BISMARCK-MANDAN HOME BUILDERS ASSOCIATION FEBRUARY 2021 || WWW.BMHBA.COM
BUILDING Building Buzz is a publication of the Bismarck-Mandan Home Builders Association.
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 PROFESSIONALS BUILDING OUR COMMUNITY THROUGH
PROMOTION OF
SINCE 1958.
Aspire Homes 3313 Bayshore Bend SE Mandan, ND 58554 (701) 426-8583 greg@daretoaspirend.com
Hallmark Homes 3200 Rock Island Place, Suite 4 Bismarck, ND 58504-7717 (701) 471-8796 hallmarkhomes@outlook.com
Triton Homes 1601 N 12th St Suite 605 Bismarck, ND 58501 (701) 223-3030 jamie.schmidt@investcore.com
Townsquare Media 1830 N 11th St Bismarck, ND 58501 (701) 250-6602 bill.schmid@townsquaremedia.com
Boulder Homes PO Box 1421 Bismarck, ND 58502 (701) 400-5554 boulderhomesnd@gmail.com Apex Builders PO Box 652 Mandan, ND 58554 (701) 527-7899 amy@apexbuildersnd.com Sattler Homes PO Box 7218 Bismarck, ND 58507 (701) 255-7628 jeff@bismarckbuilder.com Dakota OutdoorScapes 8351 Hwy 1804 N Bismarck, ND 58503 (701) 595-0890 mckenzie@ndscapes.com
Dawn Watson dawn@bmhba.com Office: 701-222-2400 Cell: 701-390-5049
Stoneshire Builders 3208 Daytona Dr Bismarck, ND 58503 (701) 471-6935 brian@stoneshirebuilders.com Joe Vetter Construction 2523 Powder Ridge Circle Bismarck, ND 58503 (701) 258-9394 joevetterjvc@gmail.com
www.instagram.com/bismanbuilders www.twitter.com/bmhba www.bmhba.com
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PAGE 11 Northern Plains Plumbing, Heating & Air 2510 Vermont Ave Bismarck, ND 58504 (701) 222-2155 lori@northernplains.net CAVES 1365 Tacoma Ave, Suite 1 Bismarck, ND 58504 (701) 751-1162 rons@cavesnd.com
Brittney Roehrich brittney@bmhba.com Office: 701-222-2400 Cell: 701-240-3540
Elysha Head
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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. If you haven’t already submitted payment, please renew your membership by February 28, 2021.
TJ Tooz
Jay (Jamie) Wickline
Tony Wald
France Splonskowski
Blair Ihmels
Berna Vetter
Allan Miller
Mike Wolff
Kendall Bauer
Randy Kuntz
Helen Strand
Whitney Wilkens
Paul Quist
Robert Lillis
Brad Bonnet
Randy Horner
Rebecca Paulsen
Jason Sellers
Leanne Holzer
Terry Pearson
Josh Schaffner
Mike Murray
Marty Hoskin
Cassie Bowers
DeAnna Gratz
H
Chris Schapp
Delton Stein
Shawn Ressler
Dennis Lawson
Dan Johnson
Bob Schuh
Fred Berger
Kevin Elsner
Jerry Caufield
Christopher Allrich
Collin Walth
Joel Malingen
Kassy Landis
Brandon Leingang
Tobias Marman
Hunt Boustead
Shanna Johnson Newly Voigt
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. Top Recruiters as of 1/14/2021 Statesman Spike 500-999 Credits Kelly Moldenhauer (732.50) Super Spikes 250-499 Credits Todd Brady (372.50) Mike Todd (287.50) Robb Sattler (287.00) Eddy Mitzel (282.00) Lee Mitzel (265.00) Pat Marback (254.00) Royal Spikes 150-249 Credits Lori Willson (209.50) Rory Schlosser (189.50) Berna Vetter (188.50) Mike Hopfauf (185.00) Colby Well (161.50) Jack Knutson (157.50) Red Spikes 100-149 Credits Blair Ihmels (145.00) Steve Redding (123.00) Dan Sparling (120.00) Jerry Sposkwaski (103.50) Chad Moldenhauer (100.00) Dana Schlomer (100.00) Green Spikes 50-99 Credits Vance Vetter (93.50) David Patience (92.00) Mark Larson (91.00) Paula Haider (89.50) Eric Brenden (83.50) Darren Buffington (81.50) Kenneth Knodel (66.00) Art Goldammer (63.50) Scott Moran (55.00) Scott Duchscherer (52.50) Nadine Schaff (51.50) Life Spikes 25-49 Credits Marc Conrad (45.50)
