FOUNDATIONS NEWSLTR APRIL

APRIL 2022

ROCHESTER AREA BUILDERS, INC.

NETWORKING NIGHT ISG

SCHOLARSHIP APPLICATION

PUBLIC WORKS EARTH DAY 2022

D C

DEVELOPMENT COUNCIL

7

18

20

a division of the Rochester Area Builders, Inc.

C OMMERCIAL C B UILDERS

OUNCIL

a division of Rochester Area Builders, Inc.

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

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

BUILDERS EXCHANGE COUNCIL CHAIR

Katie Reinhart, Kraus-Anderson Construction

COMMERCIAL BUILDERS COUNCIL CHAIR

Robbie Danko, The Boldt Company

DEVELOPMENT COUNCIL CHAIR

Hal Henderson, HGA Architects & Engineers

REMODELERS COUNCIL CHAIR

GOVERNMENT & PUBLIC AFFAIRS CONSULTANT

Krista Weisz, Stier Construction, Inc.

Rick Dold, Rick@GodwinDold.com

Adam Giannini, Knutson Construction

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

40 BELOW CHAIR

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

PAST PRESIDENT

Luke Stier, Stier Construction, Inc. 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

Spring Showcase of

7

12 K-M JOB SHADOW

GOLDEN TEE SPONSOR

9

RAB CALENDAR........................................... 4

April 2022

LETTER FROM RAB PRESIDENT.................... 5

Becky Holmen, Haley Lighting, 2022 RAB President

NEW STAFF INTRODUCTION......................... 5

Elizabeth Sullivan-Burton

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

Welcome New Members

NETWORKING NIGHT................................... 7

March 2022 - ISG

2022 CALENDAR.......................................... 8 RAB Events

RAB GOLF OUTING....................................... 9

Registration Save the Date

BUILDERS, BAGS & BREWS........................ 10

Sponsorship Information

STUDS, STRUTS & STILETTOS.................... 10

Design Entry & Sponsorship Information

NAHB EYE ON HOUSING............................. 11

36 Million Households Cannot Afford a $150,000 Home

19

PERMIT REPORTS

24

SPRING SHOWCASE................................... 12

Event information

PRESS RELEASE........................................ 14

Merchants Bank

NAHB EYE ON HOUSING............................. 15

Supply Chain Issues Slow Permits

SCHOLARSHIPS......................................... 18

Scholarship Form

JOB SHADOWING...................................... 19

How You Can Participate

PUBLIC WORKS ........................................ 20

Celebrate Earth Day 2022

BUILDING PERMITS................................... 24

Rochester & Pine Island

OLMSTED BUILDING PERMITS ................... 24

January 2022

SEMR HISTORICAL OVERVIEW................... 24

January 2022

NAHB EYE ON HOUSING............................. 28

Inflation Remains at 40-Year High in February

4 | APRIL 2022

Sunday

April 2022

Monday

Tuesday

3

Wednesday

4 12:00 PM Government Affairs Committee

5 8:30 AM Remodelers Council Exec.

11:30 AM Executive Committee

11

12

11:30 AM Fashion Show Committee

24

13 7:30 AM Green Building Committee

Spring Showcase of

19 11:00 AM Builders, Brats & Building Safety

25

2

7

8

9

14

15

16

22

23

7:30 AM 40 Below Professional Development GOLF REGISTRATION OPENS

20 12:00 PM Ambassadors Committee

21 7:30 AM Membership Committee

Spring Showcase of

4:30 PM 40 Below Exec Committee

26 4:30 PM Networking Night @ Premier Bank

1

11:30 AM Program Committee

12:00 PM Golf Outing Committee

18

Saturday

12:00 PM Showcase Committee

3:00 PM Board Meeting

17

Friday

6 7:30 AM CBC General Membership Meeting

3:30 PM Builders Exchange Board of Trustees

10

Thursday

27 3:00 PM Development Services Advisory Committee

8:30 AM K-M Job Shadow 11:30 AM Community Relations Committee

28

29

30

Spring Showcase of

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

5 | FOUNDATIONS NEWSLTR

FROM THE PRESIDENT again this year is the interactive map and photos all on our “RAB Events App”, go to, 2022 SSH Entries, on the App Store or Google Play. There will be processionary measures in place to keep all members and visitors safe.

