FOUNDATIONS NEWSLTR AUGUST

AUGUST 2022

ROCHESTER AREA BUILDERS, INC.

NEW EVENT FRIDAY FALL FLURRY SEPTEMBER 16, 2022 1:00 PM REGISTRATION PAGE 10

BUILDERS, BAGS & BREWS Registration Information

11

FALL SHOWCASE/ REMODELERS TOUR MAGAZINE Advertising Information

KITCHENS FOR KIDS We Need Builders!

14

17

D C

DEVELOPMENT COUNCIL a division of the Rochester Area Builders, Inc.

C OMMERCIAL C B UILDERS

OUNCIL

a division of Rochester Area Builders, Inc.

2 | AUGUST 2022

STAFF

EXECUTIVE DIRECTOR John Eischen, John@RochesterAreaBuilders.com Shelly Bahlmann, Shelly@RochesterAreaBuilders.com Golf Outing, Sporting Clays, Home Show, Directory, Newsletter, RAB Update, Member Plus App & RAB Events App Rebekah Fierst, Rebekah@RochesterAreaBuilders.com Ambassadors, Awards, Builders, Bags & Brews, Commercial Builders Council, Community Relations, Education, Membership, Fashion Show, Program, Remodelers Council, Executive & Remodelers Tour, 40 Below

DIRECTORS

Adam Giannini, Knutson Construction Adam Kramer, Kramer Contracting Jarett Jones, Merchants Bank Aaron Thompson, The Design Connection Austin Ryan, Ryan Windows & Siding Charlie Sweeney, Kraus-Anderson Construction Melissa Barbour, TLS Companies, LLC Vanessa Hines, Widseth Julie Herrera-Lemler, Rochester Area Economic Development, Inc. (RAEDI)

Elizabeth Sullivan-Burton, Elizabeth@RochesterAreaBuilders.com Builders Exchange Trustees and Showcase Committee, Website

Katie Reinhart, Kraus-Anderson Construction

GOVERNMENT & PUBLIC AFFAIRS CONSULTANT

Robbie Danko, The Boldt Company

Rick Dold, Rick@GodwinDold.com

Hal Henderson, HGA Architects & Engineers

BOARD OF DIRECTORS

PRESIDENT

Becky Holmen, Haley Lighting

VICE PRESIDENT

Jason Scrimshaw, Kimley-Horn & Associates, Inc.

SECRETARY

Jennifer Mitchell, Edina Realty

TREASURER

Jessica Markley, Elias Construction, LLC

PAST PRESIDENT

Luke Stier, Stier Construction, Inc.

BUILDERS EXCHANGE COUNCIL CHAIR COMMERCIAL BUILDERS COUNCIL CHAIR DEVELOPMENT COUNCIL CHAIR REMODELERS COUNCIL CHAIR

Krista Weisz, Stier Construction, Inc.

40 BELOW CHAIR

Adam Giannini, Knutson Construction

NATIONAL LIFE DIRECTORS

Steve Buss, Cornerstone Builders & Real Estate, Inc. (Rep)

NATIONAL DIRECTORS

Dana Hlebichuk, Widseth Levi Kaiser, Benike Construction Todd Severson, TLS Companies, LLC

STATE DIRECTORS

Mike Allen, Mike Allen Homes, LLC Jean DeWitz, DeWitz Home Builders, Inc. Kathy Einck, Maplewood Homes.LLC (Rep) John McGuine, JM Consulting Dan Severson, Dan Severson Builders, Inc., Kenneth Bush, Bush Companies

MISSION STATEMENT The Rochester Area Builders, Inc, chartered in 1953, is a professional organization of commercial & residential builders, remodelers, developers and associated businesses dedicated to advancing the building industry in Southeast Minnesota.

We are the trusted voice of the industry, providing leadership, education, networking, and information resources to our members, community and government officials.

3 | FOUNDATIONS NEWSLTR

11

9

10 14 RAB CALENDAR........................................... 4

AUGUST 2022

FALL SHOWCASE/REMODELERS TOUR MAGAZINE....................................... 15

2022 CALENDAR.......................................... 5

Advertising Opportunity

MEMBER REPORT........................................ 6

First Right Booth Registration

RAB Events

Welcome New Members

17

2023 HOME SHOW INFORMATION.............. 16 KITCHENS FOR KIDS.................................. 17

LETTER FROM RAB PRESIDENT.................... 7

2023 Home Show Activity Registration

NETWORKING NIGHT................................... 8

Higher Rates Reduce Mortgage Demand

MEMBER APPRECIATION NIGHT................... 9

Information

2022 SPORTING CLAY SHOOT.................... 10

Lumber Products Have Added $14K to House Price, $51 to Rent

BUILDERS, BAGS & BREWS........................ 11

Rochester & Pine Island

STUDS, STRUTS & STILETTOS.................... 12

June 2022

FALL SHOWCASE....................................... 14

June 2022

REMODELERS TOUR................................... 14

Job Gains in June

Becky Holmen, Haley Lighting, 2022 RAB President Thank You! July

New Event Information Event Information

Sponsorship Information Event information Event information

NAHB EYE ON HOUSING............................. 19 RENTAL SPACE AVAILABLE........................ 20 NAHB EYE ON HOUSING............................. 23 BUILDING PERMITS................................... 24 SEMR HISTORICAL OVERVIEW................... 24 OLMSTED BUILDING PERMITS ................... 25 NAHB EYE ON HOUSING........................ 26-27

4 | AUGUST 2022

Sunday

August 2022

Monday

Tuesday 1

12:00 PM Government Affairs Committee

2 8:30 AM Remodelers Council Exec.

