Building Business News for March 2017

March 2017

Home Show 2017 Opens on March 17 Josh Clark joins the HBA – page 3 Missouri Legislative Day – page 4 Spring Awards – page 7

The Home Builders Association of Greater Kansas City will bring spring to Bartle Hall when the 69th annual Greater Kansas City Home Show opens to the public at noon on March 17.

Bartle Hall will begin to fill with activity on Tuesday, March 14 when local landscapers arrive to bring the outdoors inside as they assemble their displays of flowers, plants and hardscape elements.

This year’s central area, Greenville

Square, is sponsored by Kansas City Power & Light. Centered around the DIY Stage, Greenville Square will feature themed landscaping and unique “homes”: a tiny home, a specially decorated Airstream camper and a yurt decked out for glamping.

Plan your Home Show weekend – page 9

KCP&L will expand the outdoors concept of Greenville to include ways to conserve energy, automate homes and protect the environment. KCP&L will demonstrate the Nest line-up of devices

to monitor home energy usage, security devices and Google Home, along with an electric car and its charging station.

Headlining the 2017 show are Jonathan and Drew Scott, stars of HGTV’s Property Brothers. The Scotts will speak from the James B. Nutter Home Loan Stage on Saturday. Appearing on Sunday will be Karl Champley, winner of

“Ellen’s Design Challenge”. Stage presentations will also include Tamara Day, star of “Bargain Mansions” on DIY Network, Jen Bertrand, and Chrysalyn Huff (Restoration Emporium).

The Greater Kansas City Home Show at Bartle Hall will offer products, services, expert advice and fun all in one place – don’t miss it!

www.kchba.org | Volume 23, No. 3 | March 2017

Mayor Sly James Addresses Missouri North Council Meeting

March Calendar March 9 Associates Council Meeting March 17-19

Area council meetings kicked off for 2017 on Feb. 22 with Kansas City Mayor Sly James joining HBA members for lunch and speaking about the Kansas City G.O bond question which will

Greater Kansas City Home Show

The mayor stated that “Kansas City is booming with growth and opportunity” and the city wants to keep this trend going. The bonds will provide repairs and replacements of outdated and damaged infrastructure to meet livable and safe standards, with improvement projects to be prioritized based on severity of disrepair.

March 21 Board of Directors Meeting March 22 Kansas Area Council Meeting For more information or to register for any event, go to www.kchba.org or call 816-942-8800

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be on the April 4 ballot. The bond issue has been divided into three questions on the ballot: $600 million for street, bridge, and sidewalk improvements; $150 million for flood control (the city will also receive over $500 million in federal matching funds for flood control efforts); and an additional $50 million to bring public buildings into ADA compliance and replace the city’s outdated animal shelter.

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Mayor James pointed out that home owners will no longer be financially responsible for sidewalk repair under the proposed bond; this will facilitate replacement of many more sidewalks than

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has been possible in past years. He went on to state that Kansas City operates the 2nd largest no-kill shelter in the country, which was constructed as a warehouse in the 1970s.

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The city will report on its progress at the end of each year by sending out a “report card” that includes a financial statement. A city resident who owns a $140,000 home and a $15,000 car, can expect an increase in his or her property tax by about $120 at the end of the 20-year period.

HBA members were offered a survey at the area council meeting on whether they support the GO Bond initiative; the overwhelming majority voted in support of the issue. The HBA Board of Directors voted to support the G.O. Bond issue and the HBA will support the campaign with a $1,000 contribution.

March 2017 | Volume 23, No. 3 | www.kchba.org

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Josh Clark Joins the HBA as Executive Vice President Josh Clark joined the Kansas City HBA on Feb. 6 as the executive vice president.

“We are very pleased to announce this appointment,” reported Harold Phelps, 2017 HBA President, “and our members are eager to work with Josh as he brings new ideas and fresh eyes to the organization.”

Clark’s resume includes experience with several non-profit organizations, political campaign management and, most recently, as the Vice President of Builder Services at the Tidewater Builders Association in Chesapeake, Va. With degrees in political science and sociology, as well as experience in real estate sales, Clark can draw upon a wide-ranging background.

home builders and industry professionals. Josh will also work to further the HBA’s advocacy efforts with local and state government officials.

In relocating to Kansas City from the eastern U.S., he will be busy getting acquainted with the Midwest and the local

“I look forward to bringing people to-

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gether as we identify issues that are important to the industry” said Clark.

“I am dedicated to this industry and am proud to join an organization that has supported home building in Kansas City for the past 80 years.”

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www.kchba.org | Volume 23, No. 3 | March 2017

Missouri Legislative Day On Wednesday, February 15, HBA members and staff traveled to Jefferson City for Missouri Legislative Day, an annual trip to the Capitol to meet face to face with state legislators. The day provides an opportunity to maintain relationships with area Senators and Representatives and discuss issues important to the home building industry with the people who have the power to affect change.

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strategies to address the labor shortage, workers’ compensation reform, and a new bill that would regulate Home Owners Associations and severely impact a builder’s or developer’s ability to make

HBA members spent the afternoon visiting with area legislators. Mark Mather, JoAnn Nero, Glen Dowding, Rep. Rebecca Notable meetings Roeber, Tom Woods, David Elliott, Bob Frost and Greg Kudrna. included House Madecisions while a planned development jority Floor Leader Mike Cierpiot, is still actively being sold. Members Representative Jeanie Lauer, Senator urged legislators to seek the input of Dan Hegeman, Senator John Rizzo, Rephome building professionals when apresentative Noel Shull, Representative TJ proaching these issues that are critical to Berry, Representative Rebecca Roeber, Representative Ken Wilson and more. The HBA also made a point of meeting new legislators such as Representative Richard Brown, who is co-sponsoring a bill that would establish the First-Time Kari English, Josh Clark, Misty Hanson, Brenner Holland, Rep. Home Buyer Kevin Corlew, Matt Ernst and Gary Kerns Savings Account the economic development of the metro Act and authorize a tax deduction for area. contributions to a savings account dedicated to buying a first home.

