Issue 6 | Dec. 19, 2017
Permits Plus + A bi-monthly statistics and advocacy update for HBA of F-M members FOR YOUR CALENDAR: Jan. 23 - Lunch Session: Team Building by Jobs HQ Jan. 25 - Industry Training: QuickBooks Jan. 25 - New Year Celebration & City Night Jan. 30 - Education Summit Continuing Education for Minnesota Contractors Plumbers Power Limited Technicians Jan. 30 - Trade Showcase Feb. 13 - Lunch Session: Interviewing by Jobs HQ Feb. 16 - Minnesota Building Contractor Continuing Education Feb. 23-25 - Red River Valley Home & Garden Show March 16 - Home Builders Care Fish Fry March 22 - “Chilly” Cook-Off
Visit the calendar at hbafm.com for details or to register for events.
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.
HBA Hosts Building Officials Roundtable Code Changes, Deck Class on the Horizon by Krista Mund, Executive Vice President In November, conversation between HBA of F-M members and local building officials covered everything from 2018 code updates, to deck building to floodproof foundations. HBA CEO Bryce Johnson moderated the roundtable and welcomed Shane Amundson (Reile’s Acres), Tim Friedt (Moorhead), Jay Sandvig (West Fargo) and Bruce Taralson (Fargo) to give brief updates on their communities and take questions from members. Over 40 attended the session at the Skills & Technology Training Center, Fargo. Friedt mentioned that Moorhead has had to re-plat lots to accommodate twin homes being built. The activity for twin homes has increased since the state of Minnesota lifted the requirement for fire sprinklers last year. Amundson stressed the need for accurate elevations when pouring floodproof foundations, and that it’s crucial that foundations and footings be built to FEMA standards. He encouraged builders to educate themselves on the LOMR process which is on the city’s website. Sandvig noted there is a slowdown in homebuilding in West Fargo, and that his office also does permitting for many of the surrounding small towns. Taralson noted that fees will be adjusted for house-moving permits and that Fargo is working on some tweaks to floodproof foundation expectations with the HBA. He said the city is working toward making its online permitting process easier as well. Both Taralson and Sandvig said that the 2018 International Code books are out and their cities will be going through the amendment/approval process in 2018, with implementation in 2019. Friedt believes that Minnesota’s update will not happen until 2021 since the state develops its own code.
Taralson and Fargo Deputy Inspections Administrator Chris Rose highlighted an issue with the way decks are being constructed. The other officials echoed those concerns. Part of the issue is that regulations for building a deck haves gone from about a paragraph to several pages in the code book. Fargo plans to work with the HBA to bring in a speaker from the International Codes Council in March to cover the code. His talk will be tailored to our area’s amended codes and include Minnesota jurisdictions. There was some discussion on concern for floodproof foundation elevations being correct since, in most cases, cities place a lath or thin stake in front of the property. This lath can be easily broken or destroyed in the excavation process. Attendees discussed solutions like establishing a common point within the development. An example would be the top point of a fire hydrant, or something that never changes height or location. Builders could be told that is the height foundations need to be set. In most cases, this will work, but some developments would need to have more than one point within a
Building Officials continued on back page
HBA OF F-M + 1802 32ND AVE S + FARGO ND 58103 + (701) 232-5846 + HBAFM.COM + INFO@HBAFM.COM
SEE INSERT FOR COMPLETE F-M METRO AND OUTLYING REPORTS
The HBA of F-M produces two monthly building permit reports:
1. F-M Metro covering Dilworth, Fargo, Moorhead and West Fargo, including comparisons from the last three years. 2. Outlying towns covering Barnesville and Hawley in Minnesota and Casselton, Harwood, Horace, Kindred, Mapleton and Oxbow for North Dakota. These two reports are included as inserts in the Permits Plus.
PERMIT COMPARISON F-M METRO
HOUSING STARTS
HOUSING VALUE
TOTAL PERMITS
TOTAL VALUE
To the right, you will find a permit comparison chart for the F-M Metro, and a housing comparison chart for the F-M metro and outlying towns.
