Building Business News for May 2017

May 2017

American Dream Awards Celebrated in Historic Location Reaching the Millennials – page 2 Royals Tickets Available – page 8 HBA History: Advocacy – page 16

Call now to register for the golf tournament – page 6

More than 300 guests enjoyed an evening at the beautifully restored Kansas City Power & Light building as home builders were presented with the 2017 American Dream Awards at the HBA’s Spring Awards Ceremony.

Each spring, local home builders compete for top honors in the awards competition held in conjunction with the Spring Parade of Homes. The 55th annual Parade provided consumers the opportunity to visit more than 380 new homes throughout metropolitan Kansas City during the 16-day, three-weekend event that opened April 22 and continued through May 7. Even with an exceptionally rainy weekend, builders reported heavy traffic throughout the Parade with many serious buyers eager to settle into a new home.

The American Dream Awards are the premier honor for new home construction in the Greater Kansas City region.

Builders’ entries were rigorously judged on architectural design, construction techniques, craftsmanship and selection of materials. Homes competed in categories based on price range and were judged by teams made up of industry professionals from across the midwest.

HBA President Harold Phelps welcomed guests to the Awards celebration

Signature Builders won for its entry in Winterset Valley

Jerry and Kristen Braklow with 2 winning entries

Special thanks go to Misty Hanson and Stewart Title for sponsorship of the Parade

Photos courtesy of the Parade’s Media sponsor, The Kansas City Star Media Company

www.kchba.org | Volume 23, No. 5 | May 2017

When Will Millennials Start Buying Homes?

May Calendar May 9 BUILD-PAC Fundraiser

Millennials are a mystery to most people. Ranging in age from 17 to 35, they have never lived without the Internet and, consequently, are glued to their technology devices. They have high expectations for how they want to live and they do not seem to be in a hurry to move out of their parents’ homes. As the topic of discussion at the Missouri South Area Council luncheon on April 25 (sponsored by Gordon Energy & Drainage), a panel of experts who have worked with

May 16 Board of Directors Meeting May 24 Missouri North Area Council Meeting

end jewelry like previous generations.

They value the latest technology.”

Thus, Millennials are slower to commit to those types of big-ticket items. And when they finally do make the decision to purchase a home, they will want their “dream house” not a starter home. “They will save their money until they can afford that dream house,” said Stucker.

“I have Millennial clients that the first homes they buy are $400,000.”

May is Membership Month For more information or to register for any event, go to www.kchba.org or call 816-942-8800

Panelists Helen Bartlett, Sara Stucker and Michal Fasone

Millennials and are familiar with their buying habits helped attendees better understand this enigmatic generation.

Panelist Sara Stucker, a realtor with ReeceNichols and a Millennial herself, said that although this generation has been slow to buy a home thus far, she expects that slow trickle to become a big surge in the next few years as more Millennials start getting married and having children.

2

Having said that, the panel acknowledged that there is some truth in the notion that they tend to live in their parents’ homes longer than previous generations partly because they don’t see the value in buying a home. “They view big-ticket items differently,” said panelist Michal Fasone, managing partner of Fasone & Partners advertising agency.

“They don’t value homes, cars or high-

What do Millennials Want in Their Homes?

In terms of their “dream homes” Millennials are looking for open concepts because one of their primary questions is “where will the party be?”. Relationships and friends are crucial to Millennials and they want space for entertaining. Additionally, “clean, modern lines and neutral palettes appeal to Millennials,” said Helen Bartlett, a designer and home stager. “Minimal maintenance is ideal and, of course, having the latest technology in the home” is a must.

Lifestyle, in terms of location and amenities, are also very important to Millennials, according to the panel.

“They will pay for amenities over other Continued on page 16

May 2017 | Volume 23, No. 5 | www.kchba.org

99.7 The Point Broadcasts from Ben Cerra’s Parade Home Radio station 99.7 The Point broadcasted live from Ben Cerra’s Parade home in Staley Farms on the first day of the Spring Parade, April 22.

From 2-4 p.m., Parade attendees who visited the home could enter a raffle to win prizes such as microwaves Live radio broadcast drew Parade-goers in the Northland from Factory Diwas entered into a raffle to win the rect, a ceiling fan from Wilson Lighting, broadcast by submitting his home into Royals tickets from Security Bank and the Parade by the early deadline.

ReeceNichols and more. Ben himself

TAILOR

DECKS TO

SUIT

YOUR CUSTOMER’S STYLE. You know how to pattern a deck to suit a customer’s

Available at:

lifestyle and you use long-lasting Deckorators® Vault decking for a durable, custom fit that’s always in style.

