Permits Plus 2021 Issue 3

Page 1

ISSUE 3 | JUNE 30 2021

Permits PLUS

+

Published six times per year, Permits Plus aims to provide a concise report on building permit numbers and a timely update on Association advocacy efforts.

FOR YOUR CALENDAR July 12 HBA Golf Outing *sold out*

July 14 Hands-On Safety: Stairs & Ladders July 28 Muddy Boots Picnic Aug. 2 HBA Golf Outing Aug. 18 Hands-On Safety: Scaffolding Aug. 23 High Noon Shootout Sept. 11 Downtown Living Tour Sept. 18-19 & 25-26 Fall Parade of Homes Sept. 25-26 Remodeled Home Tour Sept. 30 HBA Happy Hour Oct. 5 NAHB Economist Visit/ Housing Impact Study Release Oct. 28 Casino Royale

Visit the calendar at hbafm.com to register.

Fargo property tax exemptions targeted

North Dakota law allows local jurisdictions to grant a two-year property tax exemption up to $150,000 on newly constructed homes. Proposed changes to Fargo’s tax exemption policy will wipe the exemption’s utility off the books and some commissioners would unhesitatingly vote to eliminate it. HBA of F-M plans to meet with commissioners to understand their concerns and work toward a solution. Commissioners have not presented solid data justifying a need to change. A commissioner suggests reducing the maximum to $75,000 and disqualifying all homes valued at more than $500,000. These amounts are unreasonable because the current $150,000 limit was established 11 years ago and $500,000 is no longer a luxury-level home. Lumber and materials costs are at an all-time high, adding $36,000 to the price of an average-size home according to a National Association of Home Builders. That is especially hurtful because as of February 2021, and according to NAHB, for every $1,000 increase in the price of a home, 200 potential purchasers were losing buying power to purchase homes in the Fargo area. Additionally, Fargo’s current homeownership rate is extremely low at 38.6% when compared to a regional level of 52.5% and the national rate of 67%. There is also a push to eliminate the builder property tax exemption which allows builders to claim the exemption if the home is unoccupied. However, only 11 contractors utilize this incentive, and it renders far greater returns than cost to the city. The proposals also threaten commercial construction. Currently, businesses can apply for the Payment In Lieu of Taxation (PILOT) exemption which allows for a 5-year exemption for locating or expanding in the city. Tax Increment Finance (TIF) programs are on also questioned by commissioners. However, the proposals seem to make rebuilding the top priority at the cost of commercial programs such as PILOT and TIF, that incentivize growth. Further yet, weakening Fargo’s property tax exemption will weaken the city’s competitiveness because neighboring communities such as Horace, Moorhead and West Fargo offer exemptions on newly constructed homes that would push Fargo into the backseat. Exemptions continued on back page

2020 Permit Data Detail Available To Members Only

• $35 - Year-end summary (new residential and multi-family) Builders by number of permits and permit value for Dilworth, Fargo, Moorhead and West Fargo. It includes all builders who pulled new construction permits, the number they pulled and total value. Includes worksheets for single-family, row house, twin home and multi-family. • $50 - Housing and new commercial by permit price Access new housing and commercial activity broken out by permit prices and types of construction in each community we track. • $75 - Both reports Contact Krista Mund at (701) 232-5846 or kristam@hbafm.com.

HBA OF F-M + 1802 32ND AVE S + FARGO ND 58103 + (701) 232-5846 + HBAFM.COM + INFO@HBAFM.COM


New this fall!

Brought to you by HBA of F-M Marketed with the Parade of Homes

SEPTEMBER 11 Create your dream space. Stop in to Lampert Lumber today and get the view you’ve always wanted for your home with our Marvin® Windows selection.

4115 32nd Ave. SW • Fargo • 701-492-0292 LampertLumber.com

2

Permits Plus


ISSUE 3 | JUNE 30 2021

Turn the page for detailed statistics for the Fargo-Moorhead area and surrounding communities year-to-date through May 2021.

local stats at a

GLANCE

+

May Top Cities For Residential Permits 214

FARGO

Single Family permits authorized

73%

compared to May 2020

WEST FARGO

128

HORACE

122 38

MOORHEAD MAPLETON

18

F-M & Surrounding Area Building Activity 2021 2020 2019

1,454 1,311 1,538

2017

1,718

Twin Home 30

Family 499 Row House 16

YTD M a y 202 1

2018

1,894

545 rts: Sta ng

Tota lH ou si Single

Permits Authorized Year-To-Date May 2017 - 2021

Issue 3 | June 30, 2021

3


4

Home Builders Association of Fargo-Moorhead Summary of Building Permits Granted 2021 - Year-to-Date (May)