Jan - Nov 2017
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
7 116 438 313 874 $1,146,000 $22,535,405 $97,094,645 $71,558,965 $192,335,015 874 16 119 2,073 511 40 422 4,055 $192,335,015 $76,369,598 $205,061,730 $31,955,479 $101,326,497 $31,879,497 $40,678,113 $679,605,929
Jan - Nov 2016 21 169 467 444 1,101 $4,775,900 $33,745,300 $120,267,596 $101,215,173 $260,003,969 1,101 37 132 2,051 504 36 532 4,393 $260,003,969 $96,165,376 $170,251,413 $31,857,725 $173,602,705 $75,079,598 $41,797,300 $848,758,086
-14 -53 -29 -131 -227 -$3,629,900 -$11,209,895 -$23,172,951 -$29,656,208 -$67,668,954 -227 -21 -13 22 7 4 -110 -338 -$67,668,954 -$19,795,778 $34,810,317 $97,754 -$72,276,208 -$43,200,101 -$1,119,187 -$169,152,157
Percentage Difference -67% -31% -6% -30% -21% -76% -33% -19% -29% -26% -21% -57% -10% 1% 1% 11% -21% -8% -26% -21% 20% 0% -42% -58% -3% -20%
Difference
HOUSING COMPARISON F-M METRO AND OUTLYING COMMUNITIES
METRO HOUSING PERMITS
METRO HOUSING VALUE
OUTLYING HOUSING PERMITS
OUTLYING HOUSING VALUE
COMBINED HOUSING STARTS COMBINED HOUSING VALUE
2
City
Single Family Twin Home Row / Town House Duplex Totals Single Family Twin Home Row / Town House Duplex Totals Single Family Twin Home Row / Town House Duplex Totals Single Family Twin Home Row / Town House Duplex Totals
Jan - Nov 2017 679 79 116 0 874 $159,003,017 $16,842,000 $16,489,998 $0 $192,335,015 113 7 0 0 120 $40,341,100 $1,638,000 $0 $0 $41,979,100
Jan - Nov 2016 894 133 50 24 1,101 $223,381,364 $23,088,933 $9,933,672 $3,600,000 $260,003,969 67 24 5 1 97 $26,244,743 $3,319,000 $800,000 $250,000 $30,613,743
Difference -215 -54 66 -24 -227 -$64,378,347 -$6,246,933 $6,556,326 -$3,600,000 -$67,668,954 46 -17 -5 -1 23 $14,096,357 -$1,681,000 -$800,000 -$250,000 $11,365,357
Percentage Difference -24% -41% 132% -100% -21% -29% -27% 66% -100% -26% 69% -71% -100% -100% 24% 54% -51% -100% -100% 37%
994
1,198
-204
-17%
$234,314,115
$290,617,712
-$56,303,597
-19%
Permits Plus
SEASONALLY ADJUSTED UNEMPLOYMENT RATES OCT 2017
Minnesota
SEP 2017
OCT 2016
3.7%
4.0%
2.4%
3.0%
4.2%
4.8%
2.3%
2.6%
Source: bls.gov
3.3%
North Dakota Source: bls.gov
2.5%
United States Source: bls.gov
4.1%
Fargo-Moorhead Source: bls.gov
2.2%
*Preliminary
MORTGAGE RATES
Source: Wells Fargo as of Dec. 8, 2017
30-Year Fixed
4.040%
15-Year Fixed
3.588%
30-Year Jumbo
4.141%
30-Year Fixed VA
4.171%
5-Year ARM
4.175%
EDUCATION SUMMIT
SINGLE AND MULTI-FAMILY BUILDING PERMITS Oct. 2017
Oct. 2016
Minnesota
% change
MINNESOTA CONTINUING EDUCATION:
Source: NAHB
19,853
19,401
North Dakota 3,180
United States
3,511
-9%
1,002,139
7%
2,344
-25%
Source: NAHB
Fargo-Moorhead Source: HBA of F-M
1,769
FRAMING LUMBER PRICES Source: National Association of Home Builders
Date
Nov. 18 Oct. 27 Oct. 6
Sept. 15
PLUMBERS POWER LIMITED TECHNICIANS
Source: NAHB
1,070,750
BUILDING CONTRACTORS
2%
JAN. 30
LOCAL REAL ESTATE
Source: F-M Area Association of Realtors Dilworth, Fargo, Moorhead, West Fargo | Single-Family, Condo, Townhouse, Twin Home, Duplex
Dec. 8 2017 YTD
Dec. 8 2016 YTD
% change
$233,981
$229,758
2%
$663,802,963
$656,648,381
1%
Home Prices
Closed MLS Volume
Lumber Composite Price
CME Futures
$433
$405.9
424
516
-18%
$421
$377.8
2,413
2,342
3%
$438
$440
$439.7
Closed MLS Volume - New Construction
$412.1
Closed MLS Volume - Existing Residential Units
U.S. REGULAR GASOLINE PRICES
Source: Energy Information Administration
U.S.
