Building Business News March 2021

March 2021

Mike Rowe: It’s not a “skills” gap, it’s a “will” gap

600 E. 103rd Street | Kansas City, MO 64131

On the Cover: Cover story

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Mike Rowe Debunks Stigmas, Myths Surrounding the Skilled Trades

Rowe believes that if we do a better job of presenting examples of people prospering as a direct result of mastering a skill, sooner or later that is going to become overwhelming. Cover photo credit: NAHB

Features News from IBSx

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Didn’t have a chance to log in to view the International Builders Show virtually?

Check out the latest innovations and news from the show.

Legal Column Options for Structuring a New Home Sales Contract

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There are many types of construction projects across the state that require a land disturbance permit, but a common activity is housing development.

Construction & Planning Services Celebrates 55 Years David Elliott, owner of C&P Services, starts his days with a cup of coffee, feeling at home in the organized chaos that is the construction industry.

In Every Issue New Members

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Anniversaries 20 Residential Permit Statistics

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Mike Rowe Debunks Stigmas, Myths Surrounding the Skilled Trades

“I

f I have a purpose, I’m supposed to tap the country on the shoulder and say ‘hey, what about her, what about him?’” said Mike Rowe during the International Builders Show online last month.

Best known as the “dirtiest man on TV,” a title earned on the hit TV series “Dirty Jobs”, Rowe is an executive producer, host and best-selling author.

He has had hundreds of jobs and relishes his role as a chronic freelancer.

As a leading advocate for skilled labor in the country and the CEO of the mikeroweWORKS Foundation, a 501(c)(3) public charity that debunks myths and misperceptions about the trades and helps close the skills gap, his foundation has granted millions of dollars in work ethic scholarships.

In his keynote speech during NAHB’s IBSx, Rowe said he has a “genuine interest in reinvigorating the trades” and that the conversation is long overdue.

“I don’t believe in good jobs or bad jobs,” said Rowe. “All work is noble. But in our country, we’ve elevated one form of education above all others and therefore an entire category of jobs above all others.”

The issue began back in the 1970s, Rowe said.

College got a big boost in the 1970s at the expense of skilled trades and that message has had long-term effects that we are dealing with now.

If a kid is unaware of the opportunities that exist in the skilled trades, he or she will never be able to consider them, noted Rowe.

“If the country is ungrateful for the miracle that when you flip a switch the lights go on, then we’re just going to be pushing the boulder up a hill,” according to Rowe.

Today, there is $1.6 trillion of student loans outstanding and there are 7 million open jobs nationally, many in the construction industry. “We’ve been lending money to people who don’t have the money to pay it back, to get degrees where there aren’t any jobs,” said Rowe.

When asked how to change people’s awareness and gratitude, Rowe stressed we must tell the stories of people who have prospered in the skilled trades.

To combat this issue, Rowe believes we need to focus on two things: awareness and gratitude.

“There is no one way to do it. You have to tell individual stories.

Continued on page 4

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March/April Calendar

Mike Rowe

Continued from page 3

Your industry has to find the people in it that prospered as a result of learning trade,” said Rowe. “Then creatively and persuasively get that story out there.”

March 10 KCHBA Foundation

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“There are stigmas, myths and misperceptions about skilled trades,” said Rowe. “Those need to be confronted and debunked with extreme prejudice. The other challenge is to make work cool again. Change the language from four-year degrees are ‘higher education’ and everything else is less than that.”

March 25 PWB Happy Hour April 15

Virtual Area Council

There are no shortcuts in the skilled trades, Rowe noted. “You have to work. You have to learn the skills. And you have nothing to apologize for,” Rowe said. “People want to be challenged. You shouldn’t be afraid to say you’re going to work your ass off. You might get cold or hot. But if you stick with it, here’s a path to prosperity.”

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Rowe believes that if we do a better job of presenting examples of people prospering as a direct result of mastering a skill, sooner or later that is going to become overwhelming.

“It’s not a ‘skills gap’ it’s a ‘will gap’ – and that’s the scary thing.

Awareness and will are the challenges.”