Each month, Home Builders Association of Fargo-Moorhead contracts with Brady Martz & Associates, P.C., to compile the building permits into a uniform report. It includes a grand total on this page for all jurisdictions, types of construction, valuations and comparisons. Jurisdictions are broken down into further detail as follows: Primary: Fargo, Moorhead, West Fargo Bordering: Dilworth, Horace Neighboring: Barnesville, Casselton, Harwood, Hawley, Kindred, Mapleton, Oxbow

• • •

All Jurisdictions GRAND TOTAL Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total

2017 Permits

352 319 29 4 7 36 914 236 8 165 1718

Units

2018 Value Permits

$85,730,931 $80,766,931 $4,504,000 4 $460,000 348 $24,824,400 $91,492,688 $13,881,720 $35,207,600 $15,405,607 $8,170,092 $274,713,038

308 272 36 10 54 768 224 19 155 1538

Units

2019 Value Permits

$77,449,198 $70,774,398 $6,674,800 475 $48,930,695 $62,648,292 $12,649,498 $55,221,444 $42,377,315 $13,518,376 $312,794,818

286 276 10 1 48 635 240 19 82 1311

Units

2020 Value Permits

$71,943,124 $70,257,124 $1,686,000 36 $11,600,000 $57,620,495 $11,753,981 $76,071,148 $45,212,703 $3,841,761 $278,043,212

294 288 6 3 38 715 225 16 163 1454

Units

2021 Value Permits

$76,601,995 $75,583,159 6 $1,018,836 149 $14,506,992 $60,092,165 $11,687,953 $87,751,405 $31,073,907 $12,594,611 $294,309,028

545 499 30 16 7 70 828 254 30 160 1894

Units

% Difference 20-21 Value Permits

$164,068,843 $148,127,806 $6,137,500 16 $9,803,537 389 $62,867,125 $136,893,166 $14,118,754 $75,120,138 $94,746,634 $11,936,566 $559,751,226

The HBA of F-M also has additional 2020 reports available for purchase by members only: $35 - Detail on new home builders' permit activity $50 - New housing and commercial permits by value and community $75 - Both reports

Permits Plus

The HBA of F-M nurtures a thriving, innovative, and diverse housing industry in our community. It is a non-profit trade association of just under 750 members that has been in existence since 1956.

1802 32nd Ave S | Fargo, ND 58103 | (701) 232-5846 | info@hbafm.com | hbafm.com

5-Yr Avg

Value Permits

85% 73% 167% 133% 84% 16% 13% 88% -2% 30%

114% 96% 862% 333% 128% 21% -14% 205% -5% 90%

357 331 21 5 6 49 772 236 18 145 1583

Units

Value

$95,158,818 $89,101,884 $3,800,460 5 $2,256,475 279 $32,545,842 $81,749,361 $12,818,381 $65,874,347 $45,763,233 $10,012,281 $343,922,264


Issue 3 | June 30, 2021

Home Builders Association of Fargo-Moorhead Summary of Building Permits Granted 2021 - Year-to-Date (May) Page 2 Primary Communities FARGO, ND

2017 Permits

Units

2018 Value Permits

Units

2019 Value Permits

Units

2020 Value Permits

Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total

147 127 16 4 7 15 476 160 5 120 930

$34,220,116 $31,144,116 $2,616,000 4 $460,000 348 $24,824,400 $26,358,590 $8,377,345 $22,140,658 $3,180,509 $5,645,839 $124,747,457

105 93 12 8 31 388 160 13 85 790

$27,771,655 $24,616,855 $3,154,800 398 $41,430,695 $33,364,270 $7,555,507 $36,122,728 $31,224,036 $11,583,394 $189,052,285

90 90 19 321 159 11 47 647

$22,606,707 $22,606,707 $31,439,134 $6,561,251 $41,442,535 $13,960,122 $1,941,191 $117,950,940

135 129 6 3 14 320 149 11 77 709

Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total

45 43 2 12 184 42 7 290

$9,334,500 $9,084,500 $250,000 $51,982,227 $2,295,076 $10,500,917 $60,000 $74,172,720

