December 2015 Building Buzz

Bismarck-Mandan Home Builders Association

BUILDING uzz B December 2015

ANNUAL BANQUET, JAN 28 PAGE 8 KAREN RONTOWSKI Comedian set to perform at annual banquet

Housing to Pick Up Steam in 2016 , page 5 State of the Cities, page 7 The Value of NAHB Membership, page 12

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

Your membership is three-in-one: BMHBA, NDAB and NAHB

2600 Gateway Ave., Suite 1 Bismarck, ND 58503 Phone: 701.222.2400 Fax: 701.250.9730

Professionals building our community through promotion of home ownership, education and legislation since 1958.

Like Us! www.facebook.com/bmhba Follow Us! www.twitter.com/bmhba

Publisher/Editor: Dot Frank Layout Editor: Michael L. Quinn

New Members & Anniversaries October 2015 New Members HR Services - Kimberly Grube

Time to Renew!

Members with December Anniversaries. Renew by December 30, 2015.

All New Gutter Service | Jef Blaskowski www.allnewgutter.com | Building Materials Lumber (Retail Dealership) Baymont Inn & Suites | Shannon Gangl www.bestwestern.com

Better Roofing & Contracting, LLC | Tyler Perry www.betterroofingandcontracting.com Building Materials Lumber (Retail Dealership) Roofing/Siding/Sheet Metal Work Bismarck-Mandan Chamber of Commerce Kelvin Hullet www.bismarckmandan.com Trade Association/Non-Profit Bianco Realty - Brenda Dissette Foster www.brendarealtyinfo.com

C & L Roofing-Gutters-Siding | Curt Reeff www.clroofingnd.com | Remodeling-Residential Remodeling-Commercial | Roofing/Siding/Sheet Metal Work Comfort Zone Htg & AC, Inc. | Randy Mathern www.comfortzone4u.com Plumbing/Heating/Air Conditioning Dakota Drywall | Ed Talbacka Drywall Installation

Dakota West Contracting, Inc. | Mark Klein Single Family Spec/Tract Building

Front Street Millwork & Lumber, Inc. Jim Rudnick | www.frontstreetmillwork.com Architecture | Building Materials Lumber (Retail Dealership)

Geothermal Hydronic Drilling, Inc. Jason Brendel | Plumbing/Heating/Air Conditioning

Teri Reinhold www.guttertopperofnorthdakota.com Insurance Plus | Lynette Wohl Insurance or Title Company

LifeScape Homes | Todd Schmidt Single Family Spec/Tract Building | Single Family General Contracting North Dakota Association of Builders Kim Schneider

Odden Construction, LLC | Michael Odden www.oddenconstruction.com | Single Family General Contracting | Single Family Custom Building Remodeling-Residential Pinnacle Homes | Andrew Meldahl www.pinnaclehomesnd.com Single Family Custom Building

Prairie Outpost Log Homes, Inc. | Holly Dickson www.polh.com | Single Family Spec/Tract Building Manufacturing of Modular/Panelized/Log Homes Rainbow Play Systems | Ryan Carlsrud www.rainbowplay.com

Real Deals on Home Decor | Rachel Miller Schaefbauer Construction | Charles Schaefbauer Single Family Spec/Tract Building Shaun Kessler Construction | Shaun Kessler Single Family Spec/Tract Building | Carpentry Work

2015 Board of Directors PRESIDENT Drew Knutson Knutson Homes, Inc. Phone: (701) 258-3464

1ST VICE PRESIDENT Greg Zenker Ferguson Enterprises Phone: (701) 663-2446 2ND VICE PRESIDENT Shannon Reichenberg Diversity Homes Phone: (701) 220-8177

Susie Franklin Capital Credit Union Phone: (701) 255-0042 Nathan Jones Tollberg Homes Phone: (763) 205-2037

Parker Pladson Venture Building Co. Phone: (701) 290-6734

PAST PRESIDENT Vance Vetter Vance Vetter Homes Phone: (701) 751-8218

SECRETARY/TREASURER Lynn Klein Gate City Bank Phone: (701) 355-7633 Paula Haider Haider Glass Specialties Phone: (701) 250-6787 Chad Moldenhauer K & L Homes, Inc. Phone: (701) 258-4584 Jeff Sattler Sattler Homes Phone: (701) 255-7628 Bill Schmid Townsquare Media Phone: (701) 250-6602

Bianco Realty Sales Awards Bianco Realty has named SHIRLEY THOMAS and DARCY FETTIG “REALTORS® of the Month”! Shirley and Darcy had the most closed sales at Bianco Realty for the month of November 2015. Shirley has been a licensed REALTOR® since 2001 and Darcy has been a licensed REALTOR® since 1993.

Your Home Improvement Company | Steve Little www.yourhomeimprovementco.com Remodeling-Residential | Carpentry Work

Gutter Topper of North Dakota, Inc.

