Building Business News February 2024

February 2024

Economic Forecast 2024:

Reasons for Concern and Cause for Optimism

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12 Economic Forecast 2024: Reasons for Concern and Cause for Optimism

Dr. Stanley Longhofer and Dr. Rob Dietz presented their thoughts and analysis at the 2024 KCHBA Economic Forecast Breakfast held on Jan. 18.

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8 KCHBA New Mission: Homeownership for All

About a year ago, the KCHBA brought in a public relations consultant to audit the perceptions and expectations of our members as well as the general public. You will begin to notice more unified goals and streamlined events among the committees and councils at the KCHBA as our mission is clear: homeownership for all.

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14 Habitat KC Chosen as Beneficiary for KCHBA’s Artisan Home Tour

The KCHBA is excited to announce that Habitat for Humanity of Kansas City has been selected as the beneficiary for the highly anticipated 2024 Artisan Home Tour. Leading up to the event, Artisan Home Tour builders and Habitat KC will team up to offer an exclusive behind-the-scenes look at the construction processes of both Habitat KC and artisan homes.

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Member News

Ashlar Homes Collaborates with Operation Homefront to Support Local Veteran

I

n December, Ashlar Homes, in collaboration with U.S. Bank and Operation Homefront, welcomed Army Veteran Oscar Perez, his spouse, Kristi, and their children to a new home in the Woodlawn Estates community in Lee’s Summit, Mo. The family received a beautiful mortgage-free home, made possible by U.S. Bank and Operation Homefront.

“To be able to build a house that not only can a family afford but also to build something helpful to someone in the community who has served our country is amazing,” said Shawn Woods, owner of Ashlar Homes. “I’m proud that we can help people establish roots.”

Since the program began in 2012, Operation Homefront has helped more than 700 veterans enter the Permanent Homes for Veterans (PHV) program. The PHV program provides veterans with the opportunity to move into an Operation Homefront home and work directly with caseworkers and other financial counselors to learn and plan for home ownership.

Ashlar’s Lancaster floor plan is a spacious two-story plan with 1,622 square feet of living space, including three bedrooms and 2.5 baths. A discounted home purchase price was made possible by Ashlar Homes, who also gifted the family more than $40,000 worth of select home furnishings and appliances.

4 | KCHBA.ORG | FEBRUARY ISSUE

NARI KC Unveils New Name and Strategic Direction

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ffective Feb. 1, NARI KC is now Remodeling Institute. This rebranding initiative comes as the Remodeling Institute continues to expand its presence in the remodeling industry and seeks to align its identity more closely with its core values and strategic direction. The new name, Remodeling Institute, encapsulates the non-profit trade association’s forward-thinking approach and underscores its dedication to leading the advancement and promotion of professionalism in the remodeling industry. For more information about the Remodeling Institute and its initiatives, visit remodelingkc.com/about/strategic-plan.

Summit Homes Announces New Leadership

K

yle King has been promoted to Vice President and General Manager of Summit Homes and clover & hive. King previously served as Operations Manager and, most recently, the Division Manager for clover & hive and Summit Homes.

Congratulations, Kyle!

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Who’s Leading Your KCHBA in 2024?

Foundation Committee

Artisan Committee

HBA PAC Trustees

I

t’s a new year! The KCHBA is here to support you as you grow your business, expand your network and/or become more aware and involved in the home-building industry. Here is a short overview of the KCHBA committees and councils. Delve into details about the 2024 leaders and their objectives for the year.

Chair: Scott Bickford, Bickford & Co. KCHBA Staff Liaison: Kelcee Allen, Kelcee@kchba.org The countdown to the 2024 Artisan Home Tour is on! The Artisan Home Tour is happening Aug. 9-11, 16-18 and 23-25.

This tour showcases the KCHBA’s custom home builders to the public and supports the KC community through a charitable partner. The KCHBA is excited to work with Habitat for Humanity of Kansas City in 2024.

Associates Council

Chair: Misty Hanson, Stewart Title Co-Chair: Greg Kudrna, Henges Insulation KCHBA Staff Liaison: Kari English, Kari@kchba.org The Associates Council will meet the second Wednesday of every month from 9:00-10:00 a.m. at the KCHBA unless otherwise communicated. Associates Council plans many of the networking events throughout the year and gives associates the opportunity to network with builder members and other members.

Builders Council

Chair: Sean Flandermeyer, Elevate Design + Build Co-Chair: Shawn Woods, Ashlar Homes KCHBA Staff Liaison: Paige Livingston, Paige@kchba.org The Builders Committee provides an opportunity for builder members to learn best practices and exchange ideas to meet the housing needs of the Kansas City metro. Meetings are quarterly with additional events throughout the year.

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Chair: Michelle Schneider, MSI Co-Chair: Shane Brewer, Legacy Homes of KC KCHBA Staff Liaison: Kari English, Kari@kchba.org The Home Builders Charitable Foundation is the charitable arm of the KCHBA. Its goal is to raise more money to support local nonprofits that are building foundations for the future.

