BISMARCK-MANDAN HOME BUILDERS ASSOCIATION DECEMBER 2020 || WWW.BMHBA.COM
BUILDING Building Buzz is a publication of the Bismarck-Mandan Home Builders Association.
PROFESSIONALS BUILDING OUR COMMUNITY THROUGH PROMOTION OF
Bismarck-Mandan Home Builders Association 2600 Gateway Ave, Ste 1 Bismarck, ND 58503 Phone: 701.222.2400 Fax: 701.250.9730
www.facebook.com/bmhba
SINCE 1958.
PRESIDENT Sattler Homes 701-255-7628 jeff@bismarckbuilder.com VICE PRESIDENT Aspire Homes 701-426-8583 greg@daretoaspire.com 2ND VICE PRESIDENT Triton Homes 701-223-3030 jamie.schmidt@investcore.com
Northern Plains Plumbing, Heating & Air 701-222-2155 greg@northernplains.net Townsquare Media 701-250-6602 bill.schmid@townsquaremedia.com
www.twitter.com/bmhba
www.bmhba.com
Stoneshire Builders 701-471-6935 brian@stoneshirebuilders.com Hallmark Homes 701-471-7634 hallmarkhomes@outlook.com
TREASURER Boulder Homes 701-400-5554 boulderhomesnd@gmail.com
Dakota OutdoorScapes 701-214-1255 mckenzie@ndscapes.com
Great Plains Rehab 701-400-0676 rtank@primecare.org
Joe Vetter Construction 701-258-9394 joevetterjvc@gmail.com
Apex Builders 701-527-7899 amy@apexbuildersnd.com
PAGE 5
PAGE 6
PAGE 14
PAGE 11
PAGE 9 Dawn Watson dawn@bmhba.com Office: 701-222-2400 Cell: 701-390-5049
Brittney Roehrich brittney@bmhba.com Office: 701-222-2400 Cell: 701-240-3540
Elysha Head
Representing the diversity of the building industry, 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. Please renew your membership by December 31st, 2020.
Tyler Perry
Chris Vigness
Mike Hopfauf
Brian Ritter
Dale Miller
Shaun Kessler
Keith Doerr
Paul Barnum
Jayden Chuppe
Mitch Flanagan
Kevin Turnbow
Gene Anderson
Randy Mathern
Michael Odden
Mark Abramson
Ed Talbacka
Andrew Meldahl
Mark Klein
Travis Berger
2020 It is hard to believe that 2020 has come and gone and my time as president of the Bismarck-Mandan Home Builders Association is coming to an end. It has been a rewarding experience for me to serve our association for the past two years as your president. As I look back over the past two years, there have been many ups, downs and challenges our association has had to overcome. This past year has been one of the hardest most of us contractors, suppliers and bankers have had. We dealt with the challenges of building homes in a time that labor, lumber, appliances, and many other items used in construction have had extended lead times, back orders and prices skyrocketed. All at the same time as increased demand and lower interest rates. I would like to thank the entire 2020 BMHBA Board of Directors for helping guide the association through an Executive Officer change. This year has been hard dealing with the effects of COVID-19. I know that I have missed seeing everybody at our events and hopefully we will be able to host all of them again in 2021. I would also like to thank all members for stepping up and helping the association pull off all the events we hosted this year. I would also like to thank our two departing Board Members
Regards,
2020 PRESIDENT :: BMHBA
of 2020, Greg Zenker and Randy Tank. Thank You for dedicating the time and energy to serve on our board. Home show sales started last month. If you are thinking about a booth or have questions, I urge you to reach out to the BMHBA office and get your questions answered and secure your booth. We will be hosting our 2021 board elections through an online voting format as we have decided to cancel our Fall GMM/Holiday Mixer/Board Elections on December 8th at the Ramada. Currently we have three associate members running for two open positions. Sue Blair – Hebron Brick, Ron Stotz – Caves and Lori Willson – Northern Plains Plumbing, Heating and Air. Thank for choosing to run for and fill these open positions. We will also be hosting our annual banquet in January. I look forward to seeing everybody as we swear in our 2021 President Greg Meidinger and our 2021 Board of Directors. Remember to always be recruiting. We have strength in numbers. Membership applications are available online and staff is always on standby to follow-up on referrals.