55 49 6 2 9 178 37 16 297

$11,642,087 $10,782,087 $860,000 77 $7,500,000 $6,893,660 $1,639,941 $12,368,731 $85,200 $40,129,619

56 50 6 11 143 40 8 258

$11,084,832 $9,898,832 $1,186,000 $6,231,161 $2,016,200 $21,240,153 $24,000 $40,596,346

40 40 5 186 43 9 283

Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total

112 103 9 4 178 27 3 8 332

$24,809,700 $23,621,700 $1,188,000 $9,134,458 $2,304,724 $2,073,267 $12,225,098 $421,045 $50,968,292

105 87 18 12 149 19 4 15 304

$23,334,483 $20,674,483 $2,660,000 $21,740,362 $1,914,822 $5,005,135 $9,898,086 $522,850 $62,415,738

98 94 4 1 16 113 28 5 12 273

$24,185,300 $23,685,300 $500,000 36 $11,600,000 $19,830,000 $1,949,203 $9,149,970 $1,628,370 $1,585,370 $69,928,213

66 66 14 140 29 3 25 277

Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total

304 273 27 4 7 31 838 229 8 135 1,552

$68,364,316 $63,850,316 $4,054,000 4 $460,000 348 $24,824,400 $87,475,275 $12,977,145 $34,714,842 $15,405,607 $6,126,884 $249,888,469

265 229 36 10 52 715 216 17 116 1,391

$62,748,225 $56,073,425 $6,674,800 475 $48,930,695 $61,998,292 $11,110,270 $53,496,594 $41,122,122 $12,191,444 $291,597,642

244 234 10 1 46 577 227 16 67 1,178

$57,876,839 $56,190,839 $1,686,000 36 $11,600,000 $57,500,295 $10,526,654 $71,832,658 $15,588,492 $3,550,561 $228,475,499

241 235 6 3 33 646 221 14 111 1,269

MOORHEAD, MN

WEST FARGO, ND

TOTAL - Primary

-

-

-

-

Units

2021 Value Permits

% Difference 20-21 Value Permits

5-Yr Avg

Value Permits

Units

Value

$34,542,221 $33,523,385 6 $1,018,836 149 $14,506,992 $26,006,552 $6,619,729 $67,912,032 $28,039,415 $11,049,531 $188,676,472

214 183 20 11 5 30 414 183 24 84 954

$62,057,568 $56,037,568 $4,100,000 11 $1,920,000 307 $51,348,500 $123,580,021 $7,698,492 $64,141,481 $82,054,484 $10,974,563 $401,855,109

59% 42% 83% 67% 114% 29% 23% 118% 9% 35%

80% 67% 88% 254% 375% 16% -6% 193% -1% 113%

138 124 10 4 5 22 384 162 13 83 806

$36,239,653 $33,585,726 $1,974,160 4 $679,767 240 $26,422,117 $48,149,713 $7,362,465 $46,351,887 $31,691,713 $8,238,904 $204,456,453

$8,541,100 $8,541,100 $16,084,228 $1,957,926 $6,612,593 $82,236 $33,278,083

38 34 4 1 4 203 38 14 298

$9,021,000 $8,221,000 $800,000 $7,918,625 $3,299,650 $2,518,780 $5,212,822 $227,000 $28,197,877

-5% -15% -20% 9% -12% 56% 5%

6% -4% -79% 29% -21% 176% -15%

47 43 4 1 8 179 40 11 285

$9,924,704 $9,305,504 $619,200 $3,083,725 $16,898,185 $2,085,585 $11,187,043 $95,687 $43,274,929

$17,567,282 $17,567,282 $15,381,385 $1,920,650 $13,122,280 $2,694,492 $290,240 $50,976,329

128 119 4 5 29 149 22 5 5 338

$47,169,447 $38,448,410 $837,500 5 $7,883,537 $6,925,000 $3,019,780 $1,912,380 $6,231,950 $144,000 $65,402,557

94% 80% 107% 6% -24% 67% -80% 22%

169% 119% -55% 57% -85% 131% -50% 28%

102 94 7 1 15 146 25 4 13 305

$27,413,242 $24,799,435 $1,037,100 1 $1,576,707 7 $2,320,000 $14,602,241 $2,221,836 $6,252,606 $6,535,599 $592,701 $59,938,226