Chair: Harold Phelps, Phelps Engineering Vice-Chair: Stan Woodworth, Woodworth Law Firm KCHBA Staff Liaison: Jordynn Webster, Jordynn@kchba.org The KCHBA’s Political Action Committee, HBA PAC, enables members to strengthen their civic involvement by helping to elect pro-housing candidates at the local and state level.

Membership Committee

Chair: Ryan Christopher, My Fractional CXO LLC Co-Chair: Lonny Cohen, DesignKC, The Real Estate Book KCHBA Staff Liaison: Kari English, Kari@kchba.org This committee focuses on finding new ways to add value to members, hosting activities to promote membership and supporting member retention.

Parade Committee

Chair: Kevin Stallings, Dreams & Design Building Co-Chair: Missy Barron, ReeceNichols KCHBA Staff Liaison: Kelcee Allen, Kelcee@kchba.org The Spring Parade is happening in April! The Parade Committee is hard at work looking for ways to improve the Parade experience and expand its offerings. One of the Parade Committee’s main goals for 2024 is to keep expanding the parade platform features in order to offer consumers the best experience possible. Another goal is to further the reach and benefit of the Parade, the second largest one in the country, by offering additional sponsorship opportunities to KCHBA members.

Professional Women in Building Committee

Chair: Natalie Hill, CSW Co-Chair: Angie Beerup, Elevate Design + Build KCHBA Staff Liaison: Kelcee Allen, Kelcee@kchba.org KCPWB is the voice of women in residential construction, committed to an inclusive, supportive environment for women. KCPWB provides educational opportunities and networking events to assist members in building their skills and their professional networks. The main goal of the KCPWB leadership team in 2024 is to integrate more into the broader KCHBA and create content and opportunities that are welcoming to KCPWB and KCHBA members alike.

Young Professionals Committee

Chair: John Rau, Century Homes Co-Chair: Kevin Jones, Superior Electric KCHBA Staff Liaison: Jordynn Webster, Jordynn@kchba.org The YPs look forward to continued growth in membership in 2024, along with identifying mentorship opportunities for young industry professionals to expand their skills as leaders through education.

For more information about any of these Chair: Drake Vidrine, CommunityAmerica Credit Union KCHBA Staff Liaison: Jordynn Webster, Jordynn@kchba.org councils or committees, The Workforce Committee focuses on promoting careers reach out to the staff in construction to area students. Look for the KC MADE liaison or call the office competition in April, part of the highly anticipated Foundations for the Future event at Union Station. at 816-942-8800.

Workforce Development Committee

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KCHBA New Mission: Homeownership for All bout a year ago, the KCHBA brought in a public relations consultant to audit the perceptions and expectations of our members as well as the general public.

The reason for going through the process at the time was because our stakeholders are increasingly encountering varying opinions and information from diverse sources where the truth of our information is increasingly coming into question.

The audit found that our members and the public will support the KCHBA’s knowledge, research and network of partnerships to improve their lives, but only if they understand and appreciate the value the KCHBA offers.

Through a survey of our members, the KCHBA learned that you would like more information on business intelligence, the benefits of membership and ways you can contribute to the organization’s growth.

The survey to the public found that more people have an overall positive opinion of the KCHBA, mainly because of the Parade of Homes. As a result, the KCHBA needs to enhance its role as a new media source and leverage the good will of the Parade of Homes to support other initiatives.

Based on those findings, the board of directors approved the creation of a strategic communications plan. The PR consultant was retained and a PR Advisory Group made

8 | KCHBA.ORG | FEBRUARY ISSUE

up of marketing professionals from member companies began to meet weekly between July and October to create a blueprint for updating and refocusing our messages both internally and externally. The blueprint was finalized in November and approved by the board in December.

“

The KCHBA’s new mission statement is as follows: KCHBA is an association of industry professionals serving the communities and residents of the greater Kansas City metropolitan area by promoting housing opportunities for all.

“

A

Instead of “The Voice of the Housing Industry”, the KCHBA’s new tag line is “Homeownership for All.”

Continued on page 10

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Continued from page 8 Now, more than ever, people care about the values behind the brands they interact with, buy from and work for. The KCHBA’s values are:

— SERVICE — EDUCATION — COMMUNITY — CONNECTION

Communication objectives based on our values: Serve as a champion for homeownership for everyone in Kansas City through:

• Advocacy • Leadership • Representation • Innovation

Provide educational resources to members and the community to assist with:

• Awareness of membership value and benefits • Value of homeownership • Diverse housing options • Workforce and leadership development • Economic awareness

Contribute to the greater good of the Kansas City community through:

• Philanthropy • Volunteerism • Diversity and inclusivity • Integration

Build strong connections inside and outside the KCHBA by:

• Collaboration • Community and member events • Networking • Feedback

What does this mean for our members?

• Provide more local industry data to help you with decision-making • Offer more educational opportunities throughout the year • Host fewer events (quality over quantity) • Share more stories focused on our members • Offer more opportunities to give the KCHBA feedback You will begin to notice more unified goals and streamlined events among the committees and councils at the KCHBA as our mission is clear: homeownership for all.