Thank you to everyone who spent a day away from business to travel to Jefferson HBA members spoke with legislators City and advocate for the home building about a variety of home building issues, industry. including workforce development and

March 2017 | Volume 23, No. 3 | www.kchba.org

The Science and Art Behind Selling client. Using virtual and augmented reality in the sales center and throughout model homes or giving clients the freedom to explore on their own, at their convenience can make for a more unique and memorable experience.

Location Homes and communities, both single- and multifamily, built within close driving or walking distance to public transportation, shopping, dining, schools and other amenities will always win with buyers (and renters).

Amenities Buyers, especially millennials, love options. The more distinct possibilities offered, even if it’s only two or three, the better your chances of staying competitive.

Color Color triggers emotional response in humans. Play around with different colors in different rooms to hit the emotional hot spot for buyers. And look to the future; color in architectural design is changing shape. Learn more about how to take advantage of these new trends.

Focus on Women Research shows that women are the primary decision makers when it comes to consumer spending, and especially when it comes to home purchases. Keeping this top of mind at each phase of the design-build process should help sell more homes.

Personalization Providing ways for buyers to make the space their own, like a memory wall or art alcove, will give them one more reason to fall in love.

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A craft closet hits several hot buttons: a functional amenity that’s appealing to women.

The science of selling—tapping into what customers want and how to sell it to them—proved to be a pretty common theme at the International Builders’ Show. Learn more about the seven key areas that are likely to make your buyers’ hearts’ skip a beat, and what to keep in mind when designing your next home.

Great Design Experts say that escapism, converged living, cultural influences and that both task oriented (functional) and experi-

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ential (emotion) spaces are currently leading the way in new home design.

These trends should be considered as well.

The Retail Experience In today’s fast-paced, short-attention-span world, capturing the buyer’s eye and keeping them focused on the mark can be challenging. Marketing and merchandising plays a big role in this.

Experts agree that offline, it should start with the sales center. The model home experience should be a journey for the

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www.kchba.org | Volume 23, No. 3 | March 2017

NAHB Seeks Solutions as Lumber Prices Rise Lumber prices are on the rise, and that’s not good news for home builders and their clients.

Randy Strauss, owner of Strauss Construction in Amherst, Ohio, heard the news from his lumberyard: Lagging domestic supply and increasing tariffs on Canadian lumber mean that Strauss is looking at prices increases this spring as high as 30 percent by April.

That’s about when he’ll start breaking ground on a home that his client signed a contract for last week – a large custom home that includes a $60,000 lumber package. With an expected $18,000 cost increase, “there goes my profit,” he said.

Negotiations on a new softwood lumber agreement between the United States and Canada ground to a halt at the end of 2016 and likely are stalled pending the results of an investigation into unfair

import practices requested by the U.S. Lumber Coalition.

Any further negotiations on a resolution between the two countries are expected to be on hold until confirmations of a new Secretary of Commerce and a new U.S. Trade Representative.

That leaves home builders – and their customers – caught in the middle and probably looking at price hikes: The Random Lengths Framing Lumber Composite price jumped from $366 on Feb. 3 to $391 on Feb. 10, the greatest weekly gain since August 2003. By Feb. 17, it was up to $405.

“Normally, our pricing lags a month or two behind these wholesale prices,” said Jonathan Sukonik, who builds homes in suburban Philadelphia. The lumber budget for a typical Sukonik Building Companies home is about $18,000. “If it

jumps 10 percent or 20 percent, you can’t pass on the cost. You have to absorb it – and when lumber gets out of hand, it makes it more difficult to cover costs.”

Anticipating this volatility, NAHB has been working on a number of fronts to keep supplies steady and prices more reasonable.

Last year, NAHB formed a coalition to encourage policies that promote free trade and a stable supply of lumber without the unpredictable price swings that raise the costs of building and make homeownership less affordable. “The voice of the home builder must be heard, because we are the drivers of the American economy,” said NAHB CEO Jerry Howard.

Meanwhile, NAHB is urging domestic lumber companies to increase production and make it available for U.S. home builders. At the same time, the association leadership is in contact with lumber producers in other countries in an effort to open up new sources of supply.

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Members can track lumber price changes on the NAHB Construction Statistics page – go to nahb.org and search for construction statistics/framing lumber prices.

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March 2017 | Volume 23, No. 3 | www.kchba.org

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www.kchba.org | Volume 23, No. 3 | March 2017

Labor Shortage: We’ve Been Here Before In reviewing Builder Business News issues from prior years, HBA staff ran across the following headline from September 1994: “Labor Shortage Concerns Industry”. The front page article begins: “During the last twenty years industries have had the luxury of an abundance in the work force. However, with the entry of the smaller sized baby bust generation into the work force in 1990, the labor market has shrunk. Shortages are occurring not only in respect to the number of workers entering the labor force, but also in the quality of those worker’s skills. Like the rest of the country, Kansas City is feeling the labor availability crunch.”

The article goes on to describe a program known as the Carpentry: Qualified Framer Program which offered a six

month training program that included framing four homes. The KCHBA Board of Directors at that time approved funding to bring that program to Kansas City in 1995.

building activity has increased, there are not enough workers in the home building trades. The generation now reaching their peak working years (the Millenials) is actually a large generation, but many high schools have de-emphasized vocational education in favor of a focus on STEM (science, technology, engineering and math) careers which require college education.

One of Josh Clark’s (KCHBA’s new executive vice president) first projects is to re-invigorate the Labor Shortage Taskforce. The task force, to be chaired by Todd Lipschutz of Inspired Homes, will work on the areas of community outreach, education and industry affiliates.

