January/February 2016
Permits Plus + A bi-monthly statistics and advocacy update for HBA of F-M members
FOR YOUR CALENDAR: Feb. 19 - MN Contractor Continuing Education Feb. 19 - Parade of Homes entries due for early rate March 8 - Lunch Session: Hiring Can Be Hard March 9 - Parade of Homes entries due for regular rate March 11 - Minnesota Power Limited Technician Continuing Education March 23 - EPA Renovation, Repair & Painting Refresher April 28 - May 1 and May 5-8 - Spring Parade of Homes May 12 - EPA Renovation, Repair & Painting Refresher Visit the calendar at hbafm. com for details.
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.
2015 Metro Building Permits Remain Steady, Value Second-highest Ever
by Krista Mund, Executive Vice President Last year was another strong year in terms of construction activity in the F-M metro area. Dilworth, Fargo, Moorhead and West Fargo collectively brought in over $800 million through 4,421 building permits. The number of permits issued last year is the second-highest since 2008. Total permits and values include housing, multi-family, new commercial, residential and commercial remodeling, public and miscellaneous categories. Compared to 2014, total construction value was down 41 percent. This is due to many multi-family projects and the Sanford hospital that were permitted in 2014 and still being worked on throughout 2015, into this year. Total permits issued were just 1 percent less than 2014. HBA of F-M Past President Clay Dietrich, Dietrich Homes, Inc., says, “It’s obvious that the F-M metro’s construction sector is very busy. You can see it all happening just by driving around to different areas of the community. With more and more people moving here, and additional businesses coming to town, it’s more important than ever to secure permanent flood protection.” Housing starts for all communities combined to hit 1,176, accounted for 27 percent of total permits issued, and reached the second-highest level since 2005. Single-family permits were up 7 percent overall while twin home and rowhouse/townhouse permits dropped a bit.
Fargo saw a major jump in total number of housing permits with a 40 percent increase over 2014’s total. Last year, housing was 25 percent higher than its five-year average. Conversely, Dilworth, Moorhead and West Fargo’s housing permits came in under 2014’s total: Dilworth’s housing permits were down about 45 percent compared to 2014, but remained in line with its five-year average of 29 permits; Moorhead’s housing permits were down only 5 percent and came in well above its five-year average; Dietrich says, “It’s worth noting that Moorhead’s single-family starts and value actually exceeded 2014’s total, but its rowhouse/townhouse construction was less which affected its total housing permit number.” West Fargo’s housing permits were down about 24 percent, but exceeded the five-year average slightly. “At the end of 2014, we had the exact opposite situation: Fargo was the only community that had not exceeded its housing activity from the previous year,” Dietrich says. “We’re probably just seeing our market ebbing and flowing a bit in the different communities over the years.” Residential remodeling permits were up by 11 percent with each community experiencing an increase in 2015. Totaling 2,024 permits, 2015’s residential remodeling total was the highest since 2009. Compared to the five-year Year-end permits continued on back page
HBA OF F-M + 1802 32ND AVE S + FARGO ND 58103 + (701) 232-5846 + HBAFM.COM + INFO@HBAFM.COM
HOUSING STARTS -1%
NEW COMMERCIAL +6% MULTI FAMILY -29%
RESIDENTIAL REMODEL +11%
COMPARED TO DECEMBER 2014
Total Housing Permits by Year
COMMERCIAL REMODEL -5%
PUBLIC PROJECTS -30%
Total Number of Building Permits in 2015
Chart below shows permit and value growth through year-end 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 December 2015 December 2014 27 49 199 209 526 377 424 555 1176 1190 $7,303,850 $8,540,000 $40,054,899 $38,595,439 $114,137,979 $86,407,306 $101,576,236 $113,009,637 $263,072,964 $246,552,382 1176 1190 46 65 156 147 2024 1823 515 543 45 64 459 616 4421 4448 $263,072,964 $246,552,382 $105,696,483 $199,419,203 $112,128,499 $562,584,408 $27,955,407 $28,547,230 $116,586,501 $156,700,585 $141,493,608 $133,851,156 $38,005,990 $47,447,876 $804,939,452 $1,375,102,840
Difference -22 -10 149 -131 -14 -$1,236,150 $1,459,460 $27,730,673 -$11,433,401 $16,520,582 -14 -19 9 201 -28 -19 -157 -27 $16,520,582 -$93,722,720 -$450,455,909 -$591,823 -$40,114,084 $7,642,452 -$9,441,886 -$570,163,388
HBA of F-M’s monthly building permit report is prepared by Fiebiger, Swanson, West & Co.