Gerald Hopfauf (44.50) Gerry Rudnick (43.00) Drew Knutson (40.00) Matt Shauer (39.00) Greg Zenker (35.50) Lyle Forderer (25.00) Blue Spikes 6-24 Credits Kevin Fischer (24.50) Shane Gaffaney (16.50) Earl Torgerson (16.50) Jason Frank (21.00) Melinda Llyod (14.50) Todd Schmidt (14.00) Jeff Sattler (12.50) Wayne Solberg (10.00) Bob Kupper (9.00) Pete Brendel (8.00) Darryl Hatzenbuhler (6.50) Mike Wolf (6.50) Joe Hillerson (6.00) Spike Candidates .50-5 Credits Brian Benz (5.00) Shannon Reichenberg (5.00) Rory Anderson (5.00) Kurt Steiner (4.50) Kenneth Schaff (4.50) Parker Pladson (4.00) Bill Schmid (4.00) Jason Kerner (3.50) Jarred Roloff (3.50) Roger Grendahl (3.00) Shirley Thomas (2.50) Sam Gietzen (2.50) Heidi Rue (2.50) Brian Eiseman (2.00) Mark Abramson (2.00) Raymond Fiske (1.00) Reid Kubesh (1.00) Travis Welle (1.00) Jamie Schmidt (1.00) Terry Leabo (1.00) Jan Hoge (0.50) Bryan Brendel (0.50)
Please welcome our January 2021 new members to the association! SPARTAN SOLUTIONS GROUP, LLC Associate Membership (701) 214-6500 spartansolutions247@gmail.com www.spartansolutions24.com CAPITAL TROPHY INC Associate Membership (701) 223-5670 rick@capitaltrophy.com www.capitaltrophy.com
By the time this message makes it into your hands it may be much colder than what the first half of January brought. The new year came in sunny and mild. Construction is busy throughout Bismarck and Mandan and with GREG MEIDINGER the concrete trucks 2021 BMHBA PRESIDENT rolling and basements being poured it sure didn’t feel like January. 2020 brought many challenges to many people, businesses, and organizations. Our local building industry favored the storm very well. Permit numbers were up in Bismarck, Mandan, and Lincoln compared to 2019. Bismarck permits resembled the levels we experienced in the 2015-time frame prior to having a slight slowdown the last couple of years. In speaking with many builders, developers, suppliers, and realtors, optimism is very high for 2021. Inventory levels have declined and the number of interested buyers has increased. I foresee a strong 2021 for all of us.
Another positive note is our annual banquet in January. I was looking forward to it for a few different reasons. First, we have not been able to gather and socialize as an Association for quite some time. Like many, nearly all our events were cancelled in 2020. I was excited to be able to network again and see faces that we do not get to see on a regular basis. Second, we welcomed and swore in two new Board members. We also presented our annual scholarship to three recipients from Bismarck State College (Aaron Wold, Austin Zubrod, and Haden Andes). The Home Show is scheduled for March 26th and 27 and will be here before we know it. If you are interested in participating, I would encourage you to contact Dawn or Brittney soon as booths are selling quickly. The Home Show Committee will be working diligently over the next several weeks finalizing details and doing their part to help us all have a successful show. th
Before I wrap up, I wanted to mention it is the intent of the Association to hold all regular events in 2021 barring any unforeseen changes. We of course will take this one event at a time and do what is best for our members and community. Our Association missed being able to provide networking opportunities to our members. We are keeping our fingers crossed!
