, ND 58503 (701) 226-0526 nathan@northwestcontracting.com

LEROY THOMAS

J.E. Homes LLC PO Box 3121 Bismarck, ND 58502 (701) 400-9163 leroy@jehomesnd.com

SHANE GAFFANEY

American Roofing Supply 1600 Industrial Dr Bismarck, ND 58501 (701) 805-8650 sgaffaney@srsicorp.com

DIRECTOR OF COMMUNICATIONS AND MARKETING

Jennifer Patera jennifer@bmhba.com

Office: 701-222-2400

Cell: 218-416-2439

LAYOUT DESIGNER Elysha Head

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May is here, and with it we are into Spring, and the snow is finally gone! More importantly, we can finally get the Building Season under way! There are many good things to be thankful for in our area for in the Building Business. There still is low Inventory, prices have stabilized, and supplies have become readily available again, Interest Rates have stabilized as well, and there are people moving to our area from all over the Country! Let’s be sure to have a positive attitude, and always put our best foot forward every day for our customers!

We just had our 31st Annual Spring Parade of Homes which 39 Homes were entered! I hope everyone was able to get out and enjoy these Beautiful Homes. Thank you to all the Builders who participated, as well as our staff, and volunteers who all made it possible to have a great event!

Be sure to attend our Spring Mixer on May 9th, and coming up fast as well is our Golf Tournament on July 11th. I look forward to seeing you all at these events!

3320 E Century Ave, Bismarck, ND 701-255-1636

www.frontstreetmillwork.com

Hours: Monday-Friday 8 am to 5pm

Thanks for visiting the Front Street Millwork booth @ the 2023 Home Show! Did the winter weather prevent you from attending? Stop by our showroom!

Monday-Friday 8 am to 5pm

On display in our showroom:

• Cabinetry

• Contertops

• Windows

• Interior & Exterior Doors

• Storm doors

• Siding

• Shingles

• Decking & Railing

• Stair Railing

• Exterior stone

• and More

All are welcome!

We work with both the general public and contractors

Front

Street Millwork & Lumber

The BMHBA consists of building specialists from every section of the construction field and associated industries. Your membership strengthens our voice in Bismarck-Mandan construction sector as well as at a state and national level. If you haven’t already submitted payment, please renew your membership by May 31, 2023.

Greg Meidinger

Bill Dean

Kathy Feist

Howard Malloy

Aaron Jahner

LeAnne Westgard

Megan Maxon

Bryan Brendel

Rebecca D'Heilly

Cathleen Engel

Celeste Burke

DeAnn Kuntz

Doug Doerr

Vern Vetter

Andy Nelson

Jim Barnhardt

Chad Moldenhauer

Rocky Thompson

Tory Otto

25 Years

20 Years

Kelly Johnson

Sara Ryckman

Cassie Bowers

Karli Skjeret

Laurie Wentz

Shawn Ressler

Kassy Landis

Logan Deichert

Thomas Jones

Please help us welcome our new members to the BMHBA!

Affiliate Membership 701-471-9117

jeffl@fargoglass.com

http://www.fargoglass.com

Thank you to our members who have helped grow our BMHBA membership over the years by recruiting new companies to join our association. If you know of a company that is interested in joining, contact Jennifer Patera at jennifer@bmhba.com or 701-222-2400.

Your recruitments can now be seen on NAHB.org. Click “My Profile” then “My Spike Referrals.” TopRecruitersasof04/21/2023

Statesman Spike 500-999 Credits

Kelly Moldenhauer (743.50)

Super Spikes 250-499 Credits

Todd Brady (384.50)

Robb Sattler (296.50)

Mike Todd (288.00)

Lee Mitzel (270.50)

Pat Marback (260.00)

Royal Spikes 150-249 Credits

Lori Willson (220.25)

Mike Hopfauf (200.00)

Berna Vetter (190.50)

Colby Well (166.50)

Jack Knutson (162.50)

Red Spikes 100-149 Credits

Blair Ihmels (148.00)

Steve Redding (126.50)

Chad Moldenhauer (112.00)

Jerry Splonskowski (106.50)

Green Spikes 50-99 Credits

Vance Vetter (101.25)

Paula Haider (97.25)

David Patience (96.00)

Mark Larson (92.00)

Eric Brenden (91.00)

Darren Buffington (83.50)

Kenneth Knodel (68.00)

Art Goldammer (65.00)

Nadine Schaff (59.25)

Scott Moran (58.50)

Gerry Rudnick (51.00)

Life Spikes 25-49 Credits

Jeff Sattler (46.50)

Gerald Hopfauf (45.50)

Drew Knutson (43.50)

Matt Shauer (42.50)

Greg Meidinger (41.50)

