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Issue 1 | March 8, 2017

Permits Plus + A bi-monthly statistics and advocacy update for HBA of F-M members FOR YOUR CALENDAR:

March 21 Lunch Session: Jobsite Security, Spring Load Restrictions & Construction Vehicles on Roads March 23 “Chilly” Cook-Off March 28 Lunch Session: Independent Contractor v. Employee

March 30 Lunch Session: Safety Topic - Silica Sand Rule April 22-23, 28-30, May 5-7 Spring Parade of Homes April 25 Lunch Session: Jobs HQ Tips & Techniques May 12 Remodelers Council Picnic May 18 Parade of Homes Celebration

Visit the calendar at hbafm.com for details.

TOP 5 SUMMARY 2016:

In addition to 2016’s year end building permit report, we’ve included our “Top 5” builder summary listing that recaps local building company activity across the metro last year. For January and February permit reports covering the metro and outlying areas, visit the members-only section at hbafm.com and click the Information tab.

Published six times per year in addition to the Plains Builder, Permits Plus aims to provide a concise report on building permit numbers and a timely update on Association advocacy efforts.

2016

housing activity was steady, value over all sectors highest since 2008

According to the HBA of F-M’s year-end building permit report, construction activity remains strong in the F-M metro area. Dilworth, Fargo, Moorhead and West Fargo collectively brought in nearly $895 million through 4,550 building permits. The number of permits issued last year was the most since 2008, which was a banner year resulting in 6,486 total permits. Compared to 2015, total construction value was up 11 percent and permits were up 3 percent. Total permits and values include housing, multi-family, new commercial, residential and commercial remodeling, public and miscellaneous categories. HBA of F-M President Tyrone Leslie, Heritage Homes, says, “Despite some rainy summer weather, a tumultuous election season and frigid temps late last year, we have steady numbers to report. It is easy to see the results of last year’s construction activity simply by driving some of our main roads in the F-M metro.” Housing starts for all communities combined to reach 1,111 and accounted for 24 percent of total permits. Single-family permits were up 5 percent, while twin home and rowhouse/ townhouse permits dropped 34 percent. “In terms of affordable housing, it’s troubling to see the attached housing sector decrease,” Leslie says, “The HBA of F-M is working to keep incentives like the two-year tax exemption for new housing for communities in North Dakota, and address other issues affecting affordability in Minnesota. It is our goal to keep new housing and homeownership attainable for more of the area’s workforce families.” West Fargo was the only community that experienced an increase in housing permits compared to 2015 (5 percent), but its total valuation remained relatively equal. Conversely, Fargo was the only community that saw an increase in housing valuation, but its number of permits fell 10 percent compared to 2015. In Minnesota, Dilworth’s housing permits decreased about 22 percent, and Moorhead’s fell 15 percent. Looking across the last decade, new housing activity of 1,111 in the metro exceeded the 10-year average of 942, and is right in line with the five-year average of 1,116. Compared to 2015, residential remodeling permits increased in all communities except Moorhead, which saw a slight dip of just 10 permits. Combined for the metro, remodeling was up 6 percent in number of permits and 19 percent in terms of value. “Reflecting on the past ten years, what we see is steady, sustained construction activity when you combine all sectors,” Leslie says. “We just don’t have the wild swings that some parts of the country sees. In terms of housing specifically, numbers are down a bit, and that is in the affordable housing market. The HBA of F-M hopes to work with legislators to retain the current incentives, and address some regulations, that definitely affect homeownership for all types of buyers.”

HBA OF F-M + 1802 32ND AVE S + FARGO ND 58103 + (701) 232-5846 + HBAFM.COM + INFO@HBAFM.COM


YEAR-END 2016 COMPARED TO YEAR-END 2015 HOUSING STARTS -6%

MULTI FAMILY -13%

NEW COMMERCIAL -14%

RESIDENTIAL REMODEL +6%

COMMERCIAL REMODEL +5%

PUBLIC PROJECTS -13%

TOTAL PERMITS 2016

HOUSING TOTALS 2016

Chart below shows permit and value growth year-end 2016 compared to the same period in 2015. See insert for the full permit report.