MONTH
YEAR
‘19
‘20
JANUARY
0
9
1
0
10
FEBRUARY
3
4
5
2
MARCH
21 22 14
2
APRIL
‘16 ‘17
‘18
‘19
‘20
‘15 ‘16 ‘17
‘18
‘19
‘20
2
0
0
0
0
0
2
0
0
2
0
10
0
0
0
0
0
0
0
3
9
32
2
8
2
8
0
3
0
52 29 40 27
26
23
16
11
5
18
2
MAY
31 46 29 16
28
23
26 13 11
15
11
4
17
JUNE
31 43 48 24
18
40
3
21 20 13
13
4
6
JULY
40 16 60 22
17
34
2
7
9
13
6
11
12
AUGUST
20 48 16 27
19
29
1
7
2
17
7
13
20
SEPTEMBER
28 44 26 22
23
43
8
3
10
9
16 14 26
OCTOBER
54 14 22 15
36
43
4
7
3
10
9
NOVEMBER
16 11
9
11
14
12
3
0
1
0
DECEMBER
1
0
1
1
21
0
0
0
1
TOTAL
297 286 270 169 201 312
45
27
36
54
YTD TOTAL
297 286 270 169 201 312
45
27
36
54
0
‘15
Data not collected for the ETA in 2015 and 2016.
‘15 ‘16 ‘17 ‘18
0
0
‘15 ‘16 ‘17
‘18
‘19
‘20
‘15 ‘16 ‘17
‘18
‘19
‘20
0
1
0
0
2
0
0
0
0
0
0
2
1
0
1
1
2
6
5
0
2
1
1
0
0
0
3
2
1
4
11
6
4
0
0
1
9
9
4
2
4
12
4
3
6
8
14 12
8
4
0
6
3
14
5
11
11
14
4
5
6
4
9
2
5
5
0
2
14 16
7
20
10
5
10
2
2
1
6
3
1
1
1
8
11
4
4
6
8
3
3
14
0
5
1
5
1
6
13
9
4
3
11
1
6
10
16
8
2
9
4
5
3
8
9
6
8
5
5
11
10
22
3
3
4
5
2
4
9
9
9
6
5
10
29 20
9
9
7
17 10
7
5
3
8
4
7
3
7
1
5
7
7
7
6
2
6
2
5
0
0
0
2
3
4
1
0
2
1
0
0
0
0
0
2
1
0
4
0
0
0
0
0
2
0
0
2
132 123 114 116
71
90
67
40
37
28
20
32
83 80
51
61
60
57
132 123 114 116
71
90
67
40
37
28
20
32
83 80
51
61
60
57
BISMARCK SINGLE FAMILY DWELLING
Inside & Out
4081 Intrepid Cir
Premier Homes
5308 Cobalt Dr
Apex Builders
5602 Titanium Dr
J.E. Homes
5711 Gold Dr
Stoneshire Builders
833 Crescent Ln
Apex Builders
5604 Titanium Dr
J.E. Homes
5805 Gold Dr
BISMARCK ETA SINGLE FAMILY DWELLING
Eddy Mitzel Homes
312 E Lasalle Dr
Prairie Aire Homes
500 Flint Dr
Knutson Homes
Huntington Homes
208 Colt Loop
Premier Homes
2915 Peach Tree Dr
MANDAN SINGLE FAMILY DWELLING
Huntington Homes
212 Colt Loop
Premier Homes
2935 Peach Tree Dr
Apex Builders
Huntington Homes
224 Colt Loop
Premier Homes
3001 Peach Tree Dr
Schlomer Construction
Huntington Homes
229 Colt Ave
Premier Homes
3908 Silver Blvd
BURLEIGH COUNTY SINGLE FAMILY DWELLING
Huntington Homes
236 Colt Loop
Premier Homes
4000 Nickel St
Kilen Enterprises Inc.
11708 Creek Top Rd
Huntington Homes
307 Colt Ave
Premier Homes
4005 Nickel St
Scott's Home Improvements
7218 Sandstone Dr
3514 Palmer Pl 1609 Plains Bend SE 109 8th Ave NW
SEE YOUR AD HERE! Call the BMHBA office (701-222-2400) for more information.