The current labor shortage has different root causes than that of 23 years ago. A large number of construction workers who left the industry during the great recession have not returned and, now that

BuildingBusinessNews THE OFFICIAL PUBLICATION OF THE HOME BUILDERS ASSOCIATION OF GREATER KANSAS CITY March 2017 • Volume 23 • Issue 3

Copyright 2017 Published by the Home Builders Association of Greater Kansas City 600 E 103 Street, Kansas City, MO 64131 (816) 942-8800

Editor Marcia Jurgens Contributing Writers Katie Walkley, Kari English, Taylor Pond Graphics Karla Peterie, Creative Services

2017 Executive Committee Home Builders Association of Greater Kansas City

President Harold Phelps Vice President Gary Kerns Secretary/Treasurer Shawn Woods Immediate Past President Brenner Holland Associate Representative Rosemary Vitale Past Presidents Representative Bob Frost To subscribe to Building Business News call (816) 733-2217 To advertise in Building Business News call (816) 733-2215 For change of address requests please fax changes to (816) 942-8367 or call (816) 942-8800 For more information, visit the HBA online at www.kchba.org

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March 2017 | Volume 23, No. 3 | www.kchba.org

Friday-Sunday

March 17-19 Jonathan & Drew Scott HGTV’s Property Brothers

KCHomeShow.com Sponsored by

The latest & most innovative products & services in the home building industry.

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Karl Champley

“Ellen’s Design Challenge” DIY’s “Wasted Spaces”

www.kchba.org | Volume 23, No. 3 | March 2017

Come to the 2017 Greater Kansas City Home Show The original and largest KC Home Show is here! This year’s show offers hundreds of exhibitors showcasing the most innovative products and services to help homeowners get a jump on spring decorating, garden and home improvement projects.

When : Friday-Sunday, March 17 - 19 Where : Bartle Hall, 301 W. 13 St. KCMO Hours: Friday: 12 pm – 8 pm

Saturday: 10 am – 8 pm

Sunday: 10 am – 5 pm Ticket Information: Online purchase: kchomeshow.com Friday only ticket - $7.00 One-day admission (Fri, Sat or Sun) - $12.00 Price Chopper Stores Friday only ticket – n/a One-day admission (Fri, Sat or Sun) - $12.00 Bartle Hall Box Office Friday only ticket – n/a One-day admission (Fri, Sat or Sun) - $15.00 Children 12 & under free.

Veterans free with photo ID.

Meet the Winner of Ellen’s Design Challenge: Karl Champley Looking to carve out more room in that cluttered house of yours? It doesn’t necessarily mean a massive renovation is in store, as contractor Karl Champley demonstrates in his TV show “Wasted Spaces” on DIY Network.

With a keen eye for a home’s nooks and crannies and a master builder’s touch, Karl solves space management problems by making the most of what is already there.

Additionally, Karl is the author of a home improvement book, “Same Place More Space,” which offers 50 projects to maximize every room in a house.

Karl will share tips for maximizing space in anyone’s home during his presentation on the James B. Nutter Home Loan Stage at noon and 2:00 p.m. on Sunday, March 19.

Jennifer Bertrand Returns as MC of the Home Show Best known as the winner of HGTV’s “Design Star,” Jennifer Bertrand drew more than 5 million viewers to her no-nonsense, accessible approach to making positive and impactful design changes without breaking the bank. Owner of Kansas City’s Bertrand Designs, Jennifer believes “great design should make you happy and make your life easier.” Jennifer has been instrumental in developing the look and feel of this year’s event. Her lively design sense will guide the structures and landscapes in the central square and she has lots of surprises planned for home show visitors.

As the master of ceremonies on the James B. Nutter Home Loan Stage at the show, Jennifer will share her contagious enthusiasm and creativity as well as tips and trends in design and décor.

Tamara Day to Share DIY Do’s and Don’ts Don’t miss presentations by Kansas City native Tamara Day, owner of Growing Days and the star of “Bargain Mansions” on DIY Network, on Friday and Sunday during the Home Show. In “Bargain Mansions,” Tamara and her crew restore neglected large homes that others are too scared to take on — bringing big beauties back to life so that new owners can move in and love them again.

Get to know Tamara and learn some DIY do’s and don’ts from her experience renovating homes in Kansas City. She will be presenting on the DIY Stage Friday, March 17, at 5 p.m. and on Sunday, March 19, at 11 a.m. and 3 p.m.

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Jonathan & Drew Scott to Share Remodeling Tips, Answer Questions Headlining this year’s Home Show are Jonathan and Drew Scott, stars of HGTV’s “Property Brothers” and “Brother vs. Brother.” The reality TV stars will share their winning blend of sibling rivalry and humor at the 2017 Greater Kansas City Home Show.

Renowned designer and licensed contractor Jonathan and twin brother Drew, a seasoned real estate agent, have teamed up to buy and renovate real estate for more than 15 years. Even with their busy TV schedule, Jonathan and Drew have carved out time to create their Scott Living Collection of furniture and textiles for QVC and release their first book, Dream Home: The Property Brothers’ Ultimate Guide to Finding & Fixing Your Perfect House.

During the show, the audience will have the opportunity to hear Jonathan and Drew offer tips for creating inspiring spaces as well as answer audience questions. Jonathan and Drew will speak on Saturday, March 18 at 2:00 p.m. with a special SPACES magazine book signing afterward (book signing is a separate ticketed event).

March 2017 | Volume 23, No. 3 | www.kchba.org

Shop Local Artisans Sign Up to Speak at the Home Show with a Genius at Shop products and services provided by the Show local artisans at the Pop-Up Market, sponsored by Sun Lumber. Add a microgarden of tiny succulents in your kitchen or purchase a cityscape design for your wall. Whatever you are looking for, you’re sure to find just the right decor for your home at this cash and carry market.

Pub in the Park Relax at Pub in the Park, a beer garden where visitors can relax and enjoy a beer along with a view of all the beautiful lawn and garden displays. Local favorites from Boulevard Brewery are served on tap along with domestic bottled beers. Enjoy green beer on St. Patrick’s Day!

