AUGUST 2022
ROCHESTER AREA BUILDERS, INC.
NEW EVENT FRIDAY FALL FLURRY SEPTEMBER 16, 2022 1:00 PM REGISTRATION PAGE 10
BUILDERS, BAGS & BREWS Registration Information
11
FALL SHOWCASE/ REMODELERS TOUR MAGAZINE Advertising Information
KITCHENS FOR KIDS We Need Builders!
14
17
D C
DEVELOPMENT COUNCIL a division of the Rochester Area Builders, Inc.
C OMMERCIAL C B UILDERS
OUNCIL
a division of Rochester Area Builders, Inc.
2 | AUGUST 2022
STAFF
EXECUTIVE DIRECTOR John Eischen, John@RochesterAreaBuilders.com Shelly Bahlmann, Shelly@RochesterAreaBuilders.com Golf Outing, Sporting Clays, Home Show, Directory, Newsletter, RAB Update, Member Plus App & RAB Events App Rebekah Fierst, Rebekah@RochesterAreaBuilders.com Ambassadors, Awards, Builders, Bags & Brews, Commercial Builders Council, Community Relations, Education, Membership, Fashion Show, Program, Remodelers Council, Executive & Remodelers Tour, 40 Below
DIRECTORS
Adam Giannini, Knutson Construction Adam Kramer, Kramer Contracting Jarett Jones, Merchants Bank Aaron Thompson, The Design Connection Austin Ryan, Ryan Windows & Siding Charlie Sweeney, Kraus-Anderson Construction Melissa Barbour, TLS Companies, LLC Vanessa Hines, Widseth Julie Herrera-Lemler, Rochester Area Economic Development, Inc. (RAEDI)
Elizabeth Sullivan-Burton, Elizabeth@RochesterAreaBuilders.com Builders Exchange Trustees and Showcase Committee, Website
Katie Reinhart, Kraus-Anderson Construction
GOVERNMENT & PUBLIC AFFAIRS CONSULTANT
Robbie Danko, The Boldt Company
Rick Dold, Rick@GodwinDold.com
Hal Henderson, HGA Architects & Engineers
BOARD OF DIRECTORS
PRESIDENT
Becky Holmen, Haley Lighting
VICE PRESIDENT
Jason Scrimshaw, Kimley-Horn & Associates, Inc.
SECRETARY
Jennifer Mitchell, Edina Realty
TREASURER
Jessica Markley, Elias Construction, LLC
PAST PRESIDENT
Luke Stier, Stier Construction, Inc.
BUILDERS EXCHANGE COUNCIL CHAIR COMMERCIAL BUILDERS COUNCIL CHAIR DEVELOPMENT COUNCIL CHAIR REMODELERS COUNCIL CHAIR
Krista Weisz, Stier Construction, Inc.
40 BELOW CHAIR
Adam Giannini, Knutson Construction
NATIONAL LIFE DIRECTORS
Steve Buss, Cornerstone Builders & Real Estate, Inc. (Rep)
NATIONAL DIRECTORS
Dana Hlebichuk, Widseth Levi Kaiser, Benike Construction Todd Severson, TLS Companies, LLC
STATE DIRECTORS
Mike Allen, Mike Allen Homes, LLC Jean DeWitz, DeWitz Home Builders, Inc. Kathy Einck, Maplewood Homes.LLC (Rep) John McGuine, JM Consulting Dan Severson, Dan Severson Builders, Inc., Kenneth Bush, Bush Companies
MISSION STATEMENT The Rochester Area Builders, Inc, chartered in 1953, is a professional organization of commercial & residential builders, remodelers, developers and associated businesses dedicated to advancing the building industry in Southeast Minnesota. We are the trusted voice of the industry, providing leadership, education, networking, and information resources to our members, community and government officials.