$60,650,603 $59,631,767 6 $1,018,836 149 $14,506,992 $57,472,165 $10,498,305 $87,646,905 $30,733,907 $11,422,007 $272,930,884

380 336 28 16 6 63 766 243 29 103 1,590

$118,248,015 $102,706,978 $5,737,500 16 $9,803,537 353 $59,267,125 $133,804,671 $13,237,052 $71,266,683 $88,286,434 $11,345,563 $495,455,543

58% 43% 167% 100% 91% 19% 10% 107% -7% 25%

95% 72% 862% 309% 133% 26% -19% 187% -1% 82%

287 261 20 5 5 45 708 227 17 106 1,396

$73,577,600 $67,690,665 $3,630,460 5 $2,256,475 272 $31,825,842 $79,650,140 $11,669,885 $63,791,536 $38,227,312 $8,927,292 $307,669,607

-

-

5 6/29/2021

Units

No assurance is provided. Permit information reported here may have changed. For the most current permit information, please contact the individual cities.

46

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Home Builders Association of Fargo-Moorhead Summary of Building Permits Granted 2021 - Year-to-Date (May) Page 3 Bordering Communities DILWORTH, MN

2017 Permits

Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total

2 2 2 23 1 5 33

Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total

14 14 2 19 3 5 43

Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total

16 16 4 42 4 10 76

HORACE, ND

TOTAL - Bordering

Permits Plus 6/29/2021

Units

-

-

-

2018 Value Permits

$230,500 $230,500 $3,456,413 $151,096 $4,358 $3,842,367

6 6 11 2 5 24

$4,627,435 $4,627,435 $465,000 $358,264 $389,400 $128,000 $5,968,099

15 15 1 9 4 29

$4,857,935 $4,857,935 $3,921,413 $509,360 $393,758 $128,000 $9,810,466

21 21 1 20 2 9 53

Units

-

-

-

2019 Value Permits

$1,660,000 $1,660,000 $59,280 $181,550 $8,000 1,908,830

6 6 12 2 1 21

$4,044,400 $4,044,400 $50,000 $628,500 $665,000 $5,387,900

20 20 10 2 7 39

$5,704,400 $5,704,400 $50,000 $687,780 $181,550 $673,000 $7,296,730

26 26 22 2 2 8 60

Units

-

-

-

2020 Value Permits

$1,775,000 $1,775,000 $83,719 $20,000 $1,878,719

6 6 1 13 1 10 31

$6,472,400 $6,472,400 $571,205 $29,607,211 $234,900 $36,885,716

23 23 1 12 7 43

$8,247,400 $8,247,400 $654,924 $20,000 $29,607,211 $234,900 $38,764,435

29 29 2 25 1 17 74

Units

-

-

-

2021 Value Permits

$1,735,000 $1,735,000 $1,075,000 $171,019 $25,000 $50,000 $3,056,019

3 3 2 7 3 7 22

$6,149,266 $6,149,266 $625,000 $110,283 $745,400 $7,629,949

122 120 2 2 24 1 1 16 166

$7,884,266 $7,884,266 $1,700,000 $281,302 $25,000 $795,400 $10,685,968

125 123 2 4 31 4 1 23 188

No assurance is provided. Permit information reported here may have changed. For the most current permit information, please contact the individual cities.

Units

-

-

-

% Difference 20-21 Value Permits

5-Yr Avg

Value Permits

$1,210,000 $1,210,000 $726,900 $46,970 $250,000 $56,110 $2,289,980

-50% -50% 100% -46% 200% -30% -29%

-30% -30% -32% -73% 900% 12% -25%

5 5 1 13 2 6 27

$32,185,766 $31,785,766 $400,000 $2,036,595 $196,504 $58,000 $6,460,200 $226,089 $41,163,154

430% 422% 100% 100% 129% 286%

423% 417% 226% 78% -70% 439%

38 38 1 15 1 1 8 64

$33,395,766 $32,995,766 $400,000 $2,763,495 $243,474 $308,000 $6,460,200 $282,199 $43,453,134

331% 324% 100% 24% 300% 35% 154%

324% 319% 63% -13% 1132% -65% 307%

43 43 2 28 3 1 13 90

Units

-

-

-

Value

$1,322,100 $1,322,100 $1,051,663 $102,417 $96,182 $22,822 $2,595,183 $10,695,853 $10,615,853 $80,000 $635,319 $372,951 $89,480 $7,213,482 $399,878 $19,406,964 $12,017,953 $11,937,953 $80,000 $1,686,982 $475,368 $185,662 $7,213,482 $422,700 $22,002,147