If you have questions we have answers! New this year at the Home Show, you can sign up for a time to speak with an expert in the home remodeling/building industry. Whether it’s a question about mortgages, decorating, real estate, building or remodeling -- or something else -sign up and spend some time at the “Ask a Genius” bar with a member of the Home Builders Association who can answer all your questions.

Look for the Ask a Genius bar in Greenville Square.

Thank You to the 2017 Home Show Sponsors The 2017 Greater Kansas City Home Show is made possible by the support of these generous sponsors.

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www.kchba.org | Volume 23, No. 3 | March 2017

2017 Exhibitor Hall

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March 2017 | Volume 23, No. 3 | www.kchba.org

2017 Exhibitor Hall

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www.kchba.org | Volume 23, No. 3 | March 2017

Relax & Recharge in KCP&L’s Greenville Square

High School Woodworking Competition Students from three local high schools will showcase their woodworking skills in a competition held during the Greater Kansas City Home Show. Students from Basehor, Bonner Springs and Shawnee Mission West have been working hard to create beautiful wood pieces — ranging from a guitar to a bed frame — to be displayed during the Home Show.

The centerpiece of this year’s Greater Kansas City Home Show is Greenville Square. Presented by KCP&L, this area features several options for getting closer to nature while also incorporating tips for saving some green, as well as designing with this popular color!

Judging will be held during the show and the winning pieces will be announced Sunday at 2:00 p.m. during awards presentation. Come see these beautiful pieces created by young and talented carpenters from right here in Kansas City!

Electric Car and Charging Station: Live green and drive green – Kansas City Power & Light will showcase a Nissan Leaf electric car and charging station, surrounded by a beautifully landscaped space by Monumental Lawn & Outdoor and will inspire you to redo your yard with a combination of stone and greenery.

COZY, COMFORTABLE & FUN TOO!

Magnolia Pergola: Never disappointing, Restoration Emporium brings it again with this replica pergola from Chip and Joanna Gaines’ farm. RE built this to be an exact replica to demonstrate that everyone can have chic outdoor spaces

and make every day at your home feel like an event.

Glamping Tent: Imagine setting up this tent in your backyard for fun neighborhood hangouts--or be inspired to create your own version for on-the-go camping. Designer Jennifer Bertrand shows us how color is needed in our everyday lives through her use of vintage décor while showing off some of her favorite local Kansas City vendors.

Airstream: The Bash Group is sharing its Airstream that has modern elements of happiness, which fits its program of “Awaken Your State.”

Tiny Home: Always wondered what the inside of a tiny home looks like? Check one out at the Home Show. Afterward, peruse some of the finest hardscapes in the city by Stonehenge Outdooor including a pool, pizza oven, bar and fireplace.

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March 2017 | Volume 23, No. 3 | www.kchba.org

Tamara Day

The Greater Kansas City Home Show Stage Schedule “Learn It, Love It, Do It!” Friday, March 17 – DIY Stage in Greenville Square 2:00-2:30 p.m.

Restoration Emporium & Sara Antin

3:00-3:30 p.m.

Monumental Landscaping

4:00-4:30 p.m.

Restoration Emporium

5:00-5:45 p.m.

6:00-6:45 p.m.

Tamara Day Tamara Day

“DIY Planters + Plants You Can’t Kill” Spring is coming! Learn how to build your own planters from the West Bottom’s own Restoration Emporium along with the green thumb talents of Sara Antin who can be found doing segments on “Better KC.” “Do’s + Don’ts of Landscaping any Yard” Learn from a professional. Monumental Landscaping will share tips for success in your Midwestern landscaping.

“RE-fresh Your Space with Magnolia Home Paint” The pros at Restoration Emporium explain the do’s and don’ts of painting cabinetry in this hands-on presentation.

Meet DIY Network’s Newest Star: Tamara Day “Remodeling Do’s and Don’ts” by Tamara Day

Property Brothers

Saturday, March 18 – James B. Nutter Home Loan Stage 11:00-Noon Chrysalyn and Jeff Huff

Restoration Emporium & Sara Antin

“DIY Planters + Plants You Can’t Kill” Spring is coming! Learn how to build your own planters from the West Bottom’s own Restoration Emporium along with the green thumb talents of Sara Antin who can be found doing segments on “Better KC.” KCP&L: Energy Efficiency + Your Home

Noon-12:30 p.m Kansas City Power & Light 2:00-3:00 p.m Jonathan & Drew Scott

Jonathan & Drew Scott of HGTV’s Property Brothers

Saturday, March 18 – DIY Stage in Greenville Square

Jennifer Bertrand

3:00-3:30 p.m.

Restoration Emporium

4:00-4:30 p.m.

Monumental Landscaping

5:00-5:30 p.m

Jennifer Bertrand

“RE-fresh Your Space with Magnolia Home Paint” The pros at Restoration Emporium explain the do’s and don’ts of painting cabinetry in this hands-on presentation.

“Do’s + Don’ts of Landscaping any Yard” Learn from a professional. Monumental Landscaping will share tips for success in your Midwestern landscaping.

“Stain Without Pain” Learn to re-stain your cabinetry without sanding from HGTV Design Star winner Jennifer Bertrand.

Sunday, March 19 – DIY Stage in Greenville Square 11:00-11:45 a.m Tamara Day Tamara Day 3:00-3:45 p.m.

Karl Champley

Meet DIY Network’s Newest Star: Tamara Day “Remodeling Do’s and Don’ts” by Tamara Day

Sunday, March 19 – James B. Nutter Home Loan Stage Noon12:45 p.m

Karl Champley

Meet Karl Champley, winner of Ellen Degeneres’ Design Challenge

2:00-2:15 p.m

Karl Champley & Jennifer Bertrand

Woodworking Contest Winners Announced Winners of the high school woodworking competition announced by Karl Champley and Jennifer Bertrand

2:15-3:00 p.m

Karl Champley

Meet Karl Champley, winner of Ellen Degeneres’ Design Challenge 15

www.kchba.org | Volume 23, No. 3 | March 2017

New Home Size: Local Data The NAHB’s recent analysis of home size focuses on the national averages. According to fourth quarter 2016 data from the Census Quarterly Starts and Completions

by Purpose and Design, the Midwest has averaged a 5 percent decrease in square footage of floor

area in single family homes from 2013 to 2016.