3 | FOUNDATIONS NEWSLTR
11
9
10 14 RAB CALENDAR........................................... 4
AUGUST 2022
FALL SHOWCASE/REMODELERS TOUR MAGAZINE....................................... 15
2022 CALENDAR.......................................... 5
Advertising Opportunity
MEMBER REPORT........................................ 6
First Right Booth Registration
RAB Events
Welcome New Members
17
2023 HOME SHOW INFORMATION.............. 16 KITCHENS FOR KIDS.................................. 17
LETTER FROM RAB PRESIDENT.................... 7
2023 Home Show Activity Registration
NETWORKING NIGHT................................... 8
Higher Rates Reduce Mortgage Demand
MEMBER APPRECIATION NIGHT................... 9
Information
2022 SPORTING CLAY SHOOT.................... 10
Lumber Products Have Added $14K to House Price, $51 to Rent
BUILDERS, BAGS & BREWS........................ 11
Rochester & Pine Island
STUDS, STRUTS & STILETTOS.................... 12
June 2022
FALL SHOWCASE....................................... 14
June 2022
REMODELERS TOUR................................... 14
Job Gains in June
Becky Holmen, Haley Lighting, 2022 RAB President Thank You! July
New Event Information Event Information
Sponsorship Information Event information Event information
NAHB EYE ON HOUSING............................. 19 RENTAL SPACE AVAILABLE........................ 20 NAHB EYE ON HOUSING............................. 23 BUILDING PERMITS................................... 24 SEMR HISTORICAL OVERVIEW................... 24 OLMSTED BUILDING PERMITS ................... 25 NAHB EYE ON HOUSING........................ 26-27
4 | AUGUST 2022
Sunday
August 2022
Monday
Tuesday 1
12:00 PM Government Affairs Committee
2 8:30 AM Remodelers Council Exec.
Wednesday 3
7:30 AM CBC Meeting
Friday
Saturday
4
5
6
11
12
13
18
19
20
25
26
27
11:30 AM Program Committee
12:00 PM Showcase Committee
11:30 AM Executive Committee
Thursday
3:30 PM Builders Exchange Board of Trustees
7
8
9 3:00 PM Board Meeting
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15
10 7:30 AM Green Building Committee
16
11:30 AM Fashion Show Committee
12:00 PM Sporting Clays Committee
17 12:00 PM Ambassadors Committee
7:30 AM Membership Committee
4:30 PM 40 Below Exec Committee
21
22
23
11:30 AM Home Show Committee
28
24 3:00 PM Development Services Advisory Committee
29
30
11:30 AM Community Relations Committee
31
4:30 PM Networking Night
MEETINGS ARE NOW BEING HELD IN PERSON UNLESS NOTIFIED DIFFERENTLY BY JOHN
5 | FOUNDATIONS NEWSLTR
Rochester Area Builders 2022 Calendar of Events
JULY
26
AUGUST 13 30
Member Appreciation Night @ Mayowood Stone Barn Builders, Bags & Brews @ LTS Brewing Company Networking Night @ Valor Mechanical & Tulip Tree
SEPTEMBER 5 Office Closed – Labor Day 15 Sporting Clay Shoot 16 Friday Fall Flurry Sporting Clay Shoot 17 Sporting Clay Youth Shoot 17-18 Remodelers Tour 17-18, 24-25 Fall Showcase of Homes 27 General Membership Meeting @ DoubleTree OCTOBER 13 25
Studs, Struts & Stilettos @ Mayo Civic Center Networking Night @ Warners’ Stellian
NOVEMBER TBD 24-25
Past Presidents Dinner Office Closed – Thanksgiving Holiday
DECEMBER 2 23-26
Holiday Party @ The Hilton Office Closed – Christmas Holiday
FUTURE DATES International Builders Show RAB Home Show
January 31 – February 2, 2023 @ Las Vegas, NV February 3-5, 2023 @ Mayo Civic Center
6 | AUGUST 2022
WELCOME
ROCHESTER AREA BUILDERS, INC.
MEMBERSHIP REPORT JUNE 2022
Membership Total: Retention rate:
400 92.8%
JULY 2022 NEW MEMBERS
As of June 30, 2022 FIVE TO NINE YEARS Completely Clean...................................2017 Minnesota 97.5 FM - KNXR...................2016 The Pinske Edge....................................2014 Cemstone Supply...................................2013
TEN TO 14 YEARS Hammer Homes, Inc..............................2011 Warners’ Stellian Appliance Company, Inc........................2008
15 YEARS TO 19 YEARS Green Lawncare Irrigation & Service Co. .................................................................2007 McGough Construction.........................2006 Cravath Homes, LLC..............................2005 Prime Time Painting of Rochester, LLC .................................................................2005 DMC Plumbing & Heating, Inc..............2003
MARK ST.PETER
CHARLIE DERY
Auto Glass (507) 252-1000 cityautoglass.com
Credit Union (507) 312-7510 marinecu.com
TAYLOR MORGAN
TAYLOR KELENIC
20 YEARS TO 24 YEARS Design Studio B.....................................2001
25 YEARS OR MORE Larson Siding & Windows....................1986 Commercial Leasing Services.............1984 Merit Contracting, Inc...........................1982 Sargent’s Landscape Nursery, Inc......1977 Heartman Insurance.............................1966
Concrete Contractor (507) 951-0072
Rental Equipment (952) 887-4460 zieglercat.com
7 | FOUNDATIONS NEWSLTR
FROM THE PRESIDENT are back in person for all our networking opportunities and community involvement events, so it is a great time to become a member of the largest builder and associate member organization in Minnesota. If you have any questions about membership or recommendations for new members, please contact the RAB office or anyone on the board of directors.
