FOUNDATIONS NEWSLTR FEBRUARY

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

CLAconnect.com

minnesota

97.5

greatest hits

Questions Contact Amber 507.282.7698 or Amber@RochesterAreaBuilders.com

14 | FEBRUARY 2024

ONB Bank is now Eagle Rock Bank. We have a new name, but we’re still the same great bank — and we still put you first!

BUILD YOUR DREAMS CONSTRUCTION LOANS FROM EAGLE ROCK BANK

At Eagle Rock Bank, we’re committed to delivering a personal approach to construction loans.

LOCATIONS Rochester 975 34th Ave. NW 507-280-0621 Stewartville 1960 1st Ave. NE 507-504-1060

Discover our surprisingly streamlined loan approval process.

Discover our helpful, local decision-makers who strive to get you answers faster.

• Commercial • Residential

• Land Acquisition • Development

Contact our helpful, experienced lenders today!

Member FDIC Equal Housing Lender NMLS # 415577

W W W. E A G L E R O C K . B A N K

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

Exclusive Incentives on your next vehicle available for NAHB Members

This full-line fleet just went corporate.

The Nissan Business Advantage is a one-stop fleet shop for all your corporate needs. With America’s only full-line fleet import brand,* it’s the perfect addition to help your business reach its goals. Get ready to handle all your fleet needs from vans to sedans.

nahb.org/nissan *2021 Ward’s Light-Vehicle Fleet U.S. Market Segmentation.

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

PREMIUM LISTING

NO ADDITIONAL CHARGE

$100 ANNUALLY

$300 ANNUALLY

$500 ANNUALLY

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

Exclusive Entertainment Discounts!

Members have access to huge savings on nationwide entertainment through MemberDeals. Find exclusive discounts, special offers, preferred seating, and tickets to top attractions, theme parks, shows, sporting events, hotels, and much more.

• Save up to 40% on Top Theme Parks Nationwide

• Huge Savings on Disney & Universal Studios Tickets

• Save up to 60% on Hotels Worldwide

• Preferred Access Tickets™ Find great seats to your favorite concerts, sports and more!

• Save up to 40% on Top Las Vegas & Broadway Show Tickets

Please visit https://memberdeals.com/nahb/?login=1

25 | FOUNDATIONS NEWSLTR

NAHB Member Put your membership to work.

Exclusive discounts that benefit you, your business and your family

nahb.org/Savings