HOUSING STARTS

HOUSING VALUE

TOTAL PERMITS

TOTAL VALUE

2

City

Dilworth Moorhead Fargo West Fargo Totals Dilworth Moorhead Fargo West Fargo Totals Housing Starts Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Totals Housing Starts Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Totals

Jan - Dec 2016 21 169 476 445 1111 $4,775,900 $33,745,300 $122,155,124 $101,425,173 $262,101,497 1111 40 134 2139 543 39 544 4550 $262,101,497 $99,165,376 $171,096,413 $33,300,191 $191 304 192 $191,304,192 $94,616,448 $42,640,300 $894,224,417

Jan - Dec 2015 27 199 526 424 1176 $7,303,850 $40,054,899 $114,137,979 $101,576,236 $263,072,964 1176 46 156 2024 515 45 459 4421 $263,072,964 $105,696,483 $112,128,499 $27,955,407 $116 586 501 $116,586,501 $141,493,608 $38,005,990 $804,939,452

Difference -6 -30 -50 21 -65 -$2,527,950 -$6,309,599 $8,017,145 -$151,063 -$971,467 -65 -6 -22 115 28 -6 85 129 -$971,467 -$6,531,107 $58,967,914 $5,344,784 $74 717 691 $74,717,691 -$46,877,160 $4,634,310 $89,284,965

HBA of F-M’s monthly building permit report is prepared by Fiebiger, Swanson, West & Co.

Percentage Difference -22% -15% -10% 5% -6% -35% -16% 7% -0.15% -0.37% -6% -13% -14% 6% 5% -13% 19% 3% 0% -6% 53% 19% 64% -33% 12% 11%

Permits Plus


SEASONALLY ADJUSTED UNEMPLOYMENT RATES Dec. 2016

Nov. 2016

Minnesota

Dec. 2015

Source: bls.gov

4.0%

North Dakota

4.0%

3.9%

3.0%

3.1%

4.6%

5.0%

2.5%

2.3%

Source: bls.gov

3.0%

United States Source: bls.gov

4.7%

Fargo-Moorhead Source: bls.gov

2.6%

SINGLE AND MULTI-FAMILY BUILDING PERMITS Dec. 2016

Dec. 2015

Minnesota

% change

Source: NAHB

24,263

21,873

11%

5,727

-31%

North Dakota Source: NAHB

3,968

United States Source: NAHB

1,190,191

Fargo-Moorhead

1,178,138

1%

2,698

-8%

Source: HBA of F-M

2,484

30-Year Fixed

4.250%

15-Year Fixed

3.625%

30-Year Fixed FHA

4.375%

5-Year ARM VA

4.125%

5-Year ARM

3.625%

30-Year Jumbo

4.250%

FRAMING LUMBER PRICES Source: National Association of Home Builders

Date

Per 1,000 Board Ft.

CME Futures

Jan. 27

$355

$332

Jan. 20 Jan. 13

$366 $354

$347.9 $325.6

$356

Source: F-M Area Association of Realtors

Dec. 2016

Dec. 2015

% change

$245,934

$235,756

4%

$911,749,466

$848,355,936

7%

$179,168,650

$169,036,883

6%

$657,354,483

$617,215,477

7%

Home prices in Fargo-Moorhead Closed MLS Volume

Closed MLS Volume - New Construction

MORTGAGE RATES

Source: Wells Fargo as of March 3, 2017

Feb. 3

LOCAL REAL ESTATE

$326.8

Closed MLS Volume - Existing Residential

LOCAL REAL ESTATE Source: F-M Area Association of Realtors

Feb. 2017

Feb. 2016

% change

$231,632

$214,636

8%

$68,083,103

$71,996,498

-5%

$17,263,785

$10,704,133

61%

$54,539,540

$51,554,913

6%

Home prices in Fargo-Moorhead Closed MLS Volume

Closed MLS Volume - New Construction

Closed MLS Volume - Existing Residential

U.S. REGULAR GASOLINE PRICES

Source: Energy Information Administration

U.S.