SHIRLEY THOMAS

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Building Buzz | December 2015

DARCY FETTIG

Bismarck-Mandan Permit Reports

through October 31, 2015

Total Permits

Bismarck Single Family Bismarck Multi-Family Units Bismarck Residential Total

2015 YTD Change 2014 Change 2013 Change 2012 Change 2011 Change 2010 296 -38.84% 484 -21.30% 615 13.68% 541 35.25% 400 66.67% 240 259 -50.10% 519 7.23% 484 -9.02% 532 421.57% 102 18.60% 86 555 -44.67% 1003 -8.74% 1099 2.42% 1073 113.75% 502 53.99% 326

Lincoln Single Family Lincoln Multi-Family Units Lincoln Residential Total

61 0 61

12.96%

Mandan Single Family Mandan Multi-Family Units Mandan Residential Total

132 74 206

Burleigh County Burleigh County

54 0 54

-22.86%

9.09% -75.58% -51.42%

121 303 424

49

-10.91%

Morton County

34

17.24%

Total Housing Units

905

Morton County

70 36 106

-7.89% -14.29%

76 42 118

-56.32% -15.13% -33.12%

277 357 634

-13.17% 346.25% 58.90%

319 109.87% 80 0.00% 399 71.98%

55

48.65%

37

54.17%

24 100.00%

12

20.00%

10

29

16.00%

25

-13.79%

29 107.14%

14

40.00%

10

1565

1901

N/A N/A

1643

N/A N/A

0

152 192.31% 80 3900.00% 232 329.63%

760

0

52 2 54

400

Total Values

Bismarck Bismarck Single Family Bismarck Multi-Family Lincoln Lincoln Single Family Lincoln Multi-Family

2015 YTD Change

2014 Change

$51,774,089 -37.87% $83,336,918 $23,504,136 -59.00% $57,332,911

$8,504,228 $0

18.89%

2013 Change

2011 Change

-20.88% $105,331,477 8.98% $96,650,619 41.86% $68,131,358 43.61% $39,922,850 -32.87% $59,470,078 438.42% $11,045,252

$7,153,152 -25.92% $0 -100.00%

$9,656,538 $3,052,323

-2.19% -3.25%

Mandan Mandan Single Family Mandan Multi-Family

$29,330,187 -0.15% $29,373,533 $9,805,757 -68.39% $31,023,000

-59.58% 5.52%

Burleigh County Burleigh Single Family

$17,507,313

-3.84% $18,206,143

139.73%

$7,594,421

68.12%

Morton County Morton Single Family

$14,557,443

74.31%

-5.94%

$8,879,073

6.32%

$8,351,474

2012 Change

$9,873,236 $3,154,745

2010

26.39% $53,903,566 41.12% $7,827,091

N/A N/A

N/A N/A

$72,674,539 18.32% $61,420,330 145.99% $24,968,714 24.76% $20,013,225 $29,399,800 419.42% $5,660,074 -0.12% $5,666,972 413.41% $1,103,783

$4,517,323

94.60%

$2,321,290

22.22%

$1,899,221

$8,351,474 159.72%

$3,215,629

3.10%

$3,118,990

Prepared by Dot Frank 12/11/2015

December 2015 | Building Buzz Prepared by Dot Frank 12/11/2015

3 Page 1

President’s Letter

I

t’s crazy to think that this is my final letter as your association president. Time sure flies.

Looking back, we’ve accomplished a lot…together. We continue to build our relationship and respect with local building and elected officials, grow membership events and attract crowds to our Parade of Homes and Home Show.

Thank you for your support throughout the year. Board members appreciate your input as the office seeks feedback after programs. We serve you and use your comments to help us create an association that you find continued value in.

As I step down as president, I’m confident that Greg Zenker, of Ferguson Enterprises, will lead you well. Greg is very committed to our industry and isn’t afraid to tackle difficult issues. As an Associate, Greg is in the unique position to fight on builders’ behalf and work to bring value to fellow Associates.

Last month you elected our newest board member Brian Eiseman of Stoneshire Builders.

Brian brings years of experience as an engineer and his familiarity with construction as a newer custom home builder. Thank you Brian for stepping into the arena.

Drew Knutson Board President

Brian will begin his term in January as Past President Vance Vetter finishes his. Vance has been an inspiration for me and other board members throughout his term. His passion for our industry and association is evident at each event. We can always count on Vance to promote membership, encourage PAC contributions and give new subcontractor members a shot at earning his business. On behalf of the Board of Directors, I’d like to thank Vance for his service and look forward to his continued participation in the BMHBA, NDAB and NAHB. The 2015 Builder and Associate of the Year were revealed at the Fall GMM & Board Elections event at the Elks. Congratulations to Eric Brenden of Northwest Contracting and Susie Franklin of Capital Credit Union for demonstrating outstanding support of home building, homeownership and BMHBA membership.

Please help us celebrate a successful 2015 by attending the Annual Banquet on Thursday, Jan. 28. We’ve got a great venue booked – the Bavendick Stateroom at BSC’s National Energy Center of Excellence. This is the event where we recap 2015 accomplishments, install the 2016 Board of Directors and generate funds for our BSC Scholarships. If that’s not enough reason to register…consider this. We’ve got a comedian lined up. Sorry Dot, the cat’s out of the bag. Search Karen Rontowski on YouTube.

Have a Merry Christmas and we’ll see you in January!

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Building Buzz | December 2015

Drew Knutson President

HOUSING RECOVERY TO PICK UP STEAM IN 2016

S

but Challenges Remain

Steady employment and economic growth, pent-up demand, affordable home prices and attractive mortgage rates will keep the housing market on a gradual upward trend in 2016. However, persistent headwinds related to shortages and availability of lots and labor, along with rising materials prices are impeding a more robust recovery, according to economists who participated in NAHB’s Fall Construction Forecast Webinar.

“This recovery is all about jobs,” said NAHB Chief Economist David Crowe.

“If people can get good jobs that pay decent incomes, the housing market will continue to move forward.”

The good news, Crowe added, is that total U.S. employment of 142 million is now well above the previous peak of 138 million that occurred in 2008.