MONTH
‘18
‘19
JANUARY
0
9
1
0
10
2
FEBRUARY
3
4
5
2
0
10
MARCH
21 22 14
2
9
32
APRIL
52 29 40
27
26
23
MAY
31 46 29
16
28
23
JUNE
31 43 48
24
18
40
JULY
40 16 60
22
17
34
AUGUST
20 48 16
27
19
29
SEPTEMBER
28 44 26
22
23
43
OCTOBER
54 14 22
15
36
43
NOVEMBER
16 11
9
11
14
1
0
1
1
0
‘20
‘15
‘16
Data not collected for the ETA in 2015 and 2016.
‘15 ‘16 ‘17
DECEMBER
YEAR
‘17
‘18
‘19
‘20
‘15 ‘16 ‘17
‘18
‘19
‘20
0
0
0
0
0
0
2
2
4 5
‘15 ‘16 ‘17
‘18
‘19
‘20
0
1
0
0
2
0
1
1
2
6
5
0
1
4
11
6
4
8
3
6
8
14 12
8
6
4
9
26 13 11
10
2
2
3
21 20 13
13
3
3
2
7
9
13
6
11
6
1
7
2
17
7
13
20
8
3
10
9
16 14 26
4
7
3
10
9
29 20
3
0
1
7
7
0
0
0
0
2
0
0
2
0
0
0
0
3
0
2
8
0
3
0
0
16
11
5
18
2
4
15
11
4
17
2
5
4
6
1
6
12
14
0
5
10
16
8
11
10
22
3
9
9
7
7
6
2
2
0
0
‘18
‘19
‘20
0
0
0
0
0
2
1
2
1
1
0
0
0
3
0
1
9
9
4
2
4
12
0
6
3
14
5
11
11
14
4
5
0
2
14 16
7
20
10
5
3
1
1
1
8
11
4
4
6
8
1
5
1
6
13
9
4
3
11
1
2
9
4
5
3
8
9
6
8
5
5
3
4
5
2
4
9
9
9
6
5
10
17 10
7
5
3
8
4
7
3
7
1
2
0
0
0
3
4
1
0
2
5
0
0
0
1
0
4
0
0
0
0
2
0
0
TOTAL
297 286 270 169 201 279
45
27
36
53
132 123 114 116
71
82
67
40
37
28
20
30
83
80
51
61
60
51
YTD TOTAL
297 286 270 169 201 279
45
27
36
53
132 123 114 116
71
82
67
40
37
28
20
30
83
80
51
61
60
51
BISMARCK SINGLE FAMILY DWELLING Apex Builders Applewood Homes Boulder Homes Copper Ridge Design Copper Ridge Design Copper Ridge Design Copper Ridge Design Copper Ridge Design Copper Ridge Design Copper Ridge Design Creative Touch Homes Diversity Homes Diversity Homes E Homes Eddy Mitzel Homes Eddy Mitzel Homes Groundworks Minnesota J.E. Homes
5715 Gold Dr 4900 Durango Dr 3808 Bounty Cir 3306 Knudsen Ave 3310 Knudsen Ave 3314 Knudsen Ave 3404 Knudsen Ave 3412 Knudsen Ave 914 Voyager Dr 920 Voyager Dre 3304 Promontory Dr 2404 Ketchum Ave 4005 Herd Pl 3825 Bounty Cir 4615 Marsh Hawk Dr 5347 Mica Dr 3218 Tyndale Cir 4702 Kites Ln
J.E. Homes Joe Vetter Construction Knutson Homes Knutson Homes Knutson Homes Knutson Homes Leingang Home Center Leingang Home Center Paramount Builders Paramount Builders Prairie Aire Homes Premier Homes Promontory Point Ryley Duford Samantha McMahon Sattler Homes Sattler Homes Vance Vetter Const. Verity Homes
4714 Kites Ln 4108 Bugle Bnd 501 Calvert Dr 505 Calvert Dr 511 Calvert Dr 517 Calvert Dr 1220 Ward Rd 3231 Crocus Ave 4121 Bugle Bnd 5322 Hendrickson Dr 2112 Frisco Way 4006 Silver Blvd 3408 Valley Dr 1530 N 20th St 2929 Remuda Dr 218 Irvine Loop 220 Irvine Loop 3802 Calgary Cir 111 Sleeper Way
0
‘15 ‘16 ‘17
Verity Homes Verity Homes Verity Homes Verity Homes Verity Homes Viking Builders
115 Sleeper Way 119 Sleeper Way 121 Sleeper Way 125 Sleeper Way 127 Sleeper Way 5430 Olive Tree Dr
Diversity Homes Premier Homes Premier Homes Verity Homes Verity Homes Verity Homes
4316 Borden Harbor Pl 2421 Water Park Loop SE 2423 Water Park Loop SE 3802 Lillian Ct SE 3811 Lillian Ct SE 4908 34th Ave NW
Buildings Evergreen Clint Miller Diversity Homes Diversity Homes E Homes Foerderer Custom Jeremy Jangula Premier Homes Stoneshire Builders Vance Vetter Cont.
