December 2015
Permits Plus + A bi-monthly statistics and advocacy update for HBA of F-M members
FOR YOUR CALENDAR: Jan. 15 - MN Contractor Continuing Education
Jan. 18-19 - MN Electrical Contractor Continuing Education Jan. 26 - Lunch Session: Why put a home on the Remodeled Home Tour?
Jan. 29 - MN Plumbing Contractor Continuing Education
Feb. 19 - MN Contractor Continuing Education
Visit the calendar at hbafm. com for details or contact Jenny Erickson at (701) 2325846, jenny@hbafm.com.
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.
Community Partners Research Presents Fargo Housing Study Information
by Jenny Erickson, Director of Development & Education Earlier this month, Scott Knudson, Community Partners Research, presented the Fargo Housing Study findings during an HBA of F-M lunch session. Knudson quickly reviewed the 18 sections of the entire study which can be found at www.hbafm.com/member-only-content/education/materi, or the city of Fargo’s website. The sections cover specific information to income, student data, downtown Fargo, affordable housing, housing construction data and rental housing information. The study also compares Fargo to some other similar metro areas. The study examined the age of the population in the Fargo area and determined that the groups with the largest populations were in ages 0-17, 35-44 and 65-74. With the spread of ages of the Fargo population, there will be a change in age of households by 2020. The study looked at the Metropolitan Statistical Area (MSA) of Cass and Clay counties and the annual housing unit construction from 2005-2014. The first graph clearly shows that Cass and Clay counties followed the national trend during the national economic recession. In the graph, you can see that both single-family homes and multi-family construction have increased since 2010. (Information for this graph was provided by the Census Bureau.)
Don’t miss it! New Year Celebration & City Night Jan. 28 | Radisson
Mayoral Panel (Dilworth, Fargo, Moorhead, Oxbow, West Fargo) Special Guest Al Jaeger, North Dakota Secretary of State Updates from NDAB and BAM
According to the Assessment Department records, approximately 46 percent of all single-family detached home sales in 2014 in Fargo were priced between $125,000 and $224,999. Fewer than 12 percent of the sales were for less than $125,000. Nearly 20 percent of the home sales were for $300,000 or more. This largely represents sales activity of existing houses, not new construction. (See graphs on back page (Fargo Housing Study, page 100.)) Other interesting information provided in the study included the supply and demand of single-family homes and twin homes. Since 2010, demand is almost matching the supply of those properties. The Fargo Housing Study includes median income for renters and owners and what is considered affordable: Housing Study continued on back page
HBA OF F-M + 1802 32ND AVE S + FARGO ND 58103 + (701) 232-5846 + HBAFM.COM + INFO@HBAFM.COM
Total Housing Permits by Community
Total Building Permits Value Through Nov 2015
Chart below shows permit and value growth through November 2015 compared to year end 2014. See insert for the full permit report.
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 New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Totals
January January November 2015 December 2014 27 49 196 209 497 377 420 555 1140 1190 $7,303,850 $8,540,000 $39,327,899 $38,595,439 $108,827,349 $86,407,306 $100,482,336 $113,009,637 $255,941,434 $246,552,382 1140 1190 45 65 152 147 1944 1823 475 543 40 64 442 616 4238 4448 $255,941,434 $246,552,382 $105,146,483 $199,419,203 $110,995,902 $562,584,408 $26,978,046 $28,547,230 $109,239,361 $156,700,585 $139,029,608 $133,851,156 $37,568,790 $47,447,876 $784,899,624 $1,375,102,840
Difference 2015 thru Nov minus 2014 year end -22 -13 120 -135 -50 -$1,236,150 $732,460 $22,420,043 -$12,527,301 $9,389,052 -50 -20 5 121 -68 -24 -174 -210 $9,389,052 -$94,272,720 -$451,588,506 -$1,569,184 -$47,461,224 $5,178,452 -$9,879,086 $19,268,138
HBA of F-M’s monthly building permit report is prepared by Fiebiger, Swanson, West & Co.
Percentage Difference -45% -6% 32% -24% -4% -14% 2% 26% -11% 4% -4% -31% 3% 7% -13% -38% -28% -5% 4% -47% -80% -5% -30% 4% -21% 2%
Permits Plus
SEASONALLY ADJUSTED UNEMPLOYMENT RATES Oct 2015
Sept 2015
Minnesota
Oct 2014
Source: bls.gov
3.7%
North Dakota
3.8%
3.7%
2.8%
2.8%
5.1%
5.7%
2.1%
2.1%
Source: bls.gov
2.8%
United States Source: bls.gov
5.0%
Fargo-Moorhead Source: bls.gov
1.8%
SINGLE AND MULTI-FAMILY BUILDING PERMITS Oct. 2015
Oct. 2014
Minnesota
% change
Source: NAHB
19,081
North Dakota
14,549
31%
11,280
-48%
880,511
13%
NA
NA
Source: NAHB
5,862
United States Source: NAHB
991,027
Fargo-Moorhead
Source: HBA of F-M
2,189
MORTGAGE RATES Source: Wells Fargo as of Dec. 11
30-Year Fixed
4.125%
30-Year Fixed FHA
3.875%
5-Year ARM
4.125%
15-Year Fixed
3.375%
30-Year Jumbo
3.750%
FRAMING LUMBER PRICES
HOUSING SNAPSHOT
Source: National Association of Home Builders
Source: F-M Area Association of Realtors as of Nov. 30
Date
Per 1,000 Board Ft.
