BISMARCK-MANDAN HOME BUILDERS ASSOCIATION SEPTEMBER 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
www.facebook.com/bmhba www.instagram.com/bismanbuilders PROFESSIONALS BUILDING OUR COMMUNITY THROUGH PROMOTION OF
SINCE 1958.
GREG MEIDINGER, PRESIDENT Aspire Homes 3313 Bayshore Bend SE Mandan, ND 58554 (701) 426-8583 greg@daretoaspirend.com
VICKI MORAN Hallmark Homes 3200 Rock Island Place, Suite 4 Bismarck, ND 58504-7717 (701) 471-7634 hallmarkhomes@outlook.com
JAMIE SCHMIDT, VICE PRESIDENT Triton Homes 1601 N 12th St Suite 605 Bismarck, ND 58501 (701) 223-3030 jamie.schmidt@investcore.com
BILL SCHMID Townsquare Media 1830 N 11th St Bismarck, ND 58501 (701) 250-6602 bill.schmid@townsquaremedia.com
JOE HILLERSON, 2ND VICE PRESIDENT Boulder Homes PO Box 1421 Bismarck, ND 58502 (701) 400-5554 boulderhomesnd@gmail.com AMY LARSEN, TREASURER Apex Builders PO Box 652 Mandan, ND 58554 (701) 527-7899 amy@apexbuildersnd.com JEFF SATTLER, PAST PRESIDENT Sattler Homes PO Box 7218 Bismarck, ND 58507 (701) 255-7628 jeff@bismarckbuilder.com MCKENZIE LAWLER Dakota OutdoorScapes 8351 Hwy 1804 N Bismarck, ND 58503 (701) 595-0890 mckenzie@ndscapes.com
CHIE F EXE CUTIVE O FFICER Dawn Watson dawn@bmhba.com Office: 701-222-2400 Cell: 701-390-5049
BRIAN EISEMAN Stoneshire Builders 3208 Daytona Dr Bismarck, ND 58503 (701) 471-6935 brian@stoneshirebuilders.com
JOE VETTER Joe Vetter Construction 2523 Powder Ridge Circle Bismarck, ND 58503 (701) 258-9394 joevetterjvc@gmail.com LORI WILLSON Northern Plains Plumbing, Heating & Air 2510 Vermont Ave Bismarck, ND 58504 (701) 226-8810 lori@northernplains.net RON STOTZ CAVES 1365 Tacoma Ave, Suite 1 Bismarck, ND 58504 (701) 751-1162 rons@cavesnd.com
MEMBE RSHIP D IRECT OR Brittney Roehrich brittney@bmhba.com Office: 701-222-2400 Cell: 701-240-3540
LAYOUT DESIGNER Elysha Head
www.twitter.com/bmhba www.bmhba.com
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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 September 30, 2021.
Top Recruiters as of 08/12/2021
Jamie Sorenson Steve Gerhardt Judy Maslowski Aaron Lunde Lindsey Matter Jerry Eggert Jon Rick Lee Mitzel Aaron Frohlich Ryan Hiatt Alexis Larson-Evert Elizabeth Hymer Sam Foss Mike Wood Christine Rivinius Drew Flurer Jason Kerner Mitch Kaelberer Brad Miller
Hunter Morris
Please welcome our new members from August 2021 to the association!
Builder Membership (701) 226-0526 jsjconst@hotmail.com www.facebook.com/JoshJacobchick Builder Membership (701) 955-8817 projects@701.construction
Join the BMHBA in congratulating these longstanding members. Their dedication to the Bismarck-Mandan Home Builders Association is appreciated and truly valued.
25 YEARS
Kramer Agency Sparling Construction
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.