Midwest

(DOLLARS PER GALLON)

Feb. 27

Feb. 20

Feb. 13

$2.301

$2.279

$2.302

$2.427

Issue 1 | March 8, 2017

$2.414

$2.418

Feb. 6

Jan. 30

$2.269

$2.255

$2.405

$2.408

3


Home Builders Association of F-M 1802 32nd Ave. S. Fargo, N.D. 58103

Pluses

and

Minuses

The Builders Association of Minnesota’s Townhome Definition Bill HF792/SF578 will conform with the standard, national definition of a townhome, spurring development of affordable, market-rate housing in Minnesota. On Feb. 28, the bill passed the Job Growth and Energy Affordability committee in the House, where it was amended to include new rulemaking language, and a stay on enforcement of the sprinkler rule for two-unit townhomes. On March 3, the bill was heard in the House Government Operations and Elections committee and passed unanimously. It is now is on the floor in both the House and Senate! The North Dakota Association of Builders started out the 35th assembly tracking 33 bills. After crossover break, legislators reconvened March 1 and NDAB is now down to 18 bills it is tracking. Staff is watching HB1182, relating to renaissance zone tax credits and exemptions, which is of interest to the HBA of F-M. The Senate Finance and Taxation committee had its first hearing on this bill on March 1 and the room was filled with opposition. No action was taken. Some of the other bills NDAB is watching include a bill pertaining to landlord responsibilities of installing carbon monoxide detectors, a “One Call” bill and housing for essential service workers. The HBA of F-M supported Fargo Public Schools’ March 7 election for approval of a specified mill levy. The measure passed with 73 percent of voters approving, and gives the school system the funds necessary to maintain its current standard of education. Providing this authority ensures that the District can continue to cover the costs of offering a comprehensive educational experience for all students. It was not a request to increase property taxes. May 18 | DoubleTree by Hilton West Fargo (formerly Cambria) SAVE THE EVENING: Parade of Homes Celebration SOCIAL • REVIEW OF HOME ENTRIES • FREE REGISTRATION, CASH PRIZES FOR PARADE BUILDERS Register: hbafm.memberzone.com/events/calendar or email tahra@hbafm.com

Permits Plus

4


Home Builders Association of Fargo-Moorhead 2016 Permit Report 2014

DILWORTH Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total

Permits

49 24 2 1 0 1 4 44 4 0 28 130

Units

23 0 0

2015 Value Permits

$8,540,000 $5,599,000 $400,000 $2,541,000 $0 $1,600,000 $1,778,000 $504,355 $3,040,000 $0 $615,199 $16,077,554

27 23 4 0 0 0 3 56 6 0 13 105

$38,595,439 $28,026,514 $7,328,925 $3,240,000 $0 $15,859,000 $14,882,597 $6,908,674 $27,775,696 $0 $481,735 $104,503,141

199 151 48 0 0 16 30 498 92 0 48 883

Units

0 0 0

2016 Value Permits

$7,303,850 $6,363,850 $940,000 $0 $0 $0 $422,000 $359,896 $912,500 $0 $41,689 $9,039,935

21 21 0 0 0 0 0 63 2 0 19 105

$40,054,899 $31,948,899 $8,106,000 $0 $0 $24,896,880 $10,466,714 $5,016,278 $9,440,945 $0 $1,023,375 $90,899,091

Units

3-Yr Avg Value

Permits

$4,775,900 $4,775,900 $0 $0 $0 $0 $0 $418,361 $1,195,778 $0 $169,800 $6,559,839

32 23 2 0 0 0 2 54 4 0 20 113

169 141 4 0 12 12 31 488 72 0 72 844

$33,745,300 $29,395,300 $750,000 0 $0 24 $3,600,000 318 $25,866,730 $33,067,240 $5,828,185 $80,945,338 $0 $510,093 $179,962,886

192 143 33 2 4 11 28 479 86 0 66 862

0 0 0

Units

8 0 0

Value

6,873,250 5,579,583 446,667 847,000 0 533,333 733,333 427,537 1,716,093 0 275,563 $10,559,109

MOORHEAD Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total

209 137 48 6 0 6 22 451 93 0 78 859

24 0 135

0 0 308

8 8 254

37,465,213 29,790,238 5,394,975 1,080,000 1,200,000 22,207,537 19,472,184 5,917,712 39,387,326 0 671,734 $125,121,706