6085 Middlefield Rd 6416 Misty Waters Dr 2603 Nicklaus Dr 2619 Nicklaus Dr 5615 Green Tree Loop 4525 Crestwood Dr 6125 Carefree Cir 1121 Pin Oak Loop 8426 Norman Pl 3601 NE 84th Ave
Rusch Homes Rusch Homes Rusch Homes Rusch Homes Rusch Homes Rusch Homes Rusch Homes Verity Homes
2982 Armstrong St 2912 Armstrong St 2903 Armstrong St 2952 Armstrong St 2892 Armstrong St 2933 Armstrong St 7005 SE 28th Ave 6455 Edgerly Ln
Hallmark Homes Welch Construction
4401 NW 149th Ave 6650 Shoal Dr
BISMARCK ETA SINGLE FAMILY DWELLING LINCOLN SINGLE FAMILY DWELLING
MANDAN SINGLE FAMILY DWELLING Alejandro Rincon Const. 407 Mia Ct SE
BURLEIGH CNTY SINGLE FAMILY DWELLING
2020 Builder of the Year Jeff Sattler – Sattler Homes 2020 Associate of the Year Bill Schmid – Townsquare Media
BEAM (Builders Engaging Associate Members) Jeff Sattler – Sattler Homes 2020 Builder of the Year Jeff Sattler – Sattler Homes 2020 Associate of the Year Bill Schmid – Townsquare Media
Join us as we celebrate the start of a new year with the BMHBA! The Annual Banquet is one of our prime events that features fine food, networking, and a brief presentation.
Ramada 1400 E Interchange Ave Bismarck, ND 58501 We will be reaching out to everyone soon with more information!
January 27th, 2021
Bismarck-Mandan Home Builders Association
HOME SHOW MARCH 26-27, 2021 BISMARCK EVENT CENTER We are excited to present the 2021 Home Show, which will be held March 26-27, 2021 at the Bismarck Event Center. Booth spaces are sold on a first come first served basis and the only way to guarantee placement is to submit payment with registration. We hope you find our online reservation system easy-to-use. Please go to www.bismanhomeshow.com for all details. Our booth space will sell out quickly and we want you to be able to claim your spot! You can register by typing this link into your web browser: https://shows.mapdynamics.com/bmhba2021/?register Please pay particular attention to where the electricity boxes are located and where access to power and water are available. We are pulling out all the stops to continue to have the best show to date in BismarckMandan. Here are a few things our vendors and visitors can expect in 2021: •
•
•
•
The continuation of Free Friday to the public – Sponsor to be announced soon The return of the Exhibitor VIP Lounge, complete with snacks and beverages Kids Korner with DIY projects, fun activities, and Swag Bag Giveaways Bar & Social Space provided to our participants and vendors for a relaxing area to network and have fun!
www.bismanhomeshow.com •
•
Spectators will continue to benefit from free parking and $5 adult admission on Saturday. However, we will offer a $2 off coupon on our BMHBA website for anyone that participates in the show Saturday. Our goal this year is to have over 200+ exhibitors participate while breaking attendance records!
Thank you for your past participation and if you have questions or need assistance with booking, please give Dawn Watson a call at (701) 390-5049 or dawn@bmhba.com We can’t wait to see you all at the show!
In the wake of the COVID-19 pandemic, certain patterns and trends have begun to emerge in the housing industry — in particular, higher demand for housing in lowerdensity areas. How much of these trends, though, are actually a change in demand or behavior, or just a continuation of existing trends that may have been accelerated through COVID?
This has impacted rents, as historically expensive markets such as San Francisco, San Jose, Seattle and Boston have seen double-digit decreases in asking rents since their March peak. Meanwhile, smaller suburbs and cities such as Inland Empire, Calif. (a bedroom community of Los Angeles), Norfolk and Richmond, Va., and Memphis, Tenn., have seen rents increase between 3.6% to 5.3%.
“When we think about the conversation around suburban and urban development, it’s really thinking about the extent the trends are on the curve, or if this is really a shift,” moderator Richard Gollis observed during NAHB’s recent The Future of Urban and Suburban Housing in the Wake of COVID-19 webinar. Gollis was join by panelists from NAHB, CoStar, Zillow and Toll Brothers Apartment Living, who presented information from various segments of the industry to highlight growing trends.