The one caveat is that job growth has been concentrated heavily in the service sector, which tends to pay lower wages than goods producing jobs.

Meanwhile, home equity has nearly doubled since 2011 and now stands at $12.5 trillion.

“The single biggest asset in most people’s portfolio is the home they own,”

said Crowe. “That’s important because the primary purchasers of new homes are the sellers of existing homes. The more equity they have, the more comfortable they feel about purchasing a new home.”

And while mortgage interest rates are expected to rise over the near-term, averaging 4.5 percent in 2016 and 5.5 percent in 2017, Crowe said this is not expected to have an impact on the housing recovery. “As the economy gets better, job and wage growth should keep pace. So even though mortgage rates will rise, they will still be low by historical standards and very affordable.”

Supply Headwinds

Crowe noted several factors that are hindering a more robust recovery.

Citing an NAHB survey of its members, 13 percent of builders reported the cost and availability of labor was a significant problem in 2011 and that concern jumped to 61 percent in 2014.

About one-fifth of builders shared the same concerns regarding lots in 2011 and that ratio shot up to 58 percent in 2014.

Concerns over building materials stood at 58 percent among builders in 2014, up from 33 percent in 2011.

Single-Family Continues to Post Gains Turning to the forecast, NAHB is projecting 719,000 single-family starts in 2015, up 11 percent from the 647,000 units produced last year. Single-family production is projected to increase an additional 27 percent in 2016 to 914,000 units.

On the multifamily side, production ran at 354,000 units last year, slightly above the 331,000 level that is considered a normal level of production. Multifamily starts are expected to rise 9 percent to 387,000 units this year and post a modest 3 percent decline to 378,000 units in 2016.

Residential remodeling activity is forecasted to increase 6.8 percent in 2015 over last year and rise an additional 6.1 percent in 2016.

Suburbs are Still Hot

Looking at home buyer preferences, Trulia Housing Economist Ralph McLaughlin said that contrary to popular belief, millennials prefer to own a home in the suburbs rather than rent in the cities.

“Many believe that home buyers are bucking the trend of previous generations

(CONTINUED ON PAGE 13)

Testifying before the House Judiciary Subcommittee on Regulatory Reform, Commercial and Antitrust Law, NAHB First Vice Chairman Ed Brady said that home building is one of the most highly regulated industries in America.

“On average, regulations imposed by government at all levels account for 25% of the cost of a new single-family home for sale,” said Brady.

December 2015 | Building Buzz

5

T

The Golden Ticket

By Marvin Dahle, Burleigh County Code Enforcement Officer

The “Golden Ticket” for builders, lenders, and homeowners is the Certificate of Occupancy. The CO, as the Certificate of Occupancy is called, certifies the house has had a final inspection, has passed that inspection, and the house is now ready to become a home.

It also certifies that the house can be occupied. It is against the ND Century Code to occupy a house without a CO and is subject to penalties and fines up to $500.00 per day When doing a final inspection, I have a checklist of items to inspect to make sure the house is safe and is up to current building codes. These include items inside and outside the house. If I see an item that must be fixed for final approval, I list it on the inspection sheet which is usually located in the mechanical room of the house.

When I arrive at a location the first item I look for is the house number, which is required before the CO is issued.

I check the grade of the landscaping, which is approximately 5% and swales if needed. On the outside walk around I check penetration in the siding to make sure they are water tight and rodent proof. Roofing and vents out of the shingles are also check at this time.

Once inside the house, I have a different checklist I use. I check the stairs and stairways to make sure they have the proper height and depth, hand rails and railings. I check the windows to make sure they open and are not located in an area that would require safety glazing.

In the basement where windows are a

means of egress, I check if the windows are 5.7 sf and have a clear opening and at times a ladder.

I check all the doors making sure the hardware is installed correctly and the doors swing in the right direction.

I also check the patio doors to make sure the deck is complete. If the deck is not complete the patio doors must be secured so they cannot be opened, usually some type of blocking is used.

While doing the interior walk around, I am also checking all the plumbing fixtures to make sure they have code compliant valves and traps which are in working order. I check for fans in the bathrooms and in general the whole heating system. I check the registers to make sure they are on and in working order. I make sure smoke alarms are installed and at least one (1) carbon monoxide alarm.

In the County, the State Electrical Board is responsible for all wiring inspections. I rely on them to make sure everything is up to code. They do

inspections during the building process and do their own final inspection.

On leaving the house, I check all the exits for proper landings and railings once again, and I also inspect any decks to make sure they are anchored properly, have the right support beams and are code compliant when it comes to railings and stairs if needed.

The final step before I issue a CO is checking to make sure all trades are permitted, inspected and are code compliant. Each house gets many different inspections during the building process, so checking to make sure all trades have been inspected and code compliant is a very important step. If all inspections are passed, I will issue the CO, which is sent to the builder. A copy is maintained in our office, since many banks require a copy of the CO and usually all the inspections.

Reprinted with permission from the Sept.

2015 Burleigh BPZ Newsletter.

COMMERCIAL & RESIDENTIAL DEVELOPMENT REMAINS STRONG Mayor Arlyn Van Beek spoke at the Chamber of Commerce State of the Cities breakfast in November. He talked about Mandan’s growth trends, business developments and city projects. Residential development remains strong. New businesses are opening, existing businesses are expanding, and the City is looking at several projects to improve streets and other infrastructure. The complete presentation is posted at www.cityofmandan.com in the News section. Here are some of the latest statistics:

• Residential building. The City issued building permits for 224 new residential

6

Building Buzz | December 2015

units in 2015 through Nov. 24. Singlefamily home construction is above last year at 131 units; however multi-family construction is not as strong with 93 units permitted to date compared to 295 in all of 2014.