CME Futures
Nov. 25
$315
$247.3
Dec. 4
Nov. 20 Nov. 13
$312
$316
$326
Housing
December 2015
-4.9%
New Listings
234
$245.6
Number Sold
216
$257
Number Under Contract Average Sale Price
Source: Energy Information Administration
Midwest
Difference compared thru Nov. 2014
$246.5
U.S. REGULAR GASOLINE PRICES
U.S.
Number/Price 195
-22.3%
$217,125
+5.43%
(DOLLARS PER GALLON)
Dec. 7
Nov. 30
Nov. 23
Nov. 6
$1.883
$1.871
$1.93
$2.079
$1.969
$1.974
$2.015
-18.2%
$2.11
Nov. 9
$2.172
$2.204
3
Home Builders Association of F-M 1802 32nd Ave. S. Fargo, N.D. 58103
Housing Study continued from front page
For a household at the citywide median income level of approximately $45,000 in 2013, the affordable ownership level was approximately $136,000 to $151,000, and was partly dependent on cash available for closing.
For a household at the citywide median income level of approximately $45,000 in 2013 the affordable rent threshold for a household at the median income level was $1,125.
Based on the available estimates for the city of Fargo, rental housing with a gross monthly rent of $1,125 to $1,230, or less, is considered to be affordable for a median income household (with 30 percent of gross income available for rent and housing costs).
Ownership housing that has a purchase price from approximately $136,000 to $155,000 or less is considered to be affordable for a median income household (based on 4.18 percent rate, 30-year fixed rate mortgage, with $10,000 to $15,000 available for down payment and closing costs, and $300 per month in other fixed debt). In Fargo, 42 percent of the population owns their home and 58 percent rents.
Lunch Sessions are available to all members for only $15 and are listed at www.hbafm.com on the events calendar.
Permits Plus
4
Home Builders Association of Fargo Moorhead 2015 Permit Report - November January - December 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
16 16 0 0 0 0 1 62 15 0 14 108
Units
0 0 0
2012 Value Permits
$3,178,709 $3,178,709 $0 $0 $0 $0 $400,000 $304,267 $448,825 $0 $72,926 $4,404,727
17 17 0 0 0 4 6 55 3 0 13 98
$19,082,618 $15,180,305 $1,120,000 $2,382,313 $400,000 $4,090,000 $4,881,205 $5,050,268 $20,622,809 $0 $181,338 $53,908,238
87 67 20 0 0 2 12 508 85 0 158 852
Units
0 0 21
2013 Value Permits
$3,495,000 $3,495,000 $0 $0 $0 $2,520,000 $3,180,000 $303,019 $9,000 $0 $26,450 $9,533,469
34 34 0 0 0 0 2 60 2 0 24 122
$13,924,700 $11,624,700 $2,300,000 $0 $0 $3,590,000 $8,071,975 $4,447,029 $26,241,528 $0 $199,650 $56,474,882
133 91 40 0 1 7 30 409 76 0 43 698
Units
0 0 0
January - November 2015
2014 Value Permits
$7,082,000 $7,082,000 $0 $0 $0 $0 $508,000 $299,168 $49,000 $0 $33,000 $7,971,168
49 24 2 1 0 1 4 44 4 0 28 130
$25,209,300 $20,260,900 $4,757,400 $0 $191,000 $18,940,000 $34,672,041 $4,492,925 $11,714,091 $0 $193,805 $95,222,162
209 137 48 6 0 6 22 451 93 0 78 859
Units
23 0 0
Value Permits
$8,540,000 $5,599,000 $400,000 $2,541,000 $0 $1,600,000 $1,778,000 $504,355 $3,040,000 $0 $615,199 $16,077,554
27 23 4 0 0 0 3 54 5 0 13 102
$38,595,439 $28,026,514 $7,328,925 $3,240,000 $0 $15,859,000 $14,882,597 $6,908,674 $27,775,696 $0 $481,735 $104,503,141
196 148 48 0 0 15 30 472 88 0 44 845
Units
0 0 0
Value
$7,303,850 $6,363,850 $940,000 $0 $0 $0 $422,000 $329,896 $612,500 $0 $41,689 $8,709,935