Although the KCHBA does not track square footage as part of the permit process, some reporting cities do include that data in their reports. In comparing home sizes reported by four localities, it appears that square footage may have decreased from 2012 to 2016.

Due to limited data, it is not possible to quantify the decrease with certainty but the trend does appear to show that Kansas City builders are including somewhat smaller homes and townhomes in their construction plans.

New Single-Family Home Size Trends After increasing and leveling off in recent years, new single-family home size continued along a general trend of decreasing size during the fourth quarter of 2016. This ongoing change marks a reversal of the trend that had been in place as builders focused on the higher end of the market during the recovery.

As the entry-level market expands, including growth for townhouses, typical new home size is expected to decline.

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On a less volatile one-year moving average, the recent trend of declines in new home size can be seen on the accompanying graph, although current readings remain elevated. Since cycle lows (and on a one-year moving average basis), the

average size of new single-family homes is 11% higher at 2,635 square feet, while the median size is 15% higher at 2,424 square feet.

The post-recession increase in single-family home size is consistent with the historical pattern coming out of recessions. Typical new home size falls prior to and during a recession as some home buyers tighten budgets, and then sizes rise as high-end homebuyers, who face fewer credit constraints, return to the housing market in relatively greater proportions. This pattern was exacerbated during the current business cycle due to market weakness among first-time homebuyers. But the recent small declines in size indicate that this part of the cycle has ended and size should trend lower as builders add more entry-level homes into inventory.

Robert Dietz, Eye on Housing 2/17/17

March 2017 | Volume 23, No. 3 | www.kchba.org

Have Gypsum Prices Found a New Normal?

The prices of ready-mix concrete, gypsum, and softwood lumber fell 0.2%, 3.5%, and 0.1%, respectively, in January according to the latest Producer Price Index (PPI) release by the Bureau of Labor Statistics. OSB prices ticked up 1.8%, reversing the 1.3% price decline in December. Long-term trends in gyp-

ly gains of 0.1%, roughly in line with inflation. These contrasting trends are evidenced by the graph below, with red and green indicating times of increasing prices and price stability, respectively.

sum and ready-mix concrete prices are in focus this month, albeit for different reasons.

below illustrates the upward momentum of prices over this period, as well as the striking infrequency of monthly price decreases (the largest of which was a paltry -0.2%). Over the same period, the 12-month change in the price of readymix concrete has averaged +3.5%, rising an aggregate 22%.

Gypsum prices seem to have found a new “normal� after steep price hikes at the beginning of 2012, 2013, and 2014.

From 2011-2014 prices paid for gypsum increased 1.0% every month, on average.

Since then, however, the trend has been stable as prices have averaged month-

January marked only the fourth month since April 2011 that the price of readymix concrete has fallen. The graph

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www.kchba.org | Volume 23, No. 3 | March 2017

Let’s Feed the Hungry The home building industry, though not completely recovered from the recession and facing headwinds such as a labor shortage, has experienced a steady climb upward in recent years. In recognition of this “doing well”, the Parade committee is encouraging HBA members and homebuyers to “do good”. The Spring Parade of Homes will offer the opportunity to support one of Kansas City’s most well-known charitable organizations, Harvesters.

Harvesters shares the following statistics about our neighbors: In Harvesters’ 26-county service area, one in seven people is food insecure.

Food insecurity means that a person or household may have food today, but does not know if there will be food tomorrow or enough food for everyone in the household.

Children are often among those most in need of food. In Harvesters’ service area: • 122,570 children are food insecure.

• 19.8 percent of children under age 18 in our region, or one in five, is food insecure.

• Only 59 percent of the food insecure children qualify for federal nutrition programs such as SNAP (food stamps), WIC or free and reduced-price school meals.

Summer is a particularly difficult time for children in food insecure homes. With no school lunch to get them through the day, assistance from Harvesters is doubly important.

We are asking HBA members to help by any of the following: • Making a donation to our virtual food

Most Active Builders for 2016 Identified An on-going tradition of the KCHBA is to list the most active builders in the eight county area of Jackson, Cass, Clay, Platte, Johnson, Miami, Leavenworth and Wyandotte. The builders who pulled permits for 50 or more single family units during 2016 are:

drive by going to http://paradeofhomes. harvestersvfd.org/ • Bringing non-perishable food to the HBA during Parade, April 22 – May 7 • Placing a Harvesters collection barrel at your place of business (contact Taylor@kchba.org if you can participate in this way)

Summit Custom Homes 311 Sallee Homes, Inc. 182 Prieb Homes, Inc. 150 Rodrock Homes, LLC 142 PC Homes, LLC 136 James Engle Custom Homes 108 Ward Development & 103 Investment Co.

This Spring Parade is the 55th year that local home builders have opened their beautiful new houses to the public – let’s commemorate this anniversary by providing 55,000 meals to our fellow area residents.