• Commercial and industrial building.

Permits for new construction, remodeling and additions total $52 million, the second highest year on record and far above the $24 million in activity recorded for 2014.

• Local usage taxes. Revenue from the 1 percent sales tax through October is down 4 percent as compared to the

same 10-month period a year ago. Given that sales tax revenue for 2014 was at an all-time high and 13 percent above 2013, the statistics for the current year remain strong historically.

The City Finance Director expects revenue from the 0.75 percent sales tax that began Oct. 1 will start coming to the City between December and February. This portion of the sales tax is devoted to a new sports complex being planned by the Park District. The timing lag is because retailers file their sales tax collections with the N.D. Tax Department on either a monthly or quarterly basis.

STATE OF THE CITIES

M

andan Mayor Arlyn Van Beek talked about the city’s growth trends, business developments, and projects at the annual Chamber of Commerce State of the Cities Breakfast on Nov. 3.

According to Van Beek, Mandan is experiencing its second highest year on record for commercial development, single family housing permits are above last year’s total, local Arlyn Van Beek sales tax collections are on par with the 2014 record, and the city continues to look at projects to maintain and improve services for a growing community.

Find Van Beek’s presentation online at cityofmandan.com.

Bismarck Mayor Mike Seminary talked about Generations “squared” – entrepreneurs and start-ups, “Back to the Future” and how the past parallels the present, facilitating transition, growth, partnerships, innovation, diversity and sustaining our community well into the future.

Seminary presented Bill Wocken, City Administrator with a statuette of an Eagle bearing the words, “For your vision, Mike Seminary focus, sacrifice and leadership, all of Bismarck says thank you,” in honor of his 43 years of dedicated service. All in attendance stood and applauded to recognize him. Wocken plans to retire in the spring of 2016.

Find Seminary’s presentation online at bismarck.org.

CITY NAMES ZIEGLER NEW CHIEF OF POLICE Jason Ziegler was named Mandan’s new police chief at a special meeting of the City Commission in November. Ziegler will start his new duties after the holidays. Ziegler has served in law enforcement for 25 years, 14 in supervisory roles. He most recently

worked as a lieutenant at the Osceola County Sheriff’s Office in Florida. He has his master’s degree in public administration and a bachelor’s degree in criminal justice.

CITY & COUNTY CITY COMMISSION APPROVES HUB CITY PROJECTS The City Commission authorized staff to move forward with nine projects related to population growth at a November meeting. The projects will use hub city funds appropriated through oil impact legislation during the 2015 legislative session. The $4.3 million in funding will be used toward infrastructure improvements, including: • construction of a north side fire station,

• the purchase of land in northwest Mandan for a future water reservoir,

• expansion of an Old Red Trail water transmission line from 6 to 12 inches to coincide with the road-widening project,

• Bismarck-Mandan Metropolitan Planning Organization studies for lowcost road improvements, the Mandan downtown subarea and school area safety, • a hydrocarbon detector to be used at the Water Treatment Plant, • a stormwater master plan,

• engineering fees to assess and plan sanitary sewer line improvements from the master lift station to the Waste Water Treatment Plant, and

• a Public Works salt and sand storage structure, cold storage and department office areas.

As a growing city, Mandan has a multitude of projects in need of funding.

Selected projects include those that may have otherwise been special assessed citywide, had mill levy implications city wide or affected utility rates.

We are excited and honored to have Jayse Bender join our team of Real Estate Professionals.

Call Jayse to answer all of your Real Estate questions.

Jayse Bender (701) 590-0422 201 West Front Avenue 701.223.6654 www.century21morrison.com

December 2015 | Building Buzz

7

BMHBA NEWS EXCITING EVENING IN STORE FOR ANNUAL BANQUET ATTENDEES The BMHBA Annual Banquet is slated for Thursday, Jan. 28. This year’s event will take place in the beautiful Bavendick Stateroom on the campus of Bismarck State College.

Appropriate for its size, location and ample parking, this new venue ties into the event’s annual fundraiser for the association’s BSC Scholarships.

“How appropriate that we host our event at the school that educates our future builders and grants our annual scholarship dollars,” said EO Dot Frank.

The Annual Banquet is billed as one of the largest association events for members and features a recap of the prior year, installation of the 2016 Board of Directors, BSC Scholarship drive and new this year…a comedian.

“Members are in for an amazing evening together. We encourage all 400 member businesses to make a commitment to attend,” Frank added.

Registration is open online at bmhba. com/events. Admission is $30 and a variety of sponsorships that include event tickets are available.

COMEDIAN TAKES STAGE AT ANNUAL BANQUET The BMHBA Events Committee is excited to bring comedian Karen Rontowski to our Annual Banquet.

From “The Late Show with David Letterman” to Sirius Satellite Radio and Comedy Central, Rontowski offers fast-paced, clean, optimistic humor. With a stand up career that spans over 20 years she has performed in 45 of the United States and over 13 countries including New Jersey.

Her quirky, original thought patterns always bring an interesting twist that lets you see a mind full of confident confusion. She believes in things like karma so when a 2-year old sat in front of her on a plane she kicked his seat the whole way.

Rontowski will round out the evening on Thursday, Jan. 28.

Registration is open online at bmhba.com/ events.

