BISMARCK-MANDAN HOME BUILDERS ASSOCIATION OCTOBER 2019 || 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.
www.twitter.com/bmhba
PRESIDENT Northern Plains Plumbing, Heating & Air 701-222-2155 greg@northernplains.net
Sattler Homes 701-255-7628 jeff@bismarckbuilder.com VICE PRESIDENT
www.houzz.com/pro/bmhba
Choice Bank 701-258-3300 s.franklin@bankwithchoice.com
Verity Homes of Bismarck 701-663-4117 rory@verityhomes.com
K & L Homes 701-258-4584 cmoldenhauer@midconetwork.com
2ND VICE PRESIDENT Aspire Homes 701-426-8583 greg@daretoaspire.com
Townsquare Media 701-250-6602 bill.schmid@townsquaremedia.com
TREASURER Boulder Homes 701-400-5554 boulderhomesnd@gmail.com PAST PRESIDENT
BMHBA ANNUAL FALL MIXER
Stoneshire Builders 701-471-6935 brian@stoneshirebuilders.com
HOUSING AFFORDABILITY CRISIS
BNC National Bank 701-250-3050 mmenge@bncbank.com
SINGLE-FAMILY ZONING “BAN”
Gate City Bank 701-355-7633 lynnklein@gatecity.bank
Triton Homes 701-223-3030 jamie.schmidt@investcore.com
Dot Frank Simone Marchus Elysha Head
SAVE THE DATE FOR STATE OF CITIES
GAP BETWEEN PRICES AND BUYERS’ EXPECTATIONS
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 October 31st, 2019.
Jan Hoge
Ross Nathan
Nathan Pederson
Tylor Doll
Jarred Roloff
Amy Larsen
Melanie Pierson
Kelli Thompson
Kevin Mach
Dave Achtenberg
Craig Gierke
Reid Kubesh
Bruce Martin
Deborah Luptak
Stephen Schnaible
Shane Gaffaney
Jason Bauman
Jackie Fakler
Mike Kambeitz
Mike Ness
James Froelich
Ted Lipp
Anton Steckler
Korey Zellers
Jared Winters
Harvey Schneider
Jim Camp
Lori Malloy
Jared Woll
Katie Wiedrich
Darin Martell Sam Gietzen Chris Svanes Charlotte Erickson
Aaron Frohlich
2019 October is here and looks to be bringing fall along with it. The Fall Parade of Homes was Sept. 26-29. I hope all participating members had a good showing at their homes. The 2019 Fall Parade of Homes featured 30 homes priced from $259,900 to $765,000. I would like to thank all the participating builders who entered a home into this parade. The Parade of Homes is one of the largest public events our association holds. In order to pull off this event, it takes an entire committee to host and organize. I would like to extend my thanks to the Parade of Homes Committee members, chairwoman Heidi Rue, HBA staff and all participating builders. We have the Holiday Home Walk on Sunday, Nov. 24. from noon to 5 p.m. Builders who had a home in the Spring or Fall Parade get a free entry. If you are interested, please visit HolidayHomeWalk.com for more details. The association also is hosting a sales closing class to help seal the deals that were made available during the Fall Parade of Homes. The class includes lunch and seating is limited. Visit bhmba.com/events to register online.
Regards,
2019 PRESIDENT :: BMHBA
I look forward to seeing each of you at the Fall GMM & Board elections on Monday, Oct. 29 at the Ramada. This event includes on open bar and heavy appetizers. Sponsorships are available. The event is social style so stop by anytime between 5 and 8 p.m. We’ve got an open bar and heavy apps. The association is co-hosting candidate training along with the Realtors and Chamber on Oct. 24. This event is for anybody interested in political pursuits or for those who simply want to help others with a campaign. Contact the Bismarck-Mandan Board of Realtors for registration information. Always remember to recruit. Now is a great time to reach out to your peers and share the benefits of the association brings, particularly the Parade of Homes. Ask them to join you as a member this year and help continue growing our association. We are only as strong as our membership.
MONTH
YEAR
2015 2016 2017 2018 2019 0
9
1
0
10
FEBRUARY
3
4
5
2
0
MARCH
21
22
14
2
9
APRIL
52
29
40
27
26
MAY
31
46
29
16
28
JUNE
31
43
48
24
18
JULY
40
16
60
22
17
AUGUST
20
48
16
27
19
SEPTEMBER
28
44
26
22
OCTOBER
54
14
22
15
NOVEMBER
16
11
9
11
DECEMBER
1
0
0
1
TOTAL
297 286 270 169
YTD TOTAL
198
217
213
120
2015 2016 2017 2018 Data not collected for the ETA in 2015 and 2016.