McCrayLumber.com

Step Up to Higher Profits.

Construction Plus Financing Contact us today to learn more about our one-time close loan solution that saves you time and money.

We provide exceptional interior comfort and air quality for our client’s new homes and remodels. For over 13 years, we have been caring for the indoor needs of countless homeowners. Our service-oriented team delivers high quality products, at exceptional value.

913-441-7807 www.mikebryanthvac.com 3

(816) 245-4160 • www.FFBKC.com/builders

www.kchba.org | Volume 23, No. 5 | May 2017

HBA Presents Hartzler with Trim size: Defender of Housing Award 4.75 x 4.75

Dedicated to helping you put buyers into homes

Missouri ConPrint ad gresswoman Uncoated Vicky Hartzler was presented the NAHB’s Defender of Housing award by Tom Woods at a special event held at Brian Mather’s Parade home on April 24.

Hartzler has been an advocate of pro-housing legislation and has helped with the retraction of Wa- Tom Woods and Vicky Hartzler ters of the U.S. and lators who have demonstrated strong Dodd-Frank regulations. support for housing and NAHB posiThe NAHB Defender of Housing Award tions on key issues facing the industry. recognizes courageous federal legis-

Your goal is to turn buyers into homeowners. Our goal is to provide financing to make that happen. So no matter what your client’s home buying goals, we can help you by providing financing options to meet nearly any homebuyer need.

Contact your Wells Fargo Home Mortgage branch today.

Northland Office: 816-505-4110 Lee’s Summit Office: 816-329-2109 Overland Park Office: 913-319-7970 KC Bank Office: 913-234-7703

Buyer ConnectionsSM – connects buyers and sellers not already working with a real estate professional to professionals in their local market.

Renovation Office: 913-234-2925

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. © 2014 Wells Fargo Bank, N.A. All rights reserved. NMLSR ID 399801. AS1055681 Expires 5/2015

Tell Them What You Really Think and Get Rewarded for Doing It

STYLE THAT

WORKS

Numerous industry analysts, lobbyists, government regulators and the media all keep a close eye on the results of the NAHB/Wells Fargo Housing Market Index (HMI) survey. Each month, it gives them a unique look at the state of the industry from the home builder perspective.

LENEXA 9301 ROSEHILL ROAD (913) 752–5660

N. KANSAS CITY 101 NE 91ST STREET (816) 468–8344

FERGUSON.COM/SHOWROOMS

KCFDA .COM

While hundreds of single-family builders already participate in the survey, we want that number to grow. NAHB is inviting single-family builders to join the exclusive HMI panel and provide their opinions about the housing market – and receive special benefits for participating.

By joining the panel and taking just a few minutes once a month to submit their responses, survey participants will receive:

©2015 Ferguson Enterprises, Inc. 1215 73008

4

• FREE expo-only access to the 2018 NAHB International Builders’ Show • FREE access to the latest charts from NAHB’s National Housing and Economic Outlook The HMI panel is open to all single-family builders. Once on the panel, they will begin receiving an email on the first business day of each month with a link to the survey. The responses are easily submitted online and kept strictly confidential.

To join the panel, send an email to NAHB’s Rose Quint (rquint@nahb.org) that includes your name, company name, city, state, and the number of singlefamily units your company built in 2016.

May 2017 | Volume 23, No. 5 | www.kchba.org

HBA Welcomes New Members Over Coffee

Current KCHBA members and the HBA staff welcomed new members to the association at a coffee held on April 13. New member events are held on a regular basis and offer networking and

May is Membership Month

WHY JOIN THE

2nd

Largest Parade of Homes in the country.

25,000

Potential homebuyers & home remodelers at the Spring Home Show.

Lobbying at local, state and federal levels

saves

$5,000+

per housing start.

Networking opportunities

50

at more than

events throughout the year.

800

Builders, associates and affiliates to interact with.

More than

30

hours of code credit classes per year.

75°

Every degree matters..

orientation to HBA events, marketing opportunities and member benefits.

Thank you for joining and welcome to the HBA!

™

The builder’s choice in Kansas City.

Earn Triple Spike Points in May

816.761.5262

May is Membership Month and your opportunity to earn triple spike points for recruiting a new member into the KCHBA. You know the value of membership–now share it with your colleagues. The KCHBA’s networking opportunities, education, consumer outreach and advocacy supports the entire home building industry. Our position as the “voice of the industry” is strengthened by the size and involvement of members. When a company joins the KCBHA, they also join the National Association of Home Builders. The NAHB works on the national level to promote and protect the industry: the NAHB’s member services and advocacy victories will save the typical home builder $5,950 per start in 2017.