Wednesday 3

7:30 AM CBC Meeting

Friday

Saturday

4

5

6

11

12

13

18

19

20

25

26

27

11:30 AM Program Committee

12:00 PM Showcase Committee

11:30 AM Executive Committee

Thursday

3:30 PM Builders Exchange Board of Trustees

7

8

9 3:00 PM Board Meeting

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15

10 7:30 AM Green Building Committee

16

11:30 AM Fashion Show Committee

12:00 PM Sporting Clays Committee

17 12:00 PM Ambassadors Committee

7:30 AM Membership Committee

4:30 PM 40 Below Exec Committee

21

22

23

11:30 AM Home Show Committee

28

24 3:00 PM Development Services Advisory Committee

29

30

11:30 AM Community Relations Committee

31

4:30 PM Networking Night

MEETINGS ARE NOW BEING HELD IN PERSON UNLESS NOTIFIED DIFFERENTLY BY JOHN

5 | FOUNDATIONS NEWSLTR

Rochester Area Builders 2022 Calendar of Events

JULY

26

AUGUST 13 30

Member Appreciation Night @ Mayowood Stone Barn Builders, Bags & Brews @ LTS Brewing Company Networking Night @ Valor Mechanical & Tulip Tree

SEPTEMBER 5 Office Closed – Labor Day 15 Sporting Clay Shoot 16 Friday Fall Flurry Sporting Clay Shoot 17 Sporting Clay Youth Shoot 17-18 Remodelers Tour 17-18, 24-25 Fall Showcase of Homes 27 General Membership Meeting @ DoubleTree OCTOBER 13 25

Studs, Struts & Stilettos @ Mayo Civic Center Networking Night @ Warners’ Stellian

NOVEMBER TBD 24-25

Past Presidents Dinner Office Closed – Thanksgiving Holiday

DECEMBER 2 23-26

Holiday Party @ The Hilton Office Closed – Christmas Holiday

FUTURE DATES International Builders Show RAB Home Show

January 31 – February 2, 2023 @ Las Vegas, NV February 3-5, 2023 @ Mayo Civic Center

6 | AUGUST 2022

WELCOME

ROCHESTER AREA BUILDERS, INC.

MEMBERSHIP REPORT JUNE 2022

Membership Total: Retention rate:

400 92.8%

JULY 2022 NEW MEMBERS

As of June 30, 2022 FIVE TO NINE YEARS Completely Clean...................................2017 Minnesota 97.5 FM - KNXR...................2016 The Pinske Edge....................................2014 Cemstone Supply...................................2013

TEN TO 14 YEARS Hammer Homes, Inc..............................2011 Warners’ Stellian Appliance Company, Inc........................2008

15 YEARS TO 19 YEARS Green Lawncare Irrigation & Service Co. .................................................................2007 McGough Construction.........................2006 Cravath Homes, LLC..............................2005 Prime Time Painting of Rochester, LLC .................................................................2005 DMC Plumbing & Heating, Inc..............2003

MARK ST.PETER

CHARLIE DERY

Auto Glass (507) 252-1000 cityautoglass.com

Credit Union (507) 312-7510 marinecu.com

TAYLOR MORGAN

TAYLOR KELENIC

20 YEARS TO 24 YEARS Design Studio B.....................................2001

25 YEARS OR MORE Larson Siding & Windows....................1986 Commercial Leasing Services.............1984 Merit Contracting, Inc...........................1982 Sargent’s Landscape Nursery, Inc......1977 Heartman Insurance.............................1966

Concrete Contractor (507) 951-0072

Rental Equipment (952) 887-4460 zieglercat.com

7 | FOUNDATIONS NEWSLTR

FROM THE PRESIDENT are back in person for all our networking opportunities and community involvement events, so it is a great time to become a member of the largest builder and associate member organization in Minnesota. If you have any questions about membership or recommendations for new members, please contact the RAB office or anyone on the board of directors.

networking and sponsorship. The 2nd Annual Builders, Bags & Brews is a community event that RAB organizes for the Jeremiah Program of SE MN on Saturday, August 13th at LTS Brewing Co. The deadline for registering a team is August 6th. The Sporting Clay Shoot weekend is coming up in September. The Thursday, September 15th Builder shoot is sold out, but we are excited to anounce a brand new completly I thought I should send out a different event on Friday, reminder that it is time to get your September 16th, called the Fall registrations in for the 2022 Fall Flurry. We also have a youth Showcase of Homes.

We currently shoot on September 17th. Limited BECKY HOLMEN have 9 entries for new Sponsorship spots are still President construction homes, and we need available. All these events are a Rochester Area Builders, Inc more, along with entries for the great way to get your business Remodelers Tour. The deadline recognized and do something nice Hello Members, for entries is August 18th. I know for the community. construction and building have The summer is going so fast. been very busy in SE Minnesota.

