December 2022 Building Buzz

JAMIE SCHMIDT, PRESIDENT

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

JOE HILLERSON, VICE PRESIDENT

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

AMY LARSEN, 2ND VICE PRESIDENT

Apex Builders PO Box 652 Mandan, ND 58554 (701) 527 7899 amy@apexbuildersnd.com

LORI WILLSON, TREASURER

Northern Plains Plumbing, Heating & Air 2510 Vermont Ave Bismarck, ND 58504 (701) 226 8810 lori@northernplains.net

GREG MEIDINGER, PAST PRESIDENT

Aspire Homes 3313 Bayshore Bend SE Mandan, ND 58554 (701) 426 8583 greg@daretoaspirend.com

BILL SCHMID

Townsquare Media 1830 N 11th St Bismarck, ND 58501 (701) 250 6602 bill.schmid@townsquaremedia.com

JOE VETTER

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

VICKI MORAN

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

MCKENZIE LAWLER

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

RON STOTZ CAVES

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

ANDREW MELDAHL

Pinnacle Homes and Design 214 Riverwood Ave Mandan, ND 58554 (701) 426 0237 andrew@pinnaclehomesnd.com

JOSHUA JACOBCHICK

JSJ Construction 714 Custer Dr. Manda, ND 58554 (701) 226 0526 jsjconst@hotmail.com

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 December 31, 2022.

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 Brittney Roehrich at brittney@bmhba.com or 701 222 2400.

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

TopRecruitersasof11/03/2022

Statesman Spike

500 999 Credits

Kelly Moldenhauer (742.50)

Super Spikes

250 499 Credits

Todd Brady (382.50)

Robb Sattler (295.50) Mike Todd (288.00) Lee Mitzel (269.00) Pat Marback (259.50)

Royal Spikes

150 249 Credits

Lori Willson (218.00) Mike Hopfauf (196.00) Berna Vetter (190.50) Colby Well (166.00) Jack Knutson (161.00)

Red Spikes

100 149 Credits

Greg Meidinger (39.00)

Greg Zenker (37.50) Jamie Schmidt (30.00)

Blue Spikes

6 24 Credits

Jason Frank (22.00)

Shane Gaffaney (19.00)

Melinda Llyod (15.50) Bob Kupper (12.00)

Kelli Thompson (11.50)

Pete Brendel (9.00)

Bill Schmid (8.00)

Darryl Hatzenbuhler (7.00) Mike Wolf (7.00)

Joe Hillerson (6.50)

Rory Anderson (6.50)

Shannon Reichenberg (6.00)

Spike Candidates

.50 5.50 Credits

Kurt Steiner (4.50)

BIANCO

AffiliateMembership (701) 400 1100 darcy@biancorealty.com www.darcyshomes.com/

BIANCO REALTY BRANDON FETTIG

AffiliateMembership (701) 426 7782 brandon@biancorealty.com www.darcyshomes.com

TREX COMPANY

AssociateMembership (801) 419 8842 pstuart@trex.com www.trex.com

GATE

BERNARD

AffiliateMembership (701) 333 8088 pamgange bernard@gatecity.bank https://www.gatecity.bank/

SCHUTER CONSTRUCTION, INC.

BuilderMembership (701) 220 6143 schuster6143@gmail.com

Blair Ihmels (147.00) Steve Redding (125.00) Dan Sparling (120.50) Chad Moldenhauer (110.00) Jerry Splonskowski (106.50)

Green Spikes

50 99 Credits

Vance Vetter (99.00) Paula Haider (95.50) David Patience (94.50) Mark Larson (92.00) Eric Brenden (89.00)

Darren Buffington (83.50) Kenneth Knodel (67.50) Art Goldammer (65.00) Scott Moran (57.50) Nadine Schaff (57.00) Scott Duchscherer (55.50)

Life Spikes

25 49 Credits

Gerry Rudnick (49.50)

Gerald Hopfauf (45.50) Drew Knutson (43.00) Matt Shauer (42.50) Jeff Sattler (42.00)