If you have questions, please contact staff or a board member. And be sure to watch our new video on social media. You can find us on YouTube, Facebook, Instagram and/or LinkedIn. 10 | KCHBA.ORG | FEBRUARY ISSUE

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Economic Forecast 2024:

Reasons for Concern and Cause for Optimism

D

r. Stanley Longhofer is the Director of the Center for Real Estate at Wichita State University. Dr. Rob Dietz serves as NAHB Chief Economist. Almost 300 KCHBA members gathered to hear their thoughts and analysis at the 2024 KCHBA Economic Forecast Breakfast held on Jan. 18.

Job Growth and Participation

According to Dietz, 12 states and Washington D.C. have not reached pre-Covid job numbers, with Hawaii being the most impacted at a current 5 percent loss. Missouri sits right above Kansas in growth, but both are just under the U.S. average of 3 percent growth.

The U.S. Bureau of Labor Statistics (BLS) cites job openings have fallen overall, but not within the construction industry.

In November 2023 the job openings rate fell to the lowest since March 2021. However, there is still a strong disparity

between job openings and unemployment. “As interest rates went up in 2022, the job openings rate came down.

That is good news for the labor market; it does mean the labor market is cooling and reduces the possibility of wage induced inflation,” stated Dietz.

However, the skilled labor shortage persists. “In any given month, the construction industry is short about 400,000 construction workers,” said Dietz. The number of open positions waned this past year, but Dietz anticipates it to pick back up as single family construction ramps up.

The labor force participation rate, the share of working adults who have a job or are looking for one, is not quite back to what it was before March 2020. “This is something we emphasize to policy makers in D.C. There are two ways to address a hot labor market: you can raise interest rates and cause businesses to higher fewer workers. That fights inflation and is the demand side approach. The supply side approach is getting more workers looking for jobs and fill the jobs,” said Dietz. “Right now, the focus is the demand side.” Dietz believes this approach and logic draws parallels with U.S. housing.

All About Inflation

According to Dietz, getting consumer inflation down to the Federal Reserve’s targeted two percent will take more time than it did going from 9 percent to 3 percent. The Federal Reserve held interest rates steady on Jan. 31. At that time, Chair of the Federal Reserve Jerome Powell did signal rates could fall in the coming months if inflation continues to cool.

12 | KCHBA.ORG | FEBRUARY ISSUE

Benchmark interest rates have been held between 5.25 percent and 5.5 percent — the highest in over two decades — since July. For 2024, the Federal Reserve’s own rate economic projections suggest three 0.25 percent rate cuts this year. “By the time we get to the middle of this year, the Fed is not going to be holding higher rates for longer.

They’re going to be in the rate cutting cycle,” said Dietz.

“Mortgage interest rates should be moving lower this year.”

Despite a tightening of federal policy, shelter costs have continued to rise. Dietz points out that for the past several quarters, shelter inflation has been over 50 percent of overall inflation growth. “Every single story about inflation should begin with the headline inflation is a housing problem,” said Dietz. “The U.S. has had a housing deficit for about a decade.” The solution is straight forward according to Dietz. “Build more attainable housing; housing is not just a housing problem.”

with a 33 percent share of the market, rising to 39 percent in the third quarter of 2023 and predicted to rise to 45 percent in the future. Adjacent to remodeling is “teardown” construction, currently making up about 10 percent of the market with Dietz expecting a rise of 5-10 percent over the next decade or so.

Kansas City

The Kansas City population is growing faster than the rest of the United States. The national fertility rate continues to decline, currently sitting at 1.7 percent with 2.05 percent needed to hold steady. The U.S. has not seen that number in a decade, with immigration accounting for an influx in overall country population.

Continued on page 16

Dietz predicts the current interest rates of 6.8 will get down to 6.2 percent range. There is reason to believe in 2025 rates will drop below 6 percent and price in a lot of housing demand. Dietz expresses doubt we will ever see mortgage rates be 2 percent and 3 percent again.

Remodeling

Dietz predicts a soft patch for residential remodeling, but overall is a growing sector of home construction. Single family remodeling has fared well with aging housing stock, aging in place demand and the mortgage rate “lock in” effect. Dietz points to 2007 data showing remodeling

The 2024 Economic Forecast Breakfast was made possible by CommunityAmerica Credit Union and First Federal Bank of Kansas City.

Thank you to coffee and conversation sponsor Wilson Lighting.

FEBRUARY FEB ISSUE | KCHBA.ORG | 13

Habitat KC Chosen as Beneficiary for KCHBA’s Artisan Home Tour

T

he KCHBA is excited to announce that Habitat for Humanity of Kansas City (Habitat KC) has been selected as the beneficiary for the highly anticipated Artisan Home Tour.

As the region’s largest nonprofit home builder, Habitat KC partners with thousands of families each year, helping them build strength, stability and self-reliance through affordable housing. Through this new collaboration, KCHBA is affirming its commitment to supporting housing for all.

“Homes are not just structures; they are the foundations of thriving communities,” said Scott Bickford, chair of the 2024 Artisan Home Tour Committee. “Through this partnership, we aim to highlight the importance of quality housing while supporting the great work Habitat KC is doing to improve access to homeownership.”

