Issue 6 | Dec. 21, 2016
Permits Plus + A bi-monthly statistics and advocacy update for HBA of F-M members FOR YOUR CALENDAR:
Jan. 23 - Safety Training: CPR/First Aid/AED Jan. 24-25 - Electrical Contractor Continuing Education Jan. 27 - Education Summit: MN Building Contractor, Plumbing, PLT Continuing Education Jan. 27 - Trade Showcase: Browse booths by building industry vendors/suppliers 4-6 p.m. as part of the Education Summit Feb. 1-2 - Certified Aging in Place Specialist Courses Feb. 10 - MN Building Contractor Continuing Education Feb. 16 - Lunch Session: How to Find & Hire the Right People
Visit the calendar at hbafm.com for details.
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. See the insert or visit the members-only section at hbafm. com and click the Information tab.
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.
Housing
study reveals impacts of construction on local economy
Last fall, the HBA of F-M welcomed National Association of Home Builders’ Chief Economist Robert Dietz to deliver an impact study regarding housing in the Fargo-Moorhead metropolitan statistical area. Here is a portion of the executive summary. Visit the members only area of www.hbafm.com, and click the “Information” tab to access the full report, or contact the HBA at (701) 232-5846. The estimated one-year metro area impacts of building 1,149 single-family homes in Fargo include: »» $221.4 million in local income, »» $15.1 million in taxes and other revenue for local governments, and »» 3,215 local jobs. These are local impacts, representing income and jobs for residents of the Fargo MSA, and taxes (and other sources of revenue, including permit fees) for all local jurisdictions within the metro area. They are also one-year impacts that include both the direct and indirect impact of the construction activity itself, and the impact of local residents who earn money from the construction activity spending part of it within the local area. Local jobs are measured in full-time equivalents, for example, one reported job represents enough work to keep one worker employed full-time for a year, based on average hours worked per week by full-time employees in the industry. During the first two years, the additional annually recurring impacts of building 1,149 single-family homes in Fargo are: »» $42.0 million in local income, »» $7.5 million in taxes and other revenue for local governments, and »» 814 local jobs. After the first two years, the annually recurring impacts are »» $43.6 million in local income, »» $9.9 million in taxes and other revenue for local governments, and »» 845 local jobs. These are ongoing, annual local impacts that result from the new homes becoming occupied, and the occupants paying taxes and otherwise participating in the local economy year after year. The ongoing impacts also include the effect of increased property taxes, which are different during the first two years, as explained below. The above impacts were calculated assuming that new single-family homes built in Fargo have an average price of $255,047, which includes $25,000 in raw land value and $1,189 in impact and other fees paid to local governments; and incur an average property tax of $1,014 per year during the first two years. For the homes built on the North Dakota side of the border, a provision in state law grants the first owner of a new single-family home two years of property tax rebate on the first $150,000 of improved value. For the homes built on the Minnesota side of the border, the property tax payment incorporates a two-year new homestead credit program.
HBA OF F-M + 1802 32ND AVE S + FARGO ND 58103 + (701) 232-5846 + HBAFM.COM + INFO@HBAFM.COM
2016 COMPARED TO JANUARY - NOVEMBER 2015 HOUSING STARTS -3%
NEW COMMERCIAL -13%
MULTI FAMILY -18%
TOTAL HOUSING PERMITS BY COMMUNITY
COMMERCIAL REMODEL +6%
RESIDENTIAL REMODEL +6%
PUBLIC PROJECTS -10%
VALUE TPERMIT t lB ildi THROUGH P it NOVEMBER V l through th 2016h 11/16 Total Building Permits Value Miscellaneous 5%
600 500
Public 9%
400
Housing Starts 31%
Jan - Nov 2016
300
Commercial Remodel 20%
Jan - Nov 2015 200
Multi-Family 11%
100 Residential Remodel 4%
0 Dilworth
Moorhead
Fargo
West Fargo
New Commercial 20%
Chart below shows permit and value growth January through November 2016 compared to the same period in 2015. 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
Jan - Nov 2016 21 169 467 444 1101 $4,775,900 $33,745,300 $120,267,596 $101,215,173 $260,003,969 1101 37 132 2051 504 36 532 4393 $260,003,969 $96,165,376 $170,251,413 $31,857,725 $173,602,705 $75,079,598 $41,797,300 $848,758,086
Jan - Nov 2015 27 196 497 420 1140 $7,303,850 $39,327,899 $108,827,349 $100,482,336 $255,941,434 1140 45 152 1944 475 40 442 4238 $255,941,434 $105,146,483 $110,995,902 $26,978,046 $109,239,361 $139,029,608 $37,568,790 $784,899,624
Difference -6 -27 -30 24 -39 -$2,527,950 -$5,582,599 $11,440,247 $732,837 $4,062,535 -39 -8 -20 107 29 -4 90 155 $4,062,535 -$8,981,107 $59,255,511 $4,879,679 $64,363,344 -$63,950,010 $4,228,510 $63,858,462
HBA of F-M’s monthly building permit report is prepared by Fiebiger, Swanson, West & Co.