New Mark Homes, LLC 94 /DonJulian Builders Robertson Construction, LLC 86 Hearthside Homes of 84 Kansas City, Inc. Country Club Homes 83 Bear Claw Construction 81 Management Ashlar Homes, LLC 74 SAB Homes, Inc. 63 Bickimer Construction, Inc. 61 Gabriel Homes, Inc. 61 Stucker Construction, Inc 56 Barry Ridge Homes, LLC 51

Thanks to These HBA 2017 Sponsors platinum sponsors

Bank of Blue Valley Kansas City Star Media Company Mike Bryant Heating & Cooling

HBA Staff Josh Clark Executive Vice President jclark@kchba.org 816-733-2216 Marcia Jurgens Vice President of Administration marcia@kchba.org, 816-733-2215

Star Companies, Inc. Stewart Title Wells Fargo Home Mortgage GolD sponsors

Bovard Insurance Group Capitol Federal Fasone & Partners Ferguson Enterprises First Federal Bank K&E Flatwork Kansas Gas Service Kansas Granite Mart Kenny’s Tile Laclede Gas

Gina Battle Director of Parade of Homes gina@kchba.org, 816-733-2219 Dawn Allen Director of Member Services & Events dawn@kchba.org, 816-733-2239 Kelcee Schlotzhauer Permit and Show Sales Coordinator kelcee@kchba.org, 816-733-2246 Katie Walkley Government Affairs Manager katie@kchba.org, 816-733-2241

McCray Lumber Northcraft Flooring & Design Owen Lumber Phelps Engineering ProBuild Rew Materials Sun Lumber United Heating, Cooling & Plumbing

silver sponsors Pacific Mutual Door Henges Insulation & Fireplace Shamrock Cabinet Morgan Wightman Supply North American Savings Bank

Kari English Communications Director kari@kchba.org, 816-733-2213

Bronze sponsors

Taylor Pond Membership & Events Support taylor@kchba.org, 816-733-2218

Commerce Bank Complete Home Concepts CrossFirst Bank First American Title 18

Hermes Landscaping Kansas City Title Locks & Pulls Pella Products of Kansas City

ProSource Raynor Garage Door Co., Inc ReeceNichols Wilson Lighting

March 2017 | Volume 23, No. 3 | www.kchba.org

Member Anniversaries 1948 Western Chandelier Company

2007 Cedar Creek Development Co., Inc.

1964 James D. Neighbors Construction Co. North American Savings Bank

2009 DaVinci Roofscapes

1970 Richard Mather Builders, Inc. 1973 Steve Foley Construction Co., Inc. 1976 Woods Custom Homes, LLC 1977 Hensler Homes, Inc. 1979 Jim Tharp Builder, Inc. The Hayes Company 1985 Martens Family Enterprises, Inc. Robert Montgomery Homes, Inc. 1988 Bordner Installation Group, Inc. 1993 SAB Homes, Inc. 1994 Gordon Energy & Drainage 1996 Century Roofing Clay County Savings Bank 2001 EPIC Landscape 2003 Nebraska Furniture Mart, Builder Division The Land Source 2004 Bovard Insurance Group Mather Development Missouri Gas Energy

2012 Construction & Planning Services, Inc. 2013 Brummel Lawn and Landscape PCDI Homes

ONE and DONE!

2014 Buckley Roofing & Stucco Glueck Development, LLC Jim’s Disposal Service PPG Paints RAM Metal Products Shawnee Mission Ford ShelfGenie of Greater Kansas City

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913-381-5400 or 913-652-2541

2015 Beginnings KC Real Estate Country Club Bank Delta Construction, LLC Neenan Company Pro Builders since 1994, LLC 2016 Advance Forms and Supply, LTD Belgard Hardscapes Better Homes & Gardens Kansas

City Homes Complete Outdoor Concepts, LLC Engineering Solutions Federal Protection, Inc. Fidelity Bank Huber Engineered Woods, LLC Kansas Land Management, LLC Landmarketing, Inc. Pro Green Window Cleaning, Inc. PTM Engineering Foundation Const.

Reliable Mechanical Services Remington Custom Homes Straight Up Construction, LLC Wood Haven, Inc.

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With MGE's new rebate programs, it's easier than ever for builders to upgrade to high efficiency natural gas appliances.

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www.kchba.org | Volume 23, No. 3 | March 2017

New Members

YOU SEE BATH TIME WE SEE SAVINGS FOR YOUR FUTURE.

Homeowners save with natural gas. The average household can save about $300 a year on energy bills by replacing an electric water heater with a gas water heater.

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BC Residential Homes, LLC Kevin Stallings P.O. Box 7014 Lee’s Summit, MO 64064 (816) 491-2125

LDH Construction, Inc. Kevin Downey 15500 Parkhill Overland Park, KS 66221 (913) 219-4626

Bolivar Contracting Inc. Mike McCown 20924 Floyd Street Bucyrus, KS 66013 (913) 533-2240 www.bolivarcontracting.com

Marvin Windows and Doors Eric Mason 401 State Ave. N. Warroad, MN 56763 (800) 834-7497 www.marvin.com

Cuzco Painting & Remodeling, Inc. Jessica Huayaban 12940 South Marion Street Olathe, KS 66061 (913) 800-8686 www.cuzcopainting.com

Parker Enterprise Mike Parker 2310 East County Road M Liberty, MO 64068 (816) 786-4711

Ebberts Construction Clean-Up, Inc. Todd Ebberts 35201 West 247th Street Paola, KS 66071 (785) 883-2398

www.kansasgasservice.com

A Professional Concrete Flatwork Company

Grants Custom Homes Scott Grant 1001 Cedar Street Pleasant Hill, MO 64080 www.grantscustomhomes.com

Affordable, Upfont Pricing High-Quality Flatwork Exceptional Customer Service Professionally Trained Staff Serving Kansas and Missouri

Kat Excavation, Inc. Troy Ailor 309 North Oak Bates City, MO 64011 (816) 690-4611 www.katexcavation.com KC Building Company Kevin Clem 24935 W 240th St Paola, KS 66071 (913) 791-2488 kcbuildingcompany.com

Call Kevin for a FREE ESTIMATE or visit www.keflatwork.com 20

Samsung Jayson Howell 10421 West 170th Place Overland Park, KS 66221 (913) 222-9952 www.samsung.com The Blind Broker Rick Ford 5341 Norwood Fairway, KS 66205 (913) 575-0702 www.blindbroker.com Tim Hoelting Homes, LLC Tim Hoelting 27055 West 102nd Street Olathe, KS 66061 (913) 208-7685 www.timhoeltinghomes.com

Affiliates Better Homes & Gardens Kansas City Homes Cindy P. Cunningham 8300 College Blvd, Ste 130 Overland Park, KS 66210

March 2017 | Volume 23, No. 3 | www.kchba.org

New Members Affiliates Bolivar Contracting Inc. Scott Jones Ryan Jones 20924 Floyd Street Bucyrus, KS 66013 United Missouri Bank Craig Caskey Kenneth Stone Citlali Rivera Paul Kauffman 1010 Grand Blvd.