Issue 3 | June 30, 2021

Home Builders Association of Fargo-Moorhead Summary of Building Permits Granted 2021 - Year-to-Date (May) Page 4 Neighboring Communities BARNESVILLE, MN Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous

2017 Permits

Total

1 1 1 18 10 30

Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total

2 2 5 1 8

Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total

1 1 1 2 4

Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total

1 1 8 9

CASSELTON, ND

HARWOOD, ND

HAWLEY, MN

7 6/29/2021

Units

-

-

-

-

2018 Value Permits

$304,000 $304,000 $96,000 $192,967 $12,508 $605,475

1 1 14 2 2 22 41

$459,000 $459,000 $142,700 $95,000 $696,700

2 2 5 2 9

$220,000 $220,000 $10,000 $137,000 $367,000

-

$300,000 $300,000 $1,765,700 $2,065,700

1 1 6 8

Units

-

-

-

-

2019 Value Permits

$179,757 $179,757 $146,118 $1,062,000 $1,255,193 $359,432 $3,002,500

1 1 1 25 7 34

$1,048,000 $1,048,000 $149,600 $374,300 $1,571,900

1 1 2 2 1 6

$4,000 $12,000 $55,500 $71,500

4 4 5 9

Units

-

-

-

-

2020 Value Permits

$230,000 $230,000 $76,200 $379,286 $315,490 $1,000,976

7 7 1 23 1 20 52

$385,885 $385,885 $39,500 $2,638,000 $17,000 $3,080,385

1 4 1 8 14

$1,040,000 $1,040,000 $17,600 $1,057,600

1 1 2 2 2 4 6

Units

-

-

-

-

2021 Value Permits

$1,631,000 $1,631,000 $70,000 $303,691 $3,500 $209,449 $2,217,640

12 12 1 14 24 51

$835,000 $140,900 $275,000 $78,755 $1,329,655

1 1 2 6 4 4 17

$75,000 $37,000 $112,000

1 1

$610,000 $610,000 $30,000 $640,000

1 1 1 2 4

No assurance is provided. Permit information reported here may have changed. For the most current permit information, please contact the individual cities.

Units

-

-

-

36

% Difference 20-21 Value Permits

5-Yr Avg

Value Permits

$3,261,500 $3,261,500 $70,000 $197,139 $143,304 $3,671,943

71% 71% -39% -100% 20% -2%

100% 100% -35% -100% -32% 66%

4 4 1 19 2 15 41

$380,000 $380,000 $255,000 $135,000 $3,417,455 $138,000 $4,325,455

100% 50% -100% -50% 21%

-69% -4% -100% 75% 225%

1 1 1 4 2 2 10

$6,768 $6,768

-100% -50%

-91% -100% -94%

1 1 2

$310,000 $310,000 $3,600,000 $5,000 $3,915,000

-50% -50% -50% -33%

-49% -49% -83% 512%

2 2 5 7

Units

-

-

-

7

Value

$1,121,251 $1,121,251 $62,440 $243,840 $276,198 $251,039 $144,939 $2,099,707 $454,577 $454,577 $218,000 $121,540 $1,304,951 $58,400 $43,351 $2,200,819 $44,000 $44,000 $18,354 $34,800 $97,154 $452,000 $452,000 $720,000 $800 $2,400 $374,760 $1,549,960


8

Home Builders Association of Fargo-Moorhead Summary of Building Permits Granted 2021 - Year-to-Date (May) Page 5 Neighboring Communities KINDRED, ND

2017 Permits

Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total

1 1 3 4

Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total

20 18 2 7 2 29

Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total

6 6 6

Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total

32 30 2 1 34 3 20 90

MAPLETON, ND

OXBOW, ND

TOTAL - Neighboring

Permits Plus

6/29/2021

Units

-

-

-

-

2018 Value Permits

$330,000 $330,000 $9,798 $339,798

6 6 4 10

$5,237,680 $4,787,680 $450,000 $39,750 $4,000 $5,281,430

5 5 1 8 1 2 17

$5,658,000 $5,658,000 $5,658,000

8 8 1 9

$12,508,680 $12,058,680 $450,000 $96,000 $395,215 $99,000 $1,915,208 $15,014,103

22 22 1 33 6 2 30 94

Units

-

-

-

-

2019 Value Permits

$2,152,000 $2,152,000 $50,549 $2,202,549

4 4 4 2 10

$1,436,054 $1,436,054 $600,000 $441,180 $95,000 $239,000 $2,811,234

3 3 1 4 2 10

$4,180,762 $4,180,762 $60,001 $4,240,763

3 3 1 4

$8,996,573 $8,996,573 $600,000 $851,448 $1,543,300 $1,255,193 $653,932 $13,900,446