Professional Women in Building is dedicated to supporting home building and encouraging women within the industry. This council is a charter of the Bismarck-Mandan Home Builders Association. The PWB has created an environment where women can come together to connect, grow
leadership skills and be role models for the next generation of home building professionals. For more information or if you want to join, you can check out their Facebook page at
Bismarck Mandan Professional Women in Building or contact Dawn Watson at 701-2222400 or dawn@bmhba.com.
DUE TO COVID-19 ALL EVENTS ARE SUBJECT TO CHANGE. FOLLOW US ON OUR SOCIAL MEDIA ACCOUNTS FOR UPDATES.
JANUARY 21
FEBRUARY 9-12
MARCH 26-27
APRIL 22-25
MAY
JULY
JULY 13
AUGUST 19
SEPTEMBER 23-26
OCTOBER 21
NOVEMBER
We are excited about the upcoming 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! If you are a member of the BMHBA you get a special discount! Please contact Dawn
Watson for this member code. 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. 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
On Thursday, January 21 the BMHBA gathered at the Ramada in Bismarck for our 62 nd Annual Banquet. The new BMHBA directors, Lori Willson (Northern Plains Plumbing, Heating & Air) and Ron Stotz (CAVES), were sworn in along with the 2021 BMHBA President, Greg Meidinger (Aspire Homes). We are excited to have Lori and Ron join our board! We said goodbye to two board members, Randy Tank (CHI St Alexius Great Plains Rehab Services) and Greg Zenker (Northern Plains Plumbing, Heating & Air). We also said goodbye to our 2019-2020 BMHBA President Jeff Sattler (Sattler Homes). We THANK YOU all for your support! The BMHBA hosted a social along with a great dinner! A bowl was passed around throughout the evening and attendees were encouraged to give generously toward future BSC scholarships. We also featured a wine table, allowing participants to purchase a mystery bottle of wine for $20. Funds from the wine also contributed to future scholarships. The BMHBA would like to extend our gratitude to our generous sponsors and members! We couldn’t host these events without you. If you did not participate in this year’s event, we hope to see you at 2022’s Annual Banquet!
ADVERTISING RATE AGREEMENT Building Buzz is the monthly newsletter of the Bismarck-Mandan Home Builders Association. It is published the first week of each month and mailed to members and community stakeholders. Digital copies are posted to social media and the association’s website. Rack copies are available at the BMHBA office. Building Buzz highlights upcoming events, building news, and spotlights our members. Target your advertising to fellow BMHBA members and build your business! Full color ad placements are available throughout the newsletter.
AD SIZE
MONTHLY PAYMENT
Single
$21.00
2.5” x 1.6”
N/A
$240
Double
$42.00
5.25” x 1.6”
2.5” x 3.2”
$478
Triple
$64.00
8” x 1.6”
2.5” x 5.23”
$730
Quad
$88.00
5.25” x 3.2”
N/A
$980
Six Space
$126.00
5.25” x 5”
N/A
$1436
Back Cover
$158.00
8” x 3.2”
N/A
$1800
Insert*
$158.00
11” x 8.5”
8.5” x 11”
$1800
DETAILS Ads have to be designed and completed by your business. Updates and revision requests are not allowed. Submit all ads in the exact dimensions that match the ad size desired. Adobe InDesign/Photoshop, pdf, png, or jpg files are accepted.
Submit FINISHED Ads to Brittney Roehrich at brittney@bmhba.com by the 20th of the month prior to the publication. Inserts must be supplied by the advertiser and delivered to the BMHBA office.
HORIZONTAL DIMENSIONS VERTICAL DIMENSIONS
ANNUAL PREPAYMENT - SAVE 5%
CONTACT INFORMATION AND ADVERTISING AGREEMENT Company:
MORE INFO:
Contact Person: Phone: Email:
Circle One: Bill Me Monthly
Ad Size
Prepaid 12 Month Ad
I have read and understand the contract terms below.