Not every suburb is the same, though, noted Charles Elliott, president of Toll Brothers Apartment Living — both in terms of performance as well as mindset.
According to NAHB Chief Economist Dr. Robert Dietz, increased construction activity in lower-density markets was already occurring as part of the housing affordability crisis, with the COVID-related shift to telecommuting accelerating the trend as people have more flexibility to live outside of large metro areas. Supply can respond better in lower-density areas as well because of the lower cost to build, and may affect the size and design of singlefamily homes and types of multifamily projects being built in these areas as well.
“The meaning of suburbs is very relative to people,” he stated, providing Toll Brothers’ success in the urban core of New Jersey — which can be considered a suburb of New York City — as an example. Elliott predicts the urban and walkable suburban markets will come back strong because of rising interest among Gen Z, and also noted increased interest in second homes as a result of the increased flexibility of working from home. Gen Z and millennials are key drivers in the real estate market, observed Svenja Gudell, chief economist for Zillow Group, as many millennials are reaching or have reached 34 — the median age of first-time home buyers. Those with the means to buy are facing an increasingly competitive market, however; although interested home buyers have been active, sellers have been apprehensive to put their properties on the market, leading to tight inventory and quick sales. Low interest rates are helping buyers, she added, but they aren’t going to make up for the extremely high prices. Other trends to watch include the size of single-family homes, which had been on a decline but is likely to increase as people look to expand their available space. Flexible design will play a key role in that as well. Higher unemployment rates among younger age groups is also likely to have a lasting impact on the rental market, with an increased number of young adults moving back in with their parents as a result.
The same can be said for demand for multifamily rentals, according to John Affleck, vice president of market analytics at CoStar. Supply and demand have geared toward the suburban markets — a trend already in progress pre-COVID — with suburban multifamily products A replay of the webinar is available at nahb.org, and is comprising all the rental demand in the second quarter of free for members of the Multifamily Council and Housing 2020. Credit Group.
1. What is an interesting fact about your business that most people don’t know? I am asked pretty frequently what the “K & L” stands for. Generally I explain that our company was founded back in 1978 by my parents Kelly and Launa. While our company name may not garner bonus points for creativity, I have been proud to carry on the legacy of our company for the past 12 years. 2. Do you have any advice for someone just entering this industry? My grandfather used to tell me that if you try to be good at everything, you won’t be particularly good at anything. With that in mind, I would encourage people to find something that they are particularly good at, that they are passionate about and dedicate themselves to the perfection of that craft. 3. What is a typical day like for you? Generally I get to the office pretty early in the morning so that I can respond to emails and questions from the previous evening before the phone starts ringing. After that, I usually work on drafting a home plan or a bid. By lunchtime I am typically unable to sit at my desk any longer so in the afternoon I usually check jobsites or arrange client meetings. 4. If I weren’t in this industry, I’d be a … Although I spent most of my youth learning the home
www.facebook.com/kandlhomes
building trade from my father on jobsites, it was pretty clear to me that he wasn’t ready to retire when I graduated from college. I went to law school but ended up taking over the company shortly after graduation. Although I never received the same satisfaction from the law that I do from home building, I still maintain my license and could see myself being fulfilled as an attorney if this avenue was not open to me. 5. What do you hope to see K & L Homes accomplish in the coming years? I think the company is in a good place right now so I don’t see the K & L Homes producing many more homes or expanding into new markets. I would like to continue to maintain the consistency and quality of our homes while developing our loyal client base. 6. What inspired you to enter this industry? I enjoy the creative aspect of what I do very much. The idea that you can dream up a concept for a new home or a development one day and put that concept into action the next day is exciting. Our industry is unique in that our product is around for generations and doesn’t become obsolete. Years down the road, my children and their children can be proud of the work that we do today. 7. What makes your business unique from other builders in the area? There are a lot of great builders in our community. At K & L Homes, we are able to build communities around the lifestyle of the families within them. For example, you may find a retired couple looking for maintenance free living in Heritage Park, a young family looking to build home for their growing family in Heritage Ridge or folks looking to build a shop or a home on a one acre lot away from the hustle and bustle of the city in Heritage Reserve. 8. What is your favorite part of your job? I have a fairly short attention span so the part of my job that I enjoy the most is the constant variety that makes up my day. Often the days where my schedule is open are the ones that become the most hectic and I wouldn’t trade the consistent challenge and unpredictability of my job for anything. 9. What is your favorite part of the holiday season? Although the holiday season marks the end of summer, it is usually the beginning of hunting season and spending time with friends and family that I don’t get to see as often as I would like. I enjoy watching Christmas movies with my kids, living on a steady diet of my wife’s cookies and pulling my boys on their sleds through 6’ snow drifts behind my 4 wheeler.