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Partners with HBA since 2010

NAHB Names Best of IBSx Product Winners

T

he NAHB has named five product category winners for the inaugural Best of IBSx Awards, hosted during the 2021 NAHB International Builders’ Show virtual experience.

The winners were picked from among 200 entries in six categories, and judged by 18 industry and media professionals. Award criteria include excellence in functionality, design, innovation, and usefulness to consumers and/or builders.

Best Window and Door Product: Pella Easy Slide Operator by Pella Corp. (NOTE: KCHBA Member!)

This hardware is a new way to open and close casement and awning windows. It allows homeowners to easily slide the operator up to open and down to close – a much smoother movement without continuous cranking. The hardware is designed to be a solution for all people, regardless of their age or physical ability. It has been tested to 20,000 cycles – the equivalent of opening your windows once per day for 54 years.

Most Innovative Building Material: ASCEND by Alside This Composite Cladding System is available in 20 fade-resistant colors, and its finish is backed by a lifetime limited warranty. A key feature is the addition of glass fibers, provided through the composite technology from Tundra, a Twin Cities-based material science company.

Photo courtesy of Signature Kitchen Suite

Best Home Technology Product and Best Indoor Product: 36-inch Dual Fuel Pro Range with Sous Vide, Induction and Gas by Signature Kitchen Suite This 36-inch dual-fuel pro range offers built-in sous vide functionality – in addition to induction and gas – all on the range top. With multiple cooking modalities in a single unit, builders can now meet the needs of their most culinary- and tech-obsessed clients. It’s engineered to be installed without the need for a separate, make-up air system. It’s also Wi-Fi-enabled.

Best Outdoor Product: Axis Smart Glass Bioclimatic System

by Suntech-Albayrak Group This bioclimatic pergola system features tilted switchable smart glass louvres. The system is 100 percent water-resistant and can withstand water penetration under several weather conditions.

When the smart glass louvres are completely closed, an ON-OFF mode switches the glass from being clear (transparent) to frosted (opaque). In its frosted state, the switchable layer acts as an electronic blind, providing privacy and security for any glass, window or partition. The smart glass louvres can be tilted up to 90° with a smooth and silent rotating movement via the internal motor.

Photo courtesy of Alside

Most Innovative Software: AeroBarrier Connect by Aeroseal AeroBarrier Connect is a computer-controlled air sealing system that measures and records building envelope tightness. It pressurizes the space and new smart nozzles emit a safe, non-toxic sealant that is automatically drawn to any leaks. Software enhancements provide more real-time insights as it tracks and records leakage reduction.

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NAHB Elects Leadership for 2021 NAHB’s Winter Leadership meetings was Jerry Konter, a Savannah, Ga.-based home builder and developer with more than 40 years of experience in the home building industry. He was elected as First Vice Chairman of the Board. His company, Konter Quality Homes, is one of the largest home building firms in Savannah and has created 20 communities and built more than 2,100 homes and 600 apartments throughout the local metro area.

Members of NAHB elected four senior officers to top leadership positions within the Federation at the conclusion of last month’s NAHB Winter Leadership Meetings.

NAHB 2020 Chairman of the Board John “Chuck” Fowke, a Tampa, Fla.-based custom home builder with more than 40 years of experience in the home building industry, was elected to serve another year as chairman of the association. Fowke is founder and president of Homes by John C. Fowke, Inc.

Alicia Huey, a Birmingham, Ala.-based custom home builder with more than 30 years of experience in the home building industry, was elected as Second Vice Chairman of the Board. Huey founded AGH Homes, Inc. in 2000. In addition to building highend custom homes for buyers on individual lots, AGH Homes has also built in Hoover, Ala., and in several golf course communities in Vestavia, Ala.

“This year we will work with the new Biden administration and 117th Congress to put into place policies that will allow housing to Chuck Fowke continue to lead the economy forward as the nation emerges from the COVID-19 pandemic,” said Fowke. “As part of this effort, our focus will be to address rising construction costs, onerous regulations and supply-side limitations that harm housing affordability and limit the ability of builders to meet the growing demand for new home construction.”

Carl Harris joined the NAHB leadership ladder with his election as Third Vice Chairman of the Board. A Wichita, Kan.-based small volume spec and custom home builder with more than 40 years of experience in home building, remodeling and light commercial construction industry, he is co-founder and president of the Carl Harris Co., Inc. and managing partner of Harris Homes.

