August/September 2015
Permits Plus + A bi-monthly statistics and advocacy update for HBA of F-M members
FOR YOUR CALENDAR: Sept. 18 - EPA RRP Refresher
Sept. 26-27 and Oct. 3-4 - Fall Parade of Homes
Sept. 29 - Lunch Session: Manage Customer Expectations Oct. 3-4 - Remodeled Home Tour
Oct. 29 - Awards Gala & Annual meeting
QUOTABLE REGARDING JULY HOUSING STARTS
“This month’s drop in the more volatile multi-family side is a return to trend after an unusually high June,” said NAHB Chief Economist David Crowe. “While multi-family production has fully recovered from the downturn, single-family starts are improving at a slow and sometimes intermittent rate as consumer confidence gradually rebounds. Continued job and economic growth will keep single-family housing moving forward.” -David Crowe NAHB Chief Economist Aug. 18, 2015
Published six times per year in addition to the Plains Builder, Permits Plus aims to provide a concise report on building permit numbers and a timely update on Association advocacy efforts.
Minnesota
shares code update regarding bonus rooms over garages
Moorhead Building Official Jack Nyberg notified the HBA of F-M this week that the Minnesota Department of Labor & Industry has issued a “division opinion” that affects contractors building homes with bonus rooms over garages. It allows duct work to be installed in the floor ceiling assembly, without the requirement to test ductwork, if it’s located above the insulation for the building envelope and the duct is insulated to a minimum of R-8 with a vapor retarder. Nyberg noted that this has been a hotly debated issue. He learned of the opinion this week, though it was originally issued in May. See this issue’s insert to read the opinion.
Judge
clarifies order pertaining to
injunction
Oxbow
In late July, a federal judge clarified his order that had resulted in cessation of all work on Oxbow’s ring dike and homes being relocated until the Minnesota Department of Natural Resources completes a study on impacts of the F-M Diversion. His clarification means that construction on the relocation homes can move ahead. When the injunction was issued, there were eight homes under construction being allowed to continue, five homes under contract, and 25 homes in line for funding and construction, with more anticipated to follow. The cessation of work, which has dragged on since May, was causing stress and frustration for the affected homeowners, general contractors and trade contractors lined up to continue or begin work on projects.
HBA
works on issues affecting homebuilding industry
SPECIAL ASSESSMENTS - The HBA of F-M and the Fargo-Moorhead Area Association of Realtors are hosting regular meetings of a Joint Special Assessments Task Force including over 20 community members. It is a forum for attendees to express concerns and meet with local jurisdictions to ask for clarifications on special assessments. Representatives included members of the HBA of F-M and FMAAR, representatives of three financial institutions, builders and city of Fargo engineering department staff. CODE ADOPTION - The HBA’s Code Task Force has begun regular meetings to evaluate the 2015 International Codes which will be adopted by Fargo next year.
Issues update continued on back page
HBA OF F-M + 1802 32ND AVE S + FARGO ND 58103 + (701) 232-5846 + HBAFM.COM + INFO@HBAFM.COM
January through July 2015 - Dilworth, Moorhead, Fargo, West Fargo
Total Housing Permits January ‐ July 2015
Dilworth 3%
West Fargo 40%
Moorhead 21%
Total Building Permits Value
Commercial Remodel 3%
Residential Remodel 26%
Housing Starts 30%
New Commercial 14%
Fargo 36%
Multi-Family 12% Public 12%
Misc. 3%
Chart below shows permit and value growth through June versus through July. See insert for permit numbers through July compared to previous years through third quarter.