Percentage Difference -22% -14% -6% 6% -3% -35% -14% 11% 1% 2% -3% -18% -13% 6% 6% -10% 20% 4% 2% -9% 53% 18% 59% -46% 11% 8%
Permits Plus
SEASONALLY ADJUSTED UNEMPLOYMENT RATES Oct. 2016
Sept. 2016
Minnesota
Oct. 2015
Source: bls.gov
4.0%
North Dakota
4.0%
3.6%
3.1%
2.7%
5.0%
5.0%
2.2%
1.7%
Source: bls.gov
3.0%
United States Source: bls.gov
4.9%
Fargo-Moorhead Source: bls.gov
1.8%
SINGLE AND MULTI-FAMILY BUILDING PERMITS Oct. 2016
Oct. 2015
Minnesota
% change
Source: NAHB
19,401
19,081
2%
5,862
-40%
991,027
1%
2,452
-4%
North Dakota Source: NAHB
3,511
United States Source: NAHB
1,002,139
Fargo-Moorhead Source: HBA of F-M
2,344
MORTGAGE RATES
Source: Wells Fargo as of Dec. 12, 2016
30-Year Fixed
4.375%
30-Year Fixed FHA
4.250%
5-Year ARM VA
3.625%
15-Year Fixed
3.625%
30-Year Jumbo
4.250%
FRAMING LUMBER PRICES Source: National Association of Home Builders
Date
Per 1,000 Board Ft.
CME Futures
Nov. 11
$344
$316.7
Nov. 18 Nov. 4
Oct. 28
$346 $345
$323.1 $311.1
$350
$305.1
SEE YOUR AD HERE Single-issue: $85 Annual: $415
Contact Allison Weckman at (701) 232-5846 or allisonw@hbafm.com for more info. LOCAL REAL ESTATE Source: F-M Area Association of Realtors
Nov. 2016
Nov. 2015
% change
$234,366
$223,710
5%
$822,338,867
$767,990,767
7%
$158,726,949
$149,153,653
6%
$595,033,195
562,972,526
6%
Home prices in Fargo-Moorhead Closed MLS Volume
Closed MLS Volume - New Construction
Closed MLS Volume - Existing Residential
U.S. REGULAR GASOLINE PRICES
Source: Energy Information Administration
U.S.