Midwest
HBAFM.COM CLICK: EVENTS, CALENDAR
(DOLLARS PER GALLON)
Dec. 4
Nov. 27
Nov. 20
Nov. 13
$2.455
$2.520
$2.595
$2.622
$2.617
Issue 6 | Dec. 19, 2017
$2.648
$2.683
$2.706
Nov. 6
$2.673 $2.645
3
Home Builders Association of F-M 1802 32nd Ave. S. Fargo, N.D. 58103
Building Officials continued from front page
development. The developer, city or surveyor would need to note the heights and location of bench mark on the permit or plan. Johnson brought up the issue of arc fault outlets and breakers causing problems for homeowners when they trip for no reason and items like freezers and hair dryers will not operate. Taralson said that the state of North Dakota amended code to remove some arc fault requirements, but Fargo put it back in because leaders felt it was important. Some builders in the room had not experienced issues with arc fault outlets, and suggested those who do, look at the products they are using. They suggested perhaps it could be narrowed down to a certain distributor or product.
Permits Plus
HOUSING ACTIVITY THROUGH NOVEMBER
Total Value as of 11/30/17 | F-M Metro Miscellaneous 6% Public 5%
Commercial Remodel 15% Residential Remodel 5% New Commercial 30%
Housing Starts 28%
Multi-Family 11%
4
Home Builders Association of Fargo-Moorhead F-M Metro Building Permit Report 2017 - Year-to-Date (November) 2015
DILWORTH, MN Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
Permits
27 23 4 0 0 0 3 54 5 0 13 102
Units
0 0 0
2016 Value Permits
$7,303,850 $6,363,850 $940,000 $0 $0 $0 $422,000 $329,896 $612,500 $0 $41,689 $8,709,935
21 21 0 0 0 0 0 62 2 0 19 104
$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
169 141 4 0 12 9 30 469 68 0 67 812
Units
2017 Value Permits
$4,775,900 $4,775,900 $0 $0 $0 $0 $0 $416,456 $1,195,778 $0 $169,800 $6,557,934
7 7 0 0 0 0 5 46 2 0 20 80
$33,745,300 $29,395,300 $750,000 0 $0 24 $3,600,000 279 $22,866,730 $33,042,240 $5,532,287 $80,495,143 $0 $510,093 $176,191,793
Units
3-Yr Avg Value
Permits
$1,146,000 $1,146,000 $0 $0 $0 $0 $4,456,413 $313,212 $79,385 $0 $40,342 $6,035,352
18 17 1 0 0 0 3 54 3 0 17 95
116 108 8 0 0 1 31 455 89 0 35 727
$22,535,405 $21,415,405 $1,120,000 0 $0 0 $0 45 $4,400,000 $58,682,137 $5,508,741 $24,575,407 $0 $400,584 $116,102,274
160 132 20 0 4 8 30 465 82 0 49 795
$120,267,596 438 $102,193,324 312 $12,480,600 28 19 $5,593,672 98 0 $0 0 818 $73,298,646 15 $86,094,623 57 $19,297,228 1152 $81,157,234 367 $38,189,056 35 $37,461,689 353 $455,766,072 2,417