Contact Dawn Allen (dawn@kchba.org) for materials and information to use as you strengthen your association by recruiting new members.

Unlimited Possibilities.

Custom colors. Unique shapes. Dynamic sizes.

Smarter Windows for Smarter Homes ® VeriLock integrated security sensors Andersen® E-Series windows and patio doors featuring VeriLock® sensors can now be part of today’s connected homes. These patented, wireless sensors are the only sensors built directly into your windows and doors. Plus, they not only tell you if a window or patio door is open, but also if it’s unlocked.* No other sensors can do that.

andersenwindows.com/verilock *When properly configured and maintained with a professionally installed security system compatible with Honeywell® transmitters and/or self-monitoring system.

See your dealer for more information. Honeywell” is a registered trademark of Honeywell International, Inc. “Andersen” and all other marks where denoted are trademarks of Andersen Corporation and its subsidiary. ©2016 Andersen Corporation. All rights reserved. MS1601_0102

Belton 617 N. Scott, Belton, MO (816) 331-2211 Excelsior Springs 24805 NE 69 Hwy, Excelsior Springs, MO (816) 628-6025

owenlumber.com 5

Lee’s Summit 312 SE Main, Lee’s Summit, MO (816) 524-3522

www.kchba.org | Volume 23, No. 5 | May 2017

NAHB Reacts to Canadian Lumber Tariff NAHB has denounced the decision by the U.S. Department of Commerce to impose a 20% countervailing duty on Canadian lumber imports, saying it will harm American home buyers, consumers and businesses while failing to resolve the underlying trade dispute between the two nations.

Thirty-three percent of the lumber used in the U.S. last year was imported. The bulk of the imported lumber — more than 95% — came from Canada.

“NAHB is deeply disappointed in this short-sighted action by the U.S. Department of Commerce that will ultimately do nothing to resolve issues causing the U.S.-Canadian lumber trade dispute but will negatively harm American consumers and housing affordability,” said NAHB Chairman Granger MacDonald.

To truly put the interests of America first as it relates to this trade issue, NAHB believes the U.S. and Canada need to work cooperatively to achieve a long-term, stable solution in lumber trade. This is essential because tariffs needlessly increase the volatility of the

lumber markets, resulting in higher prices for U.S. home buyers and other lumber consumers.

Since the U.S. does not produce enough lumber to meet the nation’s demand, NAHB remains committed to first and foremost, exhausting all domestic opportunities. This includes pursuing better multi-use forest management practices, reducing U.S. lumber exports overseas, and opening up additional federal forest lands for logging in an environmentally sustainable manner.

“This means that imports are essential for the construction of affordable new homes and to make improvements on existing homes,” said MacDonald.

Further, U.S. trade negotiators need to recognize that in every previous countervailing lumber duty case brought against Canada, it was ultimately determined that that the Canadian government did not provide unfair subsidies to its lumber industry.

G L F TOURNAMENT THE HBA SCRAMBLE

NAHB senior economist Paul Emrath estimates that the annual impact of the 19.88% duty, if in effect throughout 2017, would be a loss of:

Thursday, June 1

• $498.3 million in wages and salaries for U.S. workers

Hillcrest Golf & Country Club

• $350.2 million in taxes and other revenue for governments in the U.S.

8:00 a.m. Registration 9:00 a.m. Shotgun start

• 8,241 full-time U.S. jobs

Teams: $500; $400 if you bring a builder Individuals: $125 Golf attire required – collared shirts. No steel spikes on the course.

816.942.8800

Sponsored by 600 E 103rd Street Kansas City, MO 64131 Phone: 816.942.8800 © 2016 Home Builders Association of Greater Kansas City

“NAHB respectfully disagrees with comments made by Commerce Secretary Ross that the tariffs on Canadian lumber imports into the U.S. will have little effect on the cost of housing,” said NAHB Chairman Granger MacDonald Tuesday.

“While Ross cannot cite specific consequences regarding this punitive tariff, we can.” The effect of the increased duty is estimated to add $1,236 to the price of an average single-family home. This is in addition to increased lumber prices already experienced this year.

A new analysis by NAHB shows that more than 8,000 full-time jobs will be lost this year as the result of the decision by the U.S. Department of Commerce to impose a 19.88% duty on Canadian softwood lumber exports to the United States.

2017 HBA

To register contact Dawn@kchba.org or call

other manufacturing industries.

6

Many of the jobs are in construction, but the effects are not limited to a single industry, as wages and jobs are also lost in businesses that sell and transport building materials, provide architecture and engineering services, etc. Some jobs are gained in the U.S. sawmill industry, but this is almost entirely offset by losses in

With step-by-step help from experienced builders, learn a quick and easy way to submit your Parade Entries. Stick around for Happy Hour with fellow HBA members!

