FEB 2024
1 | FOUNDATIONS NEWSLTR
ROCHESTER AREA BUILDERS, INC.
FEBRUARY 2-4, 2024
Mayo Civic Center Date Night Family Activities Kitchens for Kids
SIGNATURE EVENT SPONSOR
MEDIA SPONSOR
DOWNLOAD THE SHOW
APP
2 | FEBRUARY 2024
2024 JANUARY MEMBERSHIP REPORT Membership Total: 405 Retention rate: 94.12%
STAFF
Patrick Sexton, Executive Director Pat@RochesterAreaBuilders.com Shelly Bahlmann, Publications & Special Events Director Shelly@RochesterAreaBuilders.com Golf Outing, Sporting Clays, Home Show, Newsletter, Showcase Magazine, RAB Update, Member Plus App & RAB Events App & Website Mike Peck, Member & Community Engagement Director Mike@RochesterAreaBuilders.com Ambassadors, Awards, Builders, Bags & Brews, Commercial Builders Council, Community Relations, Membership, Program, Remodelers Council, Remodelers Tour & 40 Below Amber Luhmann, Planroom Director Amber@RochesterAreaBuilders.com Builders Exchange Trustees, Education, & Showcase of Homes
BOARD OF DIRECTORS PRESIDENT
Adam Giannini, Knutson Construction
VICE PRESIDENT
Austin Ryan, Ryan Windows & Siding
SECRETARY TBD
TREASURER TBD
PAST PRESIDENT
Jason Scrimshaw, Kimley-Horn & Associates, Inc.
DIRECTORS
Jeremy Moe, Boldt Company Jeremy Keller, Keller Homes Jarett Jones, Merchants Bank Aaron Thompson, The Design Connection Kaleb Stevens, Weis Builders Kelsey Vaszily, Kraus-Anderson Construction Melissa Barbour, TLS Companies, LLC Joe West, Valor Mechanical Julie Herrera-Lemler, Rochester Area Economic Development, Inc. (RAEDI) / SBDC
BUILDERS EXCHANGE COUNCIL CHAIR Niki Birkholz, Palmer Soderberg, Inc.
COMMERCIAL BUILDERS COUNCIL CHAIR Keith Kranz, LVC Companies
DEVELOPMENT COUNCIL CHAIR TBD
REMODELERS COUNCIL CHAIR
Adam Galligher, Elias Construction
40 BELOW CHAIR
Dylan Musgherd, ISG
NATIONAL LIFE DIRECTORS
Steve Buss, Cornerstone Builders & Real Estate, Inc.
NATIONAL DIRECTORS
Dana Hlebichuk, Widseth Levi Kaiser, Benike Construction (Rep) Todd Severson, TLS Companies, LLC
STATE DIRECTORS
Mike Allen, Mike Allen Homes, LLC Jay Burke, Heartwood Homes Jean DeWitz, DeWitz Home Builders, Inc. Kathy Einck, Maplewood Homes, LLC (Rep) John McGuine, JM Consulting John Eckerman, RSP Architects 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
TABLE OF CONTENTS 02
Staff and Board of Directors
05
January GMM - Recap
06
RAB Scholarships
07
From the Executive Director
08
RAB Yearly Calendar at a glance
09
RAB January Calendar
10
Welcome New Members
11
Employment Situation Eye on Housing
13
Continuing Education Classes
15
Surprisingly Strong Growth Eye on Housing
16-17 Permits 19
New Home Sales Bounce Back Eye on Housing
D C
DEVELOPMENT COUNCIL
C OMMERCIAL B C UILDERS
OUNCIL
a division of the Rochester Area Builders, Inc.
a division of Rochester Area Builders, Inc.
4 | FEBRUARY 2024
FROM THE PRESIDENT builders, remodelers, roofing contractors, and building officials! Elevate your skills and stay ahead of industry trends by attending our 7-hour Continuing Education Classes. This is just one of the many benefits that being a RAB member brings to the continued success of your business.