$97,094,645 $78,208,647 $4,736,000 98 $14,149,998 0 $0 801 $71,969,598 $114,081,485 $19,302,871 $69,005,478 $18,851,154 $39,574,272 $429,879,503
467 348 54 65 0 23 66 1083 355 32 377 2,403
313 252 43 18 0 0 26 420 53 5 14 831
$71,558,965 $58,232,965 $10,986,000 18 $2,340,000 0 $0 0 $0 $27,841,695 $6,830,655 $7,666,227 $13,028,343 $662,915 $127,588,800
392 307 48 19 0 1 35 421 57 7 22 936
$260,003,969 874 $223,381,364 679 $23,088,933 79 50 $9,933,672 116 24 $3,600,000 0 1097 $96,165,376 16 $170,251,413 119 $31,857,725 2073 $173,602,705 511 $75,079,598 40 $41,797,300 422 $848,758,086 4,055
$192,335,015 $159,003,017 $16,842,000 116 $16,489,998 0 $0 846 $76,369,598 $205,061,730 $31,955,479 $101,326,497 $31,879,497 $40,678,113 $679,605,929
1038 804 123 84 4 33 134 2023 497 39 465 4,229
0 0 0
0 0 0
Units
0 0 0
Value
$4,408,583 $4,095,250 $313,333 $0 $0 $0 $1,626,138 $353,188 $629,221 $0 $83,944 $7,101,074
MOORHEAD, MN Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
196 148 48 0 0 15 30 472 88 0 44 845
0 0 302
0 8 209
$31,869,535 $27,344,201 $3,325,333 $0 $1,200,000 $17,204,537 $34,063,697 $5,283,822 $38,032,224 $0 $611,351 $127,065,166
FARGO, ND Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
497 366 52 79 0 27 80 1020 338 32 349 2,343
$108,827,349 467 $89,105,129 366 $8,804,890 82 79 $10,917,330 19 0 $0 0 902 $76,040,603 28 $59,590,558 61 $14,782,121 1076 $72,050,626 360 $129,234,511 28 $25,657,411 429 $486,183,179 2,449
420 303 54 31 0 3 39 398 44 8 36 948
$100,482,336 444 $82,974,336 366 $8,105,000 47 63 $9,403,000 8 0 $0 0 42 $4,759,000 0 $40,516,630 41 $7,055,590 444 $27,550,112 74 $9,795,097 8 $10,946,315 17 $201,105,080 1,028
1,140 840 158 110 0 45 152 1944 475 40 442 4,238
$255,941,434 1,101 $209,665,214 894 $25,955,890 133 142 $20,320,330 27 0 $0 12 1246 $105,146,483 37 $110,995,902 132 $26,978,046 2051 $109,239,361 504 $139,029,608 36 $37,568,790 532 $784,899,624 4,393
65 0 840
$108,729,863 $89,835,700 $8,673,830 $10,220,333 $0 $73,769,616 $86,588,889 $17,794,073 $74,071,113 $62,091,574 $34,231,124 $457,276,251
WEST FARGO, ND Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
$101,215,173 $87,016,840 $9,858,333 31 $4,340,000 0 $0 0 $0 $51,114,550 $6,611,754 $10,754,550 $36,890,542 $3,655,718 $210,242,287
37 0 14
$91,085,491 $76,074,714 $9,649,778 $5,361,000 $0 $1,586,333 $39,824,292 $6,832,666 $15,323,630 $19,904,661 $5,088,316 $179,645,389
TOTAL Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
12/6/2017
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.