16 16 2 36 11 1 7 73

Units

-

-

-

-

2020 Value Permits

$1,229,000 $1,229,000 $31,700 $38,700 $1,299,400

3 3 1 6 2 1 1 14

$991,000 $991,000 $44,000 $117,500 $1,265,000 $2,417,500

8 8 7 1 16

$1,943,000 $1,943,000 $4,417 $1,947,417

4 4 3 7

$5,818,885 $5,818,885 $120,200 $572,403 $4,218,490 $17,000 $56,300 $10,803,278

24 24 3 44 3 2 35 111

Units

-

-

-

-

2021 Value Permits

$1,162,446 $1,162,446 $15,000 $100,500 $76,000 $65,000 $7,000 $1,425,946

7 7 3 1 4 15

$2,298,680 $2,298,680 $179,105 $15,000 $2,492,785

18 18 6 2 26

$2,365,000 $2,365,000 $109,150 $2,474,150

1 1 1 2

$8,067,126 $8,067,126 $920,000 $908,346 $79,500 $340,000 $377,204 $10,692,176

40 40 1 3 31 7 34 116

No assurance is provided. Permit information reported here may have changed. For the most current permit information, please contact the individual cities.

Units

% Difference 20-21 Value Permits

5-Yr Avg

Value Permits

$2,863,340 $2,863,340 $138,000 $15,000 $22,500 $3,038,840

133% 133% -100% -50% -50% -100% 300% 7%

146% 146% -100% 37% -80% -100% 221% 113%

4 4 4 1 1 10

$4,810,222 $4,810,222 $96,321 $113,000 $5,019,543

125% 125% -14% -100% 63%

109% 109% -46% -100% 101%

10 10 6 1 1 18

$800,000 $800,000 $65,000 $865,000

-75% -75% -67% -71%

-66% -66% -40% -65%

4 4 1 5

$12,425,062 $12,425,062 36 $3,600,000 $325,000 $638,228 $3,545,455 $308,804 $20,842,549

67% 67% -30% 133% -100% -3% 5%

54% 54% -65% -30% 4360% -100% -18% 95%

26 26 2 36 6 1 25 96

-

-

-

Units

-

-

-

7

Value

$1,547,357 $1,547,357 $3,000 $66,109 $18,200 $13,000 $13,640 $1,661,307 $2,954,727 $2,864,727 $90,000 $128,800 $174,771 $295,400 $50,800 $3,604,498 $2,989,352 $2,989,352 $47,714 $3,037,066 $9,563,265 $9,473,265 $90,000 $720,000 $412,240 $673,128 $1,897,149 $322,439 $662,290 $14,250,510


HBA meets with ND congressional delegates in May During Bring Housing Home events coordinated by the North Dakota Association of Builders, HBA of F-M and its fellow local North Dakota associations met with each member of North Dakota’s congressional delegation. Each association presented a separate topic for discussion. HBA of F-M addressed National Flood Insurance Program. HBA of F-M President Kim Hochhalter, Building Concepts, Inc., and John Gunkelman, Dakota Construction of Fargo, Inc., represented members during the meetings. HBA of F-M leaders reminded the senators and representative that National Flood Insurance Program must not lapse because home closings in the 100-year floodplain will be delayed or canceled and the amount of money that the Federal Emergency Management Agency can use to help disaster areas will be severely limited. Each delegate supports the Association’s call for a long-term extension of the program but agreed that the program will continue its current path of short-term extensions. U.S. Rep. Kelly Armstrong said the congressional divisions are geographical between coastal and inland states. FEMA is updating the NFIP risk rating methodology through implementation of a new pricing methodology called Risk Rating 2.0. Hochhalter shared concerns about the methodology subjecting North Dakota to unfair pricing premiums. She said more information is required before educated decisions can be made and responsible actions can be taken. U.S. Sen. Kevin Cramer serves on the Senate Banking Committee and agreed to urge its chair, U.S. Sen. Sherrod Brown, to push FEMA for more of that information. Lumber and material costs were a focal point during the meetings. When the Bismarck association representative identified it as his issue of concern, Armstrong wittingly introduced the topic saying “(lumber and materials are) too expensive and hard to get.” Cramer said the nation needs to utilize its own lumber inventory rather than rely on foreign suppliers to facilitate demand. The HBA of F-M thanked U.S. Sen. John Hoeven for his leadership in securing the $67 million required to raise a portion of Interstate 29. This funding will save money and keep the project on schedule. Content written by Mark Puppe, Communications & Public Affairs Strategist | mark@hbafm.com