JANUARY
127 127
YTD Total
10% -2% -44%
Total
-4% -6% -37% -25%
0
6%
0
2019
2015 2016 2017 2018 2019
2015 2016 2017 2018 2019
2015 2016 2017 2018 2019
0
0
0
1
0
0
2
0
0
2
0
0
2
0
0
0
0
2
0
0
0
1
2
6
5
0
0
0
0
3
0
1
1
0
0
0
2
2
1
11
6
4
8
2
0
3
0
0
0
9
9
4
2
4
4
3
6
14
12
8
16
11
18
2
4
0
6
14
5
11
11
14
5
6
4
26
13
11
15
11
17
2
5
5
0
14
16
7
20
10
10
2
2
21
20
13
13
4
1
6
3
1
1
8
11
4
4
6
3
3
2
9
13
6
11
12
0
5
1
5
1
13
9
4
3
11
6
1
7
17
7
13
20
10
8
2
9
4
5
8
9
6
8
5
8
3
16
14
26
11
3
3
4
5
9
9
9
6
4
7
9
29
20
9
17
10
7
5
4
7
3
7
3
0
7
7
7
6
2
5
0
0
3
4
1
0
0
0
0
0
0
0
1
0
4
0
0
0
2
0
45
27
67
40
37
28
83
80
51
61
30
17 -43%
22 22 29%
-40% -19%
132 123 114 116 100
73
61
90
50 50
44
22
22
18
15 15
-27% -16% 48% -44%
-50% 0%
-7% -7%
-40% -8% -24% -46%
2%
-57%
BISMARCK SINGLE FAMILY DWELLING
SUNRISE BUILDERS
715 W GLENWOOD DR
VERITY HOMES
811 JEFFERSON AVE
SUNRISE BUILDERS
717 WEST GLENWOOD DR
JOE VETTER CONST.
4802 GREY HAWK LN
STEVE URLACHER
6016 TRANQUIL CIR
HALLMARK HOMES
3912 CREST PL
HUNT CONSTRUCTION
6030 CAREFREE DR
HALLMARK HOMES
1112 ROUND TOP RD
HOPFAUF CONST.
3501 KINGSFORD DR
K & L HOMES
4203 BRITTANIC LN
LITTON HOMES
6749 APPLE CREEK DR
PARAMOUNT BUILDERS
2908 WHISPER DR
RUDNICK CONST.
5909 MISTY WATERS DR
J.E. PROPERTIES
3601 HIGH CREEK RD
MARK FLECK CONST.
8216 E BRISTOL DR
J.E. PROPERTIES
5223 JASPER DR
RUDNICK CONST.
7916 NICKLAUS DR
J.E. PROPERTIES
5503 GOLD DR
PRESTIGE HOMES
6217 MISTY WATERS DR
KAMROSE CONST.
3118 KAMROSE DR
MARVIN FRIED CONST.
3920 NEBRASKA DR
K & L HOMES
5830 VALLEY VISTA LN
VERITY HOMES
4125 HURON DR
VERITY HOMES
3936 LONE PEAK DR
JOE VETTER CONST.
2807 DEL RIO
HALLMARK HOMES
1307 ROUND TOP RD
KAMROSE CONST.
3124 KAMROSE DR
BURLEIGH CITY SINGLE FAMILY DWELLING
-18% -17%
67
60
36
48
-10% -40% 33%
52 52 8%
-4% -36% 20% -15%
SATTLER HOMES
10 MCGINNIS WY
VERITY HOMES
2021 34TH AVE SE
VERITY HOMES
2201 34TH AVE SE
VERITY HOMES
2205 34TH AVE SE
DIVERSITY HOMES
1217 SHIRES DR
VERITY HOMES
2002 34TH AVE SE
VERITY HOMES
2009 34TH AVE SE
VERITY HOMES
2018 34TH AVE SE
VERITY HOMES
2014 34TH AVE SE
VERITY HOMES
209 KEIDEL TRL SW
DIVERSITY HOMES
3509 46TH AVE SE
MANDAN SINGLE FAMILY DWELLING
RICK VOLK
8416 OUTLAND RD
PRESTIGE HOMES
7403 SCENIC HILLS RD
RICK SLAVIK CONST
2479 LABRADOR DR
VERITY HOMES
6985 MAJESTIC LP
DIVERSITY HOMES
2405 FOXTAIL LN
VERITY HOMES
6991 MAJESTIC LP
YANISH HOME IMPROV
3253 42ND AVE
SATTLER HOMES
11 MCGINNIS WY
SATTLER HOMES
24 MCGINNIS WY
LINCOLN SINGLE FAMILY DWELLING
MORTON COUNTY SINGLE FAMILY DWELLING
PLACE YOUR AD HERE FOR PREMIUM EXPOSURE.