Tuesday, June 13 • 2 p.m. - 4:30 p.m.

HBA office • 600 East 103rd St. KCMO 64131 $10 • Includes appetizers, beer & wine

1 Saves time.

2 3 4 5

Proof your entry at the same time you are entering your data.

You can upload photos of your parade home.

You can fill in the “Builder Profile” and “Description of the Home”.

You will be able to pin point map location correctly.

Register today!

Gina@kchba.org or 816-942-8800.

May 2017 | Volume 23, No. 5 | www.kchba.org

2017

American Dream Award - Gold Award

333 • Calyn Homes, LLC

283 • Starr Homes, LLC

55 • BC Residential Homes, LLC

80 • SAB Homes, Inc.

119 • Gary Kerns Homebuilders, LLC

334 • Steve Foley Construction Co., Inc.

23 • SAB Homes, Inc.

136 • John Shilt Homes, Inc.

242 • New Mark Homes, LLC

317 • Dusselier & Marks Homes, Inc.

151 • New Mark Homes, LLC

13 • JFE Construction

371 • James Engle Custom Homes

106 • Signature Builders

202 • C&M Builders, Inc.

12 • C&M Builders, Inc.

15 • SAB Homes, Inc.

378 • Don Julian Builders, Inc.

232 • SAB Homes, Inc.

354 • C&M Builders, Inc.

336 • Don Julian Builders, Inc.

139 • Don Julian Builders, Inc.

2017

290 • Braklow Custom Homes, Inc.

American Dream Award - Silver Award

Parade of Homes

20 210 123 26 129 315 111 11 52 211 225 180 342 14 183 282 227 286 82 331 149 154 364 343 279 45

SAB Homes, Inc. Wynne Homes, Inc. Dwight Friedley Building Co., LLC Summit Custom Homes Summit Custom Homes Robert A Washam Construction, Inc. SAB Homes, Inc. SAB Homes, Inc. Braklow Custom Homes, Inc. Dreams & Design Building Robert A Washam Construction, Inc. James Engle Custom Homes King Building, Inc. James III Homes, Inc. J S Robinson Fine Homes C&M Builders, Inc. J S Robinson Fine Homes Summit Custom Homes Rodrock Homes, LLC Don Julian Builders, Inc. Casa Bella Construction, Inc. Ashner Construction Company, Inc. Rodrock Homes, LLC James Engle Custom Homes Starr Homes, LLC

280 • Starr Homes, LLC

41 • Cecil & Ray Homes, Inc.

Parade of Homes

kcparadeofhomes.com

Sponsored by

7

www.kchba.org | Volume 23, No. 5 | May 2017

Young Adults & the Construction Trades As the KCHBA works to address the labor shortage, it has become clear that there are several groups of potential employees – adults looking to change their career field, veterans, underemployed workers and young people, among others.

LET US USE WHAT WE’VE BUILT TO HELP YOU BUILD.

One focus of KCHBA’s Workforce Development Task Force will be outreach to students as they begin to consider a career path. The following information makes it clear that the Task Force will need to educate young people regarding the many benefits of working in the construction trades. As many of us know from personal experience, however, the initial career direction of a high school student (or even a college student) can change drastically as he or she progresses through post-secondary education and into the workforce.

Since 1989, we’ve been helping the community around us grow.

Visit bankbv.com or call 913-338-1000 to see if we can help you.

MEMBER FDIC bankbv.com

COMMUNITY | PHILANTHROPY | ENTREPRENEURSHIP

The following is an excerpt from the NAHB’s Eye On Housing blog entry for April 19, 2017 by Rose Quint: NAHB conducted a national poll of young adults ages 18 to 25 to find out how this age group feels about a career in the construction trades. The majority of young adults (74%) say they know the field in which they want to have a career.

Of these, only 3% are interested in the construction trades.

Most of the young people interested in the trades say the two most important benefits of this career choice are good pay (80%) and the attainment of useful skills (74%). Less than half cite as benefits that the work is seasonal (15%) or that it does not require a college degree (37%).

Continued on page 9

BUI Join Us for Builder Appreciation Night at the K Come network with fellow HBA members and cheer on our Royals!