10 YEARS
Advantage Appliance
5 YEARS
Goldstone Realty
Statesman Spike 500-999 Credits Kelly Moldenhauer (735.50) Super Spikes 250-499 Credits Todd Brady (376.50) Robb Sattler (290.00) Mike Todd (287.50) Eddy Mitzel (287.00) Lee Mitzel (266.00) Pat Marback (254.50)
Royal Spikes 150-249 Credits Lori Willson (210.50) Rory Schlosser (191.50) Mike Hopfauf (189.00) Berna Vetter (189.00) Colby Well (163.00) Jack Knutson (157.50) Red Spikes 100-149 Credits Blair Ihmels (145.00) Steve Redding (123.50) Dan Sparling (120.00) Jerry Sposkwaski (105.00) Chad Moldenhauer (103.00) Dana Schlomer (102.00) Green Spikes 50-99 Credits Vance Vetter (95.50) David Patience (93.00) Paula Haider (91.50) Mark Larson (91.50) Eric Brenden (85.50) Darren Buffington (83.00) Kenneth Knodel (66.50) Art Goldammer (63.50) Scott Moran (56.00) Scott Duchscherer (53.00) Nadine Schaff (53.00) Life Spikes 25-49 Credits Marc Conrad (46.50) Gerald Hopfauf (45.00) Gerry Rudnick (44.50)
Drew Knutson (40.50) Matt Shauer (40.50) Greg Zenker (36.00) Jeff Sattler (28.00) Kevin Fischer (25.50) Lyle Forderer (25.50) Blue Spikes 6-24 Credits Jason Frank (21.50) Greg Meidinger (21.50) Shane Gaffaney (16.50) Earl Torgerson (16.50) Melinda Llyod (14.50) Todd Schmidt (14.00) Bob Kupper (10.50) Wayne Solberg (10.00) Pete Brendel (8.00) Bill Schmid (7.00) Darryl Hatzenbuhler (6.50) Mike Wolf (6.50) Joe Hillerson (6.00) Spike Candidates .50-5 Credits Rory Anderson (5.50) Shannon Reichenberg (5.50) Brian Benz (5.00) Kurt Steiner (4.50) Parker Pladson (4.00) Roger Grendahl (3.50) Jason Kerner (3.50) Jarred Roloff (3.50) Sam Gietzen (2.50) Heidi Rue (2.50) Shirley Thomas (2.50) Mark Abramson (2.00) Brian Eiseman (2.00) Jamie Schmidt (2.00) Natalie Eckes (1.00) Raymond Fiske (1.00) Reid Kubesh (1.00) Terry Leabo (1.00) Kelli Thompson (1.00) Wade Vogel (1.00) Travis Welle (1.00) Bryan Brendel (0.50) Jan Hoge (0.50) Vicki Moran (0.50)
It’s here. Back to school is upon us, fall sports activities are in full swing, and the Fall Parade of Homes is soon approaching. Like many of you, I am struggling to figure out if our Parade home will be ready in time. Material delays and uncertain delivery times are making it even more difficult for contractors to figure GREG MEIDINGER out if their homes will 2021 BMHBA PRESIDENT be ready. As previously addressed, our Board made the decision to keep the Parade of Homes dates as originally set. Moving the dates one week, two weeks, or whatever it may have been, may have benefited a few builders, but some may have needed just one more week. Regardless of the Parade dates, there would have been houses that just came short of being ready. In our current environment, there is no magic date that would have guaranteed all houses would be ready at the same time. We are hoping to see a healthy number of entries and look forward to putting on another successful Parade with our Members.
Association. At the end of July, several Board members attended the Lunch with Heroes event at the Missouri Valley Montessori School of Bismarck. The Association provided 27 kids with bird houses and paint supplies and Board members helped the students paint their houses which they got to take home. After painting we had a box lunch with the students in their classrooms. It was a great event, and all enjoyed the time spent together. The Professional Women in Building has been working hard as well. They recently held a contest to do a Master Bedroom Makeover for one lucky winner. They promoted the event on local news stations and through social media. This is a great concept and something the Association is happy to be involved in. We look forward to continuing to work with PWB members and have enjoyed watching the organization grow.