networking and sponsorship. The 2nd Annual Builders, Bags & Brews is a community event that RAB organizes for the Jeremiah Program of SE MN on Saturday, August 13th at LTS Brewing Co. The deadline for registering a team is August 6th. The Sporting Clay Shoot weekend is coming up in September. The Thursday, September 15th Builder shoot is sold out, but we are excited to anounce a brand new completly I thought I should send out a different event on Friday, reminder that it is time to get your September 16th, called the Fall registrations in for the 2022 Fall Flurry. We also have a youth Showcase of Homes. We currently shoot on September 17th. Limited BECKY HOLMEN have 9 entries for new Sponsorship spots are still President construction homes, and we need available. All these events are a Rochester Area Builders, Inc more, along with entries for the great way to get your business Remodelers Tour. The deadline recognized and do something nice Hello Members, for entries is August 18th. I know for the community. construction and building have The summer is going so fast. been very busy in SE Minnesota. Thank you to Knutson We have had plans every weekend The supply chain issues are Construction for hosting our June and have plans for the remaining causing us all a lot of stress. I Networking night. Your updated weekends of the summer. We just wish you all the best of luck in office looks amazing and the food finished the Fillmore County Fair getting your homes finished. from Powers was fabulous. swine show. Ryan and Carter did Restrictions are getting lighter and Member Appreciation Night is very well, and both will be taking a lighter, and this Showcase will be Tuesday, July 26th at The pig to the state fair for the 4H a prime time to show off the Mayowood Stone Barn, come early Swine show up in St. Paul. Looking quality of homes available from and stay late for great food and forward to the upcoming school you, our members. It is important drink. Raffle tickets for the year, with Ryan being a to keep your building expertise out Sporting Clay event will be Sophomore at Black Hawk College in the public eye, so when times available from the one and only in Indiana and Carter a Junior at are not as busy, you will be in the Jay Burke of Heartwood Homes. I Lanesboro High School. forefront of people’s minds when hope to see all your sparkling they are ready to build or remodel. personalities in full brightness. Let’s keep the momentum going Being active within this association and keep spreading the word of Take Care, is important to your business even what RAB is doing for our when you are busy. This way you wonderful communities and legislative recommendations! The will have the resources and contacts to make your business Membership Committee has Becky Holmem grow when times are slow. challenged us all to bring a Haley Lighting colleague or friend with to all the There are many opportunities for 2022 RAB President upcoming networking events. We
8 | AUGUST 2022
Thank You! Thank You Knutson Construction for hosting a great Networking Night in June.
9 | FOUNDATIONS NEWSLTR
MEMBER NIGHT
Tuesday, July 26th 4:30pm - 7:00pm Mayowood Stone Barn
Join us for Member Appreciation Night as we celebrate you, our members! We will be recognizing all Honorary Members that evening and introducing new additions to the group! Hors d'oeuvres and hosted beer provided, along with a cash bar. Thank you to Altra Federal Credit Union for sponsoring the keg of beer.
Don't miss this great opportunity to catch up with others in the industry and meet new members. Free to attend, however, we ask that you register in advance.
REGISTER Beer Sponsor
10 | AUGUST 2022
Rochester Area Builders Sporting Clay Shoot
U F N
SEPTEMBER 15, 2022 Cost: $180 per Person 4 person teams with a max of 6. Dinner only: $25 per person
O I T A R
Overall Event Sponsor
T S I
Registration Includes: • • • •
L L
20 Stations with 100 clay targets & 100 Shells BBQ Style Dinner & Beverages Various Optional Games throughout Course Prizes for Best Team and Best Individual
G E R
NEW EVENT Sporting Clay Shoot - FRIDAY FALL FLURRY SEPTEMBER 16, 2022 TWO events in one! Register for either activity or register for both to maximize your fun.
Cost: Flurry Competition $120 per 4 person team $30 per person Big Shot Competition $50 per person
Registration Includes: Flurry Competition 50 Shells Cash prize
REGISTRATION
Big Shot Competition BIG SHOT WINNER - Cash Prize
11 | FOUNDATIONS NEWSLTR
BUILDERS, BAGS & BREWS DATE: Saturday, August 13th LOCATION: LTS Brewing Co.