Thank you to Knutson We have had plans every weekend The supply chain issues are Construction for hosting our June and have plans for the remaining causing us all a lot of stress. I Networking night. Your updated weekends of the summer. We just wish you all the best of luck in office looks amazing and the food finished the Fillmore County Fair getting your homes finished. from Powers was fabulous. swine show. Ryan and Carter did Restrictions are getting lighter and Member Appreciation Night is very well, and both will be taking a lighter, and this Showcase will be Tuesday, July 26th at The pig to the state fair for the 4H a prime time to show off the Mayowood Stone Barn, come early Swine show up in St. Paul. Looking quality of homes available from and stay late for great food and forward to the upcoming school you, our members. It is important drink. Raffle tickets for the year, with Ryan being a to keep your building expertise out Sporting Clay event will be Sophomore at Black Hawk College in the public eye, so when times available from the one and only in Indiana and Carter a Junior at are not as busy, you will be in the Jay Burke of Heartwood Homes. I Lanesboro High School. forefront of people’s minds when hope to see all your sparkling they are ready to build or remodel. personalities in full brightness.

Let’s keep the momentum going Being active within this association and keep spreading the word of Take Care, is important to your business even what RAB is doing for our when you are busy. This way you wonderful communities and legislative recommendations! The will have the resources and contacts to make your business Membership Committee has Becky Holmem grow when times are slow. challenged us all to bring a Haley Lighting colleague or friend with to all the There are many opportunities for 2022 RAB President upcoming networking events. We

8 | AUGUST 2022

Thank You! Thank You Knutson Construction for hosting a great Networking Night in June.

9 | FOUNDATIONS NEWSLTR

MEMBER NIGHT

Tuesday, July 26th 4:30pm - 7:00pm Mayowood Stone Barn

Join us for Member Appreciation Night as we celebrate you, our members! We will be recognizing all Honorary Members that evening and introducing new additions to the group!

Hors d'oeuvres and hosted beer provided, along with a cash bar. Thank you to Altra Federal Credit Union for sponsoring the keg of beer.

Don't miss this great opportunity to catch up with others in the industry and meet new members.

Free to attend, however, we ask that you register in advance.

REGISTER Beer Sponsor

10 | AUGUST 2022

Rochester Area Builders Sporting Clay Shoot

U F N

SEPTEMBER 15, 2022 Cost: $180 per Person 4 person teams with a max of 6.

Dinner only: $25 per person

O I T A R

Overall Event Sponsor

T S I

Registration Includes: • • • •

L L

20 Stations with 100 clay targets & 100 Shells BBQ Style Dinner & Beverages Various Optional Games throughout Course Prizes for Best Team and Best Individual

G E R

NEW EVENT Sporting Clay Shoot - FRIDAY FALL FLURRY SEPTEMBER 16, 2022 TWO events in one! Register for either activity or register for both to maximize your fun.

Cost: Flurry Competition $120 per 4 person team $30 per person Big Shot Competition $50 per person

Registration Includes: Flurry Competition 50 Shells Cash prize

REGISTRATION

Big Shot Competition BIG SHOT WINNER - Cash Prize

11 | FOUNDATIONS NEWSLTR

BUILDERS, BAGS & BREWS DATE: Saturday, August 13th LOCATION: LTS Brewing Co.

• LIVE MUSIC • CRAFT BEER • FOOD TRUCKS • SILENT AUCTION

PRESENTED BY

FORTY

RAB

Builders, Bags, & Brews is an annual community bags tournament and fundraiser for local non-profits. In 2022, funds raised will go towards Jeremiah Program.

BELoW CONNECTING. BUILDING. ENGAGING.

Team Registration NOW OPEN. Deadline: August 4th Contact Rebekah for more information.

BENEFITING

HEADLINING SPONSOR

BROADWAY COMING 10.13.22 MAYO CIVIC CENTER

Presented By:

A Benefit for:

SPONSORSHIP FORM Deadline 8.19.22

13 | FOUNDATIONS NEWSLTR

Honorary MeMbers

§ §

§ † † § § † † §

Bruce Meadows...........2022 David Kane ..................2021 Chris Colby ...................2021 Art Friedrich ................2021 Jan Blevens ..................2021 Greg Hird .....................2021 Jeff Broberg .................2021 Mike Coats ...................2019 Carla Kilpatrick.............2018 Rory Lenton .................2018 Jim Buchan ..................2016 Walt Pappas .................2015 Bob Vogt ......................2015 Tom Theis ....................2014 Bob Gill ........................2013 Dave Higgins ................2013 Sandy Friend ................2012 Wayne Ouellette ..........2012 Gary Zander .................2011 Bob DeWitz..................2010 Jackie Hanson ..............2009 Richard Hanson ...........2009 Don Myers ...................2009 Sandy Buchan ..............2008 George Libera ..............2008

† § † § † § † § § § † § † † † † § † † § † † † § † † † § † † § †

Don Hora .....................2007 Ken Steier ....................2006 Floyd Whipple .............2006 Glyndon West ..............2005 Sharon Thomas ............2004 Dale Fagerlind ..............2003 Dave Alexander ...........2002 Dewey Day ...................2002 Roger Lubahn ..............2001 Don Kleist ....................1999 Don Soderberg ............1999 Gordy Bluhm ...............1998 Arnie Jensen ................1998 Walt Cassel ..................1991 Arnie Bergler ...............1990 Hersh Hoaglan .............1990 Haven Hodge ...............1990 Bill Dodge ....................1990 Henry Giese .................1990 Stan Mohn ...................1990 Mary Moylan ...............1990 Don Sperry...................1990 Ken Watkins .................1990 Reuben Wolfgram ........1990

§ Served as Association President † Deceased

14 | AUGUST 2022

SEPTEMBER 17 - 18 & 24 - 25, 2022 11 AM - 5 PM The 2022 Fall Showcase will be here before you know it! Get your latest and greatest homes, townhomes, developments, and townhome communities out in front of the public.