Lastly, the Association fielded a call regarding theft of materials on jobsites. This builder has had materials stolen from active jobsites on a few separate occasions. He reached out to the Association to see if there is something we could do with local leaders and law enforcement. As builders, we are aware theft is becoming more and more common. Prior to reaching out to local leaders and law enforcement, we wanted to gather as much information and examples as possible. Dawn sent an email to membership and the number of responses were limited. If you have In August, Dawn and Brittney traveled to Minneapolis for experienced theft issues, please email Dawn with what has happened. a three-day Executive Officer and staff training put on by NAHB. Both found the training to be very valuable and they As you can see, it has been a busy couple of months. We brought back a lot of good information that will help them are looking forward to the Fall Parade of Homes and hope perform even better than they already do. The Board to see many of you submit entries! appreciates their hard work and dedication to the
‘17 ‘18 ‘19 ‘20 ‘21
JANUARY
0
9
1
0
10
5
0
0
0
0
0
1
0
0
2
0
0
0
0
2
0
0
2
0
0
0
0
0
0
2
1
2
FEBRUARY
3
4
5
2
0
10 17
0
0
0
1
2
1
2
6
5
0
0
1
0
0
0
3
0
2
0
1
1
0
0
0
3
0
MARCH
21 22
14
2
9
32 28
2
2
1
4
9
11
6
4
8
2
8
9
0
3
0
0
0
1
4
9
9
4
2
4
APRIL
52 29
40 27 26 23 43
4
3
6
8
6
14 12
8
16 11
5
7
18
2
4
0
6
3
0
14 5 11 11 14
4
11
MAY
31 46
29 16 28 23 12
5
6
4
9
9
26 13 11 15 11
4
6
17
2
5
5
0
2
2
14 16
7
5
13
JUNE
31 43
48 24 18 40 53
10
2
2
3
8
21 20 13 13
6
3
1
6
3
1
1
1
3
8 11
4
4
6
8
8
JULY
40 16
60 22 17 34 41
3
3
2
7
5
11 12 14
9
0
5
1
5
1
6
1
13 9
4
3
11
1
7
AUGUST
20 48
16 27 19 29
6
1
7
2
17
8
2
9
4
5
3
8
9
6
8
5
5
SEPTEMBER
28 44
26 22 23 43
8
3
10
9
16 14 26 11 10 22
3
3
4
5
2
4
9
9
9
6
5
10
OCTOBER
54 14
22 15 36 43
4
7
3
10
17 10 7
5
3
8
4
7
3
7
1
5
NOVEMBER
16 11
9
3
0
1
DECEMBER
1
0
0
0
0
2
11 14 12 1
1
21
TOTAL
297 286 270 169 201 312 199
YTD TOTAL
297 286 270 169 201 312
BISMARCK SINGLE FAMILY DWELLING APEX BUILDERS BOULDER HOMES COPPER RIDGE DESIGN COPPER RIDGE DESIGN COPPER RIDGE DESIGN COPPER RIDGE DESIGN COPPER RIDGE DESIGN COPPER RIDGE DESIGN COPPER RIDGE DESIGN COPPER RIDGE DESIGN DIVERSITY HOMES DIVERSITY HOMES E HOMES EMH, INC. EMH, INC. J.E. HOMES J.E. HOMES J.E. HOMES J.E. HOMES JOE VETTER CONST. KAMROSE CONST. KNUTSON HOMES
‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21
Data not collected for the ETA in 2015 and 2016.