BECKY HOLMEN President Rochester Area Builders, Inc The days are getting longer, and the sun is providing us with some muchneeded vitamin D and encouragement for a bright and prosperous spring. The 2022 Spring Showcase of Homes is an exciting time of year for us all as we get to show off our talents and our hard work from over the winter. The Showcase will be two weekends, April 23-24, and April 30-May 1, 12pm-5pm. If you would like more information about the registration of your entry(ies), information is available on the RAB website and you can contact Elizabeth at the builder’s office. Available

We are still accepting scholarship applications from our young people that are exploring carriers in the trades. Must be postmarked by May 2nd. Job Shadowing is another way we can encourage people to get involved with the trades. We are looking for members to host students from Kasson Mantorville High School on April 28th. Show them what makes your day exciting and why doing what you do is your passion. The students can be a great source for you for future employees and you are a great addition to their network of people.

registration mid-April. Let’s see if we can beat last year’s record of how fast we can fill up all of the golf teams. Look for an email from RAB that will come out before registration opens for more information.

In person networking is one of my favorite things about RAB, and we get to meet again Tuesday, March 29th at ISG, in the H3 Plaza. We will enjoy each other’s company along with some refreshments and hors d’oeuvres from Wildwood Sports Bar. It will be a time to reconnect and make new connections. I challenge you to bring a friend to help spread the news of the good we do for our community and how RAB and BAM work in partnership with local legislature to advance the construction industry in Southeast Minnesota.

Studs, Struts and Stilettoes is on the calendar for October 2022. We had an amazing show last fall, and I am so excited to see everyone’s creations for this year. Sponsorship forms and Design Entry forms will be available in April.

Keep an eye out for more information.

The event every golfer looks forward Becky Holmem to in June will be here before you know it. Haley Lighting The 2022 RAB Golf Outing will be opening 2022 RAB President

WELCOME ELIZABETH SULLIVAN-BURTON for getting jobs posted, as well as the point person for the Spring and Fall Showcase of Homes.

Rochester Area Builders is pleased to welcome Elizabeth Sullivan-Burton to the team as Planroom and Finance Director. She will be the friendly voice you hear when you call with invoicerelated questions, your point of contact

herself a number of skills, from double-entry bookkeeping to HTML/ CSS. She is excited to get a chance to bring her current abilities to RAB, as Elizabeth is a long-time Rochester well as to get a chance to pick up new resident with experience in property skills along the way. “I believe that management and hospitality. Prior a lot of people learn best by actually to joining RAB, Elizabeth worked using skills in real-world situations,” with a local real estate company she said. “That’s why I believe so doing property management and strongly in apprenticeship programs bookkeeping, as well as having more and other hands-on education, which than fifteen years of customer service is an important part of what RAB’s experience under her belt. She members do.” graduated with a bachelor’s degree in history.

Elizabeth is passionate about lifelong learning and about the power of learning by doing and has taught

Elizabeth can be reached at elizabeth@rochesterareabuilders.com or at (507) 282-7698.

ROCHESTER AREA BUILDERS, INC.

MEMBERSHIP REPORT February 2022

Membership Total: Retention rate:

402 93.8%

WELCOME MARCH 2022 MEMBER

As of January 31, 2022

THANK YOU Thank you, Luke, for serving as Rochester Area Builders’ 2021 President

ONE TO FOUR YEARS Integraltronics, LLC......................................................... 2020 Knight Barry Title............................................................ 2019 LeRoy Economic Development Authority..................... 2019 Building Restoration Corporation................................. 2018 Mortenson......................................................................... 2018

FIVE TO NINE YEARS Sherwin Williams Company.........................................................2017 S&S Overhead Door, Inc................................................................2014 Above All Roofing of Rochester, Inc............................................2013

TEN TO 14 YEARS All-Star Basements / All-Star Radon........................................2012 City of Eyota.......................................................................................2012 Shanahan Building & Remodeling, LLC....................................2012 Chris Fritsch Custom Homes, LLC..............................................2011 Tri Star Insulation............................................................................2008

KRAIG DURST

Outdoor Services (507) 208-4020

durstoutdoorservices.com

15 YEARS TO 19 YEARS Thiemann Construction, Inc..........................................................2005 Thimijan Custom Homes, LLC......................................................2005 Elcor Realty of Rochester, Inc......................................................2004 JP’s Construction Remodeling & Repair, Inc...........................2004 Peterson Well Drilling, Inc............................................................2004 Schwickert’s Tecta America, LLC................................................2004 Gary Kline Roofing, Inc...................................................................2003

20 YEARS TO 24 YEARS Think Bank.........................................................................................2000