ADAM GIANNINI President
Rochester Area Builders Winter has finally hit in Minnesota! We had a good run, but the inevitable weather finally came. I hope all of you have been able to enjoy the snow with your families and have stayed warm these last few weeks. I also hope this newsletter finds you well and ready for the exciting developments and opportunities coming our way in 2024. Here's a glimpse of what's in store at Rochester Area Builders for you in the coming month or so: Home Show on the Horizon – February 2, 3, 4 – Our upcoming Home Show is scheduled for Friday, February 2 through Sunday, February 4th. This event brings consumers ready to learn more about your services from all over southeastern Minnesota.
Spring Showcase Registration Opened January 23rd – This premier event is a golden opportunity to showcase the homes you build, connect with potential clients, and establish your reputation as a leader in your field. Congratulations to our 2023 RAB Award Winners –Thank you for all that you have done and will continue to do for this great organization.
Distinguished Service Award for a Builder – Jay Burke of Heartwood Homes
President’s Award – Joe West from Valor Mechanical
And another THANK YOU to Jason Scrimshaw, Kimley-Horn, for his excellent leadership in 2023! Thank you for being an essential part of the Rochester Area Builders Association!
Distinguished Service Award for an Associate – Jennifer Mitchell of Edina Reality
Adam Giannini Knutson Construction 2024 RAB President
Volunteer opportunities are also available during the Home Show at the welcome desk and 40 Below will be helping kids build crafts on Sunday. If you’re interested in supporting the Home Show as a volunteer, reach out to Shelly. Continuing Education Classes – February 23 – Calling all licensed
Cornerstone Award – ONB – now called Eagle Rock
Rising Star – Thomas Bottema from Premier Bank
5 | FOUNDATIONS NEWSLTR
SUMMARY OF BOLD. FORWARD. UNBOUND What is Bold. Forward. Unbound. in Rochester and what do you expect to accomplish? This is a $5 billion investment to improve and transform the overall patient experience and secure Mayo Clinic’s place as the leading health care provider in the world. How can we create an open flow of timely, pertinent information about Mayo’s construction needs? Mayo Clinic has a focus on improving their partnerships not only with the City of Rochester but also with organizations such as RAB. Unbound is a massive undertaking with lots of moving parts. It is important for our trade partners to know: everything is still very fluid. The details are still being worked out. We will continue to provide updates as we learn more and as things progress. It is important to emphasize something you all know well: we have $200 million worth of base capital projects that are still going to happen and Unbound should not overshadow that. How will we find and attract the new workers needed to get this done? Recruitment and retention will be a regional and national effort. We will need thousands of construction workers, and housing for them. But we also know that, after construction starts to wind down, some of those workers will stay in Rochester and some will leave. But others in the trades, or health care or other industries will
fill their spots. Mayo expects to see a 2% growth rate annually for years to come – that’s about 1,000 a year. We will do all we can to communicate what we know, when we know it.
better is communicate with our partners like the City of Rochester and the Rochester Area Builders. You are all valued and for us to be successful, we need you to be successful.
Getting them here will certainly be a challenge. Any insight on where they will live when they get here?
In that vein, Mayo Clinic wants to be a member of the Rochester Area Builders, so please send us the application as soon as you can and we will join.
Unbound is a multiyear project and we will have some time to ramp up and identify when the peaks will occur. This timeline will help private & public entities identify the needs for single family homes as well as multifamily developments. What process improvements have you learned that you can implement here to build more efficiently while limiting disruption? Unbound will take a phased approach over the next handful of years, demolition starting later this year at the Damon ramp. Plans are in place and will continue to evolve to ensure that patients, employees, and the public are well aware of the projects. One thing we will do
Unbound is a huge project, but we have lots of them coming up. Any insight you can share on these projects complement Bold. Forward. Unbound. in Rochester? Mayo is working on these projects in partnership with the City of Rochester. As parking ramps are taken down for the new buildings, it is important to note we will be adding 5,000 additional parking spots at the East & West transportation hubs (Old Kmart Location & 2nd Street Parking lot). Which will work in partnership with the new bus rapid transit project and the new bridge being built over the Zumbro at Broadway and 6th.