HOUSING STARTS
HOUSING VALUE
TOTAL PERMITS
TOTAL VALUE
2
City
Dilworth Moorhead Fargo West Fargo Totals Dilworth Moorhead Fargo West Fargo Totals Housing Starts Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Totals Housing Starts Multi-Family Public Miscellaneous New Commercial Residential Remodel Commercial Remodel Totals
January - June January - July 2015 2015 17 21 129 145 208 252 257 283 611 701 $4,830,850 $5,990,850 $25,494,499 $28,753,499 $43,300,625 $53,201,120 $56,001,111 $62,382,111 $129,627,085 $150,327,580 611 701 14 22 56 75 1044 1264 267 298 27 33 197 248 2216 2641 $129,627,085 $150,327,580 $37,156,720 $60,105,420 $45,632,703 $60,146,385 $14,665,241 $17,595,186 $58,253,665 $70,160,774 $121,070,391 $128,386,851 $10 091 721 $10,091,721 $14 794 622 $14,794,622 $416,497,526 $501,516,818
Difference 4 16 44 26 90 $1,160,000 $3,259,000 $9,900,495 $6,381,000 $20,700,495 90 8 19 220 31 6 51 425 $20,700,495 $22,948,700 $14,513,682 $2,929,945 $11,907,109 $7,316,460 $4 702 901 $4,702,901 $85,019,292
HBA of F-M’s monthly building permit report is prepared by Fiebiger, Swanson, West & Co.
Percentage Difference 24% 12% 21% 10% 15% 24% 13% 23% 11% 16% 15% 57% 34% 21% 12% 22% 26% 19% 16% 62% 32% 20% 20% 6% 47% 20%
Permits Plus
SEASONALLY ADJUSTED UNEMPLOYMENT RATES June 2015
May 2015
Minnesota
June 2014
SINGLE AND MULTI-FAMILY BUILDING PERMITS June 2015 Minnesota
June 2014
% change
Source: NAHB
Source: bls.gov
3.9%
3.8%
North Dakota
3.9%
9,324
North Dakota
7,272
28.2%
5,534
-45.8%
505,459
16.9%
526
18.8%
Source: NAHB
Source: bls.gov
3.1%
3.1%
United States
2.7%
2,998
United States Source: NAHB
Source: bls.gov
5.3%
5.5%
Fargo-Moorhead
6.1%
Fargo-Moorhead Source: HBA of F-M
Source: Greater Fargo-Moorhead Economic Development Corporation
2.9%
590,840
2.5%
2.8%
625
LOCAL REAL ESTATE
Source: Coldwell Banker First Realty, Barbara Grande
1st & 2nd Qtr 2015
1st & 2nd Qtr 2014
% change
$203,443
$183,900
10.6%
$359,053,525
$311,417,165
15.3%
Home prices in Fargo-Moorhead Closed MLS Volume
MORTGAGE RATES Source: Wells Fargo as of August 10
30-Year Fixed
4.125%
30-Year Fixed FHA
4.000%
5-Year ARM
3.500%
15-Year Fixed
3.375%
30-Year Jumbo
3.875%
FRAMING LUMBER PRICES Source: National Association of Home Builders
Date
Per 1,000 Board Ft.
CME Futures
July 24
$340
$270.9
July 10
$348
July 31 July 17
$332
$250.7
$344
$280.5 $288.9
WAGE GROWTH - AVERAGE ANNUAL SALARY Source: Greater Fargo-Moorhead Economic Development Corporation
June 2015
June 2014
% change
$45,968
$44,252
3.9%
$36,036
$34,632
4.1%
Cass Clay
August/September 2015
3
Home Builders Association of F-M 1802 32nd Ave. S. Fargo, N.D. 58103
Issues update continued from front page
UTILITY, TRENCHING SAFETY - Last spring, the HBA of F-M held an industry meeting with representatives from utility companies, cabling companies and excavators. A range of issues were covered including location of electric meters on homes, co-locating utility lines and excavating water and sewer lines. Since the meeting, the HBA has worked with the city of West Fargo, requesting from West Fargo’s City Commission that water and sewer pipes end 5 feet past utility easements, to allow excavators to uncover pipes without working under electrical and gas service. Extending pipes 5 feet past the easement will give excavators the ability to lower a trench-safety box over the sewer and water pipes; this enables them to excavate a smaller area than the oneto-one ratio allows, while maintaining safe working conditions. The West Fargo City Commission approved this change during its meeting June 1. As of press time, the HBA continues working to address remaining issues. OVERWIDTH PERMITTING - The HBA of F-M and truss company representatives are working with Fargo to address the city’s Overdimensional Vehicle Policy, which establishes the weight, width, length and height restrictions for vehicles operating on city streets. Truss companies fall into a niche market, where they are rarely overweight, but always require an overwidth permit. The city of Fargo requires 48 hours’ notice for each permit; although the permits rarely take this amount of time to be processed, it has become an issue for truss companies in the demanding market, where turnaround times often boil down to a few hours. The proposed solution is to switch to a yearly Overdimensional Vehicle Permit, the current practice in other areas of North Dakota, South Dakota and Minnesota.