25 YEARS OR MORE Bigelow & Lennon Construction, LLC........................................1991 Heartwood Homes of Rochester, Inc.........................................1989 RE/MAX Results..............................................................................1988 Brekke Fireplace Shoppe..............................................................1986 Edina Realty Home Services........................................................1985 Bigelow Homes................................................................................1984 Paramark Corporation...................................................................1980 Weis Builders, Inc............................................................................1957

2022 Rochester Area Builders Board of Directors

REGISTER

8 | APRIL 2022

Rochester Area Builders 2022 Calendar of Events

MARCH 29 Networking Night @ ISG APRIL

MAY

JUNE

JULY

23-24 26 30

Spring Showcase of Homes Networking Night @ Premier Bank Spring Showcase of Homes

1 30

Spring Showcase of Homes Office Closed – Memorial Day

2 28

RAB Golf Outing @ Willow Creek Golf Course Networking Night @ Knutson Construction

4 TBD 26

Office Closed for Independence Day NAHB Mid-Year Board Meeting – TBD Member Appreciation Night @ Mayowood Stone Barn

AUGUST 13 30

Builders, Bags & Brews @ LTS Brewing Company Networking Night @ Valor Mechanical & Tulip Tree

SEPTEMBER 5 Office Closed – Labor Day 15 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

June 2nd Willow Creek Golf Club 11:00am Shotgun Start $185/Golfer OR $740/Foursome

REGISTRATION OPENS APRIL 14TH Full Event Information HERE

Sponsorships Available Door Prizes Needed GOLDEN TEE SPONSOR

Contact Shelly for information

10 | APRIL 2022

SPONSORSHIPS AVAILABLE

8.13.22

Team Registration Opens June 6th

LTS Brewing Company Presented by:

Benefiting:

Headlining Sponsor:

11 | FOUNDATIONS NEWSLTR

Pyramid Shows 36 Million Households Cannot Afford a $150,000 Home

BY NA ZHAO on MARCH 14, 2022

As described in a previous post, NAHB’s recently released its 2022 Priced-Out Estimates, showing that 87.5 million households are not able to afford a median priced new home, and that an additional 117,932 would be priced out if the price goes up by $1,000. A second post showed the households priced out by higher interest rates. This post focuses on the related U.S. housing affordability pyramid, showing how many households have enough income to afford homes at various price thresholds.

than 28% of the household income.

The pyramid uses the same standard underwriting criterion as the priced-out estimates to determine affordability: that the sum of mortgage payments, property taxes, homeowners and private mortgage insurance premiums should be no more

Based on this, the minimum income required to purchase a $150,000 home is $36,074. In 2022, about 36 million households in the U.S. are estimated to have incomes at or below that threshold and, therefore, the maximum priced home they can afford is between $0 and $150,000. These 36 million households form the bottom step or base of the pyramid.

Another 24.4 million can only afford to pay a top price of somewhere between $150,000 and $250,000 (the second step on the pyramid), and so on up the pyramid. Each step represents a maximum affordable price range for fewer and fewer households.

The top step of the pyramid shows that around 3 million households can buy a home priced above 1.55 million. These comparatively wealthy Americans and the high-end homes they can afford are interesting, but market analysts should never only focus on them to the exclusion of the larger number of Americans with more modest incomes that support the pyramid’s base.

12 | APRIL 2022

2022 Spring Showcase

Spring Showcase of

#01 Bigelow Homes 60791 226th Ave Mantorville #02 Bigelow Homes 907 12th Pl NW Kasson #03 Bigelow Homes 1302 15th St NE Kasson #04 Golden Tee Development 290 Lehman Dr NE Byron #05 Bigelow Homes 705 Shardlow Ln NE Byron #06 Exclusive Home Builders & Remodelers 1729 Brandt Dr N Byron #07 Cravath Homes, LLC 6590 Morgan Dr NW Byron #08 Distinguished Homes

by Mitch Hagen, LLC 5352 Millie Rd SW Rochester

DAT E S A N D TIMES TO REMEMBER

#09 Rymark Construction, LLC 4917 Riley Ln SW Rochester

#20 Bigelow Homes 5263 Harvest Lake Dr NW Rochester

#10 Thimijan Custom Homes, LLC #21 Premiere Artisan 4966 Riley Ln SW Design & Build Rochester 1041 Frederichs Farm Place NW Rochester #11 Radcliffe Homes & Remodeling 832 Bucknell Ln SE Stewartville