6 | FEBRUARY 2024
SCHOLARSHIP
OPPORTUNITY
GRADUATING HIGH SCHOOL STUDENTS POST-SECONDARY SCHOLARSHIPS
Rochester Area Builders, Inc. is proud to announce their 2024 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 program in a construction-related CRITERIA: field including technical school, 1. Applicant must be a resident of Dodge, Fillmore, Goodhue, trade school, apprenticeship, or Houston, Mower, Olmsted, Steele, Wabasha, Winona 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 2024. To 2. Applicant must be accepted by a post-secondary program in be eligible for any scholarships, a construction related field including technical school, trade applications must be postmarked school, apprenticeship, or college. by May 8, 2024. 3. Applicant must have a 2.5 or better G.P.A. – High School Transcript Required
Go to https://www.rochesterareabuilders. com/for-consumers/student-resources/ 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.
7 | FOUNDATIONS NEWSLTR
FROM THE EXECUTIVE DIRECTOR
2023 YEAR IN REVIEW
counsel and her time. She is now putting herself and her growing family first and everyone wishes her the best.
PATRICK SEXTON Executive Director Rochester Area Builders Usually in these articles, the author saves the “thank yous” to the end. I’d like to put them right at the top because there are so many, and they are so important. A deep and sincere “thank you” to: JOHN EISCHEN – John dedicated 12 years to running the Rochester Area Builders. He did the work with compassion, strength, expertise, and humor. Though he has moved on to Carpet One, he has been unwavering in his openness and availability to staff and members alike, constantly giving of himself to help the association, and me personally. I am in his debt. REBEKAH FIERST – For two decades, Rebekah was the face of RAB. Known and loved by everyone, she was a presence throughout the community, making sure people knew who the RAB was – and always putting members first. She, too, has been so giving with her
RICK DOLD – For four years, Rick was there when the City Council or Planning & Zoning or any government entity was thinking of doing something that could impact builders. Among other things, he guided the association through the complex changes of the Unified Development Code (UDC). His calm, knowledgeable hand helped countless members. SHELLY BAHLMANN – When nearly 40 years of experience went out the door in one fell swoop, it changes an organization. Thankfully, Shelly was there to keep things moving and, when others came onboard, explain how the place works. I truly don’t know what RAB would look like if Shelly wasn’t here – and I don’t want to know. ELIZABETH SULLIVAN BURTON – she was here two years but made a lasting difference but updating our technology. I am grateful for her help and support. AMBER LUHMANN and MIKE PECK – If you haven’t met our two newest employees, I hope you do soon. Both have jumped in with both feet, willing to do anything they can to help members. They are great additions – great people to work with.
asking questions about who RAB is and what value we should be providing for members. We have already gleaned some terrific insight and can’t wait to share what we’ve learned. Stay on the lookout for development of the bus rapid transit (BRT) system in Rochester. Running down 2nd Street from approximately the Rochester Country Club to downtown and out to the Ampi/ Kmart site, it will change how we get around town. Also, the largest building project in Rochester’s history will start at the end of this year. Mayo Clinic’s Bold. Forward. Unbound. project will see multiple buildings come down and multiple new ones get built around the Gonda building. The impact will be huge: both in terms of traffic congestion locally and how it will spark change in health care delivery throughout the globe. RAB expects to be a partner with Mayo Clinic and their general contractor in this endeavor, with the goal of promoting our members every step of the way. Finally, thank you for letting me be a part of this great organization. I’m convinced the more you, the RAB members, become engaged in running the association, the better we will be.
What is to come? Members of the Board have embarked on a 360 audit of the RAB. We are reaching out to members, non-members and others and
Patrick Sexton Executive Director Rochester Area Builders, Inc.