Presented by Ferguson + Factory Direct, the 2024 Artisan Home Tour will showcase the region’s finest craftsmanship in residential construction and celebrate the skills of our local artisans. This partnership underscores the shared belief of both organizations that everyone deserves a safe, decent, and affordable place to call home.

“We are thrilled to partner with the KCHBA on this incredible event,” commented Lindsay Hicks, CEO of Habitat KC. “Homeownership is a cornerstone of stability, equity, and community. When families have affordable housing, they can build wealth, invest in education, accelerate career growth, and uplift their entire family for generations. Every ticket sold will empower families to build a better future.”

14 | KCHBA.ORG | FEBRUARY ISSUE

Follow the Partnership

Leading up to the event, Artisan Home Tour builders and Habitat KC will team up to offer an exclusive behindthe-scenes look at the construction processes of both Habitat KC and Artisan homes on social media. Look for #BuilderBest this spring to follow along and gain insights into the latest trends in architecture, design and home innovation.

For just $25, attendees will have a unique opportunity to tour 15 of the region’s finest custom homes crafted by skilled artisans and builders and advance Habitat KC’s mission to build strength, stability and self-reliance through affordable housing. Tickets for the Artisan Home Tour can be purchased online at artisanhome.kchba.org and at all Habitat KC ReStores.

More About Habitat for Humanity of Kansas City

Habitat for Humanity of Kansas City is a nonprofit organization dedicated to providing affordable housing solutions for families and individuals in the greater Kansas City area. With the support of volunteers, donors, and community partners, Habitat KC builds and renovates homes, helping families achieve their dream of homeownership. Habitat KC is committed to creating a community where everyone has a safe, decent and affordable place to live.

2023 Member Referrals Thank you to the following members for supporting the KCHBA last year through referrals to join the association!

Shawn Woods | Ashlar Homes Ben Cerra | Ben Cerra Construction Birkby Co. Jack Baker | Bovard Insurance Joe Christensen | Cardinal Crest Homes Todd Rosenfelt | Century Plumbing, Co. Drake Vidrine | CommunityAmerica Credit Union Scott Davis | Crestwood Custom Homes Graham Power | Canaan Stone Works (CSW) Keith Sauro | Design KC/Real Estate Book & NHG Don Julian | Don Julian Builders Ben Hutchinson | Ferguson Scot Johansen | Fidelity Bank Gary Kerns | Gary Kerns Homebuilders James Hickok | Hickok Homes Mark Hoffman | Hoffman Construction KBIG Kelcee Allen, Kari English, Will Ruder | KCHBA Bryan Keller | McCray Lumber & Millwork MOJO Built Ryan Christopher | My Fractional CXO, LLC NAHB Amanda Vasquez | Pella Products of Kansas City Justin Pfeifer | Pfeifer Homes Tim Tucker | Phelps Engineering Julie Cordell | Rocktops Brian Rodrock | Rodrock Homes Thad Snider | Roeser Homes SAB Homes Saul Ellis | Saul Ellis and Company, Inc. Susan Hearn | Schlage Locks/Allegion Brian Lunbeck | Simplex Inc. Steve Brattin | SVB Wood Floors Teague Lumber Stephanie Bulcock | The Collective at Compass Tom French | Tom French Construction Jason Walker | Walker Custom Homes Brenda Sanders | Weichert, Realtors Welch & Co Willis Custom Homes

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Continued from page 13

Reasons for Concern

On a larger scale, worldwide and domestic unease has an impact on the global trade system. Aging populations and declining growth is being seen in both the U.S. and China. Dietz says GDP is “slowing to less than a 2 percent growth rate, but the overall macro forecast is much better than what we had twelve months ago.” He points to third quarter GDP growth of 5 percent. “A year ago we were forecasting that quarter to be flat or even negative.”

When it comes to housing, the unpredictable lumber market was a major contributor to a peak year-over-year increase by 24 percent in 2021. The market has flattened out, but the problem is not solved. There have been reported higher rates of damaged building materials and incorrect products. “As single-family homebuilding rebounds this year, lumber prices will go up,” stated Dietz. There is still a 9 percent Canadian tariff on lumber, which is about a third of the U.S. supply. “We don’t produce enough lumber domestically; we don’t harvest enough timber and we don’t have enough mills in operation,” said Dietz.

Credit for builders and lenders is tightening, with some average annualized rates hitting 13 percent or 14 percent.

Dietz predicts the country won’t have enough lots by the end of 2024 or beginning of 2025, resulting in volitivity pricing.

The regulatory costs continue to be a challenge in housing attainability. According to Dietz, duilding codes, land use, environmental and other rules average about 23.8 percent

of the home price. This is an 11 percent gain from 2016 to 2021. The continued stacking of these costs price potential homeowners out of the market. One example is the Biden administration currently promoting a proposal that would require all FHA financed newly built homes will be required to build to the 2021 IECC code (regardless of the local code).

Dietz quotes Fannie Mae and Freddie Mac, which make up approximately 70 percent of new construction financing, are currently considering this position as well.