#22 Bigelow Homes 2018 Douglas Trail Dr SE Pine Island

#12 Meier Companies, Inc. 2423 Woodstone Ln SW Rochester

#23 Bigelow Homes 230 Golden Bear Ln Zumbrota

#13 Otis Custom Homes, LLC 2105 Thea Ln SW Rochester

#24 Cornerstone Builders & Real Estate, Inc. 34 Highland Ct #14 R. Fleming Construction, Inc. Lake City 3156 Bella Terra Ln NE Rochester #15 Meier Companies, Inc. 3276 Allison Ln NE Rochester #16 Countryside Builders, LLC 2229 Glady Ln NE Rochester #17 Countryside Builders, LLC 3016 Platinum Dr NE Rochester #18 Majestic Homes, Inc. 2135 Hadley Hills Dr NE Rochester #19 DeWitz Home Builders, Inc. 6053 Sandstone St NW Rochester Friday, April 22 Saturday, April 23 Sunday, April 24 Saturday, April 25 Sunday, April 26 Monday, May 1

Signs to be Picked Up Entries Open to Public Entries Open to Public Entries Open to Public Entries Open to Public Signs to be Returned

Spring Showcase of

Magazine available digitally & PRINT APRIL 21ST Presented By

Event Sponsor

8:30 AM – 3:00 PM 12:00 PM – 5:00 PM 12:00 PM – 5:00 PM 12:00 PM – 5:00 PM 12:00 PM – 5:00 PM 8:30 AM – 4:00 PM

13 | FOUNDATIONS NEWSLTR

14 | APRIL 2022

PRESS RELEASE NEWS +++ NEWS +++ NEWS +++ NEWS +++ NEWS +++ NEWS +++ NEWS +++ NEWS Rochester, Minn. – Jarett Jones has been promoted to Market President at Merchants Bank in Rochester, according to Dan Massett, Regional President.

Jones’ primary responsibilities will be to provide leadership for Merchants Bank’s two Rochester locations, along with meaningful community engagement for the Rochester area. He will also continue to serve as a Commercial Banker and trusted financial advisor for business clients. Jones succeeds Dan Nistler, who retired as the Rochester Market President for Merchants in March.

“I’m grateful for Dan’s leadership and commitment over the last four years. I am also excited that we’re able to promote from within to fill this strategically important position in Rochester,” said Massett. “Jarett has a strong leadership background and will continue moving us forward in this market.”

Jones has been with Merchants since 2020 and has been a banker in the Rochester and southern Minnesota area for more than 20 years. He is a graduate of Winona State University and Rochester Community College.

“I’m looking forward to continuing to build relationships with my customers and be a proactive advisor working toward their success together, while also having the opportunity to mentor those on our Rochester team,” said Jones. “Merchants’ personal approach to customer relationships is truly unique and I’m proud to continue sharing that message in the Rochester area.”

He, his wife and two daughters are longtime Stewartville residents and he is an active community volunteer. Jones currently serves on the Executive Board of Directors for Rochester Area Economic Development Inc. as Treasurer and the Board of Directors of the Rochester Area Builders Association. In addition, he is a volunteer firefighter for the Stewartville Fire Department.

Since 1999, Merchants Bank has been a community partner in Rochester, with two locations to help individuals and businesses achieve their financial goals. With a focus on mortgage and business financing, Merchants has been fortunate to grow as Rochester has grown. In addition to traditional banking services, the Bank also offers a full line of business loan, lease and floor plan finance solutions, digital banking, security apps, treasury management tools and wealth management services.

Merchants Bank is a full service community bank with 23 bank locations in southeastern Minnesota and west-central Wisconsin and a leasing division, Merchants Bank Equipment Finance, in Edina. Headquartered in Winona, MN, MFGI has more than $2.8 billion in assets. Merchants was founded in 1875 and is an Equal Housing Lender. Loans are subject to credit approval. Member FDIC. FOR MORE INFORMATION CONTACT: Hayley F. Hornberg Digital Marketing & Content Strategist Merchants Bank, N.A. | 102 E Third Street | Winona, MN 55987-3416 Office (507) 494-0524 | Ext 11524 Toll-free (800) 944-6285

15 | FOUNDATIONS NEWSLTR

Supply Chain Issues Slow Permits in January 2022

BY DANUSHKA NANAYAKKARA-SKILLINGTON on MARCH 15, 2022 Over the first month of 2022, the total number of singlefamily permits issued year-to-date (YTD) nationwide reached 83,404. On a year-over-year (YoY) basis, this is a 0.6% decline over the January 2021 level of 83,921.