8 | FEBRUARY 2024
Sunday
February 2024
Monday
Tuesday
Wednesday
4
11
12 1:00 PM Car Show Committee
18
25
Friday
Saturday
1
2
3
7
8
9
10
14
15
16
17
21
22
23
24
6 8:30 AM Remodelers Council Exec.
Thursday
7:30 AM CBC Exec Meeting
13 3:30 PM Board Meeting
19
26
20
11:30 AM Ambassadors/ Membership Committee
11:30 AM Community Relations Committee
4:30 PM 40 Below Exec Committee
SPRING SHOWCASE 1ST DEADLINE
27
28 3:00 PM Development Services Advisory Committee
29
ROCHESTER AREA BUILDERS
C O N T I N U I N G
9 | FOUNDATIONS NEWSLTR
Rochester Area Builders 2024 Calendar of Events
FEBRUARY 02-04
Home Show @ Mayo Civic Center
23
Continuing Education Class @ Haley Comfort Systems
27
Networking Night @ Modern Design Cabinetry
27-29
International Builders Show @ Las Vegas, NV
MARCH 5
BAM Building Industry Day at the Capitol
26
Networking Night @ The Pinske Edge
APRIL 20-21
Spring Showcase of Homes
27-28
Spring Showcase of Homes
30
Networking Night @ Hamernick’s Flooring Solutions
MAY 27
Office Closed – Memorial Day
JUNE 6
RAB Golf Outing @ Willow Creek Golf Course
25
Networking Night @ Top Shop
JULY
SEPTEMBER 2
Office Closed – Labor Day
19
Sporting Clay Shoot
21
Sporting Clay Youth Shoot
21-22
Remodelers Tour & Fall Showcase of Homes
24
General Membership Meeting @ TBD
28-29
Fall Showcase of Homes
OCTOBER
4
Office Closed for Independence Day
TBD
NAHB Mid-Year Board Meeting – TBD
30
Member Appreciation Night @ TBD
29
Networking Night @ Reagan Outdoors
NOVEMBER
AUGUST
28-29 TBD
Office Closed – Thanksgiving Holiday Past Presidents Dinner
TBD
Builders, Bags & Brews @ LTS Brewing Co.
DECEMBER
27
Networking Night @ Carpet One
6
Holiday Party @ TBD
24-25
Office Closed – Christmas Holiday
10 | FEBRUARY 2024
WELCOME NEW MEMBERS JANUARY 2024
Frandsen Bank & Trust
Paxton Electrical Industries, LLC
Chris Nelson Bank 507.892.7000
Brandon Paxton Electrical Contractor 507.206.4635
paxtonelectricalindustries. com
frandsenbank.com
Main Street Properties
Mark Welch Real Estate 507.261.8148
COMMERCIAL SERVICES · FOOTINGS
· FLOOR SLABS
· FOUNDATION WALLS
· EXTERIOR SITE CONCRETE
11 | FOUNDATIONS NEWSLTR
EMPLOYMENT SITUATION IN DECEMBER: STATE-LEVEL ANALYSIS BY DANUSHKA NANAYAKKARA-SKILLINGTON on JANUARY 23, 2024 Nonfarm payroll employment increased in 39 states and the District of Columbia in December compared to the previous month, while 11 states saw a decrease. According to the Bureau of Labor Statistics, nationwide total nonfarm payroll employment increased by 216,000 in December, following a gain of 173,000 jobs in November. On a month-over-month basis, employment data was most favorable in California, which added 23,400 jobs, followed by Texas (+19,100), and then Florida (+16,500). A total of 28,700 jobs were lost across thirteen states, with Virginia reporting the steepest job losses at 11,800. In percentage terms, employment in Alaska increased the highest at 0.5%, while Vermont saw the biggest decline at 0.6% between November and December. Year-over-year ending in December, 2.7 million jobs have been added to the labor market. Except for Mississippi, all other states and the District of Columbia added jobs compared to a year ago. The range of job gains spanned from 1,400 jobs in Vermont to 369,600 jobs in Texas. Conversely, Mississippi lost 7,800 jobs on a year-over-year basis. In percentage terms, Nevada reported the highest increase at 3.8%, while Mississippi showed the largest decrease at 0.7% compared to a year ago. Across the nation, construction sector jobs data—which includes both residential and non-residential construction— showed that 32 states reported an increase in December compared to November, while 16 states and the District of Columbia lost construction sector jobs. The remaining two, Alaska and Indiana reported no change on a month-overmonth basis. New Jersey, with the highest increase, added 3,800 construction jobs, while Ohio, on the other end of the spectrum, lost 4,100 jobs. Overall, the construction industry added a net 17,000 jobs in December compared to the previous month. In percentage terms, South Dakota reported the highest increase at 4.1% and the District of Columbia reported the largest decline at 1.9%. Year-over-year, construction sector jobs in the U.S. increased by 197,000, which is a 2.5% increase compared to the December 2022 level. Texas added 32,800 jobs, which was the largest gain of any state, while New York lost 15,600 construction sector jobs. In percentage terms, South Dakota had the highest annual growth rate in the construction sector at 20.8%. Over this period, New York reported the largest decline of 3.9%.