Early Bird Special $40 (After June 15, $50): Includes Big Slick Softball Game at 5pm Tailgate sponsored by IKO, 4pm-6:30pm includes Weiner Wagon and Beverage

To register email Tricia at Tricia@kchba.org

Bovard Insurance Group Capitol Federal Fasone & Partners Ferguson Enterprises First Federal Bank K & E Flatwork

Hosted by the HBA's 2017 Gold Sponsors: Kansas Gas Service Kansas Granite Mart Kenny's Tile Laclede Gas McCray Lumber Northcraft Flooring & Granite

Owen Lumber Phelps Engineering ProBuild Rew Materials Sun Lumber United Heating, Cooling & Plumbing

www.kchba.org 8

May 2017 | Volume 23, No. 5 | www.kchba.org

THE

Little Agency Roars!

THAT

Continued from page 8 The 26% of respondents who do not yet know the career path they want to take got a follow-up question about the chance they might consider a number of fields (construction trades being one of them) using a scale from 1 to 5, where

Fasone &partners inc.

1 meant ‘no chance no matter the pay’ and 5 meant ‘very good chance if the pay is high.’ Construction trades got an average rating of 2.1, with 63% of undecided young adults rating it 1 or 2 (no or little chance regardless of pay).

Advertising | MArketing | Pr

Make your business

ROAR!

Contact Karol Angotti or Michal Fasone 816.753.7272 karol@fasonepartners.com or mj@fasonepartners.com

Partners with HBA since 2010 Fasonepartners.com 9

www.kchba.org | Volume 23, No. 5 | May 2017

Overland Park Proposal to Require Concrete Cul-de-Sacs The City of Overland Park is considering a proposal to change their residential street standards and require that new cul de sacs be constructed with concrete rather than asphalt. The HBA submitted public comments in late February expressing concern about the cost increase and lack of foundation for the change.

The proposal was initially set to go into effect May 1, but after receiving pushback from the HBA, the Public Works Committee delayed the discussion until their June meeting and will send it to a vote by the full City Council.

The HBA Board of Directors adamantly opposes the unnecessary and cost-increasing policy of mandating that cul-

de-sacs be constructed with concrete.

The Kansas City Regional Association of Realtors also oppose this change and the Overland Park Chamber of Commerce has serious concerns about policies that dampen economic growth and harm business interests.

Regarding the increased costs – • The city’s initial report placed the

additional cost at $15,000-$19,000 per concrete cul-de-sac. However, a recent estimate made by O’Donnell & Sons Construction Company, after reviewing the city’s construction specifications, calculated an additional cost of $35,000-$40,000 per cul-de-sac.

Continued on page 11

COMPANIES, INC DRYWALL

INSULATION

We’re Your Local Certif ied Energy Experts.

Star Companies is proud to o be part of an elite group of Certified Energy Experts® chosen by Owens Corning.

What does that mean for you?

ONE and DONE!

• HIGHLY TRAINED INSTALLERS • EXCLUSIVE WARRANTY* • PREMIER PRODUCTS

With a Capitol Federal® Construction-To-Permanent Loan, your client will enjoy one loan throughout the building process and life of the loan.

• OUTSTANDING SERVICE

See why Kansas City’s finest builders have been trusting Star for over 30 years!

CALL TODAY FOR A FREE ESTIMATE! *See actual warranty for complete details, limitations and requirements. Ten (10) years from date of installation by an Owens CorningTM Certified Energy Expert®.THE PINK PANTHER™ & ©1964–2016 Metro-Goldwyn-Mayer Studios Inc. All Rights Reserved. The color PINK is a registered trademark of Owens Corning. Owens Corning Insulating Systems, LLC is a manufacturer of durable, high-quality fiberglass products and does not sell or endorse other insulation industry products.

capfed.com

913-381-5400 or 913-652-2541

8320 WESTRIDGE | RAYTOWN, MO 64138 | STARCOMPANIESKC.COM | (816) 353-2160 10

May 2017 | Volume 23, No. 5 | www.kchba.org

Continued from page 10 • This adds an estimated $2,600 - $4,000 to each lot in a new subdivision, a burden that impacts both developers and homebuyers, causing housing affordability in Overland Park to decrease.

• The HBA believes this proposal

stems from a short-term perspective.

While concrete may require less maintenance intervals, when concrete does deteriorate and crack, the process for fixing or replacing the damaged surface is substantially more complex and expensive than the occasional surface treatments demanded by asphalt.

Cul-de-Sac Deterioration – • Overland Park claims that the de-

terioration rate of streets with cul de sacs is approximately 40% greater than those without cul de sacs.

• The HBA has asked the supporting

along with the number and location of failed cul-de-sacs in Overland Park.

This information was requested in March.

Other HBA Concerns – • The change would render Overland

Park uncompetitive with surrounding cities that do not have this mandate.

In fact, the approval of this change may result in developers and builders looking to other jurisdictions for their projects.