Year-to-date, ending in January 2022, the total number of multifamily permits issued nationwide reached 48,912.

This is 8.9% ahead over the January 2021 level of 44,916.

Year-to-date ending in January, single-family permits

Between January 2021 YTD and January 2022 YTD, 28 states recorded growth while 22 states and the

declined in three out of the four regions. The South posted a small increase of 0.9% while the Northeast region reported the steepest decline of 7.8%. The Midwest declined by 4.5%, followed by the Western region (-1.0%).

Multifamily permits posted increases in the Midwest (+54.0%) and the South (+25.0%) and declined in the West (-2.6%) and the Northeast region (-32.5%) in January compared to last year.

District of Columbia recorded a decline in multifamily permits. Iowa led the way with a sharp rise (604.3%) in multifamily permits from 23 to 162 while North Dakota had the largest decline of 98.7% from 156 to two. The ten states issuing the highest number of multifamily permits combined accounted for 65.2% of the multifamily permits issued.

Between January 2021 YTD and January 2022 YTD, 20 states and the District of Columbia saw growth in singlefamily permits issued. Montana recorded the highest growth rate during this time at 61.1% going from 144 permits to 232. Thirty states reported a decline in singlefamily permits during this time with North Dakota posting the steepest decline of 31.3%. The ten states issuing the highest number of single-family permits combined accounted for 66.3% of the total single-family permits issued.

At the local level, below are top ten metro areas that issued the highest number of single-family permits.

For multifamily permits, below are the top ten local areas that issued the highest number of permits:

16 | APRIL 2022

Join Us!

Are you a female in the construction industry?

Looking to join a fun, supportive group?

NAWIC Chapter 346 based out of Rochester is now a 30+ member strong group.

Why Join NAWIC? Women in construction join NAWIC for many reasons.

• To be part of a network of like-minded women • Learn more about technical or leadership skills A NAWIC membership offers educational opportunities, local networking events, regional conferences and our annual national meeting. Also a shared camaraderie of other women in construction at various points in their careers.

Who Should Join?

Roles They Fill

Home Builders + Remodelers

Safety managers

Architects + Engineers Consultants

Project & Office assistants Estimators

Commercial General Contractors

Interior Designers

Residential Construction

Business Development

Specialty Contractors

Marketing

Labor Unions

Crew Members

Visit nawicsemn.org for a list of current members.

Email info@nawicsemn.org for more information.

Follow us

@NAWICSEMN

17 | FOUNDATIONS NEWSLTR

NAHB Member Put your membership to work.

Exclusive discounts that benefit you, your business and your family

nahb.org/Savings

18 | APRIL 2022

SCHOLARSHIP

OPPORTUNITY

GRADUATING HIGH SCHOOL STUDENTS POST-SECONDARY SCHOLARSHIPS

Rochester Area Builders, Inc. is proud to announce their 2022 scholarship program.

Either $1000 or $500 non-renewable scholarships are available for graduating high school seniors and college freshmen. Scholarships are made available through the Commercial Builders Council, the Builders Exchange of Rochester, and the Youth Sporting Clay Shoot.

Scholarships are for attendance in a post-secondary CRITERIA: program in a construction-related 1. Applicant must be a resident of Dodge, Fillmore, Goodhue, field including technical school, Houston, Mower, Olmsted, Steele, Wabasha, Winona trade school, apprenticeship, or counties; be recommended by a RAB or BER member; or college. Scholarship recipients will participated in the RAB Youth Sporting Clay Shoot. be announced in June 2022. To 2. Applicant must be accepted by a post-secondary program in a construction related field including technical school, trade be eligible for any scholarships, school, apprenticeship, or college. applications must be postmarked 3. Applicant must have a 2.5 or better G.P.A. – High School

by May 2, 2022.

Transcript Required Scan QR Code or go to https://qrco. de/ScholarshipApp for Scholarship application.

Rochester Area Builders 108 Elton Hills LN NW Rochester, MN 55901 507-282-7698 Rab@rochesterareabuilders.com

4.

Applicant must demonstrate financial need.

5.

Scholarship will be paid directly to the school.

19 | FOUNDATIONS NEWSLTR

JOB SHADOWING OPPORTUNITIES Rochester Area Builders is providing job shadow opportunities for students in the Kasson - Mantorville carpentry program on Thursday, April 28th from 8:45am to 11:45am.