12 | FEBRUARY 2024
FIND THE SCHOLARSHIP THAT FITS YOUR CAREER PATH Each year the NAWIC Founder's Scholarship Foundation (NFSF) is pleased to award more than $25,000 to worthy recipients in construction-related programs.
Undergraduate Scholarship For full-time students currently enrolled in a construction-related degree program with at least one term remaining in a course of study leading to a degree or an associate degree.
Construction Trades Students currently enrolled in a construction-related training program apprenticeship training, community college, technical school or equivalent. Must be a construction-related craft or trade.
NAWICSEMN.ORG
13 | FOUNDATIONS NEWSLTR
2024 CONTINUING EDUCATION Residential Building Contractors & Building Officials FEBRUARY 23RD 8AM-4PM
DEADLINE REGISTRATION: FEBRUARY 19, 2024
RAB MEMBERS $89 / 7 Hour Course
NON MEMBERS $109 / 7 Hour Course
ALL REGISTRATION INFORMATION AVAILABLE HERE HOST SPONSOR: EDUCATION SPONSORS:
CPAs | CONSULTANTS | WEALTH ADVISORS
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14 | FEBRUARY 2024
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15 | FOUNDATIONS NEWSLTR
U.S. ECONOMY ENDS 2023 WITH SURPRISINGLY STRONG GROWTH
BY JING FU on JANUARY 25, 2024
The U.S. economy grew at a surprisingly strong pace in the fourth quarter, mainly fueled by resilient consumer spending. However, the fourth quarter data from the GDP report suggests that inflation is cooling. The GDP price index rose 1.5% for the fourth quarter, down from a 3.3% increase in the third quarter. The Personal Consumption Expenditures (PCE) Price Index, which measures inflation (or deflation) across various consumer expenses and reflects changes in consumer behavior, rose 1.7% in the fourth quarter, down from a 2.6% increase in the third quarter. According to the “advance” estimate released by the Bureau of Economic Analysis (BEA), real gross domestic product (GDP) increased at an annual rate of 3.3% in the fourth quarter of 2023, following a 4.9% gain in the third quarter. It marks the sixth consecutive quarter of growth. This quarter’s growth was higher than NAHB’s forecast of a 0.9% increase. For the full year, real GDP increased 2.5% in 2023, up from a 1.9% increase in 2022, and slightly better than NAHB’s forecast of 2.4%. This quarter’s increase in real GDP reflected increases in consumer spending, exports, government spending, and private domestic investment. Imports, which are a subtraction in the calculation of GDP, increased 1.9%. Consumer spending, the backbone of the U.S. economy, rose at an annual rate of 2.8% in the fourth quarter, reflecting increases in both services and goods. While expenditures on services increased 2.4% at an annual rate, goods spending increased 3.8% at an annual rate, led by other nondurable goods (+5.1%) and recreational goods and vehicles (+10.9%). Both federal government spending and state and local government spending increased in the fourth quarter. The increase in state and local government spending primarily reflected increases in compensation of state and local government employees and investment in structures, while the increase in federal government spending was led by nondefense spending. In the fourth quarter, exports rose 6.3%, reflecting increases in both goods and services. Nonresidential fixed investment increased 1.9% in the fourth quarter, following a 1.4% increase in the third quarter. The increase in nonresidential fixed investment reflected increases in intellectual property products (2.1%), structures (3.2%), and equipment (1.0%). Additionally, residential fixed investment (RFI) rose 1.1% in the fourth quarter, down from a 6.7% increase in the third quarter. This is the second straight gain after nine consecutive quarters of declines. Within residential fixed investment, single-family structures rose 11.6% at an annual rate, multifamily structures declined 1.0%, and improvements rose 5.5%.