Issue 3 | June 30, 2021

Building Officials Corner written by

Keith Asheim Horace City Inspector

The city of Horace is growing and so is our storm water management program.

We have recently added storm water management information to our website and will be continuing to add information as needed. When working in Horace city or in our extraterritorial jurisdiction, contractors are required to comply with our Storm Water Pollution Prevention Plan (SWPPP) requirements. The city will be performing compliance checks, so in addition to onsite compliance, please be prepared to provide documentation and reports that are given to you by the city and your North Dakota Pollutant Discharge Elimination System (NDPDES) from the state. This includes applications, methods of control, timelines, inspections and logs. I would also like to thank you all for your patience this year. We will continue to work towards reviewing applications and carrying out inspections promptly, although please plan accordingly as we are currently experiencing a delay in issuing permits due to demand. We are working to improve our services, and we will be posting a new building inspector/ plan reviewer and a seasonal stormwater inspector to assist with the building permit process of our growing city. See more content like this at hbafm. com/blog.

9


New home sales drop in May as housing costs continue to rise From NAHB Now, June 23, 2021 - New home sales fell to the lowest pace in a year, with prices jumping 18% on a year-over-year basis, due to the high costs and uncertain availability of building materials, lots and labor. Sales of newly built, single-family homes fell 5.9% in May to a 769,000 seasonally adjusted annual rate, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The May number follows significant downward revisions to the April estimate and previous months’ readings.

“New home prices have increased over the last year due to higher material costs and delays for deliveries,” said National Association of Home Builders Chairman Chuck Fowke. “Policymakers must take action to improve supply-chains in order to protect housing affordability. While lumber costs have come down in recent weeks, they are still more than 210% higher than a year ago. And OSB prices are up 380% over the last year.” “As expected, new home sales have continued to soften this spring. While higher prices have shifted some buyers to the sidelines, NAHB survey data indicates that approximately 20% of builders have limited sales activity in recent months in order to manage supply-

chains of materials and labor availability,” said NAHB Chief Economist Robert Dietz. A new home sale occurs when a sales contract is signed or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction or completed. In addition to adjusting for seasonal effects, the May reading of 769,000 units is the number of homes that would sell if this pace continued for the next 12 months. Inventory remains low at a 5.1-month supply, with 330,000 new single-family homes for sale, 3.8% lower than May 2020. Supply-side challenges remain an issue, with the count of new homes sold that had not started construction, up 76% over the last year. The count of new homes sold that are completed and ready to occupy is down 33%. The median sales price was $374,400, up 18% from the $317,100 median sales price posted a year earlier. “Entry-level buyers are being most affected by higher prices,” noted Dietz. “Just a year ago, shares of sales priced below $300,000 accounted for 44% of sales, while this May it has dropped to 26%.” Regionally on a year-to-date basis new home sales rose in all four regions, up 48.7% in the Northeast, 33.5% in the Midwest, 32.3% in the South, and 5.6% in the West. These significant increases are due in part to lower sales volume during the Covid crisis a year ago.

NAHB Member

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10

2/1/21 2:59 PM Permits Plus


U.S. REGULAR GASOLINE PRICES (DOLLARS PER GALLON) Source: Energy Information Administration

U.S.