• LIVE MUSIC • CRAFT BEER • FOOD TRUCKS • SILENT AUCTION
PRESENTED BY
FORTY
RAB
Builders, Bags, & Brews is an annual community bags tournament and fundraiser for local non-profits. In 2022, funds raised will go towards Jeremiah Program.
BELoW CONNECTING. BUILDING. ENGAGING.
Team Registration NOW OPEN. Deadline: August 4th Contact Rebekah for more information.
BENEFITING
HEADLINING SPONSOR
BROADWAY COMING 10.13.22 MAYO CIVIC CENTER
Presented By:
A Benefit for:
SPONSORSHIP FORM Deadline 8.19.22
13 | FOUNDATIONS NEWSLTR
Honorary MeMbers
§ §
§ † † § § † † §
Bruce Meadows...........2022 David Kane ..................2021 Chris Colby ...................2021 Art Friedrich ................2021 Jan Blevens ..................2021 Greg Hird .....................2021 Jeff Broberg .................2021 Mike Coats ...................2019 Carla Kilpatrick.............2018 Rory Lenton .................2018 Jim Buchan ..................2016 Walt Pappas .................2015 Bob Vogt ......................2015 Tom Theis ....................2014 Bob Gill ........................2013 Dave Higgins ................2013 Sandy Friend ................2012 Wayne Ouellette ..........2012 Gary Zander .................2011 Bob DeWitz..................2010 Jackie Hanson ..............2009 Richard Hanson ...........2009 Don Myers ...................2009 Sandy Buchan ..............2008 George Libera ..............2008
† § † § † § † § § § † § † † † † § † † § † † † § † † † § † † § †
Don Hora .....................2007 Ken Steier ....................2006 Floyd Whipple .............2006 Glyndon West ..............2005 Sharon Thomas ............2004 Dale Fagerlind ..............2003 Dave Alexander ...........2002 Dewey Day ...................2002 Roger Lubahn ..............2001 Don Kleist ....................1999 Don Soderberg ............1999 Gordy Bluhm ...............1998 Arnie Jensen ................1998 Walt Cassel ..................1991 Arnie Bergler ...............1990 Hersh Hoaglan .............1990 Haven Hodge ...............1990 Bill Dodge ....................1990 Henry Giese .................1990 Stan Mohn ...................1990 Mary Moylan ...............1990 Don Sperry...................1990 Ken Watkins .................1990 Reuben Wolfgram ........1990
§ Served as Association President † Deceased
14 | AUGUST 2022
SEPTEMBER 17 - 18 & 24 - 25, 2022 11 AM - 5 PM The 2022 Fall Showcase will be here before you know it! Get your latest and greatest homes, townhomes, developments, and townhome communities out in front of the public.
DEADLINES:
1st Deadline: July 7 - $200 discount 2nd Deadline: July 28 - $100 discount Final Deadline: August 18 Entry information and forms can be found HERE
Remodelers SEPTEMBER 17 - 18, 2022 11 AM - 5 PM Do you have a remodeling project you would like to have open to the public so they can see the finished results firsthand? The Remodelers Tour has been created to offer you this great marketing opportunity. It’s an excellent way to gain exposure for your company and your projects. All remodelers are eligible to participate, including designers, landscape contractors, exterior contractors, and more.