16 | FEBRUARY 2024
ROCHESTER BUILDING PERMITS
DECEMBER 2023 NEW RESIDENTIAL
2023
VALUATION
2022
VALUATION
Single Family Dwelling
10
4,536
35
10,631,000
Townhome Dwelling
0
0
6
1,391,500
Two-Family Houses
0
0
0
Manufactured Home
0
0
Multi-Family Bldgs (Units)
0
8
2023 NO.
VALUATION
2022 NO.
VALUATION
BUILDING PERMITS ISSUED TO DATE
2380
528,634,529
2205
562,379,893
0
Single Family Dwelling
210
82,544,935
198
77,269,755
0
0
0
4
310,000
Multi-Family Buildings Total Units: 549
7
86,749,000
25
98,231,858
66,900
3
7,455
TRADE PERMITS ISSUED TO DATE
10548
146,936,297
9903
156,769,542
4060
64,040,980
3827
72,599,800
EXISTING RESIDENTIAL Deck Addition
YEAR TO DATE STATISTICS
Room Addition
1
22,945
0
0
Electrical
Porch Additions
1
25,000
0
0
Electrical (Temp. Service)
208
65,815
211
130,650
Other Additions
2
13,200
2
24,000
Mechanical (HVAC)
2663
44,176,137
2747
41,916,329
858
1,500,055
540
1,009,681
Basement Finish
12
256,715
12
242,423
Mechanical (Gas Piping)
Alterations
72
787,391
85
836,127
Mechanical (Fireplace)
299
1,2047,379
275
1,313,311
Mechanical (Hydronic)
185
10,163,123
228
15,324,950
Plumbing
2275
25,812,808
2075
24,474,821
TOTAL PERMITS YTD
12928
675,597,826
12108
719,149,435
Multi-Family Addition
1
30,000
0
0
Multi-Family Alterations
2
173,696
4
368,334
NEW COMMERCIAL Assembly (Church)
0
0
0
0
Assembly (General)
2
15,800,000
0
0
TCPA BUILDING PERMITS
Assembly (Restaurant/Bar)
0
0
0
0
Business
0
0
0
0
Education
0
0
0
0
Factory/Industrial
0
0
1
12,231,120
Institution
0
0
0
0
High Forest Township
VALUATION
Cascade Township
8
600,000
Dover Township
2
26,000
Elimira Township
0
0
Haverhill Township
5
136,000
Mercantile
0
0
0
0
Kalmar Township
Miscellaneous
0
0
0
0
New Haven Township
Residential (Apartment)
0
0
0
0
Orion Township Pleasant Grove Township
Residential (Care/Assisted Living)
0
0
0
0
Residential (Care/Hotel/Motel)
0
0
0
0
Storage (General)
0
0
0
0
Storage (Parking Garage)
1
375,000
0
0
Storage (Warehouse)
0
0
1
200,000
Utility (General)
0
0
0
0
Utility (Private Garage)
0
0
0
0
Addition
0
0
4
13,385,451
Alterations
41
8,945,827
17
6,734,679
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
Business Signs
8
88,665
19
563,418
Advertising Signs
0
0
0
0
Footings & Foundations
0
0
0
0
Demolition
2
0
3
N/A
EXISTING COMMERCIAL
OTHER CONSTRUCTION
JUNE 2023
NUMBER
TE9S A PD 4 1
N
OU
4,500 859,000 71,000
1
44,000
1
0
Rochester Township
6
646,000
Rock Dell Township
1
0
Salem Township
8
228,000
Viola Township
1
0
17 | FOUNDATIONS NEWSLTR
OLMSTED COUNTY PERMITS YTD
December 2023
NEW RESIDENTIAL
2023
Single Family-Detached