DEADLINES:

1st Deadline: July 7 - $200 discount 2nd Deadline: July 28 - $100 discount Final Deadline: August 18 Entry information and forms can be found HERE

Remodelers SEPTEMBER 17 - 18, 2022 11 AM - 5 PM Do you have a remodeling project you would like to have open to the public so they can see the finished results firsthand?

The Remodelers Tour has been created to offer you this great marketing opportunity. It’s an excellent way to gain exposure for your company and your projects.

All remodelers are eligible to participate, including designers, landscape contractors, exterior contractors, and more.

DEADLINES:

Discount Deadline: July 28 Final Deadline: August 18 Entry information and forms can be found HERE

15 | FOUNDATIONS NEWSLTR

2022 FALL SHOWCASE OF HOMES /REMODELERS TOUR MAGAZINE ADVERTISING INVESTMENT Sixth Page Quarter Page Half Page Half Page Full Page Inside Front Page Back Page

2.333 x 4.875 ......................................... $500 3.625 x 4.875 ......................................... $700 (v) 3.625 x10 .......................................... $900 (h) 7.5 x 4.875 ........................................ $900 8.5x11 (bleed size 8.75 x 11.25) ............. $1200 8.5x11 (bleed size 8.75 x 11.25) ............. $1500 8.5x11 (bleed size 8.75 x 11.25) ............. $1500

The 2022 Fall Showcase of Homes features new homes, townhomes, and subdivisions; and the 2022 Remodelers Tour features recent home renovations.

Together, they are featured in the Rochester Area Builders-produced magazine which is the official program that includes details, descriptions, and photos for each home/subdivision. Participation to showcase a project is exclusive to RAB members, and members of the community are invited to enjoy the event.

The digital magazine produces over 10,000 views, and the RAB Events app receives over 33,000 views during the event weekends. Limited printed copies will be available and also available at showcase entries during showcase hours.

RAB will promote the digital magazine across multiple digital platforms with over 500,000 impressions. RAB has contracted with Tulip Tree Studios for ad sales and

design services. For more information on how to advertise in our magazine, contact Crystal at 507-218-8401 or at Crystal@ tuliptree-studios.com.

Fall Showcase Weekends September 17-18 & 24-25, 2022 Remodelers Tour Weekend September 17-18, 2022

Remodelers

FEBRUARY

10-11-12, 2023

NEW HOURS FRIDAY 3:00PM - 8:00PM SATURDAY 10:00AM - 5:00PM SUNDAY 10:00AM - 3:00PM

SHOW ACTIVITIES

E L A S N H O I T T A O M O B N INFOR IO T A R T S I REG

FRIDAY • Date Night • 2 for 1 Admission • Cooking w/Shari Mukherjee • Wine and Beer Tasting

SATURDAY • Career Fair • Builder Olympics (ages 15-19)

SUNDAY - FAMILY FUN DAY • Children’s Cupcake Decorating W/Shari Mukherjee • Build with Builders

ALL WEEKEND • Kitchens For Kids Raffle • Resource Way Scavenger Hunt

BOOTH SALES Booth Sales Opens For Previous Year Exhibitors JULY 29, 2022 Booth Sales Opens For Everyone AUGUST 8, 2022 CONTACT: Shelly@RochesterAreaBuilders.com

RochesterAreaBuilders.com/Home-show

17 | FOUNDATIONS NEWSLTR

ROCHESTER AREA BUILDERS HOME SHOW 2023

We want your talent to be a part of supporting single moms and their children.

The 2023 RAB Home Show will be featuring “Kitchens for Kids” – play kitchens for young children made by members of our community. Proceeds benefit Jeremiah Program. We invite you to be a part of this exciting activity!

A raffle will be held during the event. The people’s choice winner will be determined by the largest number of raffle tickets for each project.

These great mini-kitchens will be for children’s use but the raffle profits will go toward Jeremiah Program in Rochester MN. Jeremiah’s proven, holistic approach begins with establishing a supportive community for single mothers to pursue a career-track, college education. Through a combination of quality early childhood education, a safe and affordable place to live, and empowerment and life skills training, families find stability and a path out of poverty.

You can also be a part of the Home Show and connect with customers by securing a 10’x10’ booth for the entire weekend (Friday, Saturday, and Sunday). Display, educate, and/or promote your business! Cost starts at $730. Open Registration begins in late summer, early fall.

February 10-11-12, 2023 Mayo Civic Center

Presented by

Benefit For

Find the registration form at rochesterareabuilders.com/Kitchens-for-Kids-Registration

Questions about the project?

Contact Shelly@RochesterAreaBuilders.com Ph 507-282-7698

18 | AUGUST 2022

19 | FOUNDATIONS NEWSLTR

Higher Rates Reduce Mortgage Demand

BY LITIC MURALI on JULY 6, 2022 Per the Mortgage Bankers Association’s (MBA) survey through the week ending July 1, total mortgage activity decreased, with the 30-year fixed-rate mortgage (FRM) rate reaching 5.8% on average. The latest week’s rate decreased to 5.74%, declining for the second straight week but still above pandemic levels.

The Market Composite Index, a measure of mortgage loan application volume, decreased by 5.4% on a seasonally adjusted basis from one week earlier, with purchasing decreasing by 4.3% and refinancing decreasing by 7.7%.

The latest month’s highest weekly rate was the highest since late 2008 (5.98%). The MBA cited that market expectations of the Federal Reserve’s 75-basis-point interest rate hike as well as its implementation resulted in rate increases of at least 20 basis points across all loan types. Affordability changes and low housing inventory continue to challenge homebuying for many.