DEADLINES:
Discount Deadline: July 28 Final Deadline: August 18 Entry information and forms can be found HERE
15 | FOUNDATIONS NEWSLTR
2022 FALL SHOWCASE OF HOMES /REMODELERS TOUR MAGAZINE ADVERTISING INVESTMENT Sixth Page Quarter Page Half Page Half Page Full Page Inside Front Page Back Page
2.333 x 4.875 ......................................... $500 3.625 x 4.875 ......................................... $700 (v) 3.625 x10 .......................................... $900 (h) 7.5 x 4.875 ........................................ $900 8.5x11 (bleed size 8.75 x 11.25) ............. $1200 8.5x11 (bleed size 8.75 x 11.25) ............. $1500 8.5x11 (bleed size 8.75 x 11.25) ............. $1500
The 2022 Fall Showcase of Homes features new homes, townhomes, and subdivisions; and the 2022 Remodelers Tour features recent home renovations. Together, they are featured in the Rochester Area Builders-produced magazine which is the official program that includes details, descriptions, and photos for each home/subdivision. Participation to showcase a project is exclusive to RAB members, and members of the community are invited to enjoy the event. The digital magazine produces over 10,000 views, and the RAB Events app receives over 33,000 views during the event weekends. Limited printed copies will be available and also available at showcase entries during showcase hours. RAB will promote the digital magazine across multiple digital platforms with over 500,000 impressions. RAB has contracted with Tulip Tree Studios for ad sales and
design services. For more information on how to advertise in our magazine, contact Crystal at 507-218-8401 or at Crystal@ tuliptree-studios.com. Fall Showcase Weekends September 17-18 & 24-25, 2022 Remodelers Tour Weekend September 17-18, 2022
Remodelers
FEBRUARY
10-11-12, 2023
NEW HOURS FRIDAY 3:00PM - 8:00PM SATURDAY 10:00AM - 5:00PM SUNDAY 10:00AM - 3:00PM
SHOW ACTIVITIES
E L A S N H O I T T A O M O B N INFOR IO T A R T S I REG
FRIDAY • Date Night • 2 for 1 Admission • Cooking w/Shari Mukherjee • Wine and Beer Tasting
SATURDAY • Career Fair • Builder Olympics (ages 15-19)
SUNDAY - FAMILY FUN DAY • Children’s Cupcake Decorating W/Shari Mukherjee • Build with Builders
ALL WEEKEND • Kitchens For Kids Raffle • Resource Way Scavenger Hunt
BOOTH SALES Booth Sales Opens For Previous Year Exhibitors JULY 29, 2022 Booth Sales Opens For Everyone AUGUST 8, 2022 CONTACT: Shelly@RochesterAreaBuilders.com
RochesterAreaBuilders.com/Home-show
17 | FOUNDATIONS NEWSLTR
ROCHESTER AREA BUILDERS HOME SHOW 2023
We want your talent to be a part of supporting single moms and their children. The 2023 RAB Home Show will be featuring “Kitchens for Kids” – play kitchens for young children made by members of our community. Proceeds benefit Jeremiah Program. We invite you to be a part of this exciting activity! A raffle will be held during the event. The people’s choice winner will be determined by the largest number of raffle tickets for each project. These great mini-kitchens will be for children’s use but the raffle profits will go toward Jeremiah Program in Rochester MN. Jeremiah’s proven, holistic approach begins with establishing a supportive community for single mothers to pursue a career-track, college education. Through a combination of quality early childhood education, a safe and affordable place to live, and empowerment and life skills training, families find stability and a path out of poverty. You can also be a part of the Home Show and connect with customers by securing a 10’x10’ booth for the entire weekend (Friday, Saturday, and Sunday). Display, educate, and/or promote your business! Cost starts at $730. Open Registration begins in late summer, early fall.
February 10-11-12, 2023 Mayo Civic Center
Presented by
Benefit For
Find the registration form at rochesterareabuilders.com/Kitchens-for-Kids-Registration
Questions about the project? Contact Shelly@RochesterAreaBuilders.com Ph 507-282-7698
18 | AUGUST 2022
19 | FOUNDATIONS NEWSLTR
Higher Rates Reduce Mortgage Demand BY LITIC MURALI on JULY 6, 2022 Per the Mortgage Bankers Association’s (MBA) survey through the week ending July 1, total mortgage activity decreased, with the 30-year fixed-rate mortgage (FRM) rate reaching 5.8% on average. The latest week’s rate decreased to 5.74%, declining for the second straight week but still above pandemic levels. The Market Composite Index, a measure of mortgage loan application volume, decreased by 5.4% on a seasonally adjusted basis from one week earlier, with purchasing decreasing by 4.3% and refinancing decreasing by 7.7%. The latest month’s highest weekly rate was the highest since late 2008 (5.98%). The MBA cited that market expectations of the Federal Reserve’s 75-basis-point interest rate hike as well as its implementation resulted in rate increases of at least 20 basis points across all loan types. Affordability changes and low housing inventory continue to challenge homebuying for many.
On an unadjusted basis, the Purchasing Index showed a 17% year-over-year decline and the Refinancing Index showed a 78% year-over-year decline. Comparison of the year-over-year percent changes in refinancing and purchasing shows that from October 2021 to present, refinancing has declined by a larger amount. The refinance share of mortgage activity decreased to 29.6% of total applications from 30.3% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 9.5% of total applications.
20 | AUGUST 2022
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OFFICE SPACE FOR RENT
Looking for modern, convenient office space? The RAB office has 800 square feet available for rent. The agreement includes shared use of the conference room, bathrooms, breakroom, and 4 parking spaces. Lease is $18/square foot gross.