Signature
Date
Contract Terms: Payment in full is due at signing in order to receive the 5% prepayment discount. Contract is a oneyear commitment (12 ads). Contract cannot be canceled and refund will not be given for ads that don’t publish due to advertiser’s failure to submit copy by the 20th of the month prior to publication. All ads are subject to cancellation if payment is not made by the end of each month.
Just like most things in 2020 and now into 2021, we are all adapting to new ways and embracing technology more and more. The legislative session is no different. On January 5, the 67 th legislative assembly gaveled in. The halls aren’t quite as busy, the committee rooms having limited seating available for guests and lobbyists, temperature checks and masks are mandatory. Understandably, the legislators are being cautious to try to prevent a COVID-19 outbreak which could ultimately stop them from completing business. To ensure that the public and lobbyists can participate, all committee hearings and floor sessions are now virtual. This includes the ability to testify virtually as well! During one hearing, they had over 400 people viewing virtually. This new format is proving to make the legislature even more accessible to the citizens than ever before! Either way it is great to be back in session, representing members and advocating for the home building industry.
2021 NDAB PRESIDENT PHIL RISBRUDT
NDAB CEO · KIM SCHNEIDER
This year, the North Dakota Association of Builders is proudly represented each day by two registered lobbyists. NDAB CEO, Kim Schneider and Communications and Government Affairs Director, Sara Frank are tracking around 40 bills that range from various issues like special assessments, new construction tax, and flooding. Some issues impact across the state while other issues may impact only certain local associations. Either way, we are proud to be your eyes, ears, and your voice. The NDAB Government Affairs Committee is made up of representatives from each of the six local associations and lead by Chairman John Gunkelman from Fargo. Every week, these members receive the NDAB Legislative Pulse that updates them in the previous week’s happenings at the Capitol and updates them on what is on the schedule for the upcoming week. The NDAB Legislative Buzz is sent out bi-weekly to our full membership keeping you all apprised of the bills we are tracking, the status of them and asking for any help in contacting your local legislators. If curious to learn more about what is happening, please do not hesitate to reach out to our office or your local association to find ways to get more involved. Call-to-Action is something you may see come through your emails. If you see this, please take a moment to read the request and follow-through on contacting your local representative either via email or by making a phone call. Some of the Call-to-Action requests might even be a plea to have you come and testify. With the new virtual format, this might be easier with your schedules as you can testify from your home or office if your schedule does not allow for you to travel to Bismarck. Legislators have often shared that they want to hear directly from the members, their constituents, over a lobbyist. Legislators want to hear directly from those the bill impacts in a positive or negative way. Key decision makers value your input as much as we at NDAB do. Members are always encouraged and welcomed to join us at the Capitol. If you are planning a visit, please let us know how we can help in arranging any meetings and a schedule noting again that temperature checks and masks are mandatory and capacity limitations are in place for committee rooms. We also encourage you to watch for open forum opportunities on the weekends when Legislators are back in their respective districts. Take care, Phil Risbrudt, NDAB President, Minot Kim Schneider, NDAB Chief Executive Officer
Knife River is a full service aggregate-based construction company, providing ready-mix concrete aggregate sales and delivery and concrete construction services. We provide services throughout North Dakota for public, private and commercial construction projects.
701-580-4527
Bismarck-Mandan | Washburn | Beulah
Mark Roningen - Business Development
This past year has seen unprecedented challenges and responses to challenges with all involved in the local building and development community. We have been grateful for the opportunity to work with all of you in continuing to enhance our areas quality of life for residents and visitors. Despite a global pandemic, we’ve been able to move forward on a variety of significant initiatives over the course of the past year. The following are some of the noteworthy accomplishments related to your work in our community: • • • • • •
Adoption of the new Building and Fire Prevention Code Adoption of a new Parking Code Adoption of a new Sign Code Completion of local responsibilities in support of the 2020 United States Decennial Census update Completion of the areas 2020-2045 Metropolitan Transportation Plan Update of the region’s aerial photography and contours
The pandemic also required us all to adjust business operations to remain healthy and safe, while complying with new and changing protocols. With your help, we were able to innovate and adapt, finding new ways to continue to get the job done. Through these efforts and your hard work and cooperation we experienced an 18% increase in total permits and a 32% increase in new Single-Family home permits from the previous year. We look forward to working with you and all we will accomplish together in this new season, as we strive to provide high quality pubic service to enhance our quality of life.