MONTH YEAR ‘15 ‘16
5511 GOLD DR 5317 COBALT DR 3200 TEXAS LOOP 3206 TEXAS LOOP 3210 TEXAS LOOP 3214 TEXAS LOOP 3610 TEXAS LOOP 3614 TEXAS LOOP 3618 TEXAS LOOP 3622 TEXAS LOOP 4313 DOWNING ST 934 W GLENWOOD DR 4002 SILVER BLVD 4621 MARSH HAWK DR 624 SLATE DR 3816 NICKEL ST 3902 HERD PL 4110 STEEL PL 4123 STEEL PL 3922 COGBURN DR 5404 HENDRICKSON DR 506 FLINT DR
0
0
‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21
9 13
6
4
7 13 20 10 16
‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21
‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21
20 10
12 12
9 29 20
9
9
7
0
7
7
7
6
2
6
2
5
0
0
0
2
3
4
1
0
2
1
0
1
0
0
0
0
0
2
1
0
4
0
0
0
0
0
2
0
0
2
45 27
36
54
132 123 114 116 71
90
67 40 37 28
20
32
83 80 51
61
60
57
45 27
36
54
132 123 114 116 71
90
67 40 37 28
20
32
83 80 51 61
60
57
39
35
10
53
LEGENDARY HOMES MARK FLECK CONST. PARAMOUNT BUILDERS PARAMOUNT BUILDERS PARAMOUNT BUILDERS PARAMOUNT BUILDERS PARAMOUNT BUILDERS PARAMOUNT BUILDERS SELF/OWNER SHORESTONE SOLUT. VERITY HOMES VERITY HOMES VERITY HOMES VERITY HOMES VERITY HOMES VERITY HOMES VERITY HOMES VERITY HOMES VERITY HOMES
3617 COGBURN DR 408 ARABIAN AVE 205 LENNOX DR 209 LENNOX DR 217 LENNOX DR 221 LENNOX DR 307 LENNOX DR 309 LENNOX DR 5118 NORMANDY ST 5301 COBALT DR 3308 KENNER LOOP 3309 KENNER LOOP 3310 KENNER LOOP 3312 KENNER LOOP 3313 KENNER LOOP 3314 KENNER LOOP 3318 KENNER LOOP 3320 KENNER LOOP 4813 CORNICE LOOP
SELF/OWNER VERITY HOMES
5223 FERNWOOD DR 5320 NE 71ST AVE
CREATIVE TOUCH HOMES 3918 KARSKY CONSTRUCTION KARSKY CONSTRUCTION REDFORD SIGNATURE SELF/OWNER SELF/OWNER VERITY HOMES VERITY HOMES VERITY HOMES
LAKEWOOD DR SE 1010 LAKOTA PL NE 1013 CHIPPEWA AVE NE 3724 ARIKARA AVE N 402 LENA CT SE 404 LENA CT SE 1411 SUFFOLK DR SE 2515 14TH AVE SE 4804 34TH AVE NW
RUSCH HOMES
2895 ARMSTRONG ST
GRENDAHL DESIGN KNUTSON HOMES RUDNICK CONST.
7650 STAR LN 13818 TRAIL BOSS WY 3515 PALMER PL
ARTISTIC HOMES DIVERSITY HOMES E HOMES
6134 CAREFREE CIR 8221 NICKLAUS DR 8215 E BRISTOL DR
ASPIRE HOMES BOULDER HOMES BRUCE'S MANUFACTURED HOUSING PENNER BUILDERS
2623 35TH ST 4519 TRAILBLAZER LOOP 5861 CO RD 81 4962 CO RD 86
BISMARCK ETA SINGLE FAMILY DWELLING
MANDAN SINGLE FAMILY DWELLING
LINCOLN SINGLE FAMILY DWELLING
BURLEIGH COUNTY SINGLE FAMILY DWELLING
MORTON COUNTY SINGLE FAMILY DWELLING
SEE YOUR AD HERE! Call the BMHBA office (701-222-2400) for more information.
On July 27, the BMHBA Board of Directors helped kids paint birdhouses at the Missouri Valley Montessori School. Afterwards the kids had lunch with their heroes!
JANUARY 21
FEBRUARY 9-12
MARCH 26-27
APRIL 22-25
MAY 17
JULY 13
JULY 27
AUGUST 19
SEPTEMBER 23-26
OCTOBER 21
NOVEMBER
I was born in West Fargo and made it all the way to Hazen, ND where I spent my teenage years. I married my high school sweetheart there and we have lived in a few other states, (and one country) before bringing our 4 wonderful boys “back home” to raise in Bismarck. We are blessed with a daughter-in-law and 2 beautiful granddaughters. This month will be our 36th wedding anniversary.