On an unadjusted basis, the Purchasing Index showed a 17% year-over-year decline and the Refinancing Index showed a 78% year-over-year decline. Comparison of the year-over-year percent changes in refinancing and purchasing shows that from October 2021 to present, refinancing has declined by a larger amount.

The refinance share of mortgage activity decreased to 29.6% of total applications from 30.3% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 9.5% of total applications.

20 | AUGUST 2022

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OFFICE SPACE FOR RENT

Looking for modern, convenient office space? The RAB office has 800 square feet available for rent. The agreement includes shared use of the conference room, bathrooms, breakroom, and 4 parking spaces.

Lease is $18/square foot gross.

To arrange a tour or get more information, contact John at the office.

John@RochesterAreaBuilders.com or 507-282-7698.

21 | FOUNDATIONS NEWSLTR

REAL ESTATE LENDING Bank on ONB Bank for all of your Real Estate Lending needs.

Construction Purchase Refinance Improvements

contact us today

Rochester 975 34th Ave NW 507-280-0621

Stewartville 1960 1st Ave NE 507-504-1060

bankonONB.com

22 | AUGUST 2022

Goodin Company carries a full complement of products for the markets we serve.

Are you in need of products for plumbing, HVAC, industrial, or pump and well applications?

PLUMBING

HVAC

INDUSTRIAL

PUMP & WELL

We are your Source of Supply, serving the industry since 1937.

www.goodinco.com MINNEAPOLIS | ST. PAUL | DULUTH | DETROIT LAKES | ST. CLOUD BRAINERD | ROCHESTER | FARGO | SIOUX FALLS | OMAHA EAU CLAIRE | WAUSAU | MADISON | MILWAUKEE | GREEN BAY

23 | FOUNDATIONS NEWSLTR

Since Pandemic Onset, Lumber Products Have Added $14K to House Price, $51 to Rent

BY PAUL EMRATH on JULY 14, 2022 Since the relatively low point at the

Builders do not in general buy lumber

multifamily builders’ softwood lumber

onset of the pandemic on April 17, 2020,

and other building products directly

costs, respectively.

lumber prices have been volatile, with

from sawmills, but from an intermediary

record setting spikes interspersed with

like a lumber yard. For that reason,

Prices to home buyers go up somewhat

periods of substantial declines.

NAHB estimates mark up sawmill prices by gross margin as a percent of sales for the “lumber and other construction materials” industry, as reported in the U.S. Census Bureau’s Annual Wholesale Trade Tables,

more than this, due to factors such as interest on construction loans, brokers’ fees, and margins required to attract capital and get construction loans underwritten. As explained in NAHB’s recent study on regulatory costs, for items used during the construction

Softwood lumber is also an input into

process, the final home price will

certain manufactured products used

increase by 14.94 percent above the

On balance over the entire period,

in residential construction—especially

builder’s cost.

however, softwood lumber prices have

cabinets, windows, doors and trusses.

increased enough to add $14,345 to the

To account for the manufacturer’s

The bottom line is that the changes in

price of an average new single-family

margin, sawmill prices for the lumber

home, and $5,511 to the market value

embodied in these products are marked

of an average new multifamily home,

up by the percent difference between

according to NAHB’s latest estimates.

receipts and cost of goods in the “wood

The increase in multifamily value, in

product manufacturing” industry, as

turn, translates to households paying

reported in the IRS Returns of Active

$51 a month more to rent the new

Corporations tables.

apartment.

Taking all this into account, at the prices

Housing Finance Survey, the increase

In addition to narrowly defined framing

reported by Random Lengths on April

in builder cost and market value for a

lumber, these estimates include

17, 2020, the total cost to a builder for

multifamily structure means tenants pay

plywood, oriented OSB, particleboard,

softwood lumber was $16,927 for the

$51 more a month to rent the average

fiberboard, shakes and shingles—in

products in an average single-family

new apartment due to the change in

short, any of the products sold by U.S.

home, and $5,940 for the products in an

softwood lumber prices.

sawmills and tracked on a weekly

average multifamily home.

basis by Random Lengths. Estimates

This, along with rising wages for

More recently, based on Random

construction workers and higher

Lengths prices reported on July 01,

interest rates, is one of the reasons the

2022, the costs have risen to $29,407

housing market is experiencing declining

for the softwood lumber products in an

affordability

developed from the Builder Practices Survey conducted by Home Innovation Research Labs show that the average new single-family home uses more than 2,200 square feet of softwood plywood, and more than 6,800 of OSB, in addition to roughly 15,000 board feet of framing lumber.

average single-family, and $10,734 for the products in an average multifamily, home. These numbers represent a 74 percent ($12,480) and 81 percent ($4,795) increase in single-family and

softwood lumber prices that occurred between April 2020 and July 2022 have added $14,345 to the price of an average new single-family home and $5,511 to the market value of an average new multifamily home. Based on the average rent-to-value ratio in most recent HUD/Census Rental

24 | AUGUST 2022

GET UP TO $5,400 TO GET THE JOB DONE Shown with equipment from independent suppliers which is not covered by the GM New Vehicle Limited Warranty.

GM is not responsible for the safety or quality of independent supplier alterations.