Kansas City, MO 64106 (816) 860-7848 Wells Fargo Home Mortgage Rob Croake David Estes Tim Smith 7127 W 110th Street Overland Park, KS 66210

White Chocolate Bread Pudding, from Yvonne Woods Yvonne’s story behind the recipe: The ladies in our family like to thumb through the latest recipe and decorating magazines while the guys watch football on Thanksgiving day. One of my nieces found a variation of this recipe when she was 12.

Twenty-five years later, we still continue to serve it.

Ingredients: 6 oz. White chocolate, coarsely chopped 6 cups French bread, cut into 1” cubes 3 cupsMilk 2 Eggs 1 tsp. Cinnamon, ground 1 tsp. Vanilla ¼ cup Sugar 10 oz. pkg Frozen raspberries, thawed ¾ cup Cranberry juice cocktail 2 Tbsp. Corn starch 2 Tbsp. Sugar Directions:

4. In large bowl, beat eggs.

5. Stir in sugar, cinnamon and vanilla until well blended.

6. Stir into bread mixture.

7. Divide evenly to fill ramekins.

8. Bake for 45-55 minutes or until knife inserted in center comes out clean.

9. As pudding is baking, combine sauce ingredients (raspberries, juice, corn starch and 2 Tbsp. sugar).

10. Cook over medium heat about 5 minutes, stirring constantly, until mixture boils and thickens.

1. Heat oven to 350 degrees. Grease 8 ramekins with butter or cooking spray.

2. In sauce pan, combine white chocolate pieces and milk.

3. Cook over medium heat until chocolate is just melted.

Stir in bread cubes and set aside.

21

11. Place strainer over a 2-cup bowl and pour raspberry mixture into strainer. Press mixture through to remove and discard seeds.

12. Serve warm bread pudding with sauce and a dollop of whipped cream.

From NAHB’s cookbook, Building an Appetite – available at nahb.org

www.kchba.org | Volume 23, No. 3 | March 2017

Lunch, Learn & Earn Credit Russell Thornburg taught the HBA’s first code credit class of 2017 on Feb. 17 with the topic “Means of Egress for Residential Dwellings”. The class included a complete in-depth view of code requirements and best practices for stairways, landings, guards, and handrails.

There will not be an HBA class in March, due to the Johnson County Contractor Licensing seminar to be held March 22 – 24. Monthly lunch, learn and earn credit classes will resume at the HBA on April 20.

Open the door to your new home 6950 Squibb Road, Ste 500

6950 Squibb Road, Ste 500 Mission, KS 66202 Mission, KS 66202 913-529-1130

Stop by the HBA (600 E 103rd St, KCMO) to pick up a guide book and drop off nonperishable We have a lot of tools in ou food for and we’re ready to put the Harvesters. for you.

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March 2017 | Volume 23, No. 3 | www.kchba.org

January Permit Report Predicts Active Spring Building New-home construction began 2017 on the upswing in metro Kansas City with residential production up 67 percent compared to January 2016, according to statistics compiled by the Home Builders Association of Greater Kansas City (HBA). A total of 458 single-family units were permitted last month — the highest January total since 2006.

Builders report that mild winter weather is a prime factor in their activity.

Above-average temperatures and lower precipitation have helped to spark a stronger than normal winter construction season, boosting totals for what is normally one of the slowest construction months of the year. Single-family permits during the winter months of November, December and January total 1,205 for the 2016-17 season.

“As I’ve started to become acquainted with local builders,” said Josh Clark, newly appointed executive vice president of the HBA, “they are expressing confidence in the local economy and that is reflected in the strong permit numbers we are currently seeing.”

Activity in Kansas City, Mo., remained fairly constant between January 2016 and January 2017 with 71 and 73 permits issued, respectively. The cities of Olathe and Lee’s Summit were particularly busy in January 2017. Olathe increased to 61 permits, compared to 28 in 2016 and Lee’s Summit reported 50 permits as opposed to only nine in January last year.

Likewise, Kansas City, Kan., issued 37 permits in January 2017, up from six during January 2016.

January 2017

Residential Building permit Statistics

Residential Building Permit Statistics JAnuARY 2017 CASS COuntY Archie Belton Cass County Cleveland Drexel Garden City Harrisonville Lake Winnebago Lee's Summit Peculiar Pleasant Hill Raymore Village of Loch Lloyd CLAY COuntY Clay County Excelsior Springs Gladstone Kansas City Kearney Lawson Liberty North Kansas City Pleasant Valley Smithville JACKSOn COuntY Blue Springs Buckner Grain Valley Grandview Greenwood Independence Jackson County Kansas City Lake Lotawana Lee's Summit Oak Grove Raytown Sugar Creek pLAtte COuntY Edgerton Kansas City Parkville Platte City Platte County Riverside Weatherby Lake Weston JOHnSOn COuntY De Soto Edgerton Fairway Gardner Johnson County Leawood Lenexa Merriam Mission Hills Olathe Overland Park Prairie Village Shawnee Spring Hill Westwood