Roger Grendahl (4.00)

Parker Pladson (4.00)

Vicki Moran (3.75)

Jarred Roloff (3.50)

Brian Eiseman (3.00)

Sam Gietzen (2.50)

Melanie Staiger (2.50)

Jeran Thomson (2.50)

Natalie Eckes (2.00)

Alissa Kleinsasser (2.00)

Wade Vogel (2.00)

Jackie Andahl (1.00) Lynn Klein (1.00)

Reid Kubesh (1.00)

Terry Leabo (1.00)

Tom Reinke (1.00)

Travis Welle (1.00) Laurie Wentz (1.00)

Lindsey Ashley (0.50) Brad Balerud (0.50) Bryan Brendel (0.50)

Hannah Haynes (0.50)

Kassy Landis (0.50)

Judy Maslowski (0.50)

Tyler Perry

Tom Boyer

Jon Zabolotny

Keith Doerr

(Building/Planning/Zoning)

Mitch Flanagan

Randy Mathern

Ryan Talbacka

Mark Klein

Chris Vigness

Virgil Case

Dave Scherr

Jenessa Wright

Tom Reineke

Kirsten Thomson

Brandy Brendel

Derick McClintock Heidi Dietrich Kevin Turnbow Jamie Stephens Andrew Meldahl

Josh Kuntz

Mike Hopfauf

Shaun Kessler

Austin Fettig

Landon Niemiller

John Nelson

Jayden Chuppe

Rory Anderson

Gene Anderson

Mark Abramson

Join the BMHBA in congratulating these longstanding members. Their dedication to the Bismarck Mandan Home Builders Association is appreciated and truly valued.

Please welcome our new members from NOVEMBER to the association!

JAMIE SCHMIDT

Wow, my last letter as President! I’m not sure where the time has gone. This also means 2022 is coming to an end, as is my time as President of the Bismarck Mandan Home Builders Association. It has been a very rewarding experience for me to serve our association. As I look back, I’m very proud to see our membership increase and the attendance at our events continue to grow as well. I congratulate you all in supporting our association!

Several of our members attended the NDAB Annual Banquet and Board Meeting in Bismarck in November and what an exciting time for our local board to have Jeff Sattler take over as

the new State President. Congrats Jeff! Joe Vetter of Joe Vetter Construction won the NDAB BEAM award. Congrats Joe! Remember, all BMHBA members are also members of NDAB and are encouraged to get involved on a state level. If not state, I ask that you get involved locally, 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.

I would also like to continue to remind everyone to sign up for the 2023 Annual Home Show which will be held on March 17th and 18th at the Bismarck Event Center. The Home Show is a big event for our association and I would like to encourage you all to sign up early as booths have already been going quickly!

Again, thank you for the opportunity to serve as the president of BMHBA. It was a truly an honor.

I wish everyone a very Merry Christmas and a Happy New Year! Make sure to sign up for these upcoming events:

• 64th Annual Banquet: January 19, 2023

• 46th Annual Home Show: March 17 18, 2023

2022 BMHBA PRESIDENT

CelesteBurkeandLindseyMatter

LoriWillson

Copper Ridge Design 2904 Dortmund Dr

Copper Ridge Design 2908 Dortmund Dr

Copper Ridge Design 2911 Kamrose Dr

Copper Ridge Design 2912 Dortmund Dr

Copper Ridge Design 2915 Kamrose Dr

Copper Ridge Design 2916 Dortmund Dr

Copper Ridge Design 2919 Kamrose Dr

Copper Ridge Design 2920 Dortmund Dr

Copper Ridge Design 2923 Kamrose Dr

Copper Ridge Design 2924 Dortmund Dr

Copper Ridge Design 2928 Dortmund Dr

Copper Ridge Design 2930 Dortmund Dr

Copper Ridge Design 2934 Dortmund Dr

Copper Ridge Design 2936 Dortmund Dr

Copper Ridge Design 3001 Kamrose Dr

Copper Ridge Design 3005 Kamrose Dr

Copper Ridge Design 3009 Kamrose Dr

Copper Ridge Design 3013 Kamrose Dr

J.E. Homes 5706 Iron Dr

J.E.