FARGO Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total

377 312 30 35 0 44 77 1017 389 59 427 2,390

$86,407,306 526 $75,353,306 374 $5,884,000 54 35 $5,170,000 98 0 $0 0 1897 $148,775,000 27 $482,318,840 84 $16,000,502 1063 $118,099,353 367 $117,463,205 37 $43,082,219 362 $1,012,146,425 2,466

$114,137,979 476 $90,930,759 369 $9,154,890 82 98 $14,052,330 25 0 $0 0 902 $76,040,603 28 $60,723,155 62 $15,409,343 1122 $76,695,244 390 $131,698,511 31 $25,994,611 434 $500,699,446 2,543

$122,155,124 $103,364,854 $12,480,600 25 $6,309,670 0 $0 818 $73,298,646 $86,914,623 $20,103,577 $97,140,526 $57,725,906 $38,164,689 $495,503,091

460 352 55 53 0 33 74 1,067 382 42 408 2,466

555 324 108 47 0 14 44 311 57 5 83 1,069

$113,009,637 $84,688,637 $14,205,000 $14,116,000 $0 $33,185,203 $63,604,971 $5,133,699 $7,785,536 $16,387,951 $3,268,723 $242,375,720

424 307 54 31 0 3 39 407 50 8 36 967

$101,576,236 445 $84,068,236 367 $8,105,000 47 63 $9,403,000 8 0 $0 0 42 $4,759,000 0 $40,516,630 41 $7,169,890 466 $29,537,812 79 $9,795,097 8 $10,946,315 19 $204,300,980 1,058

$101,425,173 $87,226,840 $9,858,333 31 $4,340,000 0 $0 0 $0 $51,114,550 $6,950,068 $12,022,550 $36,890,542 $3,795,718 $212,198,601

475 333 70 29 0 6 41 395 62 7 46 1,031

$246,552,382 1,176 $193,667,457 855 $27,817,925 160 205 $25,067,000 129 0 $0 0 2473 $199,419,203 46 $562,584,408 156 $28,547,230 2024 $156,700,585 515 $133,851,156 45 $47,447,876 459 $1,375,102,840 4,421

$263,072,964 1,111 $213,311,744 898 $26,305,890 133 161 $23,455,330 33 0 $0 12 1252 $105,696,483 40 $112,128,499 134 $27,955,407 2139 $116,586,501 543 $141,493,608 39 $38,005,990 544 $804,939,452 4,550

$262,101,497 $224,762,894 $23,088,933 56 $10,649,670 24 $3,600,000 1136 $99,165,376 $171,096,413 $33,300,191 $191,304,192 $94,616,448 $42,640,300 $894,224,417

53 0 1,206

107,566,803 89,882,973 9,173,163 8,510,667 0 99,371,416 209,985,539 17,171,141 97,311,708 102,295,874 35,747,173 $669,449,654

WEST FARGO Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total

123 0 441

72 0 161

105,337,015 85,327,904 10,722,778 9,286,333 0 12,648,068 51,745,384 6,417,886 16,448,633 21,024,530 6,003,585 $219,625,100

TOTAL Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total

1/11/2017

1,190 797 188 89 0 65 147 1823 543 64 616 4,448

No assurance is provided on this report. Permit information reported here may have changed. For the most current permit information, please contact the individual cities.

1,159 850 160 84 141 4 8 50 1,620 146 1,995 534 49 540 4,473

257,242,281 210,580,698 25,737,583 19,724,000 1,200,000 134,760,354 281,936,440 29,934,276 154,863,759 123,320,404 42,698,055 $1,024,755,570


Home Builders Association of Fargo‐Moorhead Top Five Summary Fargo/Moorhead/West Fargo/Dilworth Top 5 Single Family Builders ‐ Units 1 2 3 4 5

Thomsen Homes Jordahl Custom Homes Dabbert Custom Homes Heritage Homes Platinum Homes

Units 155 123 46 41 27

2015 Value HBA Member $  24,942,900 x $  24,466,496 x $    9,317,041 x $  12,089,070 x $    6,700,000 x

** Note: 28 homes valued at $9,001,700 were built by owner (not contractor)

Top 5 Single Family Builders ‐ Value 1 Thomsen Homes 2 Jordahl Custom Homes 3 Heritage Homes 4 Titan Homes 5 Dabbert Custom Homes