8

Building Buzz | December 2015

Karen Rontowski (pictured on front cover)

HOME SHOW EXHIBIT SPACE OPENS TO PUBLIC

New vendors encouraged to experience the 39th Annual BMHBA Home Show The Home Show will run from 3-9 p.m. on Friday, Feb. 19, & from 10 a.m. to 6 p.m. on Saturday, Feb. 20.

The BMHBA is hosting the 39th Annual Home Show Feb. 19-20 at the Bismarck Event Center.

More than 80% of the floor space has been acquired by past vendors and BMHBA members.

The association is now extending an invitation to new exhibitors.

“The Home Show is a highly anticipated annual event,” says 2016 Home Show Chairman Randy Tank. “Last year we welcomed more than 7,000 spectators and we’re working to grow that count.”

Vendors can expect a high volume of traffic during the two-day event that will see the return

BMHBA MEMBERS ATTEND STATE MEETING

of Free Friday sponsored by Capital Credit Union and the addition of a game of chance with $10,000 up for grabs.

“We’re fortunate to have Capital Credit Union back on board as our Free Friday sponsor,” said Tank. “Our committee works hard to make this a fun event for families full of home building, remodeling and decorating inspiration. Plus, the popular retail items select vendors offer.”

Exhibitors may find information online at bmhba.com/home-show.aspx or by calling the BMHBA at 222-2400.

NAHB VP ATTENDS NDAB MEETING

BMHBA members Eric Brenden, Vance Vetter, Greg Zenker and Jeff Sattler attended the Fall Board Meeting for the North Dakota Association of Builders (NDAB) in Dickinson on Dec. 3-4.

Bismarck-Mandan members represented out local voting on meeting agenda items and participating in the NDABPAC meeting. They also were present to accept the 2014 Membership Award for recruitment and retention.

The NDAB hosts three meetings a year. BMHBA Past President Eric Brenden is the 1st VP of NDAB.

NAHB’s 3rd VP Randy Noel attended the NDAB board meeting in Dickinson. Noel is a Louisianabased custom home builder with more than 30 years of experience in the residential construction industry. Noel founded Reve Inc., a custom home building firm in Laplace, La., in 1985.

December 2015 | Building Buzz

9

NATIONAL NEWS

APARTMENT ABSORPTIONS FOR THE SECOND QUARTER

By Robert Dietz

NATIONAL NEWS

The rental apartment market continued to be strong during the second quarter of 2015, as multifamily production levels remain elevated.

According to NAHB analysis of the most recent data from the Census Bureau and Department of Housing and Urban Development Survey of Market Absorption of Apartments (SOMA), completions of privately financed, unsubsidized, unfurnished rental apartments in buildings with five or more units totaled 210,200 residences for the four quarter period ending with the first quarter of 2015, a 40% increase from the prior four quarters.

Non-seasonally adjusted three-month absorption rates (units rented after construction of the property is complete) for first

quarter completions (rented during the second quarter of 2015) were effectively unchanged from a year prior at 61%. Absorption rates for rental apartments rose coming out of the recession but have established a more stable range since 2011, a period during which completions have increased substantially.

In contrast, condo and co-op completions remain at historically low levels, with 1,300 for-sale multifamily homes (in 5+ unit properties) completed during the first quarter of 2015. The non-seasonally adjusted 3-month absorption rate for for-sale multifamily for condos completed during the first quarter and sold during the second quarter of 2015 held strong at 74%.

CHECKING UP ON THE VALUE OF YOUR NAHB MEMBERSHIP

NATIONAL NEWS

Ever wonder about the return on investment for your membership dollars?

Check out ValueofNAHB.org to learn more about the value of membership and to find out how to take advantage of all your member benefits.

The site highlights information and resources NAHB offers to help you build a better home, build a better business and work in a policy environment that enables your business to thrive.

For example, did you know that through the first eight months of 2015, just a handful of NAHB’s many advocacy efforts saved association members a total of almost $720 million nationwide?

The site can also help HBAs recruit new members by showing other businesses how membership will benefit them, including: • • •

NAHB education resources that members need to stay abreast of the latest trends and best practices in residential construction;

Member savings opportunities, including exclusive discounts and private offers on a wide range of products and services; and Service and support that NAHB offers its members through legal services, research and analysis, career training and more.

These are just a few examples of how NAHB is working to serve our members by helping to make your businesses run better and boosting your bottom line.

Visit ValueofNAHB.org to learn about all of NAHB’s services, programs and advocacy victories.

10

Building Buzz | December 2015

Age comes with much more than just wisdom. It also brings a lot of aches and pains that often lead to physical limitations and permanent lifestyle changes.

Millions of aging Americans intend to live out their golden years in their current homes, creating huge demand for remodelers with expertise in home modifications for aging-inplace seniors.

Silver Spaces is a room-by-room checklist that defines which changes could be made to create a safer environment by addressing resident-specific needs. During a home evaluation, the application asks targeted yes/no questions and allows the user to upload photos and take notes for future reference.

On Nov. 10, the Senate failed to secure the 60 votes needed to proceed to consideration of S. 1140, legislation that would have overturned the Environmental Protection Agency’s “Waters of the United States” (WOTUS) rulemaking.

But it’s not all bad news.

NAHB solidified the support of 58 Senators. Democratic Sens. Joe Donnelly (Ind.), Heidi Heitkamp (N.D.), Joe Manchin (W.Va.) and Claire McCaskill (Mo.), along with all 54 Republican senators, voted in support of S. 1140.

The Senate then took up the Congressional Review Act (CRA) resolution disapproving the WOTUS rule, which passed by a majority vote. Passage of the CRA would force the EPA to withdraw the rule.