6201 15th St NW 133

6201 15th St NW 135

6201 15th St NW 145

6201 15th St NW 147

6201 15th St NW 149

BISMARCK SINGLE FAMILY DWELLING

The two grand prize winners from our 30th Annual 2022 Fall Parade of Homes were each awarded their prizes this past month. Congratulations to Alaynna Morin (rightphoto)who was awarded a $1,000 Gift Card from Carpet World and Jaimee Slaathaug (leftphoto) who received a Riccar Radiance R40P Vacuum ($1599 Value) from J & R Vacuum & Sewing Center!

North Dakota faces a Legislative one every two years, for a maximum of 80 days. In those 80 days, there’s a lot of work to do.

The North Dakota Legislature will convene on January 3rd and the North Dakota Association of Builders will be there every day, advocating for you and your business.

Some of the priorities that NDAB have for the 2023 Legislative Session includes:

• NDAB supports tax incentives that encourage home sales.

• Efforts to adequately fund state infrastructure using funding mechanisms that fairly spread the burden amongst all users and vehicle types and oppose efforts that would target or shift the financial burden onto residential developments.

• Legislation that will allow for businesses to bring students onto the worksite, whether it be through internships or mentoring.

Keeping members updated on what happening during the legislative session will also be a focus for the Update emails will be sent out to keep members informed on a weekly basis; and as urgent issues come up, we ll send alerts with information on how to send emails to legislators.

NDAB believes that the homebuilding industry is essential in a growing and vibrant state economy like North Dakota. Owning a home is a part of the American dream; and we will work to ensure that housing is a priority and that all Americans have access to safe, decent and affordable housing.

NDAB

NDAB President

Kayla Pulvermacher,

CEO Mike Jangula, 2022

KAYLA PULVERMACHER NDAB CEO

Bag Bonanza Tournament & Chili Cook Off Forx Builders Association

NDAB members, staff, and board of directors gathered at 510.2 Speakeasy in Bismarck on Wednesday, November 16 for a bourbon tasting event. All proceeds benefited BUILD PAC.

The North Dakota Association of Builders held their Annual Banquet on Thursday, November 17 at the Heritage Center in Bismarck. Former NDAB President (1998), Robb Sattler, inducted his son Jeff Sattler (former BMHBA President) as the 2023 NDAB President! Congratulations to BMHBA Director, Joe Vetter, who won the 2022 NDAB BEAM Award!

Associate Member Spotlight

American Roofing Supply is a member of SRS Distribution which is one of the nation’s leading distributors of roofing materials and building products focused on providing the best service for our customers, building a great culture for our team members and giving back in the communities we serve. The foundation of our success is based on a culture and a commitment to building long lasting relationships. We are committed to driving change in a manner that positively impacts those we work with and those across our industry.

What is an interesting fact about

AmericanRoofingSupplythat most people don’t know? We opened four years ago and have grown our service area in ND, SD & MN to eight branches, with over 300 branches nationwide. Our Sales Staff in Bismarck has more than 170 years’ experience in Building Material Sales.

Do you have any advice for someone just entering this industry? Find something that you are passionate about selling. Take the time to build relationships with your colleagues, customers, and competitors. As you never know what tomorrow will bring, and people buy from people.

What is a typical day like for you? In the summer we start early, loading trucks for deliveries that will be made in town and out of town. The driver and warehouse crew split time between unloading freight, maintaining the warehouse and pulling and loading orders for delivery and pick up. Our Inside Sales team works with walk in customers and the phones. The Sales Team also takes meeting with clients that are building new homes and working on remodel projects. The Territory Managers schedule onsite meetings with clients to review the project’s progress, answer any technical questions and schedule upcoming deliveries.