Also moving up on the association’s leadership ladder during

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Legal Perspective

Options for Structuring a New Home Sales Contract

By Stan Woodworth and Neal Woodworth

I

n our law practice, when representing parties involved in new home construction and sales, we often encounter questions relating to the various ways the transaction can be structured and documented and the consequences of each alternative. The following is a summary of the main alternatives:

builder in a fixed price transaction.

In a “cost plus” transaction, there are no allowances or non-allowance items, and the buyer pays all of the costs plus a fee for the builder’s services. The fee can be a fixed amount or a fee that is a percentage of the costs. It is critical that the parties agree upon the costs to be included and any costs to be excluded from the calculation of the final price, particularly relating to the builder’s overhead-related costs (such as insurance premiums and deductibles and employee costs) and warranty costs. Depending on the size of the builder’s fee, many builders require that the buyer be responsible for warranty costs incurred after the possession date, to the extent the builder’s subcontractors or suppliers do not pay for repairing or replacing a defect.

Pricing Alternatives The two main pricing alternatives are “fixed price” and “cost plus”.

In a “fixed price” transaction, the builder and buyer agree on a fixed price for the project with a list of allowances for specific items to be selected by the buyer, such as appliances, fixtures, and landscaping. Allowances can also cover other materials (such as lumber and trim), site costs, and other items the scope or market price of which is or may be outside of the builder’s reasonable control. Allowance overages increase the amount of the final fixed price. Allowance underages decrease the final fixed price.

It is critical that the parties also agree upon detailed plans and specifications for the nonallowance details of the project, because the risk of profit and loss as to those items is to be borne by the

Deal Structure Historically, most new home transactions were structured with the builder owning the lot during construction, obtaining a construction loan, and conveying the lot and improvements to the buyer at a “closing” once the improvements were substantially completed and ready for occupancy.

Continued on page 10

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Legal Perspective Continued from page 7

Over the past few years, we are seeing a substantial increase in the number of so-called “construction to perm” transactions, where the buyer owns the lot during construction and obtains a construction loan that converts to a permanent loan (or uses other funds) to pay costs incurred by the builder during construction.

The builder’s projected profit (in a fixed price transaction) or fee (in a cost plus transaction) is usually paid in installments over the course of construction, with the balance of the actual profit or fee being paid to the builder when the home is ready for occupancy.

There is no true “closing” because the buyer already owns the property. In a “construction to perm” structure, the builder and subcontractors/suppliers have a degree of risk of nonpayment due to the buyer’s potential control over the payment process, and the builder should deal with that risk in designing the contract terms.

Contract Forms The Board of Realtors has created and approved a sale contract form for use in the traditional deal structure referenced in 2(a) above. The Board form should never be used for a construction to perm deal structure described in 2(b) above, and needs a comprehensive addendum for a cost plus pricing structure described in 1(b) above.

Our firm’s opinion is that the Board form does not sufficiently cover all of the issues that can arise in a residential construction project and the post-closing warranty. We also do not understand the rationale for the Board form placing the blanks for the purchase price and closing in the middle of the contract rather than up front.

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Our firm believes that the builder should design its own contract forms that sufficiently cover and deal with all of the issues that can arise during the construction and sale process and the terms of the warranty to be given by the builder to the homeowner.

The right property. The right builder. The right materials.

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Choosing the right lender matters too. Our experienced team, extensive construction and mortgage loan programs and streamlined processes have made us one of Kansas City’s top home lenders. We stand ready to help builders and consumers finance home construction, from application to closing.

Stan Woodworth and Neal Woodworth are partners in Woodworth Law Firm. Contact them at stan@woodworthlawkc.com or (913) 232-8836.

LET’S GET BUILDING.

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KCHBA Members Participate in Workforce Roundtables

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he Northand Education-Business Alliance (NEBA) hosted several virtual roundtables focused on workforce development last month. Attendees were teachers and students from around the Kansas City area.

The first panel focused on construction and KCHBA members Greg Kudrna, Henges Insulation; Ryan Hassett, Pella; and David Elliott, Construction Planning & Services discussed the ways students can learn more about the construction industry and how they can start a career in construction.