NATIONAL NEWS

To help remodelers quickly and more accurately evaluate an aging client’s needs, developers recently released a mobile app called Silver Spaces. The app is the first of its kind to provide remodelers with customizable tools and information to address the home-safety concerns of their clients.

SENATE VOTE ANOTHER HIT TO WOTUS RULE

NATIONAL NEWS

MOBILE APP GIVES REMODELERS AN EDGE ON HOME ASSESSMENTS

The Federation showed a strong, united front in responding to the call to action. Members ensured that NAHB’s voice was heard on Capitol Hill. Thousands of emails, letters, phone calls and personal appeals were made to Senate offices.

“With your continued support and engagement, we will ensure that these burdensome regulations are rolled back,” said NAHB Chairman Tom Woods..

When the assessment is complete, the app creates a report which the user can view, edit, print or email. The report outlines each of the home modifications that may be needed, from simple changes to more complex remodeling projects.

The initial release of the app in late October was of the iOS version, available for $5.99. The Android version is expected to launch in early 2016.

NATIONAL NEWS December 2015 | Building Buzz

11

COST OF CONSTRUCTING A SINGLE-FAMILY HOME IN 2015

By Carmel Ford

The NAHB recently published its latest Cost of Construction Survey. The survey shows that the average home was built on 20,129 square feet (about a half an acre) of land, had 2,802 square feet of finished space, and sold for an average of $468,318.

Results further show that 61.8% of the average home sale price consisted of construction costs, which is similar to the 2013 breakdown (61.7%). The finished lot cost was the second largest cost at 18.2%, and also similar to 2013 (18.6%). Average builder profit was 9.0%, compared to 9.3% percent in 2013. Overhead and general expenses in 2015 were slightly higher, at 5.6% of the average home sale price in comparison to 4.3%in 2013. The remainder of the average home sale price consisted of sales commission (3.2%), financing costs (1.3%), and marketing costs (0.8%). These percentages are similar to their 2013 breakdowns.

“As builders, we need to not only compete with other builders, but also with the existing home market for sales,” commented Nathan Jones of Tollberg Homes.

“Regulatory costs and code changes comprise an increasing component of our costs as you’ll see from these national averages. This increases the gap between new and existing housing and dampens demand.”

Survey respondents broke down construction costs into eight major construction stages. Interior finishes, at 29.6%, accounted for the largest share of construction costs, followed by framing (18.0%), exterior finishes (15.0%), major system rough-ins (13.1%), foundations (11.6%), final steps (6.8%), site work (5.6%), and other costs (0.5%).

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Building Buzz | December 2015

RECOVERY (CONTINUED FROM PAGE 5) in that they want to live in urban areas and want to rent,” said McLaughlin. “What we are finding from our surveys is just the opposite. Among millennial renters, almost 90 percent say they eventually want to purchase a home. That is significantly higher than Gen Xers, who were hurt by the recession, and quite a bit more than current baby boomer renters, who are at 40 percent.”

However, an overwhelming majority of millennials, who are still starting households and paying off college debt, say it will be at least two years before they are ready to buy.

Roughly half of all Americans prefer to live in suburban areas, about a quarter prefer urban areas and just over 20 percent prefer rural communities, according to a Trulia survey conducted last November.

“As we get into the recovery, suburban areas are growing faster than urban areas,” said McLaughlin. “That is a sign that the urbanization trend we saw start to happen at the beginning of the recovery was more of a blip rather than a new rule.”

Moreover, the percentage of households living in urban

neighborhoods in 2013 was lower among nearly all age groups compared to 2000.

“So again, this shows there really isn’t an urbanization trend among households,” said McLaughlin.

Over the past five years, the share of searches on Trulia in suburban-urban zip code areas has held fairly constant, at roughly a four-to-one-ratio for suburban searches.

“Home buyers are saying they prefer modern and modest sized homes in the suburbs with amenities,” he said, adding that 44 percent of Americans say they want to live in a house between 1,400 and 2,600 square feet.

Recovery in All Regions, but Pace Varies Delving below the national numbers, NAHB Senior Economist Robert Denk said that housing market conditions are improving in all regions, but the pace of recovery continues to vary by state and region.

“We’ve gotten to the point in the recovery where we no longer have problems that came with the housing bust,” said Denk.

“It now is really a matter of housing markets reconnecting to the fundamental drivers, and that is employment. Production has been rebounding in all regions, prices have been moving up and new foreclosures are back to more normal levels.”

Using the 2000-2003 period as a

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The hardest hit areas during the downturn were a combination of the bubble states – California, Arizona, Nevada and Florida – and the industrial Midwest. The bubble states had the most excessive price and production spikes, while the problems in the Midwest were more related to fundamental economic weakness.

The most successful recoveries are happening now in the energy states, including North Dakota, Wyoming, Texas, Montana and Louisiana.

Other states exhibiting strong employment and housing growth include South Carolina, Utah, Tennessee, Idaho, Oregon and North Carolina.

In another way of looking at the long road back to normal, by the end of 2017, the top 40 percent of states will be back to 99 percent or more of normal production levels, compared to the bottom 20 percent, which will still be below 73 percent.

“Keep in mind that with all of these buckets, the numbers keep getting higher,” said Denk. “There is broad-based improvement across the country.”