Percentage Difference -45% -5% 40% -24% -1% -14% 4% 32% -10% 7% -1% -29% 6% 11% -5% -30% -25% -1% 7% -47% -80% -2% -26% 6% -20% -41%
Permits Plus
SEASONALLY ADJUSTED UNEMPLOYMENT RATES Dec 2015
Nov 2015
Minnesota
Dec 2014
Source: bls.gov
3.5%
North Dakota
3.7%
3.7%
2.8%
2.8%
5.0%
5.6%
2.4%
2.7%
Source: bls.gov
2.7%
United States Source: bls.gov
5.0%
Fargo-Moorhead
Source: bls.gov
2.4%
SINGLE AND MULTI-FAMILY BUILDING PERMITS Dec 2015
Dec 2014
Minnesota
% change
Source: NAHB
21,873
16,560
32%
13,029
-56%
1,038,509
13%
3,663
-34%
North Dakota
Source: NAHB
5,727
United States Source: NAHB
1,178,138
Fargo-Moorhead
SEE YOUR AD HERE!
Source: HBA of F-M
2,428
Contact Allison Weckman at (701) 232-5846 or allisonw@hbafm.com
MORTGAGE RATES Source: Wells Fargo as of Feb. 4
30-Year Fixed
3.875%
15-Year Fixed
3.125%
30-Year Fixed FHA
3.875%
5-Year ARM
3.625%
30-Year Jumbo
3.500%
FRAMING LUMBER PRICES Source: National Association of Home Builders
Date
Per 1,000 Board Ft.
CME Futures
Jan. 22
$308
$241.4
Jan. 29 Jan. 15 Jan. 8
TOP
5
$305 $315
$320
$240.9 $254.9
$250.6
LOCAL REAL ESTATE
Source: Coldwell Banker First Realty, Barbara Grande
Dec 2015
Dec 2014
% change
$208,172
$189,342
10%
$837,567,494
$732,309,705
14%
$164,791,483
$134,512,127
23%
$611,045,035
$567,162,241
8%
Home prices in Fargo-Moorhead Closed MLS Volume
Closed MLS Volume - New Construction
Closed MLS Volume - Existing Residential
HBA of F-M’s popular yearly “Top Five” Permit Report reflecting a summary of the five local builders with the most permits in different residential categories in terms of units and permit value is included as an insert.
January/February 2016
3
Home Builders Association of F-M 1802 32nd Ave. S. Fargo, N.D. 58103
Year-end Permits continued from front page
average, all construction categories were up last year except for commercial remodeling, which was down by just 14 permits, and miscellaneous, which was down by 42 permits. “Every time we release a building permit report, we mention that the Home Builders Association of F-M supports the F-M Area Diversion project, and we encourage those residents who support the project to speak up. Each of our communities rely on one another. Many people who work in Fargo, live in Moorhead, West Fargo or Dilworth, and vice versa. The Diversion doesn’t only protect Fargo, it ensures economic vitality for our entire metro area and everyone who lives and works here,” Dietrich says.
HBA Expands Building Permit Report
HBA of F-M has expanded its monthly building permit report to encompass outlying communities including Barnesville and Hawley in Minnesota, and Casselton, Harwood, Horace, Kindred, Mapleton and Oxbow in North Dakota. Visit the member’s-only section at www.hbafm.com and click the Information tab to access these new reports, plus our regular monthly and quarterly reports for the F-M metro area.
Permits Plus
January Permit Numbers
Below you will see building permit summaries for Dilworth, Moorhead, Fargo and West Fargo comparing first quarter 2014 to January activity in 2015 and 2016. To access the full report and each city’s numbers, log into the member’s only section at www.hbafm.com and click the Information tab. January - March 2014 Permits Units
January 2015
Value Permits Units
Total Housing Starts 56 $13,458,805 7 Single Family 38 $11,343,805 5 Twin Home 6 $615,000 2 Row / Town House 12 12 $1,500,000 0 Duplex 0 0 $0 0 Multi-Family 0 0 $0 0 New Commercial 18 $40,343,700 2 Residential Remodel 275 $5,508,840 87 Commercial 112 $19,108,324 49 Public 13 $13,648,100 0 Miscellaneous 61 $1,549,801 11 Total 535 $93,617,570 156
January 2016 Value Permits Units