Save
the date for
Awards Gala & Annual Meeting
featuring
NAHB CEO: Oct. 29
The HBA of F-M’s Awards Gala & Annual Meeting Oct. 29 at the Courtyard by Marriott welcomes National Association of Home Builders CEO Jerry Howard. Save the date now!
Howard will give updates from the NAHB Fall Board of Directors meeting and talk about the current state of the industry, politics in Washington, D.C. and the presidential election. He will also take questions from our members via our polling software that we’ve been using at previous meetings. This meeting is the kick-off to the Association’s 60th anniversary year in 2016. Plus, find out who will receive the HBA’s highest honors, Builder and Associate of the Year, as well as the BEAM Award and Extra Mile Award.
Permits Plus
4
Home Builders Association of Fargo Moorhead 2015 Permit Report - July January - September 2011
DILWORTH Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
Permits
13 13 0 0 0 0 1 52 14 0 11 91
Units
0 0 0
2012 Value Permits
$2,489,667 $2,489,667 $0 $0 $0 $0 $400,000 $223,182 $429,825 $0 $51,180 $3,593,854
12 12 0 0 0 0 5 50 3 0 8 78
$12,828,213 $9,981,900 $464,000 $2,382,313 $0 $4,090,000 $3,566,725 $3,652,845 $19,195,375 $0 $161,938 $43,495,096
73 61 12 0 0 1 8 441 67 0 122 712
Units
0 0 0
2013 Value Permits
$2,605,000 $2,605,000 $0 $0 $0 $0 $2,875,000 $200,498 $310,000 $0 $17,800 $6,008,298
25 25 0 0 0 0 2 48 1 0 22 98
$11,680,000 $10,354,000 $1,326,000 $0 $0 $3,000,000 $5,798,475 $3,905,848 $19,400,549 $0 $199,650 $43,984,522
116 76 38 0 1 7 23 340 60 0 38 584
Units
0 0 0
January - July 2015
2014 Value Permits
$5,097,000 $5,097,000 $0 $0 $0 $0 $508,000 $240,538 $24,000 $0 $30,000 $5,899,538
20 18 2 0 0 1 3 32 4 0 23 83
$20,830,300 $16,137,900 $4,501,400 $0 $191,000 $18,940,000 $30,750,541 $3,728,566 $11,336,911 $0 $167,656 $85,753,974
173 113 36 6 0 3 20 363 76 0 48 683
Units
0 0 0
Value Permits
$4,775,000 $4,375,000 $400,000 $0 $0 $1,600,000 $1,198,000 $382,839 $3,040,000 $0 $596,499 $11,592,338
21 17 4 0 0 0 2 33 4 0 7 67
$32,111,639 $23,552,714 $5,318,925 $3,240,000 $0 $7,160,000 $8,226,597 $4,904,256 $14,719,600 $0 $300,180 $67,422,272
145 97 48 0 0 10 16 303 54 0 27 555
Units
0 0 0
Value
$5,990,850 $5,050,850 $940,000 $0 $0 $0 $120,000 $213,684 $605,000 $0 $15,689 $6,945,223
MOORHEAD Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
73 50 4 5 0 2 13 420 71 0 54 633
19 0 60
0 0 60
0 2 274
24 0 86
0 0 240
$28,753,499 $20,647,499 $8,106,000 $0 $0 $20,226,880 $8,340,714 $3,043,074 $6,647,001 $0 $674,300 $67,685,468
FARGO Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
204 172 32 4 0 11 23 878 310 19 260 1,705
$37,323,005 325 $32,000,605 242 $4,122,400 44 0 $1,200,000 39 0 $0 0 491 $27,324,900 15 $25,145,568 37 $9,372,302 909 $40,965,027 299 $19,844,810 23 $14,510,473 225 $174,486,085 1,833