A majority of residents within the Mandan Public School nor district staff supported building a new school. District would support a public vote on building new The survey offered different combinations of projects that schools, according to a survey commissioned by the district. could be part of the referendum to see which price tag The school board heard the results of the survey at its respondents preferred the most. Those options are: meeting Tuesday night. Research company School • A $77 million referendum to build a new elementary school Perceptions said about 1,700 people responded from midand expand the high school November to early December; just over 12,000 surveys were • A $90 million referendum for a new elementary school and a sent out. new high school The survey's purpose was to educate residents about facility options and gauge how willing the community would be to fund new school buildings, School Perceptions Project Manager Sue Peterson said. Residents were presented with two options in the survey: renovate and expand the high school for $62 million or build a new school for $75 million. Sixty-four percent of all residents and 54% of residents who are neither parents
•
•
A $105 million referendum for a new elementary school and a new high school that would include an indoor pool, a performing arts center, and additional gym and technical education space About 60% of all respondents said they would support at least the $90 million referendum. About 60% of nonparent, nonstaff respondents said they would support at least the cheapest option.
The school board did not take any action on a referendum last month. Builders FirstSource is your first source for great customer service and high quality building materials.
BUILDING MATERIALS
1513 39TH AVE SE, MANDAN | 701-663-9861 | WWW.BLDR.COM
The pre-COVID-19 trend of declining home size has been universal across U.S. regions, according to NAHB’s analysis of the 2019 Survey of Construction data. Nevertheless, regional differences in new home sizes exist, with some of the largest single-family spec homes built in the Middle Atlantic and some of the largest custom homes built by contractors in the Mountain division.
feet) and detached (2,600 square feet) homes. Notably, new SFA homes started in the Middle Atlantic have square footage on a par with new detached homes in the United States.
Nationwide, new single-family homes built by contractors tend to be larger, with a median square foot area of completely finished floor space of 2,400 square feet. Homes built by owners tend to be smaller, with half of them Looking at single- reporting square footage of 2,000 square feet or less. New family homes started single-family homes built for sale are similar in size to in the United States in homes built by contractors with a median square footage of 2019, median square 2,300 square feet. footage (including The Mountain division stands out for reporting some of finished areas of the the largest contractor-built homes. Half of these custom basement and attic) homes started in 2019 was 2,300 square have completely finished feet. Some of the floor space of 3,000 smaller new homes square feet or more. In were started in the West North Central division and New comparison, custom England, where completely finished floor space in half of homes built by owners in new single-family homes was 2,000 and 2,100 square feet or the same division report less, respectively. Some of the largest homes were started in median square footage the Middle Atlantic, where median square footage was 2,500 of 2,300. Though square feet. substantially smaller than Square footage differences are substantial between custom homes built single-family attached (SFA) and detached (SFD) homes. locally by contractors, these are some of the largest ownerNationwide, the median square foot area of completely built homes in the nation. finished floor space is 2,400 square feet in SFD homes and 1,800 square feet in SFA homes. The Middle Atlantic stands out for building some of the largest attached (2,400 square
After posting staggering growth rates for new and existing home sales in the fall, the housing market leveled off at the end of 2020. The demand-side of the sector remains robust and inventories are lean. However, home price growth and rising construction costs threaten housing affordability heading into 2021.
year ago, new home sales in November declined to an annual rate of 841,000. Existing home sales have slowed as well, as price growth and limited inventory have held back transaction volume. Resales fell 2.5% in November, but remain almost 26% higher than a year ago.