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December 2015 | Building Buzz

13

NDAB NEWS

Volume XXII, Issue 12

Monthly News from the North Dakota Association of Builders

It Has Been My Pleasure It's hard to believe, but we are now at the end of 2015 and this is my last column as your NDAB President. I have enjoyed my term immensely and I thank the Board, my fellow NDAB members, and our NDAB staff, Kim and Heather for giving me this opportunity to serve, and for making it LeRoy Kurtyka rewarding. I'm sad to see the year close, NDAB President but I'm certainly excited to take on my new role as Immediate Past President and to offer my full support to our incoming President, Arnold Karsky of Dickinson.

Over the past 12 months we accomplished many things on behalf of our membership and I would be remiss if I didn't take the time to cover a few of what I consider to be the most important. First, we survived Session! 2015 was our biennium year for the ND Legislative Session. Board, Committees, and Staff tracked numerous bills affecting the home building industry. We worked with legislators and other organizations to further issues important to NDAB and to hinder issues detrimental to our members and our industry. I'm proud of the work we did this past year and I'm happy to report that planning and work has already begun with our Government Affairs Committee and our NDAB Build-PAC Trustee Board as we look ahead to the 2017 Legislative year.

Another important accomplishment this year has revolved around NDAB's national lobbying efforts. We again hosted the Bringing Housing Home event, and were able to have members and directors meet with Senator Hoeven, Senator Heitkamp, and Congressman Cramer, and Secretary of State, Al Jaeger multiple times over the year to discuss state and national issues relevant to us. We plan to continue to utilize and foster these important relationships.

Finally, I'm happy to note that we had many people involved in our program of work this past year. It is through our members' support of time, talents, and treasure that we are able to accomplish so much. For that I, and the entire Board of Directors, thank you. Please continue to pledge your support in a variety of ways under Arnold's leadership. We look forward to having you involved and we hope to see you at our next event!

Happy Holidays, LeRoy

December 2015

Thank You, 2015!

December is a month full of emotions, full hearts and time to reflect on another year gone by. I have now officially been with the North Dakota Association of Builders for two wonderful years.

It has been a time of growth for both me and the Association and while sometimes change can be hard, it is always a time for new experiences and making new friends. A big thank you to Kim Schneider NDAB’s 2015 President, LeRoy Kurtyka for his NDAB Executive Officer leadership, his calm ways and for the many laughs we shared together.

On December 4 the NDAB Board of Directors and special guests gathered in Dickinson to toast our successful past year and celebrate the future year ahead of us. 2015 NDAB President LeRoy Kurtyka was thanked for his past years’ service and pinned with NAHB’s Past State President pin. 2016 NDAB President Arnold Karsky was sworn in and pinned with NAHB’s State President pin.

Our Board of Directors is made up of volunteers and we fully recognize and appreciate their time and dedication. To our outgoing board members, a heartfelt thank you. Your leadership is helping to push forth NDAB, NDAB-PAC and to help us to grow in our success. It has truly been a pleasure to work with you.

Outgoing Board Members:

    

Forx Builders Assoc: Bill Knipe HBA of Fargo-Moorhead: Carlita Dietz Minot Assoc. of Builders: Eric Wanner Williston Area BA: Jim Rasche Williston Area BA: Ken Callahan

Congratulations to our 2015 state award winners and nominees that were also announced at the annual banquet: Builders Engaging Associate Members (BEAM): from the HBA of Fargo-Moorhead

Heritage Homes

Associate of the Year: Ken Callahan with MDU from the Williston Area Builders Association Builder of the Year: Clay Dietrich with Dietrich Homes, Inc from the HBA of Fargo-Moorhead What an exciting year it has been! As 2015 goes down in the record books we look forward to making new memories in 2016.

Sponsorship opportunities will soon roll out, education opportunities will be offered, memberships will grow and in the end, new friendships will be made. Thank you all for making NDAB one of the best state-wide Associations in the Nation!

Warm wishes to you and yours, Kim Schneider

Back your PAC … your PAC backs you! NDAB-PAC is the North Dakota Association of Builders’ Political Action Committee. It is a non-partisan political action committee that provides support for candidates who are friends of the building industry. Contact NDAB at (800) 326-4746, (701) 222-2401 or info@ndbuild.com to contribute or learn more!

North Dakota Association of Builders 1720 Burnt Boat Drive, Suite 207, Bismarck, ND 58503-0801 701/222-2401 or 800/326-4746 www.ndbuild.com

14

Building Buzz | December 2015

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Thank Alissa.

Bronze Partners - Bell State Bank & Equipment Co., Joan Mainwaring of  Merry Christmas and Happy NewMeeting.

Year to The HBA Silver Partners - Bismarck-Mandan Home Builders Association, Awards Gala & Annual We• would like to take this opportunity to members: Lance Bevier of Tractor and American State Bank and Trust Co., and Trust, Forx Builders Association, Minot The December Builders after Hours will be hosted by the Silver Partners Bismarck-Mandan everyone!

Williston Area Builders Association  We are having a “Holiday Open House” for  Thank you to everyone who attended our F-M celebrated award winners and Dickinson Area Builders Association, Home Builders Association extend anof invitation to Kim and Heather Bronze Partners - Dickinson Bell State Bank && of Equipment Co., Joan Mainwaring of Home Bob Radermacher of Bakken Contracting.

Association of Builders, ND Guaranty Builders Association, Membership Committee and the Board Directors at Keith’s our members here atState the office December Awards Gala & attend Annualwith Meeting.

The HBA recipients over 200 of its of Janna Lutz, Executive Officer and other scholarship associations to our Fargo-Moorhead, &Builders Northern Plumbing Supply American Bank and Trust Co., and Trust, Forx Builders Association, Minot  Mark Schneider, LJA, was sworn in as our Title Co., ND Housing Finance Agency, Area Association, Home Builders Security World.