www.k-lhomes.com www.heritagedevelopment.com
MANDAN TO RECONSIDER BUILDING CODE CHANGES Mandan is considering updates to its building code following an apartment fire last summer, Mandan Mayor Tim Helbling announced at the recent Bismarck Mandan Chamber EDC State of the Cities event. A Sunset Bluffs apartment building burned in July after a fire started on a third-floor balcony. Improperly discarded smoking materials were ruled the cause. The fire spread through the attic and consumed the roof. A neighboring Sunset Bluffs apartment building was destroyed in a similar fire in July 2019. Mandan's fire code was changed earlier this year to include sprinklers on patios, decks and balconies with an overhang of 6 inches or more. Mandan Fire Chief Steve Nardello
said any plans for building code changes are in the informationgathering stage, which includes looking at building codes in other cities such as Fargo, but there is "nothing gaining any speed." Building Official Shawn Ouradnik said staff are looking to see if any changes to the code are warranted. Changes could include noncombustible exterior coverings and the addition of sprinklers in attic spaces. Nardello said Helbling asked about limiting the kind of exterior materials used in construction. Exterior coverings such as vinyl can melt when they heat up and expose the combustible plywood underneath, Ouradnik said, whereas noncombustible materials such as brick can prevent that from happening.
MAJOR BISMARCK STREET PROJECT WRAPS UP Officials have finished a $10.5 million street project in north Bismarck. Work began in April on the reconstruction of the 43rd Avenue Northeast corridor from Washington Street to State Street. The improvement consists of about a mile of multilane concrete divided roadway and includes lighting, a shared use path, sidewalks and traffic signals at two intersections. “The completion of the project addresses roadway capacity and pavement condition deficiencies and improved safety and mobility for all users,” City Engineer Gabe Schell said in a statement issued as officials
held a ribbon-cutting ceremony. Project planning began in February 2019. The project was bid and awarded last February, and considered substantially complete on Oct. 30. KLJ was the engineering consultant and Northern Improvement Co. the prime contractor. The project is funded initially through a voterapproved half-cent sales tax, with about $7 million to eventually be reimbursed with federal aid. “The improvements made to the roadway have truly enhanced this area,” Mayor Steve Bakken said.
Mandan is working with Bismarck to ensure codes are consistent in both cities, and fire chiefs and building inspectors from both cities are involved in the discussion, Ouradnik said. The potential building code update was prompted by fires in the community and in the state. Bismarck is always going to be reviewing how effective its codes are, though there haven't been any indepth discussions about changing the building code, according to Bismarck Fire Marshal Owen Fitzsimmons. He said officials are researching different building materials and looking at the effectiveness of fire suppression designs. Bismarck last updated its building code in 2019.
MANDAN HOSTING 3RD BUSINESS PITCH Aspiring entrepreneurs in Mandan get ready! Your chance to follow your dreams is here once more. Entries are now open for Mandan’s third Business Pitch Challenge.
challenge itself will be held on March 24th.
Prizes for the winner include the chance to be eligible for a $10,000 forgivable loan from the Mandan Growth Fund. Entry deadline is set for January 28th. And, the
enter, visit cityofmandan.com.
Previous winners include the owners of Latidot Scoop and Gift Shop and Nordic Steel Building Systems. Past participants include the The Mandan owners of Kids in Motion Tomorrow Economic Pediatric Therapy and Opportunity and Wellness, Old 10 Bar and Prosperity Committee is Grill, Balancing Goat hosting the challenge to Coffee Company and encourage business start Copper Dog Cafe. -ups and expansions in For more information Mandan. on the challenge or to
Thank You, 2020! December is a month full of emotions, full hearts and time to reflect on another year gone by. This past year has been a time of reflection, a time to learn to slow down and a time of adjustments. While this past year has been full of challenges, it has provided us all an opportunity to learn to embrace technology while that may be good or bad. NDAB staff sure does miss getting together with our members but appreciate the opportunity to unite with video meetings. A big thank you to NDAB’s 2020 President, Nate Applegren from the Forx Builders Association for his leadership, hard work, being able to quickly adapt and his participation at the national level.