JUST $21 PER ISSUE.
EMAIL INFO@BMHBA.COM.
A candidate campaign training is being offered to anyone seeking public office presented by the Bismarck-Mandan Board of Realtors, Bismarck Mandan Chamber EDC and Bismarck-Mandan Home Builders Association. The training session covers information on what it takes to run for office, how to plan and budget for a race, how to raise money legally, how to leverage social media and many other topics. “Events like this are important because there very well may be members of our community who have thought about seeking office, they just didn’t know where to start. This will give them that place,” said Chamber EDC President Brian Ritter. The Candidate Training Session is scheduled on Thursday, October 24th from 9:00am to 4:00pm at the Bismarck Mandan Chamber EDC located at 1640 Burnt Boat Drive in Bismarck. This is not the first time these organization worked together to host an event like this. “We’re thrilled to co-op on this campaign training,” said BMHBA Executive Officer Dot Frank. “In fact, the HBA is proud to have one of its members, who attended the training, later seek and obtain a seat on the Bismarck City Commission,” Frank said in reference to BMHBA Board Member Greg Zenker. The Mandan Police Department recently introduced a new mobile tip app to help residents connect with the department to find information, view alerts and submit anonymous tips from their smartphone. Once a tip is shared with the police, the app lets officers respond back to create an anonymous two-way conversation. The app is available for free. Search “Mandan PD” in the Google Play Store, iTunes App Store, or visit www.mandapd.com. Residents can still submit anonymous tips though the department’s website or by texting “MANDANPD” along with the tip to 847411.
“The Chamber EDC, Realtors, and Home Builders regularly share information and discuss common interests in bettering our communities and our state. Collaborating to sponsor this event is a perfect example of one of the ways that we do that,” Nancy Deichert, CEO, Bismarck Mandan Board of Realtors. The cost is $25 and includes lunch. Anyone interested can register by calling the BMBOR at 701-255-0712.
A map that links to property data showing assessment information for most parcels is now available at www.cityofmandan.com/maps. The values are as of April 2019. Users can search for property data by address or parcel number in a search field. Contact the City Assessor’s office at 667-3232 for questions or more information. Currently special assessment balances are not included in the information. For assessment balances, call 667-3215.
The Bismarck School Board approved its final budget for the 2019-20 school year. It includes 28.25 additional staff, increases in salaries and benefits, two additional bus routes, and an increase in school supply budgets due to the increasing in student population. The budget includes an additional 3.23 mills or $30 per year on a $200,000 home. The Board also accepted the annual Financial Planning report as compliant with a couple of exceptions. The budget and OE-5 Financial Planning documents can be found online at https:// www.bismarckschools.org/Page/401 Legacy High School teachers Matt Thornton, social studies, and Steve Schultz, math, reported on the LHS Personal Finance and Economics class. They start by having seniors determine what career they want to pursue, then bring in information about college loans, interest rates, taxes, savings, housing costs, car payments, credit card debt, monthly household expenses, retirement planning, etc. Bismarck and Century High Schools are moving ahead to offer this as well. Senior Katin Vetter says the class puts Legacy students ahead and teaches them, “How to survive independently and comfortably in adulthood.” The Board also heard an update on the Strategic Planning process. A group of 50 to 60 parents, students, staff and community members will meet about once a month through January. The community will get an opportunity to review the draft plan before it’s presented to the Board for approval.
First International Bank & Trust was just named among the top extraordinary banks in the United States by The Institute for Extraordinary Banking™ presented at the 2019 Extraordinary Banking™ Awards. First International Bank & Trust was recognized with the Institute’s highest and most exclusive honor, being inducted into the Hall of Fame, for exemplary commitment to community banking. In addition, the bank was recognized with the Institute’s Banky™ Award; recognition given to top community banks across the country to help people find the best banks in their communities. Awards for company culture, community giving, and extraordinary bank practices were also presented to First International Bank & Trust. The Extraordinary Banking™ Awards recognize the best of what community banks offer to our cities, towns, and nation: a true commitment to the success of the small businesses and local community they serve.