The second panel, “Women in the Skilled Trades,” featured six women who all work in skilled trades industries. KC PWB Chair Angie Beerup sat on the roundtable sharing her experience as a women in the building industry as well as opportunities available within this industry.

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Member News Congratulations Grant’s Custom Homes won the Pleasant Hill Chamber of Commerce’s 2020 Business of the Year Award. Great job!

Freeman Artisan Home Named One of the Coolest Homes in KC

Last month, Kansas City Magazine published its “9 of the Coolest Homes in Kansas City.” Freeman Custom Homes’ “old world modern” masterpiece in the Shoal Creek neighborhood made the list. Of special note was the enclosed courtyard, pitched roofs and unique segmented design. The open-air plunge pool, accessible by a secret staircase via the master bedroom, was also a much talked about feature.

Improve indoor air quality Reduce energy bills Prolong furnace & a/c life

Homes Against Hunger Food Drive Timber Rock, a B.L. Rieke Development, hosted its first Homes Against Hunger Food Drive Feb. 6-20. With developer Bruce Rieke matching all contributions, food donations were in the hundreds and $2,500 was given monetarily. Proceeds benefitted Harvesters.

GOLD

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Member News KCHBA Members Come Together to Help Raytown Family After Fire As the result of a major fire in August 2020, one Raytown Family was left without a home. In the midst of an already challenging 2020, their entire life was turned upside down when all of their personal possessions were destroyed with no insurance in place.

In addition to being suddenly homeless, the family had additional challenges by having two special needs children, as well as their father who previously suffered severe brain trauma.

• McCray Millwork* – Windows, interior trim, interior and exterior door hardware

Local law firm Bartimus Frickleton Robertson Rader partnered with Kevin Green of Kevin Green Homes to bring this family’s home back-to-life. Each year, the law firm adopts a family in some capacity. Over the years the projects have gotten bigger and bigger.

• Ferguson Enterprises*/Factory Direct* – Kitchen appliances (refrigerator, microwave, oven and washer/dryer) • Hawkins Construction – Trim labor for entire home • Complete Home Concepts* – Fireplace

“Hearing about the family’s struggle broke my heart,” Kevin Green said. “I knew we had to do something big and fast. What better way to bring the community together – at the start of a new year – than to rebuild a dream home for this family.”

• Royal Gutter – House siding and gutters • High Definition Drywall* – Sheetrock details • Hayes Insulation – Vanity plate mirrors • Kiwi Landscaping – Front yard landscaping

Kim Green, Business Manager at Bartimus Frickleton Robertson Rader, pulled her husband in to do the impossible job. Every single member of the “dream team” offered to donate 100 percent of their time, materials and expertise to help rebuild the family’s home. Once Kevin Green completed the building work, the employees at Bartimus Frickleton Robertson Rader got to work on finishing out the house with furniture, accessories and every other thing you would need if you were to start over. “Everyone at Bartimus Frickleton Robertson Rader were honored to serve alongside incredible local companies and contractors to make this project a reality. In very uncertain times, they have gone above and beyond at every level.”

• Liberty Custom Framing – Installed new windows and repaired siding *Denotes KCHBA Member

25% OF N EW HOM ES IN T HE KC M E T RO AREA USE UN I T ED

Thank you to the following vendors for their contributions:

T RUS T T H E E X PE RT S W I T H YOUR NE W H OM E ! W E SPE CIA L I Z E I N:

• Kevin Green Homes, Inc.* – General Contractor and Project Organizer

New builds

• Bartimus Frickleton Robertson Rader, PC – Project Organizier; provided new furniture, accessories and home goods

Home remodels Quick load and proposal turnaround

• Kenny’s Tile* – All tile work (labor and materials, kitchen/ vanity tops, sinks, carpet and wood floor)

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• Shamrock Cabinets* – All interior kitchen and bath cabinets and cabinet hardware • Miller Plumbing – Finish plumbing labor, materials, faucets • Kreimendahl Painting – Interior and exterior painting, including all materials

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• Wilson Lighting* – Interior lighting

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What Builders Should Know About Appraisals and Lumber Prices

One Loan Can Do It All

NAHB Now, Feb. 23, 2021

L

umber prices continue to rise, with pricing as of midFebruary reaching new record highs. Other materials, such as gypsum and ready-mix concrete, are also experiencing price volatility. In addition, components such as interior doors, shingles, cabinets and others are experiencing significant delays in delivery that make it more challenging for builders to construct homes efficiently and on time.