Cause for Optimism

Supporting the idea of a strong housing deficit, rising mortgage interest rates have only slowed demand, not truly decreased it. Housing prices were not drastically impacted. Although data varies, Dietz estimates a national need for 1.5 million single family homes a year to account for population growth and replacement.

Single family permits in Missouri, Kansas and KCMO fell in 2023. In 2024, a 5 percent growth rate is expected. According to Dietz, 2025 will bring lower interest rates and additional demand from the sidelines will appear in the market.

A copy of Dr. Dietz’s and Dr. Longhofer’s presentations can be found on kchba.org. For more insight from NAHB on housing policy and economics throughout the year, head to eyeonhousing.org.

KCHBA Member Referrals

Thank you to the following KCHBA members for referring new members to the association in December!

James Hickok Hickok Homes Jason Walker Walker Custom Homes The Village of Loch Lloyd McCray Lumber 16 | KCHBA.ORG | FEBRUARY ISSUE

NEW MEMBERS American Beauty Construction Rebecca Badwey 8021 Sagamore Rd. Leawood, KS 66206 816-519-8180 www.americanbeautyllc.com Arrowhead Homes Inc Rick W. Stroder 1581 Buckingham Ct. Liberty, MO 64068 816-415-4155 www.arrowheadhomesinc.com Global Stone Karla Wilder 421 N. Rawhide Dr. Olathe, KS 66061 913-764-9400 www.globalstone-kc.com

Groundwork Insurance Jospeh Schiermann 687 Trade Center Blvd., Suite 120 Chesterfield, MO 63005 314-413-1071 www.groundwork-ins.com Grubbs Construction John Oaks 210 N. Pine Cameron, MO 64429 816-219-4223 www.grubbsconstructionllc.com

LKM Contracting LLC Jake Holliday 101 The Woodlands Dr. Gladstone, MO 64119 816-606-6931 www.linkedin.com/in/lkmcontractingllc Messenger Lawn & Landscape Gail Messenger P.O. Box 24203 Overland Park, KS 66283 913-681-6165 www.messengerslawn.com

Payton Property Management LLC Allen Schlup 10950 W 192nd Pl. Overland Park, KS 66083 913-522-1396 www. johnstownplaza.com Progressive Foam Technologies Susan Gearhart 9311 Buxton Dr. St. Louis, MO 63126 314-478-5158 www.progressivefoam.com Robinett Construction & Moore Lindsey Moore 2504 NW Acorn Dr. Blue Springs, MO 64014 573-821-0120 www.rcmkc.com Turner Ceramic Tile Cole Turner 11535 Kaw Dr. Kansas City, KS 66111 913-441-6161 www.turnerceramictile.com Xfinity Kara Starr 10 River Park Plaza St. Paul, MN 55107 816-795-2249 www.xfinity.com

AFFILIATE | Bell Bank Mortgage Andrew Johns 8220 Cherokee Circle Leawood, KS 66206 913-329-6501 www.bell.bank AFFILIATE | Bell Bank Mortgage Scot Johansen 11095 Metcalf Ave. Overland Park, KS 66210 913-927-1008 www.bell.bank AFFILIATE | Engel & Volkers Chris Ojeda 5255 W 116th Pl. Leawood, KS 66211 913-900-0001 www.evkansascity.com

AFFILIATE | Gateway Mortgage Bruce Coffin 7600 W 110th St., Ste 201 Overland Park, KS 66210 913-961-0535 www.gatewayloan.com AFFILIATE | Nebraska Furniture Mart Mike Hernandez 1601 Village West Pkwy.

Kansas City, KS 66111 913-522-6879 www.nfm.com AFFILIATE | Nebraska Furniture Mart Tim Sanford 1601 Village West Pkwy.

Kansas City, KS 66111 913-288-6225 www.nfm.com AFFILIATE | ReeceNichols Ashlea Black 4352 W. 131st Terr.

Leawood, KS 66209 816-516-7939 www.ashleablack.reecenichols.com

AFFILIATE | Sun Lumber Company Clint Wilson P.O. Box 11156 Kansas City, KS 66111 913-422-9200 AFFILIATE | Sun Lumber Company Dan Rawlins P.O. Box 11156 Kansas City, KS 66111 913-422-9200 AFFILIATE | Sun Lumber Company Dustin Steinhauser P.O. Box 11156 Kansas City, KS 66111 913-422-9200 AFFILIATE | Sun Lumber Company Marcus Green P.O. Box 11156 Kansas City, KS 66111 913-422-9200 AFFILIATE | Sun Lumber Company Ryan Miller P.O. Box 11156 Kansas City, KS 66111 913-422-9200 AFFILIATE | Sun Lumber Company Scott McDaniel P.O. Box 11156 Kansas City, KS 66111 913-422-9200 AFFILIATE | Sun Lumber Company Travis Stoddard P.O. Box 11156 Kansas City, KS 66111 913-422-9200