We are looking for hosts in the following areas: • • • • • • • • • • • • • • • • • • • • •

Architect Auto Body Repair Carpenter Closets Construction Management Drywall Electrician Engineering Excavation Fire Protection Heavy Equipment Operator HVAC Interior Design Landscaping Mason Mechanical Design (CAD/Drafting) Painting Plumbing Realtor Roofing Welding CONTACT JOHN at John@RochesterAreaBuilders.com

20 | APRIL 2022

Celebrate Earth Day 2022

Earth Day is annually celebrated on April 22, but this year Rochester’s celebration will be held throughout the months of April and May. Here’s a few ways you can get involved!

1. Sign up for Rochester’s Litter Bit Better Event April 30 – May 8 is the week for volunteers from our community to be out collecting trash and recycling to beautify the City of Rochester and give a helping hand to our great outdoors. The event planning team will virtually meet at the end of April to decide the best plan for moving forward. Signups are still being accepted and plans will be communicated to groups as soon as their available. www.RNeighbors.org/litterbitbetter 2.

Attend an EarthFest Rochester Event EarthFest Rochester will be hosting in-person and virtual events to celebrate this year. The organization is exciting to hold an in-person Expo again. For more Expo details and to explore other events visit: www.earthfestrochestermn.org EarthFest Expo Saturday, April 30, 2022 from 9am – 12noon At Rochester Indoor Farmer’s Market Olmsted County Fairgrounds

3.

Keep construction site cleans The Minnesota Pollution Control Agency’s Construction Stormwater Permit overview states: “Pollution prevention management measures include the storage, handling and disposal of construction products, materials and wastes to minimize exposure to stormwater and prevent polluted runoff.” Proper waste management will not only help you comply with your permit, it improves environmental quality and shows community pride.

21 | FOUNDATIONS NEWSLTR

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

22 | APRIL 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.

23 | FOUNDATIONS NEWSLTR

24 | APRIL 2022

ROCHESTER BUILDING PERMITS NEW RESIDENTIAL

2022

VALUATION 2021

FEBRUARY 2022

VALUATION

2014 2015 2016 2017 2018 2019 2020 2021 2022

Single Family Dwelling

9

3,846,000

8

2,653,000

Townhome Dwelling

2

367,000

0

0

February

14

19

15

20

Two-Family Houses

0

0

0

0

TOTAL

25

39

40

35

0

0

0

0

March

28

30

31

44

127

15,000,000

0

0

April

25

22

33

45

May

35

19

56

June

47

51

July

38

29

August

60

September

Manufactured Home Multi-Family Bldgs (Units)

EXISTING RESIDENTIAL Deck Addition

2

13,000

1

30,000

Room Addition

0

0

1

10,000

Porch Additions

0

0

0

0

Other Additions

0

0

0

0

January

11

20

25

15

19

6

17

23

16

5

13

8

11

35

13

30

31

20

25

27

32

35

40

23

19

19

43

28

27

19

26

41

52

38

31

21

30

44

45

36

26

26

25

33

47

30

31

24

17

24

23

27

52

35

39

12

30

20

35

49

25

36

29

27

28

16

Basement Finish

23

463,085

20

472,408

October

Alterations

37

583,038

25

303,474

November

26

23

12

41

21

47

23

19

December

27

42

37

33

25

34

21

8

TOTAL

369

369

418

429

347

289

266

253

Multi-Family Addition

0

0

0

0

Multi-Family Alterations

4

1,015,644

2

18,700

9

20

*Total may differ as permits may have been voided.

NEW COMMERCIAL

YEAR TO DATE STATISTICS

Assembly (Church)

0

0

0

0

Assembly (General)

0

0

0

0

Assembly (Restaurant/Bar)

0

0

0

0

234

125,879,328

241

45,699,715

Business

3

67,350,000

1

878,000

Single Family Dwelling

14

6,999,000

25

8,576,097

Education

0

0

0

0

Factory/Industrial

0

0

0

0

Multi-Family Buildings Total Units: 127

1

15,000,000

6

1,635,272

Institution

0

0

0

0

Mercantile

0

0

0

0

Miscellaneous

0

0

0

0

TRADE PERMITS ISSUED TO DATE

1431

28,094,945

1656

13,018,072

548

14,137,870

622

6,362,722

13

6,250

19

6,900

2022 NO.

BUILDING PERMITS ISSUED TO DATE

VALUATION

2021 NO.

VALUATION

Residential (Apartment)