The City of Bismarck Community Development Department, Building Inspections Division is hosting an informational meeting on October 10th, 2019. This meeting will provide those in attendance with a basic overview of the scope of the International Residential Building Code (IRC) with a specific focus on residential framing inspections applicable to one and two family dwellings. Building officials and framing inspectors from the City of Bismarck, City of Mandan, and Burleigh County will be available for questions and to discuss common framing corrections. There is no cost to attend this meeting; however, space is limited so individuals that would like to attend this meeting must register in advance. • When: October 10, 2019 at 8:00am • Where: City of Bismarck Public Works Department, 601 South 26th St, Bismarck, ND 58504 If you have any questions or to register for this meeting, please contact: Brady Blaskowski, City of Bismarck Building Official 701-3551467 or bblaskowski@bismarcknd.gov
The Bismarck-Mandan Chamber EDC is hosting its annual State of the Cities event on Nov. 13. Mayors Tim Helbling, Steve Bakken and Gerarld Wise will present 2019 progress to date and plans for 2020. The breakfast will be hosted at the Ramkota Hotel & Conference Center. To register call 223-5660 or visit bismarckmandan.com.
Among general housing preferences, there is a noticeable upward trend in the percentage of millennials who desire a new home built for sale offered by a builder, according to a recent study by the NAHB Economics team.
a similar decline in custom preference while the desire for existing homes shows no underlying trend. However, when it comes to a new home built for sale and offered by a builder, Gen X, baby boomers and seniors are all grouped near a 30% preference level while millennials have a clear upward trend in this category over time, and finish significantly higher than the other generations in 2018.
Between 2007 and 2018, the percentage of millennial home buyers who prefer a new home increased from 28% to 41%. This increase seems to be at the cost of the desire for a home customWhile this indicates built on the eventual shifting preferences for homeowners’ lot, which fell millennials, it is still from 37% to 18% over the important to note that the same period. market for housing is Preference for an heavily tilted toward already existing home existing homes, which is hovered around 40% almost five times bigger during this 11-year time than the market for new span. homes, according to data from the U.S. Census How do millennial Bureau and the National preferences compare to Association of Realtors. older generations over time? As Figure 2 below View the complete study shows, in general, these online at https:// demographic groups show bit.ly/2kmmFe4.
Colder weather is on the horizon. But being indoors isn’t a bad thing, when you’ve got a great party to look forward to. The BMHBA’s Annual Fall Mixer & Board Elections will be held on Oct. 28, from 5-8 P.M. at the Ramada by Wyndham. The evening will be hunting-themed, and decorated so convincingly that you might actually believe you’re hunting (okay, maybe not, but that made you want to come, right?) Join us for a night of good food, great conversation and the Board Elections. There will be an open bar, heavy apps entertainment. Tickets are $30 per member. Call (701) 2222400 ext. 2 for more information regarding tickets and/or sponsorships. Tickets may also be purchased through bmhba.com/events.
The Mandan City Commission will soon consider appointments beginning in 2020 for open positions and seats up for re-appointment on nine different boards that assist with city governance and community development. Appointments will be considered for the Architectural Review Commission, Cemetery Advisory Committee, Code Enforcement Appeals Board, Community Beautification Committee, Growth Fund Committee, Library Board of Trustees, Parking Authority, Renaissance Zone Committee, and the Visitors Promotion Fund Committee. Members of the business community and residents are encouraged to submit a letter summarizing their desired appointment, background and reasons for interest. Letters will be welcomed through Nov. 1, 2019, or until the positions are filled. Submit letters to Program Coordinator Kari Moore, by e-mailing to kari.moore@cityofmandan.com or mailing to 205 Second Avenue NW, Mandan, ND 58554.
Bianco Realty is excited to announce the newest REALTOR® to join their professional Real Estate Team: NINA WALDEN. Nina looks forward to helping clients with their Real Estate needs, achieving their dream of home ownership and providing a Tradition of Excellence!