USING THE PRIVATE OFFERS1 FOR NAHB MEMBERS IS EASY:

1. Get your NAHB proof of membership.

2. Visit your local Chevrolet, Buick or GMC dealer and mention this Private Offer.

3. Select an eligible vehicle(s) to purchase or lease and present your NAHB proof of membership.

For even more value, combine this offer with the National Fleet Purchase Program and Business Choice Offers. For full details on the Private Offer, NAHB members should visit nahb.org/gm.

Example offer for NAHB members who are business owners purchasing a 2021 Chevrolet Silverado 2500 HD Crew Cab 1LT 4WD. Up to

Up to

Up to

$1,000 + $3,400 + $1,000 = $5,400 Private Offer 1

National Fleet Purchase Program (FVX)2

Eligible Accessory Cash Allowance3, 4

In Potential Value

1 Private offer amount varies by model; up to $500 offer for retail delivery and up to $1,000 offer for fleet deliveries. Valid toward the purchase or lease of eligible new 2020, 2021 and 2022 model year vehicles. Customer must take delivery by 1/3/2022. Not compatible with some other offers. Not valid on prior purchases. Excludes all Cadillac vehicles; 2020 Buick Cascada, LaCrosse, Regal and Verano; Chevrolet Colorado 2SA, Sonic, Trax, Volt and GMC Canyon 2SA; 2020-2021 Encore 1SV; Chevrolet Blazer, Camaro, Corvette, Equinox 1SM, Malibu 1VL, Traverse 1L0; GMC Acadia 1SV and Terrain 2SA. Additional GM models may be excluded at GM’s sole discretion. See dealer for details. 2Offer available to qualified fleet customers through 1/3/2022. Not compatible with some other offers. Take delivery 1/3/2022. See dealer for details. 3To qualify, vehicle must be used in the day-to-day operations of your business and not solely for personal/ non-business-related transportation purposes. Must provide proof of business ownership. For complete program requirements, including information regarding offers, vehicles, equipment, options, warranties and ordering, consult your dealer or visit gmbusinesschoice.com. 4Eligible purchases must be equal to or greater than the amount of the cash allowance. Accessory Cash Allowance requires purchase of the eligible accessories from your dealer.

©2021 General Motors, LLC. All rights reserved. The marks appearing in this ad are the trademarks or service marks of GM, its subsidiaries, affiliates or licensors.

25 | FOUNDATIONS NEWSLTR

26 | AUGUST 2022

FOUNDATIONS NEWSLETTER ADVERTISING Rochester Area Builders Newsletter is an unbeatable opportunity to advertise to members and individuals associated with RAB. It is a source of valuable association and industry information, and is published and emailed monthly. Foundations is sent to over 1600 connected industry professionals.

Ad sizes are listed under Display Ad Dimensions, and prices are located above.

Ads may be changed from month to month.

Our prices are for full color ads. We will gladly work with you to design your ad.

Please send digital files for all ad copy, logos, and artwork. We use PC format.

We accept Illustrator and Photoshop files.

Convert all fonts to outlines. We also accept the following high resolution file types: .tif, .eps and .pdf (with all graphics and fonts embedded). If you have any other formats please contact us.

RETURN TO: ROCHESTER AREA BUILDERS

Shelly Bahlmann Shelly@RochesterAreaBuilders.com 108 Elton Hills Ln NW Rochester, MN 55901 507-282-7698

Newsletter Advertising Rates

Per Issue

12 Issues

New Member 12 Issues

Full color 1/2 Horizontal

c $70.00

c $650.00

c $490.00

Full color Full Page

c $90.00

c $900.00

c $675.00

Full Color Full Page Press Release

c $25.00

Newsletter Display Ad Dimensions 1/2 Horizontal Full

8-1/2 x 5-1/2 8-1/2 x 11

Send artwork to Shelly@RochesterAreaBuilders.com by the 15th of the month to be included in the upcoming Foundation Newsletter.

27 | FOUNDATIONS NEWSLTR

28TH ANNUAL GOLF OUTING

An event to support construction educational opportunities.

AUGUST 12

Willow Creek Golf Course 1700 48th St SW Rochester, MN 55902

FRIDAY | 2022

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28 | AUGUST 2022

29 | FOUNDATIONS NEWSLTR

Solid Job Gains in June

BY NATALIA SINIAVSKAIA on JUNE 13, 2022 Despite interest rate hikes, job growth remained solid in June. Total nonfarm payroll employment increased by 372,000 and the unemployment rate remained at 3.6% in June.

Construction industry employment (both residential and non-residential) totaled 7.7 million and has exceeded its February 2020 level. In June, residential construction lost 4,100 jobs, and non-residential construction added 16,500 jobs. Residential construction employment currently exceeds its level in February 2020, while 79% of non-residential construction jobs lost in March and April have now been recovered.

In June, total nonfarm payroll employment increased by 372,000, following a gain of 384,000 in May, as reported in the Employment Situation Summary. The estimates for the previous two months were revised down, suggesting modestly softening in labor market. The April estimate was revised down by 68,000 from +436,000 to +368,000, while the May increase was revised down by 6,000 to +384,000. With these revisions, employment in April and May together were revised down by 74,000 from the previously reported ones.

In the first half of 2022, more than 2.7 million jobs were created, and monthly employment growth averaged 457,000 per month. As of June 2022, total nonfarm employment is 524,000 lower than its prepandemic level in February 2020,

almost fully recovered from the COVID-19 pandemic.

(+67,000), and health care (+57,000) had notable job gains in June.

Meanwhile, the unemployment rate remained at 3.6% for the fourth straight month. It was 11.1 percentage points lower than its recent high of 14.7% in April 2020 and 0.1 percentage point higher than the rate in February 2020.