Jimaward Bisson owner of Keith’s Locknoon-7pm & Key will 15th from with foodofand of F-M celebrated winners and701-572-5744 members.

The awards went to Clay party.

Gold Partner - Montana DakotaND Utilities willistonbuilders.com Bob Radermacher Bakken Contracting.

Association of Builders, Guaranty & BryceChristmas Johnson, Executive Vice President incoming WABA President at our Annual ProBuild, RDO Equipment & Williston Association of Fargo-Moorhead, & Co., scholarship recipients with over 200and ofofits beverage.

Dietrich, Dietrich Homes, Inc., Builder Bronze Partners Bell State Bank & Trust, Forx Builders Association, be retiring the end of December we will be helping him  Merry Christmas andThe Happy Newwent Yearto toClay  Mark Schneider, LJA, was sworn in as our Title Co., ND Housing Finance Agency, Meeting in November.

6 celebrate hbafm.com 701-232-584 members. awards Area Builders Association the Year;this Paul Krabbenhoft, Coldwell Northern Plumbing Supply  WABA welcomes new incoming board Minot Association Builders, -ND Guaranty & Title Co., ND Housing milestone.

SilverofPartners everyone!Banker Area Builders Association incoming WABA President at our Annual ProBuild,Bismarck-Mandan RDO Equipment Co., & Williston Dietrich,First Dietrich Homes, Inc., Builder of members: Realty, Associate of theWilliston Year;  April Top were also recognized: Bill Lance Bevier of Tractor and Finance Agency, ProBuild, RDO Equipment Co., & Williston Area • you Our Design and Garden Show will beLutz, held 1,Spikes 2 Officer &in3 November. at Home Builders Association, Dickinson Meeting  Thank toHome everyone attended our Area Builders Janna Executive the Year;Homes, Paulwho Krabbenhoft, Coldwell Heritage BEAM; Dan Beecher, andMainwaring Dave Nordenstrom became Bronze Partners - BellAssociation State Bank & EquipmentMurphy Co., Joan of Builders Association Area Builders Association, Home Builders the Alerus Center.

Awards Gala & Annual Meeting.

TheMile; HBAofJohn Banker First Realty, Associate the701-572-5744 Year; Foam Doctor’s LLC, Extra  Life TopSpikes Spikes were also Co., recognized: Bill willistonbuilders.com 2015!

American State Bank in and Trust and Trust, Forx Builders Association, & Minot BryceofJohnson, Executive Vice President Association of Fargo-Moorhead, F-M celebrated award winners and Heritage Homes, Dan Beecher, Koerselman, Red BEAM; River Drywall & Murphy thanks and Dave Nordenstrom Bob Radermacher of Bakken Contracting.  Special to Dot Frank and became the Association of Builders, ND Guaranty & 6 Foam hbafm.com 701-232-584 scholarship recipients withLLC, over 200 of its John Northern Plumbing Supply Doctor’s Extra Mile; WABA welcomes newinincoming Life Spikes 2015! board  Mark Schneider, LJA, was sworn in as our Title Co., ND Housing Finance Agency, members. Koerselman, The awards went to Clay Red River Drywall & members: Lance Bevier of Tractor and  WABA SpecialPresident thanks toatDot and the ProBuild, RDO Equipment Co., & Williston incoming ourFrank Annual  Dietrich, Thank you to everyone who attended Dietrich Homes, Inc., Builder our of www.ndbuild.com North Dakota Association of Builders  December 2015& Bronze Partners - Bell State Bank Equipment Co., Joan Mainwaring of Meeting in November.

Awards Annual Meeting.

The HBA Area Association the Year;Gala Paul&Krabbenhoft, Coldwell American State Bank and Trust Co., and Trust,Builders Forx Builders Association, Minot of F-M celebrated award winners andYear; Banker First Realty, Associate of the www.ndbuild.com North Association  ND December 2015 &  Top Spikes were also recognized: Bill of Builders Bob Radermacher ofDakota Bakken Contracting.

Association ofBuilders, Guaranty scholarship recipients with over 200 of its Heritage Homes, BEAM; Dan Beecher, Murphy and Dave Nordenstrom became December 2015 | Building  Life Mark Schneider, LJA, was sworn in as our Title Co., ND Housing Finance Agency,Buzz 15 members.

The awards went to Clay Foam Doctor’s LLC, Extra Mile; John Spikes in 2015! incoming WABA President at our Annual ProBuild, RDO Equipment Co., & Williston Dietrich, Dietrich Inc., Builder of Koerselman, RedHomes, River Drywall &  Special to Dot Frank and the Meetingthanks in November.

Area Builders Association the Year; Paul Krabbenhoft, Coldwell

•

ordinance updates in Bismarck and planning our Home Our Home Show committee is busy Show inAward.

Cornerstone granted students and college HBC students in or$12,500

 April, The BMHBA has been busy following Mandan, Burleigh Morton updating andand adding newCounties. features. ordinance updates in Bismarck and

Around the State

Banker First Realty, Associate of the Year;



Top Spikes were also recognized: Bill

PRSRT STD U.S. Postage

PAID Permit #72 Bismarck, ND 58501

2600 Gateway Ave., Ste. 1 Bismarck, ND 58503

UPCOMING BMHBA EVENTS

Annual Banquet – Jan. 28 at 5:30 p.m.

BMHBA 39th Annual Home Show - Feb. 19 & 20 Bowling with Builders - March 22

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