Single MultiFamily Family Total Units^ Units% Units

S-F Units YTD

M-F Units YTD

Total Units YTD

0 9 0 1 0 0 0 1 1 2 2 6 2 24

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 9 0 1 0 0 0 1 1 2 2 6 2 24

0 9 0 1 0 0 0 1 1 2 2 6 2 24

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 9 0 1 0 0 0 1 1 2 2 6 2 24

4 1 0 52 3 0 0 0 0 11 71

0 0 0 0 0 0 0 0 0 0 0

4 1 0 52 3 0 0 0 0 11 71

4 1 0 52 3 0 0 0 0 11 71

0 0 0 0 0 0 0 0 0 0 0

4 1 0 52 3 0 0 0 0 11 71

20 0 15 0 2 5 9 11 0 49 3 0 0 114

0 0 0 0 0 0 0 0 0 0 0 0 0 0

20 0 15 0 2 5 9 11 0 49 3 0 0 114

20 0 15 0 2 5 9 11 0 49 3 0 0 114

0 0 0 0 0 0 0 0 0 0 0 0 0 0

20 0 15 0 2 5 9 11 0 49 3 0 0 114

0 10 6 0 22 0 3 0 41

0 0 0 0 0 0 0 0 0

0 10 6 0 22 0 3 0 41

0 10 6 0 22 0 3 0 41

0 0 0 0 0 0 0 0 0

0 10 6 0 22 0 3 0 41

2 0 1 5 5 3 13 0 0 61 30 3 11 8 0 142

0 0 0 0 0 0 0 0 0 10 0 0 0 0 0 10

2 0 1 5 5 3 13 0 0 71 30 3 11 8 0 152

2 0 1 5 5 3 13 0 0 61 30 3 11 8 0 142

0 0 0 0 0 0 0 0 0 10 0 0 0 0 0 10

2 0 1 5 5 3 13 0 0 71 30 3 11 8 0 152

Single MultiFamily Family Total Units^ Units% Units LeAVenWORtH COuntY Basehor 3 0 3 Lansing 0 0 0 Leavenworth County 4 0 4 Leavenworth 0 0 0 Tonganoxie 10 0 10 17 0 17 WYAndOtte COuntY Bonner Springs Edwardsville KCK/Wyandotte Co MiAMi COuntY Louisburg Miami County Osawatomie Paola Spring Hill totals

S-F Units YTD

M-F Units YTD

Total Units YTD

3 0 4 0 10 17

0 0 0 0 0 0

3 0 4 0 10 17

0 0 37 37

0 0 0 0

0 0 37 37

0 0 37 37

0 0 0 0

0 0 37 37

1 1 0 0 0 2

0 0 0 0 0 0

1 1 0 0 0 2

1 1 0 0 0 2

0 0 0 0 0 0

1 1 0 0 0 2

448

10

458

448

10

458

Comparison of Single Family Building units for Greater Kansas City (Cass, Clay, Jackson, Platte, Johnson, Leavenworth, Miami, Wyandotte Counties)

23

Month/Year January February March April May June July August September October November December

2010 137 145 252 228 213 239 180 243 173 279 173 209

2011 90 121 180 210 230 262 204 205 202 205 185 207

2012 188 182 270 277 294 268 288 260 379 331 283 279

2013 273 224 335 444 337 333 409 354 384 369 340 288

2014 287 216 362 439 385 364 375 352 383 468 312 328

2015 240 260 393 437 395 438 399 425 462 459 360 432

Annual total

2,471

2,301

3,299

4,090

4,271

4,700

2016 2017 274 448 408 542 523 503 578 494 530 418 462 412 345 5,489

448

Comparison of permits By units issued Year to date

2010 2011 2012 2013 2014 2015 2016 2017

S-F Units 137 90 188 273 287 240 274 448

2010 - 2017 M-F Units 0 0 539 0 539 214 85 10

Total Units 137 90 727 273 826 454 359 458

^The Single Family number is units and includes both attached and detached units. %Multi-Family units are in buildings with 5 or more units. # Not available at time of report Permit information reflects the most recent data at time of publication. In order to ensure accurate recording of residential building permit statistics, the HBA may revise monthly and yearto-date figures when updated data is made available. Copyright 2017 Home Builders Assoc of Greater Kansas City. All rights reserved.

www.kchba.org | Volume 23, No. 3 | March 2017

The HBA’s Home Show: Keeping Kansas City Up to Date for 69 Years The Home Builders Association of Greater Kansas City has showcased innovations and current trends in home features, construction and design to local consumers since the first home show, held in 1948. In the early days, the home show was a 6-day event opening at 2 p.m. each day and closing at 11 p.m. Apparently, the evening hours were most popular as the admittance fee was higher: 50 cents until 6 p.m. and rising to 75 cents for an evening ticket. The 1952 show featured commercial vendors, exhibitions of interior decorations, party planning and floral artistry along with a “homemakers homecraft contest.” The contest offered $650 in prizes with categories such as embroidery, textile painting, hooked rugs, quilts and other crafts.

The 1976 home show, in conjunction with

mat, featured energy efficiency with information on thermal windows, hot water pre-heaters, heat pumps, earth-sheltered homes, and other energy efficient devices. A special feature was the Children’s Hour – parents could leave their children in a special area (“under the tent”) to be entertained by Whizzo the Clown while the adults toured the show.

Home show exhibit hall in 1951 the nation’s bicentennial celebration, used the theme “Your Home . . . Then and Now”. This show included opening ceremonies with flags of the 13 colonies as well as a solar heating and cooling exhibit from the federal Energy Research and Development Administration.

Kansas City’s unique elements have nearly always been spotlighted at the

The 1981 show, with a new five-day for-

home show. Of particular note are the Jones Store fashion shows, Worlds of Fun characters roaming the floor, food tasting from local restaurants (Putsch’s, Plaza III, Hereford House and Golden Ox in 1964) and live broadcast of Mike Murphy’s radio shows.

The HBA’s home show has presented many celebrity speakers over the years -- from Fran Allison (of Kukla, Fan and Ollie) in 1961 to Bob Vila of “This Old House” in 1982 and, more recently, Chip and Joanna Gaines in 2015 and 2016.

The 2017 home show main stage presenters will be Jonathan and Drew Scott of HGTV’s “Property Brothers”.

The HBA is proud to have presented the best in the home building industry, the latest technology, decorating trends and tips, and special entertainment to Kansas Citians for the past 69 years.

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