Midwest
(DOLLARS PER GALLON)
Nov. 7
Nov. 14
Nov. 21
Nov. 28
$2.082
$1.994
$2.014
$2.039
$2.233
Issue 6 | Dec. 21, 2016
$2.184
$2.155
$2.154
Dec. 5
$2.208 $2.107
3
Home Builders Association of F-M 1802 32nd Ave. S. Fargo, N.D. 58103
Pluses
and
Minuses
Minnesota Fire Sprinklers - The HBA of F-M sent a letter to the Minnesota Department of Labor and Industry in November suggesting a change to the definition of a twin home in the Minnesota code. As a result, Construction Codes & Licensing Division Director Scott McLellan plans to travel to Moorhead to meet with HBA leaders in early January to discuss the issue and ideas for a code change. Fargo Two-Year Tax Exemption - The HBA of F-M worked with the city of Fargo’s Tax Exempt Review Committee as it discussed the two-year tax exemption on new construction, and potential changes. Efforts resulted in the committee deciding to keep exemptions at their current levels. North Dakota Legislative Session - The North Dakota Association of Builders hosted its board meeting and Annual Meeting in early December. At the board of directors meeting, the group discussed several upcoming legislative bills, including: -- A proposed requirement for testing and continuing education for home contractors in North Dakota. -- A bill to help get loans to essential service workers, like police officers and nurses, for single-family homes. This would be a second mortgage at a no or low interest rate that will have to be repaid. -- A bill requiring carbon monoxide detectors in existing homes upon sale. Discussion centered on how it will be enforced. HUD’s Floodplain Management Proposal - A proposed change from the U.S. Department of Housing & Urban Development affects projects being built in the 100-year flood plain. Since much of the F-M metro is currently in the 100-year floodplain, this is worrisome to the HBA of F-M. Jan. 26 | Radisson Hotel SAVE THE EVENING: New Year Celebration & City Night BOARD INSTALLATION • YEAR IN REVIEW • INTERACTIVE MAYORAL PANEL Register: hbafm.memberzone.com/events/calendar or email tahra@hbafm.com
Permits Plus
4
Home Builders Association of Fargo-Moorhead 2016 Permit Report - YTD (November) January - December 2014
DILWORTH Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
Permits
49 24 2 1 0 1 4 44 4 0 28 130
Units
23 0 0
January - November 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 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
2016 Value Permits
Units
Value
$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
$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
0 0 0
$4,775,900 $4,775,900 $0 $0 $0 $0 $0 $416,456 $1,195,778 $0 $169,800 $6,557,934
MOORHEAD Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
209 137 48 6 0 6 22 451 93 0 78 859
24 0 135
0 0 302
FARGO Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
377 312 30 35 0 44 77 1017 389 59 427 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
$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
$120,267,596 $102,193,324 $12,480,600 19 $5,593,672 0 $0 818 $73,298,646 $86,094,623 $19,297,228 $81,157,234 $38,189,056 $37,461,689 $455,766,072
555 324 108 47 0 14 44 311 57 5 83 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
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
$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
$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
$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
$260,003,969 $223,381,364 $23,088,933 50 $9,933,672 24 $3,600,000 1097 $96,165,376 $170,251,413 $31,857,725 $173,602,705 $75,079,598 $41,797,300 $848,758,086
WEST FARGO Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
123 0 441
TOTAL Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
12/15/2016
1,190 797 188 89 0 65 147 1823 543 64 616 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.
Home Builders Association of Fargo-Moorhead 2016 Permit Report - YTD (November) MINNESOTA BARNESVILLE Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
Permits
17 12 0 1 0 0 0 51 5 0 42 115
Units
5 0 0
Value
$3,891,000 $3,091,000 $0 $800,000 $0 $0 $0 $603,176 $60,500 $0 $128,311 $4,682,987
HAWLEY Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
Permits
6 5 0 0 1 0 1 4 0 0 16 27
Units
0 1 0
Value
$1,460,000 $1,210,000 $0 $0 $250,000 $0 $615,333 $11,100 $0 $0 $97,350 $2,183,783
NORTH DAKOTA CASSELTON Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
Permits
2 2 0 0 0 0 3 34 4 1 3 47
Units
0 0 0
Value
$1,111,000 $1,111,000 $0 $0 $0 $0 $343,320 $524,115 $62,000 $1,470,600 $52,000 $3,563,035
HARWOOD Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
12/15/2016
Permits
7 7 0 0 0 0 0 8 0 0 0 15
Units
0 0 0
Value
$1,817,000 $1,817,000 $0 $0 $0 $0 $0 $519,400 $0 $0 $0 $2,336,400
MAPLETON 4 4 0 0 0 0 0 6 1 0 14 25
0 0 0
$1,389,000 $1,389,000 $0 $0 $0 $0 $0 $174,800 $99,000 $0 $395,600 $2,058,400
HORACE Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
KINDRED Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
43 19 24 0 0 0 1 13 1 1 0 59
0 0 0
$8,157,743 $4,838,743 $3,319,000 $0 $0 $0 $650,000 $144,786 $30,670 $6,439,325 $0 $15,422,524
OXBOW 8 8 0 0 0 0 4 12 2 0 16 42
0 0 0
$3,516,000 $3,516,000 $0 $0 $0 $0 $284,000 $389,336 $125,000 $0 $222,326 $4,536,662
Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
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.
10 10 0 0 0 0 1 1 0 0 0 12
0 0 0
$9,272,000 $9,272,000 $0 $0 $0 $0 $1,300,000 $18,000 $0 $0 $0 $10,590,000