To arrange a tour or get more information, contact John at the office. John@RochesterAreaBuilders.com or 507-282-7698.
21 | FOUNDATIONS NEWSLTR
REAL ESTATE LENDING Bank on ONB Bank for all of your Real Estate Lending needs.
Construction Purchase Refinance Improvements
contact us today
Rochester 975 34th Ave NW 507-280-0621
Stewartville 1960 1st Ave NE 507-504-1060
bankonONB.com
22 | AUGUST 2022
Goodin Company carries a full complement of products for the markets we serve. Are you in need of products for plumbing, HVAC, industrial, or pump and well applications?
PLUMBING
HVAC
INDUSTRIAL
PUMP & WELL
We are your Source of Supply, serving the industry since 1937.
www.goodinco.com MINNEAPOLIS | ST. PAUL | DULUTH | DETROIT LAKES | ST. CLOUD BRAINERD | ROCHESTER | FARGO | SIOUX FALLS | OMAHA EAU CLAIRE | WAUSAU | MADISON | MILWAUKEE | GREEN BAY
23 | FOUNDATIONS NEWSLTR
Since Pandemic Onset, Lumber Products Have Added $14K to House Price, $51 to Rent BY PAUL EMRATH on JULY 14, 2022 Since the relatively low point at the
Builders do not in general buy lumber
multifamily builders’ softwood lumber
onset of the pandemic on April 17, 2020,
and other building products directly
costs, respectively.
lumber prices have been volatile, with
from sawmills, but from an intermediary
record setting spikes interspersed with
like a lumber yard. For that reason,
Prices to home buyers go up somewhat
periods of substantial declines.
NAHB estimates mark up sawmill prices by gross margin as a percent of sales for the “lumber and other construction materials” industry, as reported in the U.S. Census Bureau’s Annual Wholesale Trade Tables,
more than this, due to factors such as interest on construction loans, brokers’ fees, and margins required to attract capital and get construction loans underwritten. As explained in NAHB’s recent study on regulatory costs, for items used during the construction
Softwood lumber is also an input into
process, the final home price will
certain manufactured products used
increase by 14.94 percent above the
On balance over the entire period,
in residential construction—especially
builder’s cost.
however, softwood lumber prices have
cabinets, windows, doors and trusses.
increased enough to add $14,345 to the
To account for the manufacturer’s
The bottom line is that the changes in
price of an average new single-family
margin, sawmill prices for the lumber
home, and $5,511 to the market value
embodied in these products are marked
of an average new multifamily home,
up by the percent difference between
according to NAHB’s latest estimates.
receipts and cost of goods in the “wood
The increase in multifamily value, in
product manufacturing” industry, as
turn, translates to households paying
reported in the IRS Returns of Active
$51 a month more to rent the new
Corporations tables.
apartment.
Taking all this into account, at the prices
Housing Finance Survey, the increase
In addition to narrowly defined framing
reported by Random Lengths on April
in builder cost and market value for a
lumber, these estimates include
17, 2020, the total cost to a builder for
multifamily structure means tenants pay
plywood, oriented OSB, particleboard,
softwood lumber was $16,927 for the
$51 more a month to rent the average
fiberboard, shakes and shingles—in
products in an average single-family
new apartment due to the change in
short, any of the products sold by U.S.
home, and $5,940 for the products in an
softwood lumber prices.
sawmills and tracked on a weekly
average multifamily home.
basis by Random Lengths. Estimates
This, along with rising wages for
More recently, based on Random
construction workers and higher
Lengths prices reported on July 01,
interest rates, is one of the reasons the
2022, the costs have risen to $29,407
housing market is experiencing declining
for the softwood lumber products in an
affordability
developed from the Builder Practices Survey conducted by Home Innovation Research Labs show that the average new single-family home uses more than 2,200 square feet of softwood plywood, and more than 6,800 of OSB, in addition to roughly 15,000 board feet of framing lumber.
average single-family, and $10,734 for the products in an average multifamily, home. These numbers represent a 74 percent ($12,480) and 81 percent ($4,795) increase in single-family and
softwood lumber prices that occurred between April 2020 and July 2022 have added $14,345 to the price of an average new single-family home and $5,511 to the market value of an average new multifamily home. Based on the average rent-to-value ratio in most recent HUD/Census Rental
24 | AUGUST 2022
GET UP TO $5,400 TO GET THE JOB DONE Shown with equipment from independent suppliers which is not covered by the GM New Vehicle Limited Warranty. GM is not responsible for the safety or quality of independent supplier alterations.