103 8 1,063
$236,093,473 $197,349,865 $21,962,274 $15,581,333 $1,200,000 $92,560,486 $162,103,015 $30,263,750 $128,056,188 $81,996,234 $40,014,734 $771,087,880
Home Builders Association of Fargo-Moorhead Outlying Communities Building Permit Report 2017 - Year-to-Date (November) 2016 BARNESVILLE, MN Total Housing Starts Single Family Twin Home Row/Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
Permits
2017 $1,389,000 $1,389,000 $0 $0 $0 $0 $96,000 $418,469 $20,545 $0 $33,164 $1,957,178
6 6 0 0 0 0 1 20 5 4 0 36
$2,125,006 $2,125,006 $0 0 $0 0 $0 0 $0 $140,434 $380,816 $1,045,000 $23,579,037 $0 $27,270,293
KINDRED, ND Total Housing Starts Single Family Twin Home Row/Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
7 7 0 0 0 0 0 8 0 0 0 15
$1,389,000 $1,389,000 $0 0 $0 0 $0 0 $0 $0 $174,800 $99,000 $0 $395,600 $2,058,400
1 1 0 0 0 0 0 7 0 1 4 13
$220,000 $220,000 $0 $0 $0 $0 $0 $75,500 $0 $250,000 $207,000 $752,500
MAPLETON, ND Total Housing Starts Single Family Twin Home Row/Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
$3,516,000 $3,516,000 $0 0 $0 0 $0 0 $0 $284,000 $389,336 $125,000 $0 $222,326 $4,536,662
42 41 1 0 0 0 6 26 7 0 31 112
$12,253,935 $11,853,935 $400,000 0 $0 0 $0 0 $0 $1,391,000 $2,658,896 $786,841 $0 $621,116 $17,711,788
Value Permits
17 12 0 1 0 0 0 51 5 0 42 115
$3,891,000 $3,091,000 $0 5 $800,000 0 $0 0 $0 $0 $603,176 $60,500 $0 $128,311 $4,682,987
4 4 0 0 0 0 1 57 3 0 22 87
CASSELTON, ND Total Housing Starts Single Family Twin Home Row/Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
2 2 0 0 0 0 3 34 4 1 3 47
$1,111,000 $1,111,000 $0 0 $0 0 $0 0 $0 $343,320 $524,115 $62,000 $1,470,600 $52,000 $3,563,035
HARWOOD, ND Total Housing Starts Single Family Twin Home Row/Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
4 4 0 0 0 0 0 6 1 0 14 25
HORACE, ND Total Housing Starts Single Family Twin Home Row/Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
8 8 0 0 0 0 4 12 2 0 16 42
12/6/2017
2016 HAWLEY, MN Total Housing Starts Single Family Twin Home Row/Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
Units
Units
0 0 0
0 0 0
Value
Permits
Units
6 5 0 0 1 0 1 4 0 0 16 27
2017 Value Permits
Units
Value
$1,460,000 $1,210,000 $0 $0 $250,000 $0 $615,333 $11,100 $0 $0 $97,350 $2,183,783
4 4 0 0 0 0 0 0 0 0 18 22
$1,817,000 $1,817,000 $0 $0 $0 $0 $0 $519,400 $0 $0 $0 $2,336,400
5 5 0 0 0 0 2 9 1 1 0 18
43 19 24 0 0 0 1 13 1 1 0 59
$8,157,743 $4,838,743 $3,319,000 0 $0 0 $0 0 $0 $650,000 $144,786 $30,670 $6,439,325 $0 $15,422,524
42 36 6 0 0 0 0 23 3 0 1 69
$10,964,556 $9,726,556 $1,238,000 0 $0 0 $0 0 $0 $0 $133,173 $5,000 $0 $68,000 $11,170,729
OXBOW, ND Total Housing Starts Single Family Twin Home Row/Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
10 10 0 0 0 0 1 1 0 0 0 12
$9,272,000 $9,272,000 $0 0 $0 0 $0 0 $0 $1,300,000 $18,000 $0 $0 $0 $10,590,000
16 16 0 0 0 0 0 2 0 1 0 19
$12,501,603 $12,501,603 $0 0 $0 0 $0 0 $0 $0 $744,500 $0 $1,258,000 $0 $14,504,103
TOTAL Total Housing Starts Single Family Twin Home Row/Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
97 67 24 1 1 0 10 129 13 2 91 342
$30,613,743 $26,244,743 $3,319,000 5 $800,000 1 $250,000 0 $0 $3,192,653 $2,384,713 $377,170 $7,909,925 $895,587 $45,373,791
120 113 7 0 0 0 10 144 19 7 76 376
$41,979,100 $40,341,100 $1,638,000 0 $0 0 $0 0 $0 $1,972,434 $4,501,552 $1,872,386 $26,040,137 $2,926,405 $79,292,014
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.
0 1 0
0 0 0
0 0 0
0 0 0
$1,025,000 $1,025,000 $0 $0 $0 $0 $0 $0 $0 $0 $1,997,125 $3,022,125
$1,500,000 $1,500,000 $0 $0 $0 $0 $345,000 $90,198 $15,000 $953,100 $0 $2,903,298