These recent slowdowns illustrate the challenges for the The overall macroeconomic outlook is expected to housing industry in 2021. Home price growth has been improve this year, with gains for GDP growth (after an strong — up 8.4% year over year in October. This estimated 3.6% drop for 2020) and incremental labor exceptional gain is due to strong demand, but also a market improvement yielding an unemployment rate function of limited inventory. Such prices gains and approaching 5% during the second half of the year. construction cost increases (lumber prices are on the rise again, up 60% since mid-November, adding thousands of However, these forecasted improvements are dependent dollars to the cost of a new home) threaten to price out on the rollout of the COVID-19 vaccine. Thus far, more than hundreds of thousands of buyers in the months ahead. 4 million Americans have received their initial vaccine, and millions more are expected in the coming weeks. Our While forecast assumes mass deployment of the vaccine between strong March and September, which should allow for more demand normalization of the overall economy and continued suggests strength for housing demand. continued gains for While home builder confidence remains near historic home highs, single-family starts leveled off in November. Singleconstruction family home building increased only 0.4% from October to in 2021, November. However, the annual rate of 1.19 million was a affordability 10.1% gain from a year ago. For multifamily, a drop in declines and permits suggests apartment construction declines in 2021. supply-side Recent data tracked in the NAHB Home Building Geography limitations Index indicate that as part of the suburban shift — the will generate changing geography of housing demand due to the rise in lower telecommuting and reaction to the virus — single-family housing construction in traditional second-home communities was growth rates up 24% on a year-over-year basis. than those The gains for construction are needed to sustain growth recorded in sales. New home sales were far outpacing actual last year. construction in the fall, and as such, we expected that sales To subscribe for free to Eye on the Economy, please growth would slow. Although they were 21% higher than a email communications@nahb.org.
The Small Business Administration and U.S. Treasury Department reopened the expanded Paycheck Protection Program (PPP) for both new borrowers and for certain existing borrowers to apply for a second loan.
Members and HBAs can access recordings of those webinars and slides on nahb.org.
While housing starts ended the year on a strong note, rising lumber prices and increasing regulatory cost concerns could affect future production. Led by a solid, double-digit gain in single-family starts, overall housing starts increased 5.8 percent to a seasonally adjusted annual rate of 1.67 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
and regional labor shortages that continue to exacerbate affordability woes.”
An updated list of FAQs about the loan programs is also now available. The deadline to apply for the new loan NAHB held a series of webinars to help members and program is March 31, but if you are interested in applying, it home builder associations (HBAs) understand their eligibility is important to work with an SBA-approved lender as soon for the forgivable loan programs under the $900 billion as possible. COVID-19 relief package signed into law by President Trump.
The December reading of 1.67 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 12.0 percent to a 1.34 million seasonally adjusted annual rate. The multifamily sector, which includes apartment buildings and condos, decreased 13.6 percent to a 331,000 pace.
On a regional and year-to-date basis (January through December of 2020 compared to that same time frame a year ago), combined single-family and multifamily starts are 13.2 percent higher in the Midwest, 7.5 percent higher in the South, 6.2 percent higher in the West and 2.8 percent lower in the Northeast. Overall permits increased 4.5 percent to a 1.71 million unit annualized rate in December. Single-family permits increased 7.8 percent to a 1.23 million unit rate. Multifamily permits decreased 3.0 percent to a 483,000 pace.
Looking at regional permit data Total housing starts for 2020 were 1.38 million, a 7.0 on a year-topercent gain over the 1.29 total from 2019. Single-family date basis, starts in 2020 totaled 991,000, up 11.7 percent from the permits are previous year. Multifamily starts in 2020 totaled 389,000, 7.4 percent down 3.3 percent from the previous year. higher in the “Builder concerns about a changing regulatory landscape Midwest, 7.3 may have triggered many to move up their plans to pull percent permits and put shovels to the ground,” said NAHB higher in the Chairman Chuck Fowke. “Our latest builder sentiment South, 2.1 survey suggests somewhat softer numbers ahead due to percent rising building costs and an uncertain regulatory climate.” higher in the West and 5.2 “The 1.34 million single-family starts pace in December is percent lower the highest since September 2006,” said NAHB Chief in the Northeast. Economist Robert Dietz. “And while NAHB is forecasting further production increases in 2021, the gains will View additional data on housing starts and permits tempered by ongoing supply-side challenges related to on nahb.org. material costs and delivery times, a dearth of buildable lots
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