FEBRUARY FEB ISSUE | KCHBA.ORG | 17

KCHBA Staff

Will Ruder Executive Vice President will@kchba.org | 816-733-2216 Kelcee Allen Parade of Homes / Artisan Home Tour Director & Digital Content Strategist kelcee@kchba.org | 816-733-2246 Sheryl Drane Assistant to the Executive Vice President sheryl@kchba.org | 816-733-2221 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 Paige Livingston Manager of Communications & Education paige@kchba.org | 816-733-2217 Jordynn Webster Director of Community Relations jordynn@kchba.org | 816-733-2218

18 | KCHBA.ORG | FEBRUARY ISSUE

The Official Publication of the Home Builders Association of Greater Kansas City FEBRUARY 2024 | Volume 30 | Issue 1 Copyright 2023

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 Writer Paige Livingston Graphics Kelcee Allen

2024 Executive Committee

President Dennis Shriver Vice President Justin Pfeifer Executive Vice President Will Ruder Secretary / Treasurer Joe Christensen Immediate Past President Brian Tebbenkamp Associate Representative Kevin Kirtley Past President Representative Bruce Rieke 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

Member Anniversaries 1968

Riffe Construction Co.

1972

Shamrock Cabinet

1985

Locks & Pulls

1986

DIAMOND Ferguson

2017

Cuzco Painting & Remodeling, Inc. Grants Custom Homes BC Residential Homes, LLC Samsung Home Appliances Ebberts Construction Clean-Up, Inc.

2018

Brighton II, LLC KC Custom Homes Pat Cochran Concrete 1987 Spellerberg Custom Homes Prieb Homes, Inc. H&J Custom Home Builders, LLC Classic Cleaning 1989 Hearthside Homes of Kansas City, Inc. Security 1st Title Riffe Homes, Inc.

1990

Sherri L. Weaver Design, LLC

1991

Dahmer Construction, Inc.

1997

Owen Lumber Company

2007

Blackburn’s All Star Roofing, Inc. SCI

2019

Design KC/Real Estate Book & New Home Guide Black Oak Construction, LLC Nebraska Furniture Mart Everleigh Design Studio DCB Homes, LLC Crestwood Custom Homes

2020

Authentic Homes KC MMH Contracting, LLC 2008 A Place Called Home Const. Co., Inc. Western Forms, Inc. Bill Kenney Homes, Inc. Price Residential Group LLC ProSource of Kansas City Hilmann Home Building Inc

2012

LP Building Solutions Covenant Homes, LLC Ashlar Homes, LLC Klopfenstine Construction, Inc.

2013

Cardinal Crest Homes McFarland Custom Builders Calyn Homes LLC Foushee Homes, Inc. Digital Lagoon, Inc.

2014

Gabriel Homes Inc. Fountain City Custom Homes Evan-Talan Homes, Inc

2015

Endeavor Home Performance Boise Cascade BMD Taylor Sterling Construction Dwight Friedley Building Co, LLC Encore Building Company A Total Door, Inc Nick Zvacek Construction, LLC Edward Wayne, Inc.

2021

Emery Sapp & Sons

2022

Parks Phillips Homes, LLC Stone Creek Midwest Franzwa Tree Service Coventry Builders Stone Mountain Thin Veneer Hakes Brothers Central Energy Audits LLC BenMar Construction

2023

Richards Building Supply Triton Stone Group Built by Stevens The Blind Broker LLC Jamison Homes CHES, Inc Nicholes Neighbors Malarkey Roofing Products Del Carmen Contracting Deano Tile Guardian Asset Management Midland Marble & Granite

GOLD Bovard Insurance Group Builders FirstSource Capitol Federal CrossFirst Fasone & Partners Fidelity Bank High Definition Drywall K&E Flatwork Kitchens & Baths by Briggs Morgan-Wightman Supply Company Northcraft Flooring & Design Owen Lumber Phelps Engineering Rew Materials Star Companies Sun Lumber Company United Heating, Cooling & Plumbing, Inc. SILVER Kenny’s Tile Mead Lumber North American Savings Bank (NASB) Pacific Mutual Door & Window PPG Paints Schlagel Shamrock Cabinet Spire Wilson Lighting BRONZE Commerce Bank Complete Home Concepts Denizen DesignKC/Real Estate Book & New Home Guide Henges Insulation Hermes Landscaping Locks & Pulls NBKC Pella Products of Kansas City ProSource Raynor Garage Door ReeceNichols Rocktops Granite & Stone Fabrication

2024

2011

PLATINUM First Federal Bank of KC Kansas Gas Service McCray Lumber Nebraska Furniture Mart SVB Wood Floors

SAPPHIRE Bank of Blue Valley Canaan Stone Works (CSW) CommunityAmerica Credit Union First American Title RoyCo Roofing SCI (Surface Center Interiors) FEBRUARY FEB ISSUE | KCHBA.ORG | 19

Upcoming Events February 22

Smash for BUILD PAC

February 27

KCHBA Hospitality Event at IBS in Las Vegas

March 6

Builder Buzz: Trending Topics Forum

hosted by Young Professionals and Builders Council

Go to members.kchba.org/calendar for the most up to date event information and to register.