2020 NDAB PRESIDENT NATE APPLEGREN
NDAB CEO · KIM SCHNEIDER
On November 20 the NDAB Board of Directors and special guests gathered via video conference to toast the successful past year and celebrate the future year ahead of us. We thank Julia Bogue with NAHB, ND Secretary of State Al Jaeger and Senator Kevin Cramer for joining us and providing updates to our members. We appreciate their dedication and time. 2020 NDAB President Nate Applegren was thanked for his past years’ service and pinned with NAHB’s Past State President pin. 2021 NDAB President Phil Risbrudt from Minot Association of Builders was sworn in and pinned with NAHB’s State President pin. The North Dakota Association of Builders 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: § HBA of Fargo-Moorhead: Scott Persoon § Western Area BA: Joann Callahan, Stahowiak Congratulations to our 2020 state award winners and nominees that were also announced at the annual meeting: Builders Engaging Associate Members (BEAM): Bob Horab, Williston Area Builders Association Associate of the Year: Bill Schmid, Bismarck-Mandan HBA Builder of the Year: Jeff Sattler, Bismarck-Mandan HBA What an exciting year it has been! As 2020 goes down in the record books, we look forward to making new memories in 2021. Sponsorship opportunities are available, education opportunities will be offered, memberships will grow, and, in the end, new friendships will be made. Mostly, we look forward to being able to join together again in person to conduct our meetings and celebrate our hard work. Thank you all for making NDAB one of the best state-wide Associations in the Nation! Warm wishes to you and yours, Nate Applegren, 2020 NDAB President Kim Schneider, NDAB Chief Executive Officer
NAHB LEADS THE CHARGE ON MEMBER MENTAL HEALTH AND WELLBEING At the Fall Leadership Council meeting, NAHB Second Vice Chairman Jerry Konter spoke to members about NAHB’s commitment to addressing the critical issue of mental health and suicide prevention in our industry, noting that “Industry associations like ours have a role to play in promoting the importance of worker health and wellbeing to our members.”
and productivity. NAHB is working with Lisa Desai, Psy.D, the Director of Mental Health Screening and Research at MindWise, co-author of “Building Behavioral Health in the Construction” (The Leader – Winter 2020, The Voluntary Protection Programs Participants Participation Association, vpppa.org).
As part of his comments, Konter shared a video of an interview conducted by Juli Bacon, Chair of NAHB’s Construction Safety and Health Committee, with Sally Spencer-Thomas, Psy.D, a clinical psychologist, and author of We Can’t Fix Mental Health with Duct Tape: A New Frontier in Safety (Safety Decisions Magazine | Spring/ Summer 2019), who has spoken and written extensively on MindWise is conducting a pilot program with NAHB’s issues of mental health and suicide prevention. Young Professionals Committee designed to understand and articulate the mental health needs and risk factors Among other things, Bacon discussed with Spencerwithin the young professional membership and offer Thomas, why mental health and suicide have only recently support and continued development to ensure a safe, been considered construction safety priorities; why those healthy, productive, and long-lasting professional pipeline. working in construction are at risk for mental health issues In addition to behavioral health literacy courses and and how this impacts job site safety; what factors customized materials to support the literacy campaign, a contribute to the construction industry having a higher rate key component of the program is the MindWise online of suicide risk; and strategies to raise awareness of mental screening platform that provides members with access to health issues and improve members wellbeing. customized, anonymous screenings for 13 major mental The interview is part of a new NAHB initiative on health concerns. member mental health and wellbeing. Specific goals of the “When we say we care about members, mental health is initiative include: an important component of a holistic approach,” said • Improving awareness NAHB YP Committee Chair Heather Laminack. “The NAHB Young Professionals Committee is excited about hosting • Facilitating discussion the conversation surrounding this important topic, and • Destigmatizing mental health and addiction helping members understand the resources and tools that • Taking a leadership position moving forward NAHB offers to help them navigate this complex issue.” In addition to working with Spencer-Thomas, NAHB is partnering with MindWise Innovations, which provides services to businesses who understand the profound impact mental health challenges have on workforce health
Learn more about this initiative and view resources on nahb.org. For any questions about NAHB’s mental wellbeing initiative, contact David Jaffe or Rob Matuga.