WHAT HAS BEEN YOUR FAVORITE PART ABOUT
BEING A MEMBER OF THE BMHBA? I have HOW LONG HAVE YOU BEEN IN THE BMHBA? 19 years enjoyed getting to WHERE DO YOU WORK AND WHAT IS YOUR JOB TITLE? I own know some great Hallmark Homes with my husband Scott. AKA as “Scott’s people wife” being a member of the WHAT DO YOU DO ON A DAY-TO-DAY BASIS AT YOUR JOB? BMHBA. Everything and anything. We can start the day planning on There is a getting a handful of things done in the office but are always lot you can on call to go out to job sites. Most days are scheduled and learn from your fellow members that can help you go according to plan but there are a lot of days that the plan personally and professionally. Being a member of the BMHBA has also allowed me to meet some amazing women doesn’t go according to the schedule. A day can include in the building industry locally and nationally through the helping clients with selections to designing floor plans, job NAHB Professional Women in Building Council. site measuring to ordering materials and everything in between. WHAT ADVICE WOULD YOU GIVE SOMEONE WHO IS INTERESTED IN BEING ON THE BMHBA BOARD? Just do it! Get involved in your HOW HAS THE BUILDING INDUSTRY CHANGED SINCE YOU FIRST association because the association needs participation from everyone to be successful. Anyone is welcome. No JOINED THE ASSOCIATION? Several things have changed over experience is required! Have a seat at the table, it is there if the years that is for sure! The homes we do are definitely you really want it. We all think we don’t have time, but if more detailed. There are so many more options now than something is important to you, you will make the time. ever before which can be overwhelming for clients and building codes are ever changing. It is a fun industry, and we enjoy keeping up with the latest trends so that we can WHAT DO YOU ENJOY DOING IN YOUR FREE TIME? What is that?!? deliver something new on every custom home we build. Ha! Family time first, and traveling anywhere, anytime for any reason. I do love tea parties and coffee dates with my HOW LONG HAVE YOU BEEN ON THE BOARD? I joined the board in granddaughters and camping is at the top of the list too. January of 2020 and have been on the parade of homes committee for a long, long time. Scott has served as a board member in the past as well.
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
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14
TH
ANNUAL
SPORTING CLAY SHOOT
On Thursday, August 19 the BMHBA hosted the 14 th Annual Sporting Clay Shoot at Capital City Sporting Clays in Bismarck. Contests were held and multiple prizes were given away! The BMHBA would like to extend our gratitude to our generous sponsors, volunteers, and clay shooters. We couldn’t host these events without you. If you did not participate in this year’s event, we hope to see you at next year’s clay shoot!
THANK YOU TO OUR SPONSORS PLATINUM SPONSOR
GUN SPONSORS
BEER SPONSOR
GOLD SPONSOR
CONTEST PRIZE SPONSORS
PRIZE SPONSORS
SILVER SPONSOR
BRONZE SPONSOR
GRILL MASTER SPONSOR
The Bismarck Mandan Professional Women in Building Council (BMPWB) represents women who are actively involved in all aspects of the building industry as builders, developers, remodelers, suppliers, architects, marketing experts, interior designers, relators, mortgage lenders and trade contractors. The Council is an affiliate of the National Association of Home Builders. Our mission is to promote, enhance and support women within the construction industry as well as the next generation of industry professionals. We have partnered with local builders, sub-contractors, and other local businesses to make some deserving community member master bedroom dreams come true. This may include, but not limited to, new flooring, paint, light fixtures, furniture, bedding, mattress, and decor. The winner has been chosen: Abby Krebs! We will reveal the Master Bedroom Makeover during PWB Week September 13-17. So stay tuned!
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When laying down the foundation of a building, it is all about the timing, says Burleigh County Building Official Mitch Flanagan.
Flanagan says people wanted to see how the pandemic would play out.
The housing market across the nation has stalled out after the boom earlier this year.
Lumber prices have trended down recently, but that has not yet reflected on the retail price.
However, according to real estate experts in BismarckMandan, it is still an extreme seller’s market.
Lumber kits used to build houses spiked earlier this year due to a lumber shortage.
Jamie McLean from Integra Realty Group says that there is a low inventory in available houses, giving sellers more incentive to put their houses up for sale.
Jeff White from White House Realty says this trend may continue for the near future.