Single Family Permits End 2023 Down for December and YTD M etro Kansas City single-family housing permits were down about 19 percent in 2023, according to statistics compiled by the KCHBA. The eight-county region finished the year with 3,945 single-family housing units permitted, down from 4,885 total units in 2022. For the month of December, 285 single-family permits were issued, which is up 26 percent from 227 permits issued in December 2022.

“It’s important to note that Kansas City, Mo., began requiring the use of the 2021 IECC energy code on Sept. 29, 2023. It took 117 days for the first single-family housing permit to be issued under the new code, even though more than 80 applications had been submitted,” said Will Ruder, executive vice president of the KCHBA. “Although permits had been approved since Sept. 29, the first successful permit under the 2021 IECC energy code was approved on Jan. 24; until that date any permits being issued by KCMO were submitted before Sept. 29 under the previous code.”

For the first time in months, Kansas City, Mo., was not the top permitting city. Olathe issued the most single-family permits in December with 43, followed by Kansas City, Mo., 42, Lenexa with 22, Liberty with 20 and Lee’s Summit with 17.

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20 | KCHBA.ORG | FEBRUARY ISSUE

Residential Building Permit Statistics

Residential Building Permit Statistics DECEMBER 2023 CASS COUNTY Archie Belton Cass County Cleveland 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 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 MultiS-F M-F Total Family Family Total Units Units Units Units^ Units% Units YTD YTD YTD 0 4 13 0 0 1 1 0 11 1 5 0 36

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

0 4 13 0 0 1 1 0 11 1 5 0 36

0 32 18 0 0 19 21 8 13 44 181 0 336

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

0 32 18 0 0 19 21 8 13 44 181 0 336

4 0 0 13 1 0 20 0 0 0 38

0 0 0 0 0 0 0 0 0 0 0

4 0 0 13 1 0 20 0 0 0 38

64 12 2 378 23 0 74 0 0 33 586

0 0 0 0 0 0 0 31 0 0 31

64 12 2 378 23 0 74 31 0 33 617

0 0 2 0 0 6 4 8 0 17 8 0 0 45

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

0 0 2 0 0 6 4 8 0 17 8 0 0 45

125 0 60 0 0 58 61 174 19 207 72 0 0 776

0 0 0 0 0 0 0 7 0 329 0 0 0 336

125 0 60 0 0 58 61 181 19 536 72 0 0 1112

21 3 0 2 2 0 0 28

0 0 0 0 0 0 0 0

21 3 0 2 2 0 0 28

389 14 0 92 28 0 0 523

28 0 0 0 0 0 0 28

417 14 0 92 28 0 0 551

0 0 0 16 2 4 22 0 0 43 15 4 0 4 6 0 116

0 0 0 0 0 0 0 0 0 0 218 0 0 0 0 0 218

0 0 0 16 2 4 22 0 0 43 233 4 0 4 6 0 334

20 0 0 184 41 55 151 0 0 385 256 41 0 168 103 0 1404

0 0 0 0 0 0 0 361 0 364 569 0 0 0 0 0 1294

20 0 0 184 41 55 151 361 0 749 825 41 0 168 103 0 2698

DECEMBER 2023

Single MultiFamily Family Total Units^ Units% Units LEAVENWORTH COUNTY Basehor 4 0 4 Lansing 0 0 0 Leav. County 9 0 9 Leavenworth 0 0 0 Tonganoxie 2 0 2 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

73 0 69 0 14 156

0 0 0 0 0 0

73 0 69 0 14 156

0 0 1 1

0 0 0 0

0 0 1 1

0 0 89 89

0 0 0 0

0 0 89 89

0 3 0 0 5 8

0 0 0 0 0 0

0 3 0 0 5 8

17 54 0 0 6 77

19 0 0 0 0 19

36 54 0 0 6 96

287

218

505

3947

1708

5655

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

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

2017 457 477 571 562 504 567 512 480 514 583 502 468

2018 2019 2020 463 234 355 463 234 475 549 357 438 564 411 434 598 391 374 569 387 421 485 471 493 514 429 444 353 396 557 485 500 510 354 410 404 276 434 461

2021 411 493 560 637 579 558 480 502 458 690 524 653

2022 444 416 457 450 465 547 448 498 314 316 303 227

2023 185 152 359 390 439 373 376 403 327 303 353 287

Annual Total

5,517

6,197

5,673

6545

4885

3947

4,654

5,366

Comparison of Permits By Units Issued Year to Date

2016 - 2023 2016 2017 2018 2019 2020 2021 2022 2023

S-F Units 5517 6197 5673 4654 5366 6545 4885 3947

M-F Units 4451 2434 3245 3014 2292 1293 2432 1708

Total Units 9968 8631 8918 7668 7658 7838 7317 5655

^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 2024 Home Builders Assoc of Greater Kansas City. All rights reserved.

FEBRUARY FEB ISSUE | KCHBA.ORG | 21

Homeownership Rate Dips to 65.7% Amid Housing Affordability Woes

T

he Census Bureau’s Housing Vacancy Survey (CPS/HVS) reported the U.S. homeownership rate declined to 65.7 percent in the last quarter of 2023, amid persistently tight housing supply and elevated mortgage interest rates.