The HBA believes this proposal is largely a result of resident complaints about the chip seal process and potentially an effort by the city to discourage the construction of new cul-de-sacs altogether.

While the HBA understands the city’s concerns about pavement maintenance, concrete cul-de-sacs and other policies that slow the growth of subdivisions are not the solution.

PACIFIC MUTUAL DOOR AND WINDOW

A DYKE INDUSTRIES COMPANY

816-483-2550 morgan-wightman.com

Morgan-Wightman Supply Company is a proud supplier of JELD-WEN ® windows and doors. © 2017 JELD-WEN, Inc.

data for this conclusion be provided,

High-quality millwork lives here

816.531.0161 pacificmutualdoor.com S I N C E

YOU SEE FAMILY DINNER WE SEE SAVINGS FOR YOUR FUTURE. Homeowners save with natural gas. A natural gas range can operate at about half the cost of an electric range.

A BETTER TOMORROW STARTS TODAY. www.kansasgasservice.com 11

1 9 1 2

www.kchba.org | Volume 23, No. 5 | May 2017

This month’s pro tip is:

Distracted Driving a Concern For Everyone, Including Builders The National Safety Council estimates that in 2016, roughly 40,000 people died in motor vehicle crashes — the highest total in nine years and an alarming 14% increase from just two years ago.

6950 Squibb Road, Ste 500

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

“From an insurance industry perspective, [distracted driving] is the No. 1 issue for automobile safety, as the vast majority of people admit they frequently drive while talking on the phone, texting, eating, or doing any number of other activities,” says Bill

913-529-1130 Mid-Continent Group

Multiple Warranty Options

General Liability Builders Risk Auto

Bonds

Schaffner, director of risk management for Builders Mutual Insurance Co. Creating and maintaining a comprehensive training program for employees that includes a safe-driving component is a valuable and worthwhile strategy.

To inform builders and contractors about their liability and identify ways they can better educate their employees, NAHB compiled a report that lists several guidelines to consider when drafting a distracted driving policy.

Thanks to These HBA 2017 Sponsors

Worker’s Compensation Health/Life

Multiple Warranty Options

FREE subcontractor insurance certificate forRisk our clients General Liability review service Builders Bonds

platinum sponsors

Bank of Blue Valley Kansas City Star ****** Local Representation ****** Auto Worker’s Compensation Health/Life Media Company Mike Bryant Heating FREE subcontractor insurance certificate review service for our & clients Cooling

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

******Local Representation******

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

Insuring Kansas City area builders for more than 50 years

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 Bronze sponsors Commerce Bank Complete Home Concepts CrossFirst Bank First American Title 12

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

ProSource Raynor Garage Door Co., Inc ReeceNichols Wilson Lighting

May 2017 | Volume 23, No. 5 | www.kchba.org

Member Anniversaries 1973 Rensen House of Lights 1978 Complete Home Concepts, Inc. Henges Insulation and Fireplaces 1979 Holthaus Building, Inc. 1981 Fern Exposition & Event Services 1983 Bickimer Construction, Inc. Gene Fritzel Construction Company, Inc. 1984 Schlagel & Associates, P.A. 1986 Geiger Ready Mix Co., Inc. 1987 ReeceNichols 1989 Extraordinary Homes 1992 Cumberland Properties, Inc. 1994 Hunt Midwest Real Estate Development, Inc. 1998 Pollard & Associates 1999 Freeman Custom Homes 2001 K C Pumpman, LLC New Homes Journal 2003 Cecil & Ray Homes, Inc. 2005 Premiere Marketing 2009 Harrison Baker Insulation, LLC Homoly Signature Homes Premier Foundations, LLC Pyramid Roofing Company, Inc. 2010 Bryant/Ratliff Building, Inc.

A Professional Concrete Flatwork Company

2011 Chicago Title Insurance Company Kline Concrete and Construction Maples Construction Co., Inc. Progressive Environmental & Safety Robertson Construction, LLC SRS Design, LLC 2012 Williams Insulation Ted’s Trash Service, Inc. 2013 Arvest Bank CoreLogic Solutions, LLC Traditional Homes 2014 High Definition Drywall 2015 31-W Insulation Company, Inc. 2016 Alterra Bank KC Lift & Elevator Next to Nature Landscape, LLC PJB Construction, LLC

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

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

ÂŽ

BUILDING COMMUNITY NASB is one of the largest construction lenders in the Kansas City area.