SINGLE-FAMILY STARTS AT HIGHEST PACE SINCE SPRING OF 2007 Led by solid gains in single-family production, overall housing starts increased 4.9% in October to a seasonally adjusted annual rate of 1.53 million units, according to a report from according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The October reading of 1.53 million starts is the number of housing units builders would begin if development kept this pace for the next 12 months. Within this overall number, single-family starts increased 6.4% to a 1.18 million seasonally adjusted annual rate, and are up 8.6% year-to-date. The pace of single-family starts was the best since the spring of 2007. The multifamily sector, which includes apartment buildings and condos, remained unchanged from the previous month at a 351,000 pace.
which suggests housing starts will level off in the months ahead, although at post-Great Recession highs,” said NAHB Chief Economist Robert Dietz. “Builders cite a lack of lots and decreased availability of building materials as headwinds that will limit production.” On a regional and year-to-date basis (January through October of 2020 compared to that same time frame a year ago), combined single-family and multifamily starts are 15.5% higher in the Midwest, 7.5% higher in the South, 4.7% higher in the West and 6.4% lower in the Northeast. The gains for the Midwest are notable and being led by the shift to lower cost, lower density areas.
Overall permits came in at a 1.55 million unit annualized rate in October, remaining unchanged from the previous month. Single-family permits increased 0.6% to a 1.12 “As seen in the NAHB/Wells Fargo builder confidence index, million unit rate. Multifamily permits decreased 1.6% to a single-family starts continue to grow off a historic rebound 425,000 pace. that began in April,” said NAHB Chairman Chuck Fowke. Looking at regional permit data on a year-to-date basis, “Current demand is being supported by historically low permits are 5.6% higher in the Midwest, 5.5% higher in the interest rates and home buyer preferences shifting to the South, 0.1% higher in the West and 3.9% lower in the suburbs and exurbs.” Northeast. “Single-family permits were approximately flat in October,
SALES GROWTH LIFTS BUILDER CONFIDENCE TO NEW RECORD HIGH In another sign that housing continues to lead the economy forward, builder confidence in the market for newlybuilt single-family homes increased five points to 90 in November, shattering the previous all-time of 85 recorded in October, according to the latest NAHB/Wells Fargo Housing Market Index (HMI) released today. Builder confidence levels have hit successive all-time highs over the past three months. “Historically low mortgage rates, favorable demographics and an ongoing suburban shift for home buyer preferences have spurred demand and increased new home sales by nearly 17% in 2020 on a year -to-date basis,” said NAHB Chairman Chuck Fowke.
“Though builders continue to sign sales contracts at a solid pace, lot and material availability is holding back some building activity. Looking ahead to next year, regulatory policy risk will be a key concern given these supply-side constraints.” Of note, 69% of the responses for this survey were received before the election for president was called by the media on Nov. 7. The election results, and their future impacts on housing market conditions, will be more fully reflected in December’s HMI report. All the HMI indices posted their highest readings ever in November. The HMI index gauging current sales conditions rose six points to 96, the component measuring sales expectations in the next six months increased one point to 89 and the measure charting traffic of prospective buyers rose three points to 77. HMI tables can be found at nahb.org/hmi. More information on housing statistics is also available at Housing Economics PLUS (formerly housingeconomics.com).
MULTIFAMILY CONSTRUCTION SENTIMENT SHOWED IMPROVEMENT IN THIRD QUARTER Confidence in the market for new multifamily housing increased in the third quarter, according to results from the Multifamily Market Survey (MMS) released today by NAHB. The MMS produces two separate indices: the Multifamily Production Index (MPI) rose 11 points to 48 compared to the previous quarter; and the Multifamily Vacancy Index (MVI) decreased 18 points to 44, with smaller numbers indicating fewer vacancies. The MPI measures builder and developer sentiment about current conditions in the apartment and condo market on a scale of 0 to 100. The index and all of its components are scaled so that a number below 50 indicates that more respondents report conditions are getting worse than report conditions are improving. The MPI is a weighted average of three key elements of the multifamily housing market: construction of low-rent units —apartments that are supported by low-income tax credits or other government subsidy programs; marketrate rental units —apartments that are built to be rented at the price the market will hold; and for-sale units — condominiums. All three components posted increases in the third quarter: the component measuring low-rent units rose four points to 46, the component measuring market rate rental units jumped 19 points to 53 and the component measuring for-sale units posted an 11-point gain to 46. The MVI measures the multifamily housing industry’s perception of vacancies in existing apartments. It is a
weighted average of current occupancy indexes for class A, B, and C multifamily units, and can vary from 0 to 100, where a number under 50 indicates more property managers believe vacancies are decreasing rather than increasing. With a reading of 44, the MVI improved from previous quarter’s index high of 62. “Sentiment regarding the multifamily housing market has risen from recent lows, but there are persistent headwinds and ongoing uncertainty,” said Barry Kahn, president of Hettig-Kahn Holdings in Houston and chairman of NAHB’s Multifamily Council. “Nevertheless, lenders see multifamily performing better than most other forms of commercial real estate.” “The third quarter survey results and NAHB’s forecast suggest a rising share of multifamily construction in less dense areas of the nation in need of rental housing,” said NAHB Chief Economist Robert Dietz. “However, material availability is a near-term concern, with the potential for rising regulatory risk in 2021.” Historically, the MPI and MVI have performed well as leading indicators of U.S. Census figures for multifamily starts and vacancy rates, providing information on likely movement in the Census figures one to three quarters in advance. For data tables on the MPI and MVI, visit nahb.org/mms. For more information on the NAHB Multifamily program, please visit nahb.org.