$1,995,900 11 $1,795,900 11 $200,000 0 0 $0 0 0 $0 0 0 $0 0 $1,723,000 9 $1,489,466 100 $5,105,356 37 $0 2 $225,000 9 $10,538,722 168
Value
$4,067,900 $4,067,900 $0 0 $0 0 $0 0 $0 $19,640,060 $1,910,845 $4,679,164 $2,149,140 $849,000 $33,296,109
4
Home Builders Association of Fargo Moorhead 2015 Permit Report (YTD) 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
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
2015 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 56 6 0 13 105
$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
199 151 48 0 0 16 30 498 92 0 48 883
Units
0 0 0
5-Yr Avg Value
Permits
$7,303,850 $6,363,850 $940,000 $0 $0 $0 $422,000 $359,896 $912,500 $0 $41,689 $9,039,935
29 23 1 0 0 1 3 55 6 0 18 113
$40,054,899 $31,948,899 $8,106,000 $0 $0 $24,896,880 $10,466,714 $5,016,278 $9,440,945 $0 $1,023,375 $90,899,091
147 104 33 2 0 7 23 478 87 0 77 818
$114,137,979 $90,930,759 $9,154,890 $14,052,330 $0 $76,040,603 $60,723,155 $15,409,343 $76,695,244 $131,698,511 $25,994,611 $500,699,446
Units
20-Yr Avg Value
Permits
Units
Value
$5,919,912 $5,143,712 $268,000 $508,200 $0 $824,000 $1,257,600 $354,141 $891,865 $0 $157,853 $9,405,371
26 21 4 0 0 1 2 81 4 0 19 132
$27,373,391 $21,408,264 $4,722,465 $1,124,463 $118,200 $13,475,176 $14,594,906 $5,183,035 $19,159,014 $0 $415,981 $80,201,503
177 116 54 2 0 6 26 555 73 1 74 911
422 327 51 44 0 28 62 1066 380 38 341 2,336
$85,124,098 $70,356,754 $8,461,678 44 $6,305,666 0 $0 1077 $79,942,650 $143,033,622 $15,550,174 $65,869,830 $62,368,928 $31,387,603 $483,276,904
405 272 107 26 0 24 62 1081 371 39 283 2,265
$60,776,630 $46,839,481 $10,894,987 26 $3,042,162 0 $0 675 $40,648,405 $77,558,262 $12,464,888 $43,496,926 $37,397,478 $20,243,947 $292,586,535
$101,576,236 $84,068,236 $8,105,000 $9,403,000 $0 $4,759,000 $40,516,630 $7,169,890 $29,537,812 $9,795,097 $10,946,315 $204,300,980
420 311 51 21 0 8 32 310 56 7 65 899
$88,985,890 $75,326,810 $6,749,000 58 $6,910,080 0 $0 251 $17,638,841 $35,716,487 $4,354,341 $17,326,747 $15,989,663 $6,230,874 $186,242,843
305 219 58 11 0 7 26 269 48 3 66 724
$46,024,970 $37,346,040 $5,690,702 $2,988,228 $0 $7,472,201 $16,670,827 $2,526,513 $8,361,306 $6,131,588 $3,023,299 $90,210,704
$263,072,964 $213,311,744 $26,305,890 $23,455,330 $0 $105,696,483 $112,128,499 $27,955,407 $116,586,501 $141,493,608 $38,005,990 $804,939,452
1,017 764 137 67 0 43 121 1910 529 45 501 4,166
$207,403,291 $172,235,539 $20,201,143 115 $14,848,409 1 $118,200 1500 $111,880,666 $194,602,616 $25,441,691 $103,247,455 $78,358,591 $38,192,311 $759,126,621
912 628 224 39 0 38 116 1986 495 43 442 4,031
5 0 4
1 0 7
$4,249,847 $3,618,447 $483,100 $148,300 $0 $428,121 $1,430,378 $426,308 $404,530 $7,551 $137,798 $7,084,532
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 0 308
9 1 168
6 1 123
$25,217,288 $18,715,603 $5,743,004 $603,882 $154,800 $7,837,753 $10,191,185 $5,537,991 $16,558,841 $1,868,150 $750,294 $67,961,502
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
$86,407,306 526 $75,353,306 374 $5,884,000 54 35 $5,170,000 98 0 $0 0 1897 $148,775,000 27 $482,318,840 84 $16,000,502 1063 $118,099,353 367 $117,463,205 37 $43,082,219 362 $1,012,146,425 2,466
$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
98 0 902
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
424 307 54 31 0 3 39 407 50 8 36 967
63 0 42
27 0 133
TOTAL Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
1/6/2016
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
$246,552,382 1,176 $193,667,457 855 $27,817,925 160 205 $25,067,000 129 0 $0 0 2473 $199,419,203 46 $562,584,408 156 $28,547,230 2024 $156,700,585 515 $133,851,156 45 $47,447,876 459 $1,375,102,840 4,421
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.