Four out of five American households believe the nation is suffering a housing affordability crisis, and at least 75% report this is a problem at the state and local level as well, according to a new nationwide survey conducted by Morning Consult on behalf of NAHB. “Housing affordability is near a 10year low, and this poll confirms the challenges hard-working families face to keep housing within reach as rising costs continue to outpace wage growth,” said NAHB Chairman Greg Ugalde. “Policymakers must roll back inefficient zoning rules, costly impact fees and outmoded land development regulations that are driving up housing costs, contributing to the mounting lack of affordable housing and hurting middle- and low-income households.” More than 19,800 adults were surveyed in August to assess the public’s attitude on whether a lack of affordable housing is a problem in their neighborhoods, cities, states and nationwide. The poll cuts across partisan, regional, demographic and socioeconomic lines. Among its key findings:
And 57% said they would support a proposal to increase taxes on the • 78% believe this is an issue in their richest Americans to pay for state. construction and rehabilitation of more • 75% cite housing affordability as a rental housing that is affordable to concern in their city, and 76% say it lower-income households. problem in the United States.
is an issue in their county.
A similar poll conducted in late November reveals that the housing affordability situation is worsening. Nationwide, 73% of respondents reported at the end of last year that a lack of affordable housing is a problem, 68% said this is an issue in their state, and 54% cited housing affordability as a concern in their neighborhood. Asked about potential solutions to the housing affordability problem, respondents in the August poll expressed modest-to-strong support for several policy prescriptions put forth by various candidates for federal elected office. For example, 64% said they would support a proposal to expand government programs to increase the supply of affordable rental housing.
More than half of the respondents — 52% — said they would support a proposal to reduce regulations, such as restrictive zoning and permitting procedures, that increase the costs of constructing new homes. The poll is also consistent with the latest findings from NAHB’s Housing Trends Report for the second quarter of 2019, which finds that 80% of buyers say they can afford to purchase fewer than half of the homes available in their local markets. When asked which of the two major political parties is more likely to take action to reduce the cost of housing in the United States, respondents gave the edge to the Democratic Party (36%) over the Republican Party (21%). Another 24% said neither party, and 18% said they didn’t know or weren’t sure.
This was followed closely by 62% who said they would support a This national survey of 19,801 adults proposal to provide grants to families was conducted Aug. 9-24, 2019, by the in areas historically affected by housing polling firm Morning Consult. It has a margin of error of ± 1%. • 80% of all respondents believe that discrimination to assist with a downpayment on a home. a lack of affordable housing is a
With October being Careers in construction month it is a great time to recognize those Professionals that have really went the extra mile to educate themselves on building codes, trends and techniques. ND Association of Builders takes applications annually for the NDAB Professional Builder and Professional Associate Programs. This is a great way to get your business some extra recognition and stand out among your peers. To qualify for this program the builders or associate members must be in good standing, been licensed or certified in your field for at least 2 years, provide proof of 7 continuing education annually or 14 hours biannually and submit an application fee. This program was opened up to Associate Members in 2018 and is continuing to grow. Our 2019 Professionals Are:
Donald Dabbert - Dabbert Custom Homes Todd Williams - Todd Williams Construction Mike Workman - Jordahl Custom Homes, Inc. Charles Bon - C'est Bon Construction, Inc. Michael J. Bullinger - Western Productions, Inc. Jason Eid - Eid-Co Homes Mark Spriggs - M&J Construction of Moorhead, Inc. Tyrone Leslie - Heritage Homes Todd Halle - T&S Custom Homes, Inc. Robert Leslie - Designer Homes Charles Zach - Zach Construction, Inc. Robert Kochmann - Kochmann Brothers Homes, Inc. Gary Orth - Cornerstone Specialties Jayson Kuznia - Titan Homes Hal G. Dickelman - D&U Construction, Inc. Jason Plecity - Plecity Kowalski Construction, Inc. Don Dabbert Jr. - Dabbert Custom Homes John Gunkelman - Dakota Construction of Fargo, Inc. Eric Berg - Eric Berg Construction, Inc. Greg Krueger - Krueger Construction, Inc. Tom Spaeth - Accent Kitchen & Bath
Interested in joining the club? If you have any questions about qualifications, upcoming education opportunities or about the program in general contact Sara Frank at NDAB: sara@ndbuild.com Until next time, Bob Horab
October is Careers in Construction month. Thank you to all our members! We are grateful for your hard work, your continued support and for your dedication. Many of you have risen above the challenges to reach your professional goals and we applaud you for your work in helping to build the American Dream! With that said, we need your help in combating labor shortage issues. Take every opportunity you have to educate our youth, parents, grandparents, school administrators, your neighbors, really anyone who will listen on how many various career opportunities there are in the building industry. Not everyone needs to attend a four-year college to be able to have a successful future. Receiving opportunities to experience different positions and skills required to build a home helps to open our youths’ minds to their future possibilities in their professional success. Skilled, professional workers are needed to help combat the labor shortage issues our members are facing not only in North Dakota, but across the country. The 116th Congress designated September as National Workforce Development Month. In their resolution they note that career advancement of the workforce