0

0

0

0

Electrical

Residential (Care/Assisted Living)

0

0

0

0

Electrical (Temp. Service)

Residential (Care/Hotel/Motel)

0

0

0

0

Mechanical (HVAC)

406

4,461,532

483

3,920,525

65

97,658

93

69,585

Storage (General)

0

0

0

0

Mechanical (Gas Piping)

Storage (Parking Garage)

0

0

0

0

Mechanical (Fireplace)

52

230,225

65

319,920

Mechanical (Hydronic)

35

4,075,368

33

653,750

312

5,086,042

341

1,684,620

1665

153,974,273

1897

58,717,787

Storage (Warehouse)

0

0

1

238,454

Utility (General)

1

10,300,000

0

0

Utility (Private Garage)

0

0

0

0

EXISTING COMMERCIAL Addition Alterations

1

400,000

1

13,670

18

4,581,802

15

7,204,615

Structural Shell

0

0

0

0

“White Box”

0

0

0

0

Interior Demolition Only

0

0

0

0

Other Phased Permits

0

0

0

0

Plumbing TOTAL PERMITS YTD

Information and downloads available at Rochester Building Safety Department’s website: https://www.rochestermn.gov/government/departments/building-safety/reports-building-permits/building-permits-2021

PINE ISLAND BUILDING PERMITS FEBRUARY 2022 NEW RESIDENTIAL

OTHER CONSTRUCTION

NUMBER

VALUATION

Single Family Detached

0

0

Single Family Attached

0

0

Business Signs

5

157,674

12

182,041

Advertising Signs

0

0

0

0

Existing Residential

Footings & Foundations

0

0

3

0

Basement Finish

0

0

Demolition

0

0

0

0

Deck Addition

0

0

25 | FOUNDATIONS NEWSLTR

OLMSTED COUNTY PERMITS YTD NEW RESIDENTIAL

2022

VALUATION

2021

FEBRUARY 2022 COMMERCIAL/INDUSTRIAL

VALUATION

2022

VALUATION

2021

VALUATION

Single Family-Detached

7

2,337,387

1

155,865

Addition

0

0

0

0

Single Family-Attached

0

0

0

0

Alterations

3

244,372

0

0

Garage

0

0

0

0

Re-roofing

0

0

0

0

1

3,341

Pool, Retaining Wall, etc.