As builders struggle with these front-end issues, they are also experiencing additional challenges on the backend, as appraisal standards make it difficult to recognize the full impact of sharp increases in the cost of building materials. In addition, appraisers often have limited access to information to accurately assess the value of a home.

Construction-Permanent Loan • One Closing • Secured Financing • Quickly Processed Construction Draws

“The appraisers use market value, so if we sold a house three months ago and just completed a new build with higher material costs, they only give a market value of the house that sold three months ago,” explained James Blyth, an affordable housing spec builder in North Carolina. “In our situation the appraisal came in $10,000 lower than our asking price. Our price increase was to cover cost increases. It forced the buyers to come up with an additional $10,000 out of pocket to cover our cost increases.

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“We have 10 houses under construction right now that will be ready for early spring and summer occupancy,” he added.

“Normally we would start marketing once the foundation is in the ground. I will not quote a price until we have all of our costs in.”

Cost-Based Appraisals Better Reflect Rising Material Costs In order to best address these significant increases in the price of materials, it is important to understand that appraisers can incorporate three approaches to determine the value of a property: sales comparison, cost and income methods. Under the cost approach, the appraiser estimates what it would cost to rebuild or construct an equivalent structure. Because this component of property valuation considers the costs of materials used to construct the property, it is often very helpful in analyzing the value of a newly constructed home.

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It is also important that builders understand that it is acceptable — and extremely important — for a home builder to speak with an appraiser and provide all the information the appraiser needs to perform an accurate assessment of value. One item that has proven effective in assisting appraisers in Continued on page 17

Factory Direct is now part of Ferguson, and our experts can’t wait to provide world-class service during your next visit. Shop online or schedule a personalized appointment from the comfort of your home today at fergusonshowrooms.com or KCFDA.com.

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KCHBA.ORG ®

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Foundation Accepting Grant Requests

H

BA members, as leaders in our industry as well as our communities, recognize the importance of continually improving the quality of life in the Kansas City area. The association’s Foundation, the charitable arm of the KCHBA, is now accepting grant requests from non-profit organizations who share our commitment to our neighbors.

Building made easy Chris Miller is our Construction Lending Expert with over 20 years of experience.

The Foundation is dedicated to advancing charitable, educational and community causes such as housing-related issues, rebuilding declining neighborhoods, restoration of existing structures, building industry workforce, housing disaster relief and community redevelopment.

With options like our one-time close Construction-Perm loan, and our exclusive Blanket Loan that allows you to start building before your current home sells, we’ll show you just how easy home building can be!

Chris Miller

The Foundation will be accepting grant applications from now through April 2021 for the first quarterly grant approvals in 2021.

If you know of a deserving organization that fits this criteria, please contact Kari@kchba.org.

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Appraisals

appraisal approach for a spec home he was building. He had been able to successfully sell the same home recently for $711,000, but when he received the invoice for the lumber package on the new spec home, it was $56,000 higher than the home he had just sold. The initial appraisal for the new spec home was $711,000 — the same as the home he had just sold, but that had been built at a lower cost.

When the builder revisited the value approach with the appraisal, he was able to secure a construction loan that reflected the increase in prices.

Continued from page 14

considering material costs in developing new home valuations is an “appraisal binder.”

An appraisal binder — which is given to the appraiser upon his or her arrival to the property — will provide the appraiser with a cost breakdown of all materials used in the construction of the home.

This information will assist the appraiser in balancing the market value of the home with what it cost the builder in materials to construct the home.

In a recent listening session with Federal Housing Finance Agency (FHFA), NAHB suggested that more consideration be given to the cost approach to value new homes, particularly in rural areas where there may be few comps or sales to help produce a fair and accurate assessment of value.