MOORHEAD Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
105 74 10 5 1 2 20 524 88 0 58 797
19 2 60
0 0 63
0 2 274
24 0 135
0 0 302
$39,327,899 $31,221,899 $8,106,000 $0 $0 $24,346,880 $10,466,714 $4,810,439 $9,026,123 $0 $923,375 $88,901,430
FARGO Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
283 231 36 16 0 16 32 1060 388 31 316 2,126
16 0 683
$50,880,005 403 $43,473,605 306 $4,826,400 58 $2,580,000 39 $0 0 $37,660,900 23 $30,082,568 54 $11,901,800 1138 $49,589,094 367 $33,111,290 33 $20,449,521 290 $233,675,178 2,308
39 0 732
$74,216,260 521 $59,679,260 411 $9,023,000 78 $5,514,000 32 $0 0 $52,561,747 29 $65,903,210 64 $16,365,247 1052 $43,373,494 387 $14,791,550 30 $25,424,364 308 $292,635,872 2,391
32 0 1170
$99,978,938 377 $82,346,838 312 $13,420,100 30 $4,212,000 35 $0 0 $84,674,999 44 $76,140,336 77 $18,073,979 1017 $41,591,963 389 $14,780,084 59 $41,987,299 427 $377,227,598 2,390
$86,407,306 497 $75,353,306 366 $5,884,000 52 35 $5,170,000 79 0 $0 0 1897 $148,775,000 27 $482,318,840 80 $16,000,502 1020 $118,099,353 338 $117,463,205 32 $43,082,219 349 $1,012,146,425 2,343
$104,156,253 555 $95,535,253 324 $5,541,000 108 $3,080,000 47 $0 0 $18,860,000 14 $27,483,300 44 $3,485,319 311 $25,259,582 57 $1,479,600 5 $1,751,881 83 $182,475,935 1,069
$113,009,637 $84,688,637 $14,205,000 $14,116,000 $0 $33,185,203 $63,604,971 $5,133,699 $7,785,536 $16,387,951 $3,268,723 $242,375,720
79 0 902
$108,827,349 $89,105,129 $8,804,890 $10,917,330 $0 $76,040,603 $59,590,558 $14,782,121 $72,050,626 $129,234,511 $25,657,411 $486,183,179
WEST FARGO Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
210 154 10 16 0 4 9 268 54 12 73 630
46 0 96
$38,534,400 $32,305,000 $1,458,000 $4,771,400 $0 $5,190,000 $6,469,000 $2,785,341 $15,528,758 $12,826,138 $5,179,968 $86,513,605
438 370 40 4 0 7 46 300 52 8 73 924
28 0 402
$87,652,925 $80,036,925 $4,436,000 $3,180,000 $0 $26,200,000 $40,508,536 $3,197,456 $8,522,045 $39,459,530 $10,007,485 $215,547,977
471 399 44 5 0 12 24 265 69 4 62 907
28 0 274
123 0 441
420 303 54 31 0 3 39 398 44 8 36 948
63 0 42
$100,482,336 $82,974,336 $8,105,000 $9,403,000 $0 $4,759,000 $40,516,630 $7,055,590 $27,550,112 $9,795,097 $10,946,315 $201,105,080
TOTAL Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
12/8/2015
612 475 56 37 1 22 62 1914 545 43 461 3,659
81 2 839
$111,675,732 945 $94,137,619 760 $7,404,400 118 $9,733,713 43 $400,000 0 $46,940,900 36 $41,832,773 118 $20,041,676 2001 $86,189,486 507 $45,937,428 41 $25,883,753 534 $378,501,748 4,182
67 0 1218
$179,288,885 1,159 $154,835,885 935 $15,759,000 162 $8,694,000 37 $0 1 $84,871,747 48 $117,663,721 120 $24,312,751 1786 $78,146,067 534 $54,251,080 34 $35,657,949 437 $574,192,200 4,118
60 2 1718
$236,426,491 1,190 $205,224,991 797 $23,718,500 188 $7,292,000 89 $191,000 0 $122,474,999 65 $138,803,677 147 $26,351,391 1823 $78,614,636 543 $16,259,684 64 $43,965,985 616 $662,896,863 4,448
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.
$246,552,382 1,140 $193,667,457 840 $27,817,925 158 205 $25,067,000 110 0 $0 0 2473 $199,419,203 45 $562,584,408 152 $28,547,230 1944 $156,700,585 475 $133,851,156 40 $47,447,876 442 $1,375,102,840 4,238
142 0 1246
$255,941,434 $209,665,214 $25,955,890 $20,320,330 $0 $105,146,483 $110,995,902 $26,978,046 $109,239,361 $139,029,608 $37,568,790 $784,899,624