CONSTRUCTION WAGES TOP THE NATIONAL AVERAGE Half of payroll workers in construction earn more than $49,030 and the top 25% make at least $68,690, according to the 2019 Bureau of Labor Statistics Occupational Employment Statistics (OES) Survey data and analysis by NAHB. In comparison, the U.S. median wage is $39,810, while the top quartile (top 25%) makes at least $64,240.
Historically, subcontractor bids increase faster than construction wages, adding more inflationary fuel to housing prices. These findings are consistent with high labor shortages reported by NAHB that are causing builders to pay higher wages and subcontractor bids and forcing them to increase home prices.
Year over year, median wages in construction outpaced the national median wages, 3.7% vs 3%. Median wages of various construction trades rose even faster. Terrazzo workers and finishes registered a jump in median wages of more than 20%. Median wages of stonemasons and tapers increased by over 7%. Roofers saw their wages rise by 5.6%. Median wages of insulation workers rose 5.4%, while plasterers and stucco masons posted a 5% gain.
Among construction trades, elevator installers top the median wages list with half of them earning over $84,230 a year, and the top 25% making at least $104,770. First-line supervisors of construction trades are next on the list, with half of them making over $65,790 and the top quartile earning at least $84,890. Boilermakers are the third-highest paid construction craft. Half of these craftsmen working in construction earn over $65,540, and the highest paid 25% bring in at least $78,250.
Wages of multiple entry-level construction trades showed rapid growth as well. Median wages of carpenters’ helpers increased by over 7%. The wage gains by brick masons and roofers helpers averaged 6% and 5.6%, respectively.
In general, construction trades that require more years of formal education, specialized training or licensing tend to offer higher annual wages. Median wages of construction and building inspectors are $62,580 and the wages in the top quartile of the pay scale exceed $84,010. Half of plumbers in construction earn over $54,880, with the top quartile making over $73,850. Wages for electricians are similarly high. Carpenters are one of the most prevalent construction trades in the industry. The trade requires less formal education. Nevertheless, the median wages of carpenters exceed the national median. Half of carpenters working in construction earn over $48,550, and the highest paid 25% earn at least $63,310 annually.
IBSX REGISTRATION NOW OPEN The 2021 NAHB International Builders’ Show® (IBS) has transitioned to a virtual event. However, the exclusive IBS opportunities that attendees have come to expect from the inperson event will still exist — and even expand — to connect the home building industry together, online, during the IBS Virtual Experience (IBSx), Feb. 9-12, 2021. IBSx will showcase the must-have new products, tech and innovations that builders, remodelers and other residential construction industry pros will want to include in their upcoming projects. The latest trends, insights, tips and best practices will all be available at your fingertips — offering you everything you need to wow your customers. “Imagine having the Builders’ Show at your disposal?
Literally ‘on demand’ on your laptop at home or even in your pocket on your smartphone while you’re on the go, at work or wherever,” said Duane Bickett, owner of Bickett’s Construction. “Attendees will be able to participate in education whenever it’s convenient for them. Combine that with all the demos, new product exhibits, tons of clickable features, one-on-one interactions, live sessions and more.” IBSx participants will explore real ideas and learn actionable solutions they need to be competitive and grow their business. Starting early-bird registration rates are free for NAHB members and $50 for non-members.
2600 Gateway Ave, Ste 1 Bismarck, ND 58503
Bismarck-Mandan Home Builders Association
HOME SHOW MARCH 26-27, 2021 BISMARCK EVENT CENTER
www.bismanhomeshow.com