“In the beginning of the year, we saw quite a drop off in “It’s a pretty short build season from April until October. permit requests. It was quiet from January until March,” said When the ground starts thawing out, they start digging,” said Flanagan. Flanagan. But with the cost of lumber going back down and COVID It first starts by obtaining a permit to build. 286 building cases remaining low so far, business is continuing to pick permits have been issued so far this year. Last year there back up. were 177 building permits issued. Building permits can be issued within one to three days. Flanagan says one of the reasons for the increase in Flanagan’s office says processing time takes between 24building permits is historically low interest rates. Common 48 hours. areas for construction are near Highway 83. The average permit fee in Burleigh County is about From April until now, he says there’s been a 29% increase $1,750 for a single-family home under 500,000. in permits issued.
He said buyers have put in offers for as many as 40 houses and offer to buy a house for $100,000 or more over market value, only to walk away empty-handed.
McLean said one metric that brokers use to determine whether it is a buyer’s or seller’s market is the absorption rate, or how many months worth of inventory they have. “Right now we are hovering at about two months of inventory, a healthy market is at six,” said McLean.
“Lumber was down 45 percent in a single month, but you haven’t seen that really translate to the retail end of it, because those contracts are still in place for the lumber they have,” said White.
According to McLean, right now there are only 183 singlefamily homes available. Buyers are encouraged to be ready to buy when looking at a house they may be interested in.
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Greetings,
On a more personal note, and on behalf of the NDAB Senior Officers, I would like to share an update about NDAB operations and staffing.
We have almost reached the fall season and it sometimes feels as though the devastating heat and oppressive humidity will never end. Drought conditions continue throughout North Dakota with more than 90% of the state in severe, extreme, or NDAB CEO Kim Schneider's last exceptional drought conditions, according to Ag Week. With day of employment was July 9. We drought conditions in mind, it's a great time to consider ways have enjoyed our time with Kim and to incorporate water efficiency into a home. thank her for her leadership and dedication to the North Dakota According to NAHB, water-conserving fixtures are among Association of Builders over the the 20 top green features desired by 2021 NDAB PRESIDENT past 8+ years. PHIL RISBRUDT homeowners. "Incorporating these [toilets, showerheads, faucets, etc.] into homes along with other water-focused A hiring committee has been strategies can provide multiple benefits for builders and formed, comprised of representatives from each local consumers alike. Builders can save time and money on association with an Executive Officer representative as materials and labor with proper planning while positioning well. The NDAB Senior Officers and the hiring committee are customers to save on their utility bills and have an overall working to establish an operational plan while the search for a improved living experience." - NAHB Now new executive officer is underway. To stay current on the high-performance residential building sector, with tips on water efficiency, energy efficiency, indoor air quality, and other building science strategies, follow NAHB’s Sustainability and Green Building efforts on Twitter and make plans to attend the International Builders Show in Orlando, February 8-10, 2022. Registration opens September 1st.
We appreciate your patience and understanding during this time of transition. NDAB emails are being monitored by the Minot Association of Builders; please allow 3-5 business days for a response. If you need immediate assistance, contact the Fargo-Moorhead Association of Builders at (701) 232-5846.
Sincerely, Phil Risbrudt, NDAB Board President
Building material prices have increased 19.4% over the past 12 months and 13% year to date, according to the latest Producer Price Index (PPI) report released by the Bureau of Labor Statistics. Prices paid for goods used in residential construction (excluding energy) rose 0.2% in July after climbing 3% in June (not seasonally adjusted). Building materials (i.e., inputs to residential construction less food and energy) prices have declined just twice since December 2019. The record year-todate increase stands in stark contrast with the same period in 2020, during which prices increased 1.1%. The average change in the building materials PPI between January and July was +1.2% from 2015 through 2019 (the most recent data available), less than one-tenth the gain thus far in 2021.