If I weren’t in this industry, I’d be a …

ShaneGaffaney:A Lake Side Mechanic / Handyman at Lake Tschida

KurtCarney:A Fishing Guide

KenSalwey:Collector Car Sales Business RayMeyer:Collectibles Dealer

What do you hope to see AmericanRoofingSupplyaccomplish in the coming years? Continue our work with Raise the Roof Foundation. We provide aid to disaster relief victims, community needs and Veterans programs. Locally this summer and fall we hosted and provided a lunch. Contractors, builders and business partners were invited to the branch for this fun BBQ. We hope that we can grow and expand this next year, so we can include more people in the building industry. We look forward to our business after hours this spring with the Bismarck Mandan Chamber EDC.

What inspired you to enter this industry? ShaneGaffaney:This was just by chance. I was walking down the halls at Moorhead State University and saw a sign that read, “Allied Building Products, Pizza Lunch and Interviews.” The rest is history.

What makes your business unique from similar businesses in the area? The most important thing that I have found out while working for ARS/SRS would be the way they take care of the employees. We are a company where every employee has a chance to succeed, grow and become an owner.

What is your favorite part of your job? Seeing the finished product, if it is a new deck build, a new home, or a commercial project. Having the opportunity to be part of a project being built is just amazing.

What do you like to do in your spare time?

ShaneGaffaney:I enjoy riding stand up jet skis, snowmobiling, hunting and fishing.

KurtCarney:UTV off roading, hunting, fishing and spending time with family.

RayMeyer:Reading and collecting collectible items.

What do you love most about the holiday season? The changing of the seasons. Making plans to get together with family and friends. Taking time off to enjoy life and remember the good things that have come during the past year. The celebration of life and faith with my family and watching “Christmas Vacation.”

WEBSITE: www.amroofing.com

FACEBOOK: www.facebook.com/American Roofing Supply Bismarck 297205957675371/

Brian Johnson, Shane Gaffaney, Ken Salwey, Dennis Buchholz, Kevin Salwey, Kurt Carney

Professional Women in Building gathered on November 15 at Fabricators Unlimited to celebrate their accomplishments since being chartered on October 20, 2020.

BMHBA PWB encourages and supports women in the building industry, volunteers in our community to make a difference and is committed to spreading the message about opportunities available in the building industry to anyone who may be looking for a career in construction.

✨For more information check out the PBW Facebook page or the BMHBA Website ✨ https://www.bmhba.com/about-us/pwb/ https://www.facebook.com/bmpwb/

Per the Mortgage Bankers Association’s (MBA) survey through the week ending November 4th, total mortgage activity declined 0.1% from the previous week and the average 30 year fixed rate mortgage (FRM) rate rose eight basis points to 7.14%. The FRM rate has risen 33 basis points over the past month and has been above 7% for the past three weeks.

The Market Composite Index, a measure of mortgage loan application volume, decreased by 0.1% on a seasonally adjusted (SA) basis from one week earlier. Purchasing activity increased 1.3%, while refinancing activity decreased 3.5% week over week.

The 1.3% increase in purchasing activity was the first increase in the past six weeks even though purchasing

activity has decreased 41.6% on a year over year basis. The refinancing activity index is down 86.9% from the same week one year ago, the index has hit its lowest point since August 2000. The refinance share of mortgage activity declined from 28.6% to 28.1% over the week, while the adjustable rate mortgage (ARM) share of activity slightly increased from 11.8% to 12.0%. With continued increases in FRM rates, buyers are looking for ways to save when purchasing. ARMs offer lower rates than FRMs which has led to an increase in activity with buyers more likely to use an ARM to purchase a home. According to Freddie Mac, the current 5/1 ARM rate is at 5.95%.

Mandan

The Census Bureau’s latest Survey of Construction (SOC) shows slight changes in the number of full and half bathrooms for new single family homes started in 2021 compared to 2020. The current data shows that 3.1% of new single family homes started had one full bathroom or less, 62.6% had 2 full bathrooms, 27.0% had 3 full bathrooms and 7.3% had 4 or more full bathrooms. Figure 1 shows how the share of new single family home starts by full bathrooms has changed dating back to 2005. The shares of new single family homes with 1 or less full bathroom, 3 full bathrooms, and 4 or more full bathrooms all increased from 2020 while the share of new single family homes with 2 full bathrooms decreased. As expected, homes with 2 full bathrooms continues to have the highest share of new single family home starts. This share has fluctuated between 69.9% and 59.3% of all new starts since with the lowest level of 59.3% in 2015.