Compared to the peak of 69.2 percent in 2004, the homeownership rate is 3.5 percent lower and remains below the 25-year average rate of 66.4 percent amid a multidecade low for housing affordability conditions.

35 experienced a 0.6 percent decrease, from 38.7 percent to 38.1 percent, followed by the 45-54 age group with a 0.3 percent decrease from 70.6 percent to 70.3 percent. Next, were households aged 35-44, who experienced a 0.2 percent decline. However, homeownership rates of householders aged 55-64 showed an increase of 0.3 percent.

Homeownership rates for householders aged less than 35 decreased to 38.1 percent in the fourth quarter of 2023. This age group, particularly sensitive to mortgage rates and the inventory of entry-level homes, saw the largest decline.

The national rental vacancy rate stayed at 6.6 percent, and the homeowner vacancy rate inched up to 0.9 percent from 0.8 percent. The homeowner vacancy rate is still hovering near the lowest rate in the survey’s 67-year history (0.7 percent).

Homeownership rates of all age groups decreased over the last year, except those aged 55-64 and 65 years and over.

Homeownership rates among householders aged less than

22 | KCHBA.ORG | FEBRUARY ISSUE

This article is provided by NAHB’s Eye on Housing blog, 1/30/24

EVENT PARTNERS Foundations for the Future Week APRIL 9-14, 2024

Foundations for the Future Week supports your business and the future of home building in Kansas City. Students interested in construction build playhouses and other projects to be judged and/or auctioned off to the highest bidder. This is an opportunity for your business to increase brand awareness not only with potential future employees but also with the thousands of consumers who visit Union Station every day.

Palace Sponsor | $7,000 (1 Available) • • • • • • • •

Title placement of company logo on Parade of Playhouse event signage for a week at Union Station Title placement of company logo on kchomework.com and kchba.org.

Company logo on mobile app exclusively Recognition at Foundations for the Future student and industry luncheon at Union Station Opportunity to present winners with awards at Foundations for the Future student and industry luncheon Social media recognition before, during and after the event Opportunity to present donation to charitable organization 2 free tickets to attend Spring Parade of Homes Awards Ceremony

• • • •

Prominent placement of company logo on kchomework.com and kchba.org.

Prominent placement of company logo on Parade of Playhouse event signage Recognition in social media posts Logo on “For Sale” sign in front of playhouse Recognition at Foundations for the Future student and industry luncheon

Realtor Sponsor $1,000 | (1 Per Playhouse)

Sidewalk Decal Sponsor | $250 (1 Per Playhouse)

• Weatherized decal in front of playhouse on sidewalk • Listing on KCHBA website • Recognition at Foundations for the Future student and industry luncheon

Competition Sponsor | $2,500 (1 Available) • • • • • • •

Title placement of company logo on KC MADE event signage for a week at Union Station Title placement of company logo on kchomework.com and kchba.org.

Title placement of company on People’s Choice Voting Site Recognition at Foundations for the Future student and industry luncheon at Union Station Opportunity to be a judge during the KC MADE Competition Opportunity to present winners with awards at Foundations for the Future student and industry luncheon Social media recognition before, during and after the event

Luncheon Sponsor | $2,500 (1 Available) • • • • •

Title placement of company logo on all marketing materials for the luncheon Company signage in and around the luncheon Opportunity to speak at luncheon Opportunity to announce winners along with the competition event sponsors Ability to provide marketing materials for the luncheon

Deadline for Sponsorships - March 1, 2024

2024 ADVERTISING & SPONSORSHIP OPPORTUNITIES • HOME BUILDERS ASSOCIATION OF GREATER KANSAS CITY CONTACT KELCEE FOR QUESTIONS OR TO CREATE A CUSTOMIZED PARTNERSHIP PLAN Kelcee Allen: 816.942.8800 • Kelcee@kchba.org • www.kchba.org

Contact Jordynn@kchba.org or Kari@kchba.org forFEB more FEBRUARY ISSUE information. | KCHBA.ORG | 23

2024 FUNDRAISER

6 PM 8 PM

THURSDAY

FEB. 22

2024

5901 W 135th St. Park, KS 66223 Chicken N Pickle Overland

CONTRIBUTION LEVELS Gold Key | $1,000 BUILD-PAC Supporter | $500 Dollar-A-Day | $365 Century Club | $100

These contribution levels are merely suggestions. Donations are accepted in advance or at the door personal checks or personal credit cards welcome. Contributions to BUILD-PAC are completely voluntary.

Federal law requires political action committees to report name, mailing address, occupation, and name of employer for each individual whose contribution exceeds $200 in a calendar year.

Foreign nationals cannot contribute to BUILD-PAC. The contributions will be used for political purposes and are not tax deductible.

RSVP

by February 16

members.kchba.org/calendar or email Jordynn@kchba.org 24 | KCHBA.ORG | FEBRUARY ISSUE

GAME ON.

L E T ’ S P L AY !

Rotating game matches throughout the evening; dress accordingly if you wish to play.