in the United States, known as “workforce development”, is crucial to the ability of the United States to compete in the global economy. Participation in a career and technical education (referred to in this preamble as “CTE”) program decreases the risk of students dropping out of high school, and all 50 States and the District of Columbia report higher graduation rates for CTE students, as compared to other students. It is vital that we continue to participate in elementary, middle and high school education events on introducing the youth the building industry. No one is a better spokesperson for the industry than all of you. Share in your personal stories, your successes and even your challenges. Those discussions could help form a student’s future path. Civic engagement is another great way to get involved in supporting the building industry by running for a position on your local or state level. Building industry professionals elected to office help raise the presence of issues related to home building and the construction industry. Members also bring first-hand experience to a state assembly on issues related to housing, like regulatory affairs. Elected officials with backgrounds in construction can also encourage their peers to learn more about the housing industry by leading discussions on key issues or coordinating a visit to a construction site. If any of you are interested in exploring the opportunity of running for office, please reach out to NDAB as we do have a guide that is helpful in navigating the campaign trail. Once again, I would like to say Thank You to all of our members and wish you a very happy Careers in Construction Month! Take care, Kim Schneider
Recently, the state of Oregon has moved to use the power of policy to influence housing affordability, diversity and flexibility. In what some are calling an effective ban on single-family zoning, the state is requiring that multifamily units be allowed on land previously reserved just for single-family homes.
10 townhouse units and improve site density to 26 units per acre.
•
Mews Townhouse Units: The flexibility of this type of housing proved useful by turning an awkward lot configuration into a successful, small scale project in South Jordan, Utah, and similarly increased site density while providing two- and three-bedroom townhouses.
Oregon is in fact following a national trend in updating city Oregon H.B. 2001, effective Aug. 8, 2019, mandates that each codes that for years have led to a majority of land use being city with a population greater than or equal to 25,000 allow all dedicated to single-family homes. middle housing types, and/or a duplex, on each lot or parcel that previously allowed for the development of detached single-family Minneapolis, for example, has made news with its new urban dwellings. This language has led to many sensationalized headlines plan, Minneapolis 2040. Approved this past December, this plan labeling the move as a ban or elimination of single-family zoning. allows the development of duplexes and triplexes on single-family zoned plots. Similar erroneous headlines appeared soon after that Although this policy mandates the allowance of multifamily units on land previously only available for single family, it does not, Minneapolis had banned single-family homes. More than 70% of Minneapolis was previously available only to single-family housing, in fact, outright prohibit single-family zoning or development — which limited supply, increased housing prices, contributed to one can still build single-family houses in Oregon. In fact, the bill urban sprawl and reinforced racial and class segregation. should give builders and developers more flexibility and opportunities to build an expanded range of housing types in the Opposition to these types of innovative regulations often state. comes from entrenched Not In My Backyard (NIMBY) sentiments from existing residents. Property value and neighborhood The bill also requires that metropolitan service districts with congruity are common arguments against altering single-family populations of more than 10,000 and less than 25,000 allow zoned areas. However, appropriate zoning and design duplexes on sites that were previously available only for singleconsiderations can be of use to qualm these concerns. family units. “Diversifying Housing Options with Smaller Lots and Smaller Homes” provides resources on such code requirements, as well as Under the Oregon law, middle housing is defined as duplexes, examples of both ordinances and housing projects that break the triplexes, quadplexes, cottage clusters and townhouses. NAHB traditional mold of housing in innovative and successful ways. recently released a report, “Diversifying Housing Options with Smaller Lots and Smaller Homes,” that details these “missing Traditional zoning has often been cited as a barrier to middle” housing types, and how the lack of it has exacerbated affordability. A fresh round of research continues to point to strict housing shortages and acted as a barrier to housing affordability. zoning ordinances as impeding supply and affordability in the Eleven case studies from across the United States illustrate how United States. Innovative policy shifts that increase the flexibility in land use and the tools available to construct varied housing should innovative land-use policies that encourage the development of be good news for builders, developers, renters and home buyers. housing, such as Oregon’s legislation, promote greater housing affordability and meet the varied needs of an increasingly diverse Using policy to promote a greater diversity in housing stock can home-buying population. better accommodate an increasingly diverse population with varying income and generational needs. Check out NAHB’s Housing Case studies include: for All toolkit, including other creative solutions for the housing • Meridian Court: Two single-family lots in Pasadena, Calif., were affordability. combined to create a house-scale condominium building comprising
For millennials, Gen Xers, baby boomers and seniors, suburban living still rules, according to a recent study by NAHB economists.
close-in suburban homes, with the preference steadily growing from the youngest to the oldest generations.