Greg Zenker (38.00)

Jamie Schmidt (38.50)

Blue Spikes 6-24 Credits

Jason Frank (22.50)

Shane Gaffaney (21.00)

Kelli Thompson (16.75)

Joe Hillerson (16.50)

Melinda Llyod (15.50)

Bob Kupper (13.00)

Pete Brendel (9.00)

Rory Anderson (8.00)

Darryl Hatzenbuhler (8.00)

Bill Schmid (8.00)

Mike Wolf (8.00)

Shannon Reichenberg (6.00)

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THIS YEAR MARKS 31 YEARS OF THE BMBHA SHOWCASING 39 BEAUTIFUL HOMES BUILT BY OUR DEDICATED, HARDWORKING, LOCAL BUILDERS. THANK YOU!!

WE ALSO WANT TO THANK OUR SPONSORS, BRITTANY STUHLMILLER (SPOH CHAIR), PARADE OF HOMES COMMITTEE, AND ALL THE BUILDER VOLUNTEERS. WE COULD NOT HAVE PUT ON THIS EVENT WITHOUT ALL OF YOU!

$1,000 Gift Card

$1,599 Riccar Premium Radiance Vacuum

�ocatedonatranquilnorthernedgeofMandan,SunriseView EstatesisthenewestdevelopmentintheupandcomingareaofMandan. SunriseViewoffersaplannedcommunitynestledalongtheopengrasslands, aswellasbeingnearthenewStarionSportsComplex,thenewMandanHigh School,andthenewMiddleSchool.

Thisdevelopmentfeatureslargelots,anewcitypark,lotsofgreenspace,and beautifulviews.Justminutesfromavarietyofstoresanddiningoptions.You cangetanywhereinthemetroareaquicklyasyouwillbeashortdistance fromInterstate94viaHighway1806.Justnorthofthedevelopment,afuture

l:EW

beltwayandbridgewillbecompleted,gainingunlimitedaccesstoanywhere youneedtobe.

Thepotentialforgrowthinthisareameansendlesspossibilities.Justtothe westofthisdevelopment,isanothermasterplannedcommunitybeingbuilt alongsideSunriseViewEstates.

Thisdevelopmentisperfectforbuildingyourfirsthomeoryourlastingforever home.Thisdevelopmentoffersavarietyoflotsthatwillfitwhateverneeds yourheartmaydesire.

Associate Member Spotlight

Steve: IwasraisedonafarmintheFlasherarea. Ihave4boys. IgraduatedfromtheUniversityof Marywithabachelor’ sdegreeinbusiness administration. IhavebeenwithKirkwoodBank &Trustfor18years. Jarrod: Iwasbornand raisedinGlenUllin.IattendedBismarckState CollegeandDickinsonStateUniversitywhereI earnedmybachelor’ sdegreeinbusiness administrationandbanking&finance.I’ vebeen withKirkwoodBank&Trustforover12years.

Our bank was chartered by the ND Department of Banking & Finance in 1975 as the Bank of Kirkwood Plaza. A local Bismarck Family owned the majority of the stock. The Bank was sold to its present stockholders in 1987 and renamed Kirkwood Bank & Trust Co. We have been locally owned since our beginning, and now have locations in Bismarck and Dickinson. We pride ourselves in the commitment and longevity of our team members to the bank and its customers. Well over half of our team has been with the bank over 10 years. These years of knowledge and experience allow our team to provide exceptional service to the community. Do you have any advice for someone just entering this industry? Give it 100%. Always ask questions. You will learn something new from everyone you encounter in the industry. Take advantage of every opportunity you are given to learn. There are so many different aspects of the banking industry, so trying to learn something from every department will broaden yourself for your future.

No two days are ever the same, but a typical day could include working with customers to help navigate the mortgage process, whether they are buying, building, or refinancing. We strive to make the mortgage process engaging and a learning experience.

We would like to see Kirkwood Bank continuing to grow in all aspects. Whether it be growing our customer base, the products and services we provide, or continuing to make the Bank a place that’s fun and exciting to work for!

Steve: I did an internship during college with a bank, and it sparked my interest in the banking world. Jarrod: While in college, I was inspired by a family friend to look in to banking as a career path and get my foot in the door. I started working for the Bank in 2010 as a teller to get some experience. Little did I know I’d be working for Kirkwood Bank almost 13 years later.

What makes Kirkwood Bank different from other mortgage lenders is that we are very versatile. Our mortgage lenders also do consumer lending. We offer all the products and services customers are looking for in the mortgage industry, with very competitive rates and terms. But, we also offer other financial options such as construction financing, bridge/temporary financing, home equity loans, etc. No matter what the customer is looking for, we have a solution here at Kirkwood Bank to help them to the finish line.