Visit nasb.com/construction or call a Construction Lending Specialist at 866-316-4508 to Discover NASB today.

nasb.com 13

www.kchba.org | Volume 23, No. 5 | May 2017

New Members CoreFirst Bank & Trust Nick Reitzler 16201 West 95th Street Lenxa, KS 66219 (785) 274-3927 www.cbtks.com Glen-Gery Masonry Supply Gary Watkins 336 S 42nd Street Kansas City, KS 66106 (913) 281-2800 www.glengery.com Randy Westpfahl Flatwork, Inc. Randy Westpfahl PO Box 186 Belton, MO 64012 (816) 806-9909

BuildingBusinessNews THE OFFICIAL PUBLICATION OF THE HOME BUILDERS ASSOCIATION OF GREATER KANSAS CITY May 2017 • Volume 23 • Issue 5

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

Build for Comfort. Build with Natural Gas.

2017 Executive Committee Home Builders Association of Greater Kansas City

Natural gas is efficient, affordable, reliable and proven to sell homes faster.

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

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

Get paid to make the upgrade.

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

SaveWithNaturalGas.com/MGE/Builder 14

Affiliates CoreFirst Bank & Trust Mark Hosking 16201 West 95th Street Lenxa, KS 66219 (913) 248-7054 www.cbtks.com Glen-Gery Masonry Supply Rick Holmm 336 S 42nd Street Kansas City, KS 66106 (913) 281-2800 www.glengery.com ReeceNichols Diane Crawford 11601 Granada Leawood, KS 66211 (913) 491-1001 www.dianecrawford.reecenichols.com

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 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 Kari English Communications Director kari@kchba.org, 816-733-2213 Tricia French Membership & Events Support tricia@kchba.org, 816-733-2217 Taylor Pond Membership & Events Support taylor@kchba.org, 816-733-2218

May 2017 | Volume 23, No. 5 | www.kchba.org

First Quarter of 2017 Predicts Busy Year for Home Building Permits for new single family residential building continued a strong growth trend with 561 permits issued during March, according to the Home Builders Association of Greater Kansas City’s (HBA) monthly Residential Building Permit Statistics report. The 561 single family permits issued in March brings the year’s first quarter total to 1,478 single family units compared to last year’s first quarter number of 1,224—an increase of 21%. Multi-family permitting, while not reaching the 2016 level, reports 416 units permitted during 2017’s first three months.

Counties with the largest increase in permits issued are Cass County (up 63%), Jackson County with a 50% increase, and KCKS/Wyandotte County up more than 100%. Clay County, with an overall increase of 27%, is particularly busy within the Kansas City city limits. Other locations reporting increased permit activity include Lee’s Summit (up more than 100%), Raymore (increasing by 82%), and unincorporated Platte County (up 77%).

“Builders report that homes are often sold before the foundation is complete, making it difficult to increase the supply of new homes on the market,” said Executive Vice President Josh Clark. “The Spring Parade of Homes, however, will provide home buyers with a wide selection of available homes throughout the metro area.”

March 2017

Residential Building permit Statistics

Residential Building Permit Statistics MARCH 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 MultiS-F M-F Total Family Family Total Units Units Units Units^ Units% Units YTD YTD YTD 0 2 0 0 0 0 0 1 7 10 9 22 1 52