May 17

May 24

May 31

$2.914

$2.896

$2.931

$3.028

Midwest

$3.020

SEASONALLY ADJUSTED UNEMPLOYMENT RATES Apr 2021

Mar 2021

Minnesota

Apr 2020

$3.027

June 7

June 14

$2.951

$2.987

$3.035

$3.069

SINGLE AND MULTI-FAMILY BUILDING PERMITS May 2021

Minnesota

May 2020

% change

9,374

56%

971

50%

533,062

33%

465

97%

Source: NAHB

Source: bls.gov

4.1%

North Dakota

4.2%

9.0%

4.4%

8.7%

14,630 North Dakota

Source: bls.gov

4.2%

United States

Source: NAHB

1,459

Source: bls.gov

6.1%

6.0%

Fargo-Moorhead

14.8%

3.2%

8.3%

Source: NAHB

710,512 Fargo-Moorhead

Source: bls.gov

3.2%

United States

Source: NAHB

916

*Preliminary

MORTGAGE RATES - APR

NATIONAL HOUSING MARKET INDEX Source: National Association of Home Builders

Source: Wells Fargo as of June 16, 2021

30-Year Fixed

3.083%

15-Year Fixed

2.416%

30-Year Fixed VA 15-Year Jumbo

2.494%

2.938%

LOCAL REAL ESTATE

Source: F-M Area Association of Realtors Dilworth, Fargo, Moorhead, West Fargo | Single-Family, Condo, Townhouse, Twin Home, Duplex

June 16, 2021 YTD

June 16, 2020 YTD

% change

$269,570

$242,187

11.3%

$390,336,837

$276,820,134

41%

227

180

26.1%

1,221

963

26.8%

Closed MLS Volume

Range is 0-100. *Preliminary

2.830%

30-Year Jumbo

Home Prices

HMI is based on a monthly survey of NAHB members designed to take the pulse of the single-family housing market. Respondents rate market conditions for the sale of new homes at the present time and in the next six months as well as the traffic of prospective buyers of new homes.

Closed MLS Volume - New Construction Closed MLS Volume - Existing Residential Units

Navigate the rising-cost environment!

In June, National Association of Home Builders hosted free webinars to help members and other industry pros understand the challenges and develop strategies for adapting to the current cost environment.

Missed them? Replays are available! Visit nahb.org. Issue 3 | June 30, 2021

Apr 2021

May 2021

Jun 2021*

Housing Market Index

83

83

81

SF Sales: Next 6 Mo

80

81

National

SF Sales: Present

88

86

74

73

71

Northeast

84

78

South

84

86

Prospective Buyer Traffic Regional HMI Midwest West

88

75 91

79

73

71

70

91

86

85

• The State of the Residential Construction Supply Chain • Trim the Fat: Saving Materials, Dollars & Time When You Design & Build • Delivering the Dream Despite the Unexpected • Using Contracts to Manage Supply Chain Issues • Dynamic Strategic Planning & Budgeting in Uncertain Times

11


Home Builders Association of F-M 1802 32nd Ave S Fargo, ND 58103

Exemptions continued from front page

HBA of F-M contends (and is working to help city commissioners understand) that the city cannot afford lose the exemption or sight of its need to grow and diversify not just redevelop housing stock.

More issues on our radar •

12

HBA of F-M has heard reports about a trend of insufficient appraisals amid escalating construction costs. Members are questioning whether the added costs required to build a home are being considered when determining the value of the home. North Dakota Association of Builders leaders have answered HBA of F-M’s call by digging into the issue with local executive officers and soliciting input and examples from members. Lenders have also been responding to NDAB’s

requests for information. The issue was discussed at the NDAB board meeting in late June. The National Association of Home Builders is monitoring the situation and drafting strategies to combat the issue. •

In July, HBA of F-M CEO Bryce Johnson will be a featured presenter at the Fargo Moorhead West Fargo Chamber of Commerce business discussion event, Eggs & Issues. She will address the disproportion of housing supply and demand coupled with inflated housing prices which cause great concern, especially for this metro area. Local governments and fellow business associations appear to favor an independent review of the regional housing landscape. Additionally, HBA of F-M is currently collecting

and will provide local data to the National Association of Home Builders so an economic housing impact study can be customized to the metro. •

Building Industry Connect events are social opportunities for public officials and HBA of F-M to meet and learn about each other. Separate luncheons at the HBA office have been scheduled with Moorhead Mayor Shelly Carlson (July 22), Fargo City Commissioner Arlette Preston (Aug. 12) and West Fargo City Commissioner Mandy George (Aug. 17).

Content written by Mark Puppe, Communications & Public Affairs Strategist | mark@hbafm.com

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