Employment in the overall construction sector increased by 13,000 in June, following a 34,000 gain in May. Residential construction lost 4,100 jobs, while non-residential construction employment gained 16,500 jobs in June.

The labor force participation rate, the proportion of the population either looking for a job or already with a job, ticked down 0.1 percentage point to 62.2% in June. The decline in the participation rate was led by Black and Asian workers, while the labor force participation rate for White workers remained the same. The labor force participation rate for people who aged between 25 and 54 decreased 0.3 percentage points to 82.3% in June.

Residential construction employment now stands at 3.2 million in June, broken down as 899,000 builders and 2.3 million residential specialty trade contractors. The 6-month moving average of job gains for residential construction was 9,467 a month. Over the last 12 months, home builders and remodelers added 121,400 jobs on a net basis. Since the low point following the Great Recession, residential construction has gained 1,171,700 positions.

In June, the unemployment rate for construction workers declined by 0.5 percentage points to 3.6% on a seasonally adjusted basis. It marks the lowest rate since May 2019. The unemployment rate for construction workers has been trending lower, after reaching 14.2% in April 2020, due to the housing demand impact of the COVID-19 pandemic.

Additionally, according to the Household Survey supplemental data, which come from questions added to the Current Population Survey (CPS) since May 2020, 7.1% of employed persons teleworked or worked at home in the last 4 weeks specifically because of the coronavirus pandemic in June, down from 7.4% in the previous month. The share of the employed who teleworked has declined for the past five months.

Two years ago, in May 2020, 35.4% of employed persons teleworked because of the coronavirus pandemic.

Professional and business services (+74,000), leisure and hospitality

30 | AUGUST 2022

ROCHESTER BUILDING PERMITS

NEW RESIDENTIAL

2022

VALUATION

2021

JUNE 2022 2014 2015 2016 2017 2018 2019 2020 2021 2022

VALUATION

Single Family Dwelling

21

7,364,959

24

8,560,100

January

11

20

25

15

19

Townhome Dwelling

14

3,411,500

6

2,012,280

February

14

19

15

20

28

30

31

44

6

17

23

9

16

5

25

27

13

8

11

32

35

21

Two-Family Houses

0

0

0

0

March

Manufactured Home

0

0

0

0

April

25

22

33

45

40

23

19

19

28

0

May

35

19

56

43

28

27

19

26

13

June

47

51

41

52

38

31

21

30

28 110

Multi-Family Bldgs (Units)

0

0

0

EXISTING RESIDENTIAL

160

161

201

219

166

115

121

141

Deck Addition

34

363,969

40

410,648

July

38

29

44

45

36

26

26

25

Room Addition

4

223,430

5

328,500

August

60

33

47

30

31

24

17

24

Porch Additions

1

62,400

2

42,000

27

52

35

39

12

30

20

9

287,238

4

70,106

September

23

Other Additions

35

49

25

36

29

27

28

16

Basement Finish

7

196,275

17

350,155

October

23

12

41

21

47

23

19

1,617,091

72

1,013,844

November

26

64

27

42

37

33

25

34

21

8

0

0

0

0

December

26

844,597

8

252,700

369

369

418

429

347

289

266

253

Alterations Multi-Family Addition Multi-Family Alterations

TOTAL

TOTAL

YEAR TO DATE STATISTICS

NEW COMMERCIAL Assembly (Church)

0

0

0

0

Assembly (General)

0

0

0

0

Assembly (Restaurant/Bar)

1

1,800

0

0

Business

0

0

0

0

Education

0

0

1

24,279,684

Factory/Industrial

0

0

0

0

Institution

0

0

0

Mercantile

0

0

Miscellaneous

0

Residential (Apartment) Residential (Care/Assisted Living) Residential (Care/Hotel/Motel) Storage (General)

2022 NO.

VALUATION

2021 NO.

BUILDING PERMITS ISSUED TO DATE

110

VALUATION

1036

324,639,685

1167

261,332,738

Single Family Dwelling

93

37,325,817

125

43,240,669

Multi-Family Buildings Total Units: 276

4

33,175,115

1

14,800,000

0

TRADE PERMITS ISSUED TO DATE

4988

86,912,853

5425

66,199,793

0

0

Electrical

1962

40,412,806

2097

30,896,060

0

0

0

Electrical (Temp. Service)

106

63,100

124

45,755

0

0

0

0

Mechanical (HVAC)

1341

18,143,813

1521

17,548,368

0

0

0

0

Mechanical (Gas Piping)

255

421,720

306

420,637

0

0

0

0

Mechanical (Fireplace)

141

711,500

170

876,017

1

1,400,000

0

0

Mechanical (Hydronic)

133

12,490,957

88

5,209,297

Storage (Parking Garage)

4

1,290,705

2

1,421,775

1060

14,688,957

1119

11,203,659

Storage (Warehouse)

0

0

0

0

Utility (General)

1

9,999,999

0

0

6024

411,552,538

6592

327,532,531

Utility (Private Garage)

0

0

0

0

1,747,000

1

348,989

25

8,314,109

27

9,723,578

Structural Shell

0

0

1

3,600,000

“White Box”

0

0

1

800,000

Interior Demolition Only

0

0

0

0

Other Phased Permits

Information and downloads available at Rochester Building Safety Department’s website: Rochester Permits

Key metrics by report month and for year-to-date (YTD) starting from the first of the year.