$57,334,000 453 $45,749,000 351 $6,071,000 70 39 $5,514,000 32 0 $0 0 454 $34,340,797 21 $54,169,784 47 $13,042,249 854 $38,109,576 315 $10,025,417 28 $23,348,807 234 $230,370,630 1,952
$84,933,638 312 $68,646,538 255 $12,075,100 26 32 $4,212,000 31 0 $0 0 817 $57,677,999 31 $51,432,496 51 $14,324,776 815 $31,576,283 292 $14,311,084 48 $27,669,299 342 $281,925,575 1,891
$68,935,976 252 $58,991,976 173 $5,294,000 20 31 $4,650,000 59 0 $0 0 1297 $106,280,000 10 $217,913,749 43 $12,957,367 679 $93,034,353 218 $101,377,075 27 $31,350,149 187 $631,848,669 1,416
$53,201,120 $42,476,300 $3,407,490 59 $7,317,330 0 $0 450 $38,528,540 $26,587,191 $9,806,016 $54,937,753 $119,791,754 $12,162,133 $315,014,507
WEST FARGO Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
157 103 8 16 0 4 7 210 27 8 48 461
46 0 96
$26,931,900 $20,918,500 $1,242,000 $4,771,400 $0 $5,190,000 $3,915,000 $1,977,367 $2,547,010 $12,178,925 $4,437,488 $57,177,690
322 264 30 4 0 6 32 242 40 7 59 708
$62,479,290 $55,973,290 $3,326,000 28 $3,180,000 0 $0 72 $4,500,000 $31,061,395 $2,720,755 $5,114,745 $39,359,548 $8,382,985 $153,618,718
388 318 42 5 0 11 24 220 45 4 51 743
$81,384,453 $73,005,453 $5,299,000 28 $3,080,000 0 $0 241 $16,970,000 $27,483,300 $2,712,101 $19,114,227 $1,479,600 $1,117,786 $150,261,467
435 258 100 13 0 11 31 254 47 5 55 838
$87,854,337 $64,639,337 $13,245,000 77 $9,970,000 0 $0 384 $28,100,000 $51,690,301 $4,229,206 $6,027,536 $16,387,951 $1,794,212 $196,083,543
283 185 48 18 0 2 14 249 22 6 27 603
$62,382,111 $48,151,111 $6,905,000 50 $7,326,000 0 $0 12 $1,350,000 $25,098,480 $4,532,412 $7,971,020 $8,595,097 $1,942,500 $111,871,620
$193,676,952 701 $151,559,027 472 $24,257,925 120 132 $17,860,000 77 0 $0 0 1767 $143,140,000 22 $279,028,647 75 $22,473,668 1264 $116,821,489 298 $117,765,026 33 $34,041,040 248 $906,946,822 2,641
$150,327,580 $116,325,760 $19,358,490 109 $14,643,330 0 $0 702 $60,105,420 $60,146,385 $17,595,186 $70,160,774 $128,386,851 $14,794,622 $501,516,818
TOTAL Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
8/4/2015
447 338 44 25 0 17 44 1560 422 27 373 2,890
$79,572,785 732 $65,390,672 579 $5,828,400 86 65 $8,353,713 43 0 $0 0 647 $36,604,900 22 $33,027,293 82 $15,225,696 1642 $63,137,237 409 $32,023,735 30 $19,161,079 414 $278,752,725 3,331
$134,098,290 982 $114,681,290 770 $10,723,000 150 67 $8,694,000 37 0 $0 1 586 $41,840,797 39 $93,904,654 96 $19,869,350 1462 $62,934,870 421 $49,384,965 32 $31,949,242 345 $433,982,168 3,377
$192,245,391 940 $162,886,891 644 $21,875,500 164 60 $7,292,000 50 2 $191,000 0 1332 $93,587,999 46 $110,174,337 105 $21,005,981 1464 $62,051,421 419 $15,790,684 53 $28,984,741 468 $523,840,554 3,495
No assurance is provided on this report. Permit information reported here may have changed. For the most current permit information, please contact the individual cities.