Steve: Closing Day is my favorite part. I get to see the excitement that the customer has. It might be their first home or their dream home, but the excitement is always there. Jarrod: My favorite part of the job is building relationships with my customers. I don’t just want to help someone buy their first home. I also want to help them save money, build their credit, buy that new car, or help them finish their basement. It’s all about relationships for me. I want to do the best for my customers so that when something else comes up where they could use my help, they think of me, and I can be of service to them once again.

Website: kirkwoodbank.com

Facebook: facebook.com/kirkwoodbank Steven Facebook: facebook.com/ steven.gerhardt.52

Jarrod Facebook: facebook.com/jarrod.auer

Instagram: @kirkwoodbank

LinkedIn: linkedin.com/company/kirkwoodbank-and-trust

We are excited to introduce the opportunity to apply for the Professional Women in Building Scholarship for the 2023-2024 academic year. Bismarck Mandan Professional Women in Building has established a scholarship program to support those looking to enter the building industry. BMHBA PWB will award 2 - $500 scholarships to students looking to enter a construction related field. Preference for scholarships will be given by discretion of a panel to students pursuing building related programs.

For more information about PWB visit the HBA website: https://www.bmhba.com/about-us/pwb/. Visit our Facebook page at www.facebook.com/bmpwb for the full application and more information or scan the QR code below!

Knife River is a full service aggregate-based construction company, providing ready-mix concrete aggregate sales and delivery and concrete construction services. We provide services throughout North Dakota for public, private and commercial construction projects.

701-580-4527 Bismarck-Mandan | Washburn | Beulah Mark Roningen - Business

There are nearly 10,000 streetlights maintained by Public Works staff within the City of Bismarck. And many of those lights are now being replaced.

While this isn’t exactly impactful in portions of Bismarck where new construction is leading city growth, it is significant in areas where renovations, or new construction in established neighborhoods is occurring.

Evolution in lighting technology is helping to create a brighter tomorrow. City crews estimate about a 60 percent reduction in energy consumption by switching from the High Pressure Sodium (HPS) lights to the more efficient Light Emitting Diode (LED) lights. This year more staff time will be placed on converting lights as about 1,000 of the City’s 9,463 lights will be replaced, compared to 317 in 2022. Presently, about 40 percent of the City’s lights are LED, while about 55 percent remain HPS lights.

An additional 5 percent of the lights fall under a miscellaneous category, such as those in the city’s downtown area.

Part of what helps make LED systems use less energy is their efficiency, running on a lower wattage, but yielding greater light output. With the HPS lights, a 400-watt bulb or lamp emits a yellow-white light that ran between 2,000 and 2,700 degrees kelvin. LED lights are more efficient, utilizing a 175-watt fixture and producing a white light that is measured at about 4,000 to 4,500 degrees kelvin. As City crews first worked with LED fixtures, they found they needed to back off the light output, as they started with light in the 5,000-degree-kelvin range, but this proved too bright during night hours.

The LED lights are also easier to fix than the HPS lights because they are self-contained units with fewer components. The housing fixture for HPS lights was expected to last 20-25 years, but the components contained within the fixture generally last less than five years before requiring maintenance. In recent years, some components’ lifespans were as short as 18-24 months. As has been the case with many supply chains in recent years, finding these additional components is proving to be more and more difficult.

At this point, knowing exactly how long LED lights will last is a bit of a guess. However, estimates put that range between 25 and 30 years. Also, the LED lights used by the City have a warranty of 10 years, allowing for recouped cost in the event a light does not work; If for any reason a light fails within that time, the lights are taken out of service and sent back to the manufacturer.

The longer expected life of the lights means less staff time spent replacing current lights. Less time spent replacing lights means fewer hours that crews spend working in a potentially dangerous environment, next to moving traffic. While it takes someone in a bucket truck an estimated 20 minutes to replace an LED light, ideally there is a 3-person crew at work with each truck: one person in the bucket, physically replacing the light, another individual on the ground providing safety overwatch for the individual in the bucket, and a third individual prepping the next light unit to be installed.

The City of Bismarck continues to pursue efficiencies in workflow and opportunities to be better stewards of the resources available in our community.

Builders FirstSource is your first source for great customer service and high quality building materials.

BUILDING MATERIALS

New research shows the percentage of homes with 4+ bedrooms rose slightly to 48% in 2022, up from 43% in 2019, due in part to the flexibility bedrooms can provide home owners. The findings are based on an analysis by the National Association of Home Builders (NAHB) of U.S. Census Bureau data that track the characteristics of new single-family homes.