Price Data for Key Materials Steel mill products prices climbed 10.8% in July following a 6.2% increase in June. The pace of increases has
Lot values for single-family detached homes started in 2020 surged 18% to a record-high median lot price of $53,000, according to NAHB’s analysis of the Census Bureau’s Survey of Construction (SOC) data. Lot values are now approaching the record levels of the housing boom of 2005-2006, when half of lots were going for more than $43,000, which is equivalent to approximately $55,000 when adjusted for inflation. Lots are most expensive in the New England region, in which half of all single-family detached (SFD) spec homes started in 2020 reported lot values of more than $120,000. New England is known for strict local zoning regulations that often require very low densities.
accelerated each of the last two months, and prices have climbed 108.6% over the past 12 months and 87.6% in 2021 alone. The monthly change in the steel mill products PPI increased by more than 10% only three times (in 1947, 1948 and 2008) over the 80-year period ending in 2020. Monthly increases have already exceeded that mark four times in 2021. The PPI for softwood lumber (seasonally adjusted) decreased 29.0% in July — the largest monthly decline since tracking of the series began in 1947. Prior to 2020, the largest monthly drop in the softwood lumber PPI was a 10.7% reading from April 1980. The steep decrease came on the heels of an unexpectedly mild 0.7% decline in June as the cash price of lumber began falling precipitously in midMay. The PPI for softwood lumber has fallen 29.5% from its peak but remains 71.9% above its January 2020 level. Although the direction of the softwood lumber index value change is encouraging, the continued volatility is not. Price volatility as measured monthly by the PPI or weekly by industry publications remains at an all-time high for a 12month period.
Prices paid for gypsum products increased 2.5% in July and are up 15.8% year to date. Over the past 12 months, the index has climbed 21.7% — the largest 12-month increase since July 2006. Ready-mix concrete prices were unchanged in July (seasonally adjusted) after increasing 1.1% in June.
The second most expensive is the Pacific division, with a median lot value of $103,000 in 2020 — a new nominal record for the division. The Pacific division has the smallest lots, which make them the most expensive per acre. The Mountain division also set a new record, with half of the lots priced at or above $73,000. The West South Central Division posted the fastest lot value appreciation, with the median lot price rising 20% to $60,000. Just eight years ago, half of the SFD lots were going for $30,000 or less — half of the current median.
Higher construction costs and supply shortages along with rising home prices pushed builder confidence to its lowest reading since July 2020, according to the NAHB/Wells Fargo Housing Market Index (HMI). Builder sentiment in the market for newly built single-family homes fell five points to 75 in August. “Buyer traffic has fallen to its lowest reading since July 2020 as some prospective buyers are experiencing sticker shock due to higher construction costs,” said NAHB Chairman Chuck Fowke. “Policymakers need to find longterm solutions to supply-chain issues.” “While the demographics and interest for home buying remain solid, higher costs and material access issues have resulted in lower levels of home building and even put a hold on some new home sales,” said NAHB Chief Economist Robert Dietz. “While these supply-side limitations are holding back the market, our expectation is that production bottlenecks should ease over the coming months and the market should return to more normal conditions.”
Derived from a monthly survey that NAHB has been conducting for 35 years, the NAHB/Wells Fargo HMI gauges
builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor. The HMI index gauging current sales conditions fell five points to 81 and the component measuring traffic of prospective buyers also posted a five-point decline to 60. The gauge charting sales expectations in the next six months held steady at 81. Looking at the three-month moving averages for regional HMI scores, the Northeast fell one point to 74, the Midwest dropped two points to 68, the South posted a three-point decline to 82 and the West registered a two-point drop to 85. HMI tables can be found at nahb.org/hmi. More information on housing statistics is also available at Housing Economics PLUS (formerly housingeconomics.com).
Total payroll employment rose by 943,000, and the unemployment rate dropped sharply to 5.4% in July. Both residential and nonresidential construction showed modest job gains of 8,300 and 2,900, respectively, climbing to a total employment of 7.4 million. NAHB Chief Economist Robert Dietz discusses the jobs report on Twitter: Currently, residential construction employment exceeds its level in February 2020 and now stands at 3 million, comprising 883,000 builders and 2.2 million residential specialty trade contractors. However, only 56% of nonresidential construction jobs lost in March and April have been recovered.
In July, the unemployment rate for construction declined to 7.3% on a seasonally adjusted basis. The unemployment rate for construction workers has been trending lower, after reaching 14.1% in April 2020 as a result of the COVID-19 pandemic. The nation’s overall unemployment rate declined by 0.5% to 5.4% in July — down 9.4% from the April 2020 rate (14.8%), and 1.9% higher than the unemployment rate in February 2020.
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