Top 5 Single Family Builders ‐ Units 1 2 3 4 5

Jordahl Custom Homes Thomsen Homes J & L Construction Dabbert Custom Homes Adams Development

Units 184 166 45 44 44

2016 Value HBA Member $  34,180,830 x $  26,968,165 x $    5,645,250 x $    9,027,300 x $    6,520,630 x

** Note: 13 homes valued at $4,350,000 were built by owner (not contractor)

155 123 41 22 46

$  24,942,900 $  24,466,496 $  12,089,070 $    9,891,000 $    9,317,041

x x x x x

Top 5 Single Family Builders ‐ Value 1 Jordahl Custom Homes 2 Thomsen Homes 3 Heritage Homes 4 Designer Homes of F‐M 5 Dabbert Custom Homes

184 166 43 24 44

$  34,180,830 $  26,968,165 $  14,795,000 $  10,230,000 $    9,027,300

x x x x x

Top 5 HBA of FM Member Builders ‐ Units (SF, TH, RH) 1 Jordahl Custom Homes 220 2 Thomsen Homes 159 3 Dabbert Custom Homes 55 4 Heritage Homes 49 5 J & L Construction 47

$  40,647,496 $  25,501,300 $  10,634,371 $  14,369,070 $    7,359,900

x x x x x

Top 5 HBA of FM Member Builders ‐ Units (SF, TH, RH) 1 Jordahl Custom Homes 224 2 Thomsen Homes 170 3 J & L Construction 63 4 Heritage Homes 61 5 Adams Development 52

$  40,448,830 $  27,478,165 $    7,688,250 $  20,375,000 $    7,597,230

x x x x x

Top 5 HBA of FM Member Builders ‐ Value (SF, TH, RH) 1 Jordahl Custom Homes 220 2 Thomsen Homes 159 3 Heritage Homes 49 4 Dabbert Custom Homes 55 5 Titan Homes 22

$  40,647,496 $  25,501,300 $  14,369,070 $  10,634,371 $    9,891,000

x x x x x

Top 5 HBA of FM Member Builders ‐ Value (SF, TH, RH) 1 Jordahl Custom Homes 224 2 Thomsen Homes 170 3 Heritage Homes 61 4 Designer Homes of F‐M 24 5 Dabbert Custom Homes 51

$  40,448,830 $  27,478,165 $  20,375,000 $  10,230,000 $    9,937,300

x x x x x

Top 5 Multifamily Builders ‐ Units 1 Paces Lodging 2 Goldmark Development  3 Enclave Development 4 Eagle Ridge Partners 5 H2 Incorporated

376 205 195 106 76

$  31,019,903 $  15,400,000 $  15,491,000 $    7,720,000 $    6,250,000

Top 5 Multifamily Builders ‐ Units 1 Enclave Development 2 Roers Construction 3 Dietrich Construction 4 Dale Buchholz Construction 5 Eagle Ridge Partners

307 206 168 135 86

$  24,648,000 $  25,496,746 $  11,280,000 $  10,600,000 $    6,272,975

x x x x x

75 11 8 7 5

$    9,425,000 $    6,810,000 $    1,493,000 $    2,025,000 $    1,955,000

8 5 4 3 3

$    4,340,000 $        776,000 $    1,097,000 $    1,410,000 $    1,020,000

Largest Non‐member Builders (SF, TH, RH) ‐ Units 1 BCH Builders, LLC 2 Eagle Ridge Partners 3 Hohenstein Homes 4 Bachmeier Custom Homes 5 Level Construction

x x x

Largest Non‐member Builders (SF, TH, RH) ‐ Units 1 Zenith Construction Services 2 J & O Real Estate, LLC. 3 DMC Corporation of Moorhead 4 GRL Custom Homes, LLC. 5 Bullseye Builders

No assurance is provided on this report. Permit information reported here may have changed. For the most current permit information, please contact the Home Builders Association of Fargo-Moorhead.

Permits Plus Issue 1 2017  

Welcome to the first issue of Permits Plus 2017. Published six times per year in addition to the Plains Builder, it aims to provide a concis...

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