Keep in mind that the cost approach to value is always used in combination with the sales comparison approach — with greater weight or emphasis given to the sales comparison approach, per Fannie Mae and Freddie Mac guidelines. Builders should also incorporate existing home sales as comparables if there is a lack of new construction comps that can be used.

Visit nahb.org to learn more about the impact of rising material costs and understanding appraisal approaches.

One builder in Greenville, S.C., was recently able to utilize this

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New Members Affiliate

Design Basics, LLC Natalie Wendling 11112 John Galt Blvd.

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A+ Insulation Shelby Chadd 14324 W 96th Ter Lenexa, KS 66215 (913) 707-3730 www.insulatekansascity.com

JELD-WEB Windows & Doors Ryan Ozbun 14509 Perry Street Overland Park, KS 66221 (636) 233-8088

Kansas Gas Service Sharon McKee 7421 W 129th Street Overland Park, KS 66213-2713 www.kansasgasservice.com

Kennison Group LLC Andrea Kennison 7174 SW Crystal Lane Trimble, MO 64492

North American Savings Bank Liza Kemna 903 E 104th St. Bldg. C, Ste. 400 Kansas City, MO 64131 www.nasb.com

LDH Construction, Inc. Kevin Downey 20101 W 93rd St Lenexa, KS 66220 (913) 219-4626

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Call to Action: Submit Your Lumber Testimony to NAHB

T

he unprecedented spikes in lumber prices have added nearly $24,000 to the price of the average, new singlefamily home. The escalating lumber prices are largely due to insufficient domestic production. With a new administration in the White House, NAHB is redoubling its efforts to develop shortand long-term solutions.

6'8"

Your individual story is a useful tool to emphasize the important and relevance of this issue. NAHB has created a portal for members to voice how the ongoing lumber crisis has directly impacted their business and customers. Go to www.nahb.org/other/forms/open/ lumber-testimonials to submit your story.

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Anniversaries 1948 McCray Lumber and Millwork 1974 Graham Construction Co. 1983 Jim Haas Builders, LLC 1988 Bickford & Company, Inc. Dixon Construction Co., Inc. 1990 United Heating, Cooling & Plumbing Inc. 2001 Royal Metal Industries, Inc. 2002 Gahagan & Eddy Building Co. 2006 Window World 2009 Rosehill Gardens, Inc Mooremark, Inc. 2010 Legacy Custom Homes LLC Associated Air Products 2012 Kansas Gas Service

Let’s put more buyers into your homes As a builder, you know the value of quality, personalized service, and attention to detail. We’re here to support you and your clients as they reach their homebuying goals.

• Builder Best® Extended Rate Lock program, with a required, non-refundable extended rate lock fee.

• Builder Spec Lock program lets you lock in a rate range for 90 or 120 days (with a required, non-refundable Builder Spec Lock fee), and transfer the rate lock to the client.1

Call today.

David Estes, Branch Manager 816-420-5510 | david.estes@wellsfargo.com www.wfhm.com/james-estes | NMLSR ID 404883

1. The loan must close within the remaining term of the lock-in period. If rates have improved, the homebuyer can take advantage of current rates by registering a new lock. Restrictions apply.

This information is for real estate and building professionals only and is not intended for consumer distribution. Information is accurate as of date of printing and is subject to change without notice. Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. © 2020 Wells Fargo Bank, N.A. All rights reserved.

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2014 Aspen Contracting, Inc. JFE Construction Syler Construction, Inc. 2015 Still Contractors, LLC. Fieldstone Homes, LLC 2016 McBee Custom Homes 2017 Wells Bank Harding Homes 2018 Imperial Roofing Dwellings by Design KC, LLC MOJO Built, LLC 2019 Spiess Custom Homes Northland Management & Construction Double O Construction LLC

Friendly Reminder to Secure Jobsites

C

opper prices are seeing the highest prices in almost a decade, according to MarketWatch. Unfortunately, the KCHBA itself was a victim of copper theft earlier this month. The building’s exterior air conditioning units were completely dismantled in order to access and steal the copper components.

Be sure to keep jobsites secure and install proper security measures. Here are some helpful tips from Overland Park Crime Prevention Officer Bill Koehn, which were presented at a 2019 Kansas Area Council: • Having high-quality cameras is critical. If a video or picture is unclear and fuzzy to you, it will also be useless to the police.