40
15,522,560
43
18,695,833
Single Family-Attached
2
689,195
79
22,078,554
Garage
22
1,683,586
26
2,086,429
36
212,673
43
268,465
VALUATION
2022
RESIDENTIAL Deck Addition
10
810,989
21
1,945,624
Alterations
390
6,939,948
321
5,616,004
8
752,566
3
164,894
Garage Addition
NEW COMMERCIAL/INDUSTRIAL Recreational
0
0
0
0
Church/Religious
0
0
0
0
Industrial/Warehouse
2
901,237
4
2,644,959
Service/Repair Station
0
0
2
3,041,530
Store/Restaurant
0
0
1
78,552
Nonresidential Building
2
1,800,890
1
616,530
COMMERCIAL/INDUSTRIAL
2023
VALUATION
2022
VALUATION
Addition
3
12,084,022
1
192,666
Alterations
23
1,368,667
24
4,640,585
Re-roofing
2
110,000
4
326,929
Pool, Retaining Wall, etc.
26
1,623,396
19
1,381,667
Manufactured Homes
5
0
25
0
OTHER STRUCTURES
MISCELLANEOUS PERMITS Mechanical
259
1,326,367
229
1,461,444
Plumbing
86
397,307
97
333,563
919
47,027,999
939
95,245,153
TOTAL PERMITS
CD Report
VALUATION
BUILDING DIVISION Commercial building plans submitted
Residential building plans submitted
Commercial inspections completed
33
31
2023: 884 *Avg: 898
Residential inspections completed
YTD NEW Housing Units
Residential plan review time
Commercial plan review time
2023: 1,628 *Avg: 1,504
2023: 793 *Avg: 793
2 Weeks
3 Weeks
YTD Residential permits issued
YTD Commercial permits issued
YTD Trade permits issued
2023: 1,705 *Average: 1,533
2023: 436 *Average: 357
2023: 10,54814 *Average: 9,992
YTD Residential valuations
YTD Commercial valuations
YTD Alterations valuations
YTD Trade valuations
2023 $179,199,197 *Average $161,732,438
2023 $65,744,200 *Average $115,057,931
2023 $261,074,341 *Average $178,212,896
2023 $146,963,297 *Average $115,177,691
OLMSTED COUNTY PERMITS TOWNSHIPS/CITY
DECEMBER 2023
2023
VALUATION
2022
VALUATION
City of Byron
22
1,118,863
19
11,501,919
Eyota Township
0
0
2
23,800
Marion Township
10
902,432
5
20,273
Oronoco Township
9
631,131
8
149,634
City of Stewartville
7
110,200
18
122,734
Quincy Township
0
0
0
0
PINE ISLAND BUILDING PERMITS DECEMBER 2023 NEW RESIDENTIAL
NUMBER
VALUATION
Single Family Detached
1
510,000
Single Family Attached
0
0
Basement Finish
0
0
Deck Addition
0
0
Existing Residential
PLANNING DIVISION
YTD Building permit plans reviewed
YTD Zoning Certificates submitted
YTD Type I Applications submitted
2023: 2,141 *Average: 1,890
2023: 91 *Average: 105
2023: 82 *Average: 71
YTD Type II Applications submitted
YTD Type III Applications submitted
2023: 9 *Average: 6
2023: 42 *Average: 67
*Average based on 2020, 2021, 2022
18 | FEBRUARY 2024
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.