USING THE PRIVATE OFFERS1 FOR NAHB MEMBERS IS EASY:
1. Get your NAHB proof of membership. 2. Visit your local Chevrolet, Buick or GMC dealer and mention this Private Offer. 3. Select an eligible vehicle(s) to purchase or lease and present your NAHB proof of membership. For even more value, combine this offer with the National Fleet Purchase Program and Business Choice Offers. For full details on the Private Offer, NAHB members should visit nahb.org/gm. Example offer for NAHB members who are business owners purchasing a 2021 Chevrolet Silverado 2500 HD Crew Cab 1LT 4WD. Up to
Up to
Up to
$1,000 + $3,400 + $1,000 = $5,400 Private Offer 1
National Fleet Purchase Program (FVX)2
Eligible Accessory Cash Allowance3, 4
In Potential Value
1 Private offer amount varies by model; up to $500 offer for retail delivery and up to $1,000 offer for fleet deliveries. Valid toward the purchase or lease of eligible new 2020, 2021 and 2022 model year vehicles. Customer must take delivery by 1/3/2022. Not compatible with some other offers. Not valid on prior purchases. Excludes all Cadillac vehicles; 2020 Buick Cascada, LaCrosse, Regal and Verano; Chevrolet Colorado 2SA, Sonic, Trax, Volt and GMC Canyon 2SA; 2020-2021 Encore 1SV; Chevrolet Blazer, Camaro, Corvette, Equinox 1SM, Malibu 1VL, Traverse 1L0; GMC Acadia 1SV and Terrain 2SA. Additional GM models may be excluded at GM’s sole discretion. See dealer for details. 2Offer available to qualified fleet customers through 1/3/2022. Not compatible with some other offers. Take delivery 1/3/2022. See dealer for details. 3To qualify, vehicle must be used in the day-to-day operations of your business and not solely for personal/ non-business-related transportation purposes. Must provide proof of business ownership. For complete program requirements, including information regarding offers, vehicles, equipment, options, warranties and ordering, consult your dealer or visit gmbusinesschoice.com. 4Eligible purchases must be equal to or greater than the amount of the cash allowance. Accessory Cash Allowance requires purchase of the eligible accessories from your dealer.
©2021 General Motors, LLC. All rights reserved. The marks appearing in this ad are the trademarks or service marks of GM, its subsidiaries, affiliates or licensors.
25 | FOUNDATIONS NEWSLTR
26 | AUGUST 2022
FOUNDATIONS NEWSLETTER ADVERTISING Rochester Area Builders Newsletter is an unbeatable opportunity to advertise to members and individuals associated with RAB. It is a source of valuable association and industry information, and is published and emailed monthly. Foundations is sent to over 1600 connected industry professionals. Ad sizes are listed under Display Ad Dimensions, and prices are located above. Ads may be changed from month to month. Our prices are for full color ads. We will gladly work with you to design your ad. Please send digital files for all ad copy, logos, and artwork. We use PC format. We accept Illustrator and Photoshop files. Convert all fonts to outlines. We also accept the following high resolution file types: .tif, .eps and .pdf (with all graphics and fonts embedded). If you have any other formats please contact us.
RETURN TO: ROCHESTER AREA BUILDERS
Shelly Bahlmann Shelly@RochesterAreaBuilders.com 108 Elton Hills Ln NW Rochester, MN 55901 507-282-7698
Newsletter Advertising Rates
Per Issue
12 Issues
New Member 12 Issues
Full color 1/2 Horizontal
c $70.00
c $650.00
c $490.00
Full color Full Page
c $90.00
c $900.00
c $675.00
Full Color Full Page Press Release
c $25.00
Newsletter Display Ad Dimensions 1/2 Horizontal Full
8-1/2 x 5-1/2 8-1/2 x 11
Send artwork to Shelly@RochesterAreaBuilders.com by the 15th of the month to be included in the upcoming Foundation Newsletter.
27 | FOUNDATIONS NEWSLTR
28TH ANNUAL GOLF OUTING
An event to support construction educational opportunities.
AUGUST 12
Willow Creek Golf Course 1700 48th St SW Rochester, MN 55902
FRIDAY | 2022
11 am | REGISTRATION & LUNCH 12 pm | SHOTGUN START 5 pm | APPETIZERS, AWARDS, PRIZES Registration Includes • 18 Holes of Golf • 1/2 Cart • Golfer Gift • Lunch & Appetizers
$150
Final registration received between July 23 - August 5.