161 0 1252
$136,268,735 $106,519,570 $22,811,794 60 $6,782,571 0 $154,800 918 $56,386,480 $105,850,652 $20,955,700 $68,821,602 $45,404,767 $24,155,337 $457,843,274
Home Builders Association of FargoͲMoorhead Top 5 Summary
Top 5 Single Family Builders Ͳ Units 1 2 3 4 5
Thomsen Homes Jordahl Custom Homes Heritage Homes Dabbert Custom Homes J & L Construction
Units 108 83 49 49 40
2014 Value HBA Member $ 17,138,475 x $ 14,832,900 x $ 14,356,603 x $ 9,003,305 x $ 4,673,000 x
** Note: 17 homes valued at $3,439,000 were built by owner (not contractor)
Top 5 Single Family Builders Ͳ Units 1 2 3 4 5
Thomsen Homes Jordahl Custom Homes Dabbert Custom Homes Heritage Homes Platinum Homes
Units 155 123 46 41 27
2015 Value HBA Member $ 24,942,900 x $ 24,466,496 x $ 9,317,041 x $ 12,089,070 x $ 6,700,000 x
** Note: 28 homes valued at $9,001,700 were built by owner (not contractor)
Top 5 Single Family Builders Ͳ Value 1 Thomsen Homes 2 Jordahl Custom Homes 3 Heritage Homes 4 Dabbert Custom Homes 5 Titan Homes
108 83 49 49 21
$ 17,138,475 $ 14,832,900 $ 14,356,603 $ 9,003,305 $ 7,216,000
x x x x x
Top 5 Single Family Builders Ͳ Value 1 Thomsen Homes 2 Jordahl Custom Homes 3 Heritage Homes 4 Titan Homes 5 Dabbert Custom Homes
155 123 41 22 46
$ 24,942,900 $ 24,466,496 $ 12,089,070 $ 9,891,000 $ 9,317,041
x x x x x
Top 5 HBA of FM Builders Ͳ Units (SF, TH, RH) 1 Jordahl Custom Homes 2 Thomsen Homes 3 J & L Construction 4 Dabbert Custom Homes 5 Heritage Homes
210 108 82 73 49
$ 37,610,900 $ 17,138,475 $ 9,032,000 $ 12,303,305 $ 14,356,603
x x x x x
Top 5 HBA of FM Builders Ͳ Units (SF, TH, RH) 1 Jordahl Custom Homes 2 Thomsen Homes 3 Dabbert Custom Homes 4 Heritage Homes 5 J & L Construction
220 159 55 49 47
$ 40,647,496 $ 25,501,300 $ 10,634,371 $ 14,369,070 $ 7,359,900
x x x x x
Top 5 HBA of FM Builders Ͳ Value (SF, TH, RH) 1 Jordahl Custom Homes 2 Thomsen Custom Homes 3 Heritage Homes 4 Dabbert Custom Homes 5 J & L Construction
210 108 49 73 82
$ 37,610,900 $ 17,138,475 $ 14,356,603 $ 12,303,305 $ 9,032,000
x x x x x
Top 5 HBA of FM Builders Ͳ Value (SF, TH, RH) 1 Jordahl Custom Homes 2 Thomsen Homes 3 Heritage Homes 4 Dabbert Custom Homes 5 Titan Homes
220 159 49 55 22
$ 40,647,496 $ 25,501,300 $ 14,369,070 $ 10,634,371 $ 9,891,000
x x x x x
Top 5 Multifamily Builders Ͳ Units 1 Meridian Commercial Construction 2 Paces Lodging 3 Enclave Development 4 Eagle Ridge Partners 5 Dietrich Construction
552 417 363 192 180
$ 40,661,000 $ 31,656,203 $ 24,319,000 $ 14,450,000 $ 13,800,000
x
Top 5 Multifamily Builders Ͳ Units 1 Paces Lodging 2 Goldmark Development 3 Enclave Development 4 Eagle Ridge Partners 5 H2 Incorporated
376 205 195 106 76
$ 31,019,903 $ 15,400,000 $ 15,491,000 $ 7,720,000 $ 6,250,000
Largest NonͲmember Builders (SF, TH, RH) 1 Zenith Construction Services 2 BCH Builders LLC 3 Eagle Ridge Partners 4 Bachmeier Custom Homes 5 Daniel Parrow
14 12 11 11 11
$ 3,100,000 $ 1,500,000 $ 7,680,000 $ 3,565,000 $ 1,634,000
75 11 8 7 5
$ 9,425,000 $ 6,810,000 $ 1,493,000 $ 2,025,000 $ 1,955,000
Largest NonͲmember Builders (SF, TH, RH) 1 BCH Builders, LLC 2 Eagle Ridge Partners 3 Hohenstein Homes 4 Bachmeier Custom Homes 5 Level Construction
No assurance is provided on this report. Permit information reported here may have changed. For the most current permit information, please contact the Home Builder's Association of Fargo-Moorhead.
x x x