• Even if stolen equipment is found, police need to be able to identify it as yours to return it. Always take pictures of serial numbers and/or permanently mark all equipment and tools.

• High quality, durable security equipment is worth the investment. Consider the cost of what you are protecting on a regular basis versus the cost of your security equipment.

• It is important to have a security plan in place. Employees should know what they are responsible for and what should be taken home at night.

21

Housing Begins 2021 with Solid Numbers but Concerns Grow

HBA Staff Will Ruder Executive Vice President will@kchba.org 816-733-2216 Dawn Allen Director of Member Services & Partnerships dawn@kchba.org 816-733-2241 Kelcee Allen Director of Parade of Homes/Digital Content Strategist kelcee@kchba.org 816-733-2246

S

ingle-family housing permits maintained a solid pace as the new year began, according to the Home Builders Association of Greater Kansas City’s (KCHBA) monthly Residential Building Permit Statistics report. With 406 single-family permits issued, January’s total was down just a little from the December 2020 count of 461. But there are concerns about the rising costs of materials, particularly lumber.

Kari English Senior Director of Communications & Strategy kari@kchba.org 816-733-2213 Marcia Jurgens Vice President of Administration marcia@kchba.org 816-733-2215

“Lumber prices continue to escalate, which nationally is adding about $24,000 to the price of a newly constructed home right now,” said KCHBA Executive Vice President Will Ruder. “Supply chain disruptions coupled with consistent consumer demand are already impacting new home construction. This will undoubtedly affect KC area families as they seek out new homes in 2021.”

Courtney Reyes Director of Government Affairs & Workforce Development courtney@kchba.org 816-733-2214 Paige Waltman Manager of Communications & Education paige@kchba.org 816-733-2217

Overland Park, Kan., issued the most single-family permits in the eight-county area with 63, followed closely by Olathe, Kan., with 56. Kansas City, Mo., Lee’s Summit, Mo., and Kansas City, Kan., rounded out the top five municipalities in residential permit counts. Johnson County was the top single-family permitting county with 183, followed by Jackson County with 80, Clay and Clay County with 48 single-family permits issued in January.

Jordynn Webster Manager of Government Affairs & Workforce Development jordynn@kchba.org 816-733-2218

In a wrap-up of the 2020 permit statistics, the KCHBA identified the list of top permitting homebuilders in the metropolitan area.

Summit Custom Homes tops the permit list with 378, followed

by Prieb Homes at 270, Stucker Construction with 197, Country Club Homes with 161 and Rodrock Homes with 137.

The Official Publication of the Home Builders Association of Greater Kansas City

March 2021 • Volume 27 • Issue 2 Copyright 2021

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

Editor Kari English Contributing Writers Marcia Jurgens, Paige Waltman Graphics Karla Peterie, Creative Services 2021 Executive Committee President Kevin Kirtley Vice President Tommy Bickimer Executive Vice President Will Ruder Secretary/Treasurer Brian Tebbenkamp Immediate Past President Jerry Braklow Associate Representative Richard Holtcamp Past Presidents Representative Bob Frost

To subscribe to Building Business News call (816) 733-2217 To advertise in Building Business News call (816) 733-2213 For change of address requests please email Kari@kchba.org or call (816) 942-8800 For more information, visit kchba.org

22

Residential Building Permit Statistics

Residential Building Permit Statistics JANUARY 2021 CASS COUNTY Archie Belton Cass County Cleveland Drexel 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 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 Roeland Park Shawnee Spring Hill Westwood

Single MultiFamily Family Total Units^ Units% Units 0 8 0 0 0 0 3 1 0 4 9 0 25

0 0 0 31 4 0 9 0 0 4 48

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

0 0 0 0 0 0 0 0 0 0 0

0 8 0 0 0 0 3 1 0 4 9 0 25

0 0 0 31 4 0 9 0 0 4 48

S-F Units YTD

M-F Units YTD

Total Units YTD

0 8 0 0 0 0 3 1 0 4 9 0 25

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

0 8 0 0 0 0 3 1 0 4 9 0 25

0 0 0 31 4 0 9 0 0 4 48

0 0 0 0 0 0 0 0 0 0 0

0 0 0 31 4 0 9 0 0 4 48

January 2021

Single MultiFamily Family Total Units^ Units% Units LEAVENWORTH COUNTY Basehor 14 0 14 Lansing 0 0 0 Leavenworth County 0 0 0 Leavenworth 0 0 0 Tonganoxie 1 0 1 15 0 15 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