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

0 2 0 0 0 0 0 1 7 10 9 22 1 52

0 12 0 1 0 0 0 5 11 13 15 60 5 122

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

0 12 0 1 0 0 0 5 11 13 15 60 5 122

10 2 1 114 11 0 13 0 0 12 163

0 0 0 0 0 0 0 0 0 0 0

10 2 1 114 11 0 13 0 0 12 163

19 3 2 228 27 0 15 0 0 29 323

0 0 0 0 0 0 0 0 0 0 0

19 3 2 228 27 0 15 0 0 29 323

19 0 2 0 0 4 5 4 0 50 4 0 0 88

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

19 0 2 0 0 4 5 4 0 50 4 0 0 88

46 0 24 0 2 24 16 15 0 148 14 0 0 289

0 0 0 0 0 0 0 0 0 89 0 0 0 89

46 0 24 0 2 24 16 15 0 237 14 0 0 378

0 25 3 0 11 6 0 0 45

0 0 0 0 0 0 0 0 0

0 25 3 0 11 6 0 0 45

0 52 11 0 55 9 5 0 132

0 0 0 0 0 0 0 0 0

0 52 11 0 55 9 5 0 132

0 0 0 0 5 6 31 0 0 35 50 2 6 8 0 143

0 0 0 0 0 0 30 0 0 0 50 0 0 0 0 80

0 0 0 0 5 6 61 0 0 35 100 2 6 8 0 223

2 0 2 5 14 11 66 0 1 118 113 8 27 23 0 390 15

0 0 0 0 0 0 30 0 0 10 287 0 0 0 0 327

2 0 2 5 14 11 96 0 1 128 400 8 27 23 0 717

Single MultiS-F M-F Total Family Family Total Units Units Units Units^ Units% Units YTD YTD YTD LeAVenWORtH COuntY Basehor 10 0 18 0 10 18 Lansing 0 0 5 0 0 5 Leav. County 4 0 17 0 4 17 Leavenworth 4 0 5 0 4 5 Tonganoxie 8 0 22 0 8 22 26 0 26 67 0 67 WYAndOtte COuntY Bonner Springs 0 Edwardsville 0 KCK/Wyandotte Co 34 34 MiAMi COuntY Louisburg Miami County Osawatomie Paola Spring Hill totals

0 0 0 0

0 0 34 34

2 0 135 137

0 0 0 0

2 0 135 137

5 0 0 0 5 10

0 0 0 0 0 0

5 0 0 0 5 10

11 2 0 0 5 18

0 0 0 0 0 0

11 2 0 0 5 18

561

80

641

1478

416

1894

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

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

2016 274 408 542 523 503 578 494 530 418 462 412 345

2017 448 469 561

Annual total

2,471

2,301

3,299

4,090

4,271

4,700

5,489

1,478

Comparison of permits By units issued Year to date

2010 - 2017 2010 2011 2012 2013 2014 2015 2016 2017

S-F Units 534 391 640 832 865 893 1224 1478

M-F Units 55 0 73 129 832 794 987 416

Total Units 589 391 713 961 1697 1687 2211 1894

^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 2017 Home Builders Assoc of Greater Kansas City. All rights reserved.

www.kchba.org | Volume 23, No. 5 | May 2017

A Look Back at the HBA’s Advocacy Efforts The Home Builders Association of Greater Kansas City has taken an active role in government affairs from the very beginning of the association’s existence. The founders of the organization realized that home builders should be involved in public policy, helping to direct the growth of the Kansas City metropolitan area.

the late 1970s with involvement in a law suit regarding gas connections for new homes, the Federal Energy Regulation Commission and the Natural Gas Policy of 1978. Records from 1978-79 indicate

Minutes of the board of directors meetings from the 1950s and 1960s record discussions of such matters as: involvement in the Metropolitan Planning Council and Area Public Works Association; positions on storm sewer regulations, Johnson County school unification, bond proposals, fair housing bills and building codes in Kansas City and surrounding cities. In 1967, the board welcomed the first KCHBA member to be elected to the U.S. Congress – Larry Winn, Jr.

Local home builders have also monitored and influenced state legislation in both Kansas and Missouri. A significant win in Missouri took place in 1978 when the 10% interest ceiling on home loans was replaced with a different formula for determining the upper limit.

The KCBHA took on General Motors in

Annual trips to Jefferson City and Topeka are a long-standing tradition of the KCHBA as members build relationships with state legislators. The Government Affairs committee studies proposed legislation, makes recommendations for the HBA’s official positions on issues and then shares those positions with lawmakers at all levels.

that over $100,000 was raised for this issue and KCHBA members travelled to Denver, Washington, DC and other cities to testify.

HBA members at the Missouri State Capitol Building

The KCHBA took steps to be directly involved in supporting housing-friendly political candidates with the formation of a political action committee in 1980.

The PAC is funded by contributions from members, fundraisers and split-backs from NAHB’s BUILD-PAC. In just the past twelve years, the HBA’s PAC has raised over $450,000 from these sources and contributed over $400,000 to local and state candidates.

The KCHBA was also instrumental in overturning Kansas’ 1992 decision to impose sales tax on labor in new construction. This took two years of hard work by HBA members, but was ultimately successful.

In the July 1984 Bits for Builders HBA president Phil Acuff wrote: “So much of

our livelihood depends upon the decisions of these local politicians. Should they raise tap fees? Increase development costs? Put in mandatory energy requirements as dreamed up by some bureaucrat? These and hundreds of similar questions are debated at the city, county and state level every day.”

These words from over thirty years ago are still true today and it takes all members of the KCHBA to work together to promote the best interests of the industry to all levels of government decision makers.

Millennials Continued from page 2 things,” said Stucker.

Some of the biggest obstacles the panel saw for builders connecting with this generation were being able to meet their needs and expectations at a feasible price point as well as embracing technology as a way to reach them.

16

Online content is king when it comes to marketing to Millennials, according to Fasone. There is no such thing as information overload and if it can be in the form of a video it is even better. If you can share information in that video that is helpful and informative rather than just trying to sell to them, your marketing will go farther – be a thought leader in the home-building industry, Fasone suggested.