Larger homes continue to feature more full bathrooms when compared to smaller homes. 93.8% of new single family home starts that were 5,000 square feet or more had

3 or more full bathrooms. When comparing this to new single family homes between 2400 2999 square feet, only 44.1% of homes had 3 or more bathrooms while 55.9% had 2 or fewer full bathrooms. This is consistent with the idea that smaller homes have fewer full bathrooms.

Figure 2 shows the share of new single family homes started in 2021 with 2 full bathrooms by census division. The share of new single family home starts with 2 full bathrooms varies across the United States. The East North Central census division comes in with the highest share at 70.3% of new single family home starts having 2 bathrooms. The lowest census division is the West North Central having a share of 54.0% having 2 bathrooms.

In 2021, a majority of new single family homes (53.7%) had no half bathrooms while 44.5% of the homes had 1 half bathroom. New single family homes with 2 or more half bathrooms had a share of 1.7% in 2021.

Consumer prices in October saw the smallest year over year gain since January 2022, and while still elevated, inflation experienced the first month below an 8% annual growth rate since February 2022. However, the shelter index continued to rise at an accelerated pace and the energy index increased after declining for three straight months. As inflation appears to have peaked and has started to slow, this may ease some of pressure on the Fed to maintain its aggressive monetary policy.

The Bureau of Labor Statistics (BLS) reported that the Consumer Price Index (CPI) rose by 0.4% in October on a seasonally adjusted basis, following the same increase in September. The price index for a broad set of energy sources rose by 1.8% in October as a decline in natural gas ( 4.6%) partly offset an increase in electricity (+0.1%) and gasoline index (+4.0%). Excluding the volatile food and energy components, the “core” CPI increased by 0.3% in October, following an increase of 0.6% in September. Meanwhile, the food index increased by 0.6% in October with the food at home index rising 0.4%.

Most component indexes continued to increase in October. The indexes for shelter (+0.8%), motor vehicle insurance (+1.7%), recreation (+0.7%), new vehicles (+0.4%) as well as personal care (+0.5%) showed sizeable monthly increases in October. Meanwhile, the indexes for used cars and trucks ( 2.4%), apparel ( 0.7%), medical care ( 0.5%) and airline fares ( 1.1%) declined in October.

The index for shelter, which makes up more than 40% of the “core” CPI, rose by 0.8% in October, following an

increase of 0.7% in September. This is the largest monthly increase since August 1990. The indexes for owners’ equivalent rent (OER) increased by 0.6% and rent of primary residence (RPR) increased by 0.7% over the month. Monthly increases in OER have averaged 0.7% over the last three months. More cost increases are coming from this category, which will maintain pressure on inflationary forces in the months ahead. These higher costs are driven by lack of supply and higher development costs. Higher interest rates will not slow these costs, which means the Fed’s tools are limited in addressing shelter inflation.

During the past twelve months, on a not seasonally adjusted basis, the CPI rose by 7.7% in October, following an 8.2% increase in September. The “core” CPI increased by 6.3% over the past twelve months, following a 6.6% increase in September. The food index rose by 10.9% and the energy index climbed by 17.6% over the past twelve months.

NAHB constructs a “real” rent index to indicate whether inflation in rents is faster or slower than overall inflation. It provides insight into the supply and demand conditions for rental housing. When inflation in rents is rising faster (slower) than overall inflation, the real rent index rises (declines). The real rent index is calculated by dividing the price index for rent by the core CPI (to exclude the volatile food and energy components).

The Real Rent Index rose by 0.4% in October. Over the first ten months of 2022, the monthly change of the Real Rent Index increased by 0.1%, on average.

SEE YOUR AD HERE!

(701 222 2400) for more information.