Although millennials’ location preferences are generally similar to older generations in the earlier surveys, their increased preference for a central city location in the more recent surveys appears unique. The allure of city living for millennials jumped from 6% in 2007 to 23% in 2018.
Looking at millennial A 2018 survey on home preferences over time, there location preferences found is a clear drop in the desire that older generations show to live in the suburbs and a less desire to live in a central sharp increase in desire to city, and a stronger desire to live in the central city. In live in outlying and close-in contrast, older generations suburbs. have generally demonstrated Although the combined an increasing preference for total preference for living in The survey found that all the suburbs over time. the suburbs (outlying or four generations reflected a close-in) still outweighs the combined majority other preference for outlying or
locations for millennials, it is not as pronounced as other generations. Another trend is evident in what millennials would accept to make their homes more affordable: Their willingness to accept a smaller house is increasing, as is their readiness to accept a smaller lot. View the complete study online at https:// bit.ly/2miTDMZ.
Bianco Realty has announced their top 6 "REALTORS® OF THE MONTH" for August: Shirley Thomas, Amber Sandness, Brenda Foster, Phyllis Rittenbach, Darcy Fettig and Justin Mundahl. These six REALTORS® had the highest sales totals at Bianco Realty in August 2019.
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New data released by the U.S. Census Bureau and the Department of Housing and Urban Development, combined with recent NAHB survey data, show a mismatch between the actual prices of new homes and the prices buyers expect to pay — providing further evidence of a growing housing affordability problem. NAHB tabulation of the government data reveals that the median sales price of new single-family in 2018 was under $322,000. Nearly three quarters of them (73%) were priced between $250,000 and $1 million. Just 3% were less than $150,000, and none were under $100,000. In contrast, the 2019 edition NAHB’s What Home Buyers Really Want (based on a 2018 survey of approximately 4,000 recent and prospective buyers) showed that the median price buyers expect to pay is about $254,000. Fewer than half expect to pay $250,000 to $1 million. Just over onequarter (27%) are looking to pay less than $150,000, and 12% want to pay less than $100,000. Further analysis by NAHB senior economist Paul Emrath in his Eye on Housing blog post indicates that factors such as the ongoing shortages of labor and lots, along with escalating regulatory costs, have made it difficult to impossible to produce a new home at these lower price ranges.
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This is forcing a significant share of buyers into the market for existing homes only. However, the market for existing homes has been very tight recently. The months’ supply of existing homes reported by the National Association of Realtors has been consistently under 4.5 months for more than two years.
Baby boomers are a lucrative demographic: The average household aged 52 to 70 years old has a net worth of $1.2 million. With 270,000 boomer buyers retiring each month, there is a lot of opportunity for builders — even those who may not typically build active-adult communities — to capitalize, according to Carrie Roeger, chief operations officer at Windsong Properties and 55+ Housing Industry Council Board of Trustees member. But not all boomer buyers want the same things, she noted. In a recent 55+ Lunch and Learn seminar, Roeger identified three distinct segments of the boomer demographic: • Leading Boomer: The oldest segment of boomer buyers may be looking for more care options and accessibility features, in addition to downsizing to meet their lifestyle. Even though they may be 70 or 80 years old, they also may still be taking out 30-year mortgages, so it’s helpful to understand a variety of financing tools, including reverse mortgages. • Mid-Boomers: These seasoned empty nesters are retired or close to retirement. They are looking for smaller housing and opportunities to stay active. They also like to travel and entertain in their homes, because they have the time. They may be looking to move — whether it’s across the state or across the country — to be closer to grandchildren. • Late Boomer: These buyers are nearing retirement age while also being part-time empty nesters, with
college-aged kids who are occasionally home. They also may have older parents living with them. As they’re getting ready to start their next chapter in life, they’re trying to “keep up with the Joneses” — who, in this case, are their millennial children, which means similar TV and social media engagement traits. There are four overarching features that boomers on the whole are looking for: location, single-level living, customizable spaces and socializing opportunities. The key to building successful products for this expansive demographic, though, is to target one of these niches and cater to their needs. The target demographic will influence not only marketing tactics but decisions such as whether to opt for a full singlelevel floor plan versus simply incorporating a master on the main level, what finishes to include in the home (e.g., installing grab bars in the shower now or just putting the mechanisms in place) and what amenities to offer in the community. Such features also need to be able to grow with the demographic as they age, as boomer buyers are often purchasing these homes with the intent that it’s the last home they will purchase. “As builders, it’s our responsibility to think about our buyers’ needs — not just today but 10 or 15 years later for them,” stated Roeger, both in relation to home features and the amenities around a community. Catch the replay to learn more about today’s boomer buyer and how smaller communities can compete by visiting https://bit.ly/2kMcxeM.