0

0

1

8,000

Manufactured Homes

0

0

0

0

Mechanical

31

148,734

19

98,819

Plumbing

13

41,125

10

34,931

95

4,322,791

41

692,923

OTHER STRUCTURES

RESIDENTIAL Deck Addition Alterations Garage Addition

0

0

0

0

2

176,070

37

838,518

7

84,654

0

0

0

0

MISCELLANEOUS PERMITS

NEW COMMERCIAL/INDUSTRIAL Recreational

0

0

0

0

Church/Religious

0

0

0

0

Industrial/Warehouse

0

0

0

0

Service/Repair Station

0

0

0

0

Store/Restaurant

1

78,552

0

0

Nonresidential Building

1

616,530

1

134,573

2021

VALUATION $3,507,985 PERMITS 16

VALUATION $2,112,452 PERMITS 27

BYRON

TOTAL PERMITS

BYRON NOW INCLUDED IN OLMSTED COUNTY PERMITS

OLMSTED COUNTY PERMITS FEBRUARY

2022

VALUATION $0 PERMITS 0

VALUATION $0 PERMITS 0

EYOTA

VALUATION $42,930 PERMITS 6

VALUATION $131,016 PERMITS 5

VALUATION $22,149 PERMITS 2

MARION

VALUATION $134,584 PERMITS 0

VALUATION $624,430 PERMITS 3

VALUATION $15,000 PERMITS 1

QUINCY

ORONOCO TWP

VALUATION VALUATION $127,666 $30,793 PERMITS PERMITS 9 7

STEWARTVILLE

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

Key Metrics

Historical Sparkbars

New Listings 2-2019

2-2020

2-2021

2-2022

2-2019

2-2020

2-2021

2-2022

2-2019

2-2020

2-2021

2-2022

2-2019

2-2020

2-2021

2-2022

2-2019

2-2020

2-2021

2-2022

2-2019

2-2020

2-2021

2-2022

2-2019

2-2020

2-2021

2-2022

2-2019

2-2020

2-2021

2-2022

2-2019

2-2020

2-2021

2-2022

2-2019

2-2020

2-2021

2-2022

Pending Sales

Closed Sales

Days on Market

Median Sales Price

Avg. Sales Price

Pct. of Orig. Price Received

Affordability Index

Homes for Sale

Months Supply

2-2021

2-2022

Percent Change

YTD 2021 YTD 2022

413

401

- 2.9%

754

736

- 2.4%

407

402

- 1.2%

787

784

- 0.4%

303

312

+ 3.0%

660

658

- 0.3%

53

46

- 13.2%

55

45

- 18.2%

$200,000

$255,000

+ 27.5%

$212,000

$246,000

+ 16.0%

$231,949

$301,870

+ 30.1%

$241,250

$287,970

+ 19.4%

96.8%

98.3%

+ 1.5%

96.9%

97.9%

+ 1.0%

208

155

- 25.5%

196

161

- 17.9%

491

437

- 11.0%

--

--

--

0.9

0.8

- 11.1%

--

--

--

Percent Change

Current as of March 4, 2022. All data from Southeast Minnesota REALTORS® and NorthstarMLS®. Provided by the Minnesota Association of REALTORS®. Report © 2022 ShowingTime. | 2

26 | APRIL 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

NEW IN 2022!

Resident Physicians Mortgage Program Loan amounts up to $647,200 No Down Payment No Private Mortgage Insurance Fixed Interest Rate

rate

apr

monthly payment per $1,000

30 years fixed

3.500%

3.591%

$4.49

15 years fixed

2.750%

2.911%

$6.79

*Rates and Annual Percentage Rate (APR) are illustrated for a $500,000 conventional purchase mortgage with 0% down payment and assumes an additional 1% origination fee. Conforming loan amounts are less than or equal to $647,200. Certain closing costs are included in the APR. Your APR may vary based upon your final loan amount and finance charges. Rates good through 04/30/2022. Monthly payment per $1,000 does not include amounts for taxes and insurance premiums, and the actual payment obligation will be greater.

contact us today

Rochester 975 34th Ave NW 507-280-0621

Stewartville 1960 1st Ave NE 507-504-1060

bankonONB.com

28 | APRIL 2022

Inflation Remains at 40-Year High in February

BY FAN-YU KUO on MARCH 10, 2022

Consumer prices continued to break 40-year highs in February due to higher food, gasoline and housing costs.

This was the largest year-over-year gain since January 1982. This pace of inflation will likely stay high in the months ahead as Russia-Ukraine crisis continues drive up oil and commodity prices.

The Bureau of Labor Statistics (BLS) reported that the Consumer Price Index (CPI) rose by 0.8% in February on a seasonally adjusted basis, following an increase of 0.6% in January. Excluding the volatile food and energy components, the “core” CPI increased by 0.5% in February, following an increase of 0.6% in January. This is the fifth straight months that it has increased by at least 0.5%. The price index for a broad set of energy sources rose by 3.5% in February, and the food index increased by 1.0% in February.

In February, the indexes for gasoline, shelter, and food were the largest contributors to the increase in the headline CPI. The gasoline index rose by 6.6% in February and accounted for almost a third of the headline CPI increase. Meanwhile, the food index rose by 1.0% as the food at home index rose 1.4 percent; both were the largest monthly increases since April 2020.

The index for shelter, made up more than 40% of the “core” CPI, rose by 0.5% in February. The indexes for owners’ equivalent rent (OER) increased by 0.4% and rent of primary residence (RPR) rose by 0.6% over the month. Monthly increases in OER have averaged 0.4% over the last three months. More cost increases are coming from this category, which will add to inflationary forces in the months ahead.

During the past twelve months, on a not seasonally adjusted basis, the CPI rose by 7.9% in February, following a 7.5% increase in January. The “core” CPI increased by 6.4% over the past twelve months, following a 6.0% increase in January. It was the largest annual growth since August 1982. The food index rose by 7.9%, the largest annual increase since July 1981, and the energy index climbed by 25.6% over the past twelve months.

NAHB constructs a “real” rent index to indicate whether inflation in rents is faster or slower than overall inflation. It provides insight into the supply and demand conditions for rental housing. When inflation in rents is rising faster (slower) than overall inflation, the real rent index rises (declines). The real rent index is calculated by dividing the price index for rent by the core CPI (to exclude the volatile food and energy components).

The Real Rent Index rose by 0.1% in February, after staying unchanged in January. Over the first two months of 2022, the monthly change of the Real Rent Index remained virtually unchanged, on average.

29 | FOUNDATIONS NEWSLTR

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