3

Alterations

TOTAL PERMITS YTD

Activity Overview

EXISTING COMMERCIAL Addition

Plumbing

1

10,600,763

0

0

OTHER CONSTRUCTION

Key Metrics

Historical Sparkbars

New Listings 6-2019

6-2020

6-2021

6-2022

6-2019

6-2020

6-2021

6-2022

6-2019

6-2020

6-2021

6-2022

6-2019

6-2020

6-2021

6-2022

6-2019

6-2020

6-2021

6-2022

6-2019

6-2020

6-2021

6-2022

6-2019

6-2020

6-2021

6-2022

6-2019

6-2020

6-2021

6-2022

6-2019

6-2020

6-2021

6-2022

6-2019

6-2020

6-2021

6-2022

Pending Sales

Closed Sales

Days on Market

Median Sales Price

Avg. Sales Price

Pct. of Orig. Price Received

Business Signs

5

29,813

23

199,702

Advertising Signs

0

0

0

0

Footings & Foundations

3

2,562,393

1

500,000

Homes for Sale

Demolition

0

0

1

0

Months Supply

Affordability Index

6-2021

6-2022

Percent Change

YTD 2021 YTD 2022

760

759

- 0.1%

3,566

3,618

+ 1.5%

614

545

- 11.2%

3,365

3,183

- 5.4%

769

704

- 8.5%

2,958

2,902

- 1.9%

24

22

- 8.3%

37

34

- 8.1%

$265,000

$295,000

+ 11.3%

$240,000

$272,250

+ 13.4%

$289,685

$331,725

+ 14.5%

$270,446

$309,669

+ 14.5%

102.3%

101.3%

- 1.0%

100.2%

100.1%

- 0.1%

160

112

- 30.0%

176

121

- 31.3%

630

770

+ 22.2%

--

--

--

1.1

1.5

+ 36.4%

--

--

--

Percent Change

Current as of July 11, 2022. All data from Southeast Minnesota REALTORS® and NorthstarMLS®. Provided by the Minnesota Association of REALTORS®. Report © 2022 ShowingTime. | 2

31 | FOUNDATIONS NEWSLTR

OLMSTED COUNTY PERMITS YTD NEW RESIDENTIAL

2022

VALUATION

2021

VALUATION

Single Family-Detached

26

11,002,927

15

4,174,945

Single Family-Attached

0

0

4

513,188

10

857,721

7

315,694

22

137,444

8

43,470

Garage

RESIDENTIAL Deck Addition Alterations Garage Addition

5

272,029

5

362,019

101

1,953,464

34

416,531

0

0

2

36,426

May 2022

CD Report BUILDING DIVISION

Commercial building plans submitted

Residential building plans submitted

Commercial inspections completed

28

61

2022: 748 Average:914

NEW COMMERCIAL/INDUSTRIAL Recreational

0

0

0

0

Church/Religious

0

0

0

0

Industrial/Warehouse

0

0

0

0

Service/Repair Station

1

1,101,813

0

0

Store/Restaurant

1

78,552

0

0

Nonresidential Building

1

616,530

1

134,573

COMMERCIAL/INDUSTRIAL

2022

Addition

VALUATION

2021

VALUATION

0

0

1

121,056

Alterations

10

406,509

2

61,000

Re-roofing

3

286,563

0

0

Pool, Retaining Wall, etc.

7

264,020

8

136,528

Manufactured Homes

0

0

9

0

OTHER STRUCTURES

MISCELLANEOUS PERMITS Mechanical

74

353,395

71

547,900

Plumbing

33

91,578

42

397,850

TOTAL PERMITS

294

17,422,545

209

7,261,190

OLMSTED COUNTY PERMITS - JUNE

YTD NEW Housing Units

Residential inspections completed

2022: 1,631 2022: 84 Average: 1,754 Average: 100

Residential plan review time

Commercial plan review time

4 Weeks

2.5 Weeks

YTD Residential permits issued

YTD Commercial permits issued

YTD Trade permits issued

2022: 526 Average: 531

2022: 173 Average: 153

2022: 3,991 Average: 3,966

YTD Residential valuations

2022

YTD Commercial valuations

2022

YTD Alterations valuations

2022

YTD Trade valuations

2022

$64,150,949

$99,358,319

$96,926,710

$75,201,939

$52,619,880

$59,535,053

$81,907,312

$59,033,651

Average

Average

Average

Average

TOWNSHIPS/CITY

2022

City of Byron

VALUATION

2021

VALUATION

30

1,882,813

57

3,312,807

1

27,840

8

400,914

Marion Township

23

598,948

9

51,872

Oronoco Township

6

979,519

14

371,198

City of Stewartville

19

224,763

25

729,786

2

999,404

0

0

Eyota Township

Quincy Township

PINE ISLAND BUILDING PERMITS JUNE 2022 NEW RESIDENTIAL

NUMBER

VALUATION

Single Family Detached

3

855,000

Single Family Attached

0

0

Existing Residential Basement Finish Deck Addition

1

25,000

11

157,189

PLANNING DIVISION

YTD Building permit plans reviewed

YTD Zoning Certificates submitted

YTD Type I Applications submitted

2022: 2731 Average: 2167

2022: 40 Average: 45

2022: 18 Average: 29

YTD Type II Applications submitted

YTD Type III Applications submitted

2022: 2 Average: 2

2022: 33 Average: 30

32 | AUGUST 2022

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33 | FOUNDATIONS NEWSLTR

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34 | AUGUST 2022

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