Builders are responding to home buyers who want their new homes to provide plenty of space and support their day-to-day activities and overall well-being. New homes have flexible spaces that are inviting for individuals and families, especially following the height of the pandemic. New home buyers can choose the finishes, fixtures, flooring, paint colors, and more that suit their preferences and are often more durable without the hassle or cost of changing the previous owner’s tastes.

According to a recent survey by the National Association of Home Builders (NAHB), home features that resonate with first-time and repeat buyers include laundry rooms, patios and walk-in pantries. In addition, builders saw a large jump in demand for exterior amenities, such as patios, decks and porches, in 2022, along with increased demand for home offices which appeared on the list of buyers’ most-wanted features for the first time this year.

New homes benefit not only the home owner but also the community. The estimated one-year impacts of building 100 single-family homes in a typical local area include: $28.7 million in local income,$3.6 million in taxes and other revenue for local governments, and 394 local jobs.

As we get into the hectic building season, remember how important you are to the consumer and the community. Not only do you make dreams come true, but your work supports the entire community. Thank you for what you do.

KAYLA PULVERMACHER NDAB CEO

JEFF SATTLER 2023 NDAB PRESIDENT

Lower mortgage rates and limited existing inventory helped to push new home sales up in March, even as builders continue to grapple with increased construction costs and material supply disruptions.

Sales of newly built, single-family homes in March increased 9.6% to a 683,000 seasonally adjusted annual rate from a downwardly revised reading in February, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.

“

A lack of resale inventory combined with many builders offering price incentives helped to push new home sales higher in March,” said Alicia Huey, chairman of the National Association of Home Builders (NAHB) and a builder and developer from Birmingham, Ala. “However, sales are down 3.4% compared to a year ago because of the shortage of electrical transformer equipment and building material price volatility.”

“

The average Freddie Mac mortgage rate gradually fell from near 6.7% at the beginning of March to 6.3% at the end of the month, and this helped to push new home sales higher in March,” said Danushka Nanayakkara-Skillington, NAHB’s assistant vice president for forecasting and analysis.

A new home sale occurs when a sales contract is signed or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction or completed. In addition to adjusting for seasonal effects, the March reading of 683,000 units is the number of homes that would sell if this pace continued for the next 12 months.

New single-family home inventory fell 9.5% in March, however, it remained elevated at a 7.6 months’ supply at the current building pace. A measure near a 6 months’ supply is considered balanced. Completed, ready-to-occupy inventory stood at 70,000 homes in March and is up 119% from a year ago. However, that inventory type remains just 16% of total inventory. Total new home inventory peaked in October at 466,000 and has been declining since that time, with a total inventory of 432,000 available for sale in March.

The median new home sale price rose in March to $449,800, up 3.2% compared to a year ago. Elevated costs of construction have contributed to a rise in home prices.

Regionally, on a year-to-date basis, new home sales rose 1.7% in the Northeast, but fell 19.6% in the Midwest, 5.8% in the South and 32.2% in the West.

Data continue to show easing inflation, although certainly not at the rate the Federal Reserve and markets would wish. Nonetheless, signs suggest the Fed is near the end of its tightening cycle, which in turn sets the singlefamily sector on the path toward a rebound later this year and an outright calendar year increase in 2024.

Consumer prices in March saw the smallest year-overyear gain since May 2021, decelerating for the ninth consecutive month. While the shelter index (housing inflation) experienced its smallest monthly gain since November 2022, it continued to be the largest contributor (60%) of the total increase, less food and energy. Overall inflation was up 5% year over year in March, while shelter inflation was up 8.2%.

The Fed’s ability to address rising housing costs is limited, as shelter cost increases are driven by a lack of affordable supply and increasing development costs. Additional housing supply is the primary solution to tame housing inflation. The Fed’s tools for promoting housing supply are at best limited. In fact, further tightening of monetary policy will hurt housing supply by increasing the cost of AD&C financing. Nonetheless, the NAHB forecast expects to see shelter costs decline later in 2023.

Building material prices, as measured in the Producer Price Index (PPI) data, actually posted a 1% year-over-year decline in March an indication of an overall slowing economy and an important leading indicator of where shelter prices are headed. That said, some items like electrical transformers remain a challenge for builders. As the shortage of distribution transformers continues, the PPI for power and distribution transformers increased 2% in March. Prices have surged 63.9% over the past two years and declined in just two months during that span. (See chart below.)

Builders remained cautiously optimistic in April, as limited resale inventory helped to increase demand in the new home market. Single-family builder confidence in April rose one point to 45, according to the NAHB/Wells Fargo Housing Market Index. Currently, one-third of housing inventory is new construction, compared to historical norms of around 10%. More buyers looking at new homes, along with the use of sales incentives, have supported new home sales since the start of 2023. Builders note that additional declines in mortgage rates (to below 6%) will further boost demand.