You may have heard the phrase, “Electrify everything.” As the world moves toward electricity generation free from fossil fuels, the transportation sector is considering strategies to follow suit, including battery-powered scooters, electric-assist bike shares and an increased number of electric vehicles (EVs). Toyota recently announced a partnership with Tokyo’s 2020 Summer Olympics that will use EVs to transport fans and athletes around. Lithium-ion battery prices are rapidly decreasing, making both EVs and battery storage systems paired with photovoltaics (PV) more economically feasible. How exactly does this intersect with the building sector? Many countries, states and municipalities are now considering EV charging mandates, as infrastructure is needed to facilitate market growth and to help ease “range anxiety,” the concept that EVs can only travel so far on one charge and there might not be a charging station nearby. Some examples include: • The United Kingdom recently proposed a mandate that would require all new homes and offices to install EV chargers. • Howard County, Md., already has an ordinance that requires one charging station for every 25 apartment units and pre-wiring to be installed on single-family homes. • Atlanta and San Francisco have “EV Readiness” ordinances, which are less costly to builders and homeowners than mandating the installation of the charger in its entirety. “EV Readiness” usually entails installing wiring, conduit, and circuits so that it is easier to install the actual charger in the future. New mandates such as these can have an impact on housing affordability, as additional cost prices out many potential future homeowners. NAHB estimates that if the median U.S. new home price goes up by $1,000, more than 127,000 households would be priced out of the housing market nationwide. Alternatives to mandates could include voluntary programs and incentives to make the installation of charging stations more affordable. States could consider re-purposing VW settlement funds to provide subsidies to build public EV charging stations to diminish the cost to builders and home buyers. To learn more about federal and state incentives for EVs, visit the Department of Energy’s Energy Efficiency & Renewable Energy website at https://bit.ly/2MsxTXz. For more information about NAHB’s sustainable and green building programs, contact Program Manager Anna Stern. To stay current on the high-performance residential building sector, follow NAHB’s Sustainability and Green Building team on Twitter.
In a positive development to resolve years of uncertainty over where federal jurisdiction begins and ends, the Environmental Protection Agency rescinded the Obama-era “waters of the U.S.” (WOTUS) rule. “NAHB commends the EPA and U.S. Army Corps of Engineers for repealing the 2015 WOTUS rule that vastly expanded federal overreach over water and land use by regulating man-made ditches and isolated ponds on private property,” said NAHB Chairman Greg Ugalde. “By repealing the 2015 rule, the EPA and Corps have finally provided consistency among all 50 states, which will make the federal permitting process more predictable and affordable,” he added. “Now, the agencies need to finalize a new definition that restores common sense to the regulatory process by respecting states’ rights and balancing economic and environmental concerns.” The 2015 WOTUS rule has been subject to several legal challenges that halted its implementation nationwide. Last month, the U.S. District Court for Georgia issued a decision finding that the substance of the rule violates the Clean Water Act. The court remanded the rule back to the agencies to fix it. Prior to EPA’s repeal announcement, the Obama-era rule was in effect in 22 states and the District of Columbia, and the previous regulations issued in 1986 were in effect in the remaining 28 states. The EPA decision means the 1986 rule will now be in effect in nationwide until a final replacement rule is issued. The Trump administration has proposed a new WOTUS rule that NAHB generally supports. The proposed rule would clarify the extent of federal oversight and correct the vast overreach of prior rules. Once finalized, builders and developers will be better able to determine for themselves whether they will need federal permits for construction activities. And, because the proposed rule narrows the extent of federal jurisdiction by excluding isolated water bodies, “ephemeral” waters that only form in response to rain, and most ditches, builders should require fewer Clean Water Act permits for isolated or temporary wetlands or water bodies.
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