19 | FOUNDATIONS NEWSLTR
NEW HOME SALES BOUNCE BACK IN DECEMBER ON LOWER MORTGAGE RATES BY DANUSHKA NANAYAKKARA-SKILLINGTON on JANUARY 25, 2024 Falling interest rates in the closing weeks of 2023 helped to bring buyers off the sidelines and provide a boost for new home sales. Sales of newly built, single-family homes in December increased 8.0% to a 664,000 seasonally adjusted annual rate from an upwardly revised reading in November, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The pace of new home sales in December is up 4.4% from a year earlier. On an annual basis, new home sales totaled 668,000 in 2023, up 4.2% from the 2022 figure of 641,000. A new home sale occurs when a sales contract is signed, or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction or completed. In addition to adjusting for seasonal effects, the December reading of 664,000 units is the number of homes that would sell if this pace continued for the next 12 months. New single-family home inventory in December remained elevated at a level of 453,000, up 0.4% compared to a year earlier. This represents an 8.2 months’ supply at the current building pace. A measure near a 6 months’ supply is considered balanced. A year ago in January, there were 72,000 completed, ready–to–occupy homes available for sale (not seasonally adjusted). By the end of December, that number increased 22.2% to 88,000. However, completed, ready– to–occupy inventory remains just 19% of total inventory and homes under construction account for 58% of the inventory. Homes that have not started construction when the sales contract is signed account for 23% of new homes sold in December. The median new home sale price in December was $413,200, edging down 3.0% from November, and down 13.8% compared to a year ago. Decline in home size and stability in building material costs, especially lumber prices, have contributed to a fall in home prices. In terms of affordability, the share of entry-level homes priced below $300,000 has been steadily falling in recent years. Only 16% of the homes were priced in this entry-level affordable range, while 35% of the homes were priced above $500,000. Most of the homes (49%) were priced between $300,000-$500,000. Regionally, on a year-to-year basis, new home sales are up in all four regions: up 3.5% in the Northeast, 3.6% in the Midwest, 5.2% in the South. and 2.1% in the West.
20 | FEBRUARY 2024
21 | FOUNDATIONS NEWSLTR
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22 | FEBRUARY 2024
Reach
Qualified Customers
Advertise on the RAB Website!
More than 3,000 people visit the RAB website each month, many of them looking for a contractor. Advertise on our site and reach them when they’re primed to buy! Banner ads are available in a variety of locations on the RAB site, from job posts to the contractor directory. Higher tiers come with priority placement in directory search results too. Contact us today to learn how you can start advertising! Contact Rochester Area Builders Shelly@RochesterAreaBuilders.com or 507-282-7698
23 | FOUNDATIONS NEWSLTR
WEBSITE PROFILE ENHANCEMENTS
STANDARD LISTING
UPGRADED LISTING
ENHANCED LISTING
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$100 ANNUALLY
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Company Name, Address and Phone Number Links to Website, Address, and Phone 5 Categories Medium Placement in Search Results Link to Profile Page 12 Categories Company Description (200 Characters) Keywords (240 Characters) Hours of Operation Driving Directions Higher Placement in Search Results Company Description (1600 Characters) Keywords (Unlimited Characters) 200 Characters on Search Results Bulleted List with Hyperlinks Logo on Profile Page Can Be Added Search Results Summary (200 Characters) Profile Page Header Can Be Added Gold Map Pin Logo On Search Results Can Be Added Social Networks Can Be Added Photo Gallery Can Be Added YouTube Video Can Be Added
Contact: Shelly@rochesterareabuilders.com for more information.
24 | FEBRUARY 2024
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25 | FOUNDATIONS NEWSLTR
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