14 0 0 0 1 15

0 0 0 0 0 0

14 0 0 0 1 15

0 0 21 21

0 0 0 0

0 0 21 21

0 0 21 21

0 0 0 0

0 0 21 21

1 0 0 0 5 6

0 0 0 0 0 0

1 0 0 0 5 6

1 0 0 0 5 6

0 0 0 0 0 0

1 0 0 0 5 6

406

44

450

406

44

450

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

19 0 1 0 0 5 4 11 0 40 0 0 0 80

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

19 0 1 0 0 5 4 11 0 40 0 0 0 80

19 0 1 0 0 5 4 11 0 40 0 0 0 80

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

19 0 1 0 0 5 4 11 0 40 0 0 0 80

9 3 0 15 1 0 0 28

0 0 0 0 0 0 0 0

9 3 0 15 1 0 0 28

9 3 0 15 1 0 0 28

0 0 0 0 0 0 0 0

9 3 0 15 1 0 0 28

4 0 0 2 5 2 20 0 0 56 63 8 0 5 18 0 183

0 0 0 0 0 0 0 0 0 44 0 0 0 0 0 0 44

4 0 0 2 5 2 20 0 0 100 63 8 0 5 18 0 227

4 0 0 2 5 2 20 0 0 56 63 8 0 5 18 0 183

0 0 0 0 0 0 0 0 0 44 0 0 0 0 0 0 44

4 0 0 2 5 2 20 0 0 100 63 8 0 5 18 0 227

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

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

2016 274 408 542 523 503 578 494 536 424 466 417 352

Annual Total

4,271

4,700

5,517

2017 2018 457 463 477 463 571 549 562 564 504 598 567 569 512 485 480 514 514 353 583 485 502 354 468 276 6,197

5,673

2019 2020 2021 234 355 406 234 475 357 438 411 434 391 374 387 421 471 493 429 444 396 557 500 510 410 404 434 461 4,654

5,366

406

Comparison of Permits By Units Issued Year to Date

2014 - 2021 2014 2015 2016 2017 2018 2019 2020 2021

S-F Units 287 240 274 457 463 234 355 406

M-F Units 539 214 85 10 0 407 67 44

Total Units 826 454 359 467 463 641 422 450

^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 year-to-date figures when updated data is made available. Copyright 2021 Home Builders Assoc of Greater Kansas City. All rights reserved.

23

CALLING ALL HIGH SCHOOL SENIORS, GRADUATION IS RIGHT AROUND THE CORNER!

1. Are you looking to start a career in the residential construction industry?

2. Are A you looking for additional funds for education after graduation?

Our 2021 Career Ready and Scholastic Scholarship Applications are open now!

What is a Career Ready Scholarship?

Career Ready Scholarships are for graduating seniors that are looking to go straight into the workforce following graduation.

This scholarship provides funds for individuals to purchase personal protective equipment (PPE) as well as tools that are needed for their new career on day one.

What is a Scholastic Scholarship?

Scholastic Scholarships are for graduating seniors that would like to continue their education at a vocational, two-year or four-year institution.

If I would like to continue my education, but also have a summer job lined up in construction, am I eligible to apply?

Yes, we encourage you to apply for either scholarship. We strive to support students in their efforts to obtain skills through hands on, field-based learning as well as the formal education system.

What can I do if I am interested in construction, but not sure exactly what I would like to do?

1. Visit KCHomework.com to learn more about careers within the residential construction industry.

2. Reach out to the workforce development staff to see how they can connect you to member businesses so that you can speak to an industry professional.

Due Date

Must be post marked by April 2, 2021

For more information visit KCHomeWork.com

Please email Courtney@kchba.org or Jordynn@kchba.org for more information.