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29 | FOUNDATIONS NEWSLTR
Solid Job Gains in June BY NATALIA SINIAVSKAIA on JUNE 13, 2022 Despite interest rate hikes, job growth remained solid in June. Total nonfarm payroll employment increased by 372,000 and the unemployment rate remained at 3.6% in June. Construction industry employment (both residential and non-residential) totaled 7.7 million and has exceeded its February 2020 level. In June, residential construction lost 4,100 jobs, and non-residential construction added 16,500 jobs. Residential construction employment currently exceeds its level in February 2020, while 79% of non-residential construction jobs lost in March and April have now been recovered.
In June, total nonfarm payroll employment increased by 372,000, following a gain of 384,000 in May, as reported in the Employment Situation Summary. The estimates for the previous two months were revised down, suggesting modestly softening in labor market. The April estimate was revised down by 68,000 from +436,000 to +368,000, while the May increase was revised down by 6,000 to +384,000. With these revisions, employment in April and May together were revised down by 74,000 from the previously reported ones. In the first half of 2022, more than 2.7 million jobs were created, and monthly employment growth averaged 457,000 per month. As of June 2022, total nonfarm employment is 524,000 lower than its prepandemic level in February 2020,
almost fully recovered from the COVID-19 pandemic.
(+67,000), and health care (+57,000) had notable job gains in June.
Meanwhile, the unemployment rate remained at 3.6% for the fourth straight month. It was 11.1 percentage points lower than its recent high of 14.7% in April 2020 and 0.1 percentage point higher than the rate in February 2020.
Employment in the overall construction sector increased by 13,000 in June, following a 34,000 gain in May. Residential construction lost 4,100 jobs, while non-residential construction employment gained 16,500 jobs in June.
The labor force participation rate, the proportion of the population either looking for a job or already with a job, ticked down 0.1 percentage point to 62.2% in June. The decline in the participation rate was led by Black and Asian workers, while the labor force participation rate for White workers remained the same. The labor force participation rate for people who aged between 25 and 54 decreased 0.3 percentage points to 82.3% in June.
Residential construction employment now stands at 3.2 million in June, broken down as 899,000 builders and 2.3 million residential specialty trade contractors. The 6-month moving average of job gains for residential construction was 9,467 a month. Over the last 12 months, home builders and remodelers added 121,400 jobs on a net basis. Since the low point following the Great Recession, residential construction has gained 1,171,700 positions. In June, the unemployment rate for construction workers declined by 0.5 percentage points to 3.6% on a seasonally adjusted basis. It marks the lowest rate since May 2019. The unemployment rate for construction workers has been trending lower, after reaching 14.2% in April 2020, due to the housing demand impact of the COVID-19 pandemic.
Additionally, according to the Household Survey supplemental data, which come from questions added to the Current Population Survey (CPS) since May 2020, 7.1% of employed persons teleworked or worked at home in the last 4 weeks specifically because of the coronavirus pandemic in June, down from 7.4% in the previous month. The share of the employed who teleworked has declined for the past five months. Two years ago, in May 2020, 35.4% of employed persons teleworked because of the coronavirus pandemic. Professional and business services (+74,000), leisure and hospitality
30 | AUGUST 2022
ROCHESTER BUILDING PERMITS
NEW RESIDENTIAL
2022
VALUATION
2021
JUNE 2022 2014 2015 2016 2017 2018 2019 2020 2021 2022
VALUATION
Single Family Dwelling
21
7,364,959
24
8,560,100
January
11
20
25
15
19
Townhome Dwelling
14
3,411,500
6
2,012,280
February
14
19
15
20
28
30
31
44
6
17
23
9
16
5
25
27
13
8
11
32
35
21
Two-Family Houses
0
0
0
0
March
Manufactured Home
0
0
0
0
April
25
22
33
45
40
23
19
19
28
0
May
35
19
56
43
28
27
19
26
13
June
47
51
41
52
38
31
21
30
28 110
Multi-Family Bldgs (Units)
0
0
0
EXISTING RESIDENTIAL
160
161
201
219
166
115
121
141
Deck Addition
34
363,969
40
410,648
July
38
29
44
45
36
26
26
25
Room Addition
4
223,430
5
328,500
August
60
33
47
30
31
24
17
24
Porch Additions
1
62,400
2
42,000
27
52
35
39
12
30
20
9
287,238
4
70,106
September
23
Other Additions
35
49
25
36
29
27
28
16
Basement Finish
7
196,275
17
350,155
October
23
12
41
21
47
23
19
1,617,091
72
1,013,844
November
26
64
27
42
37
33
25
34
21
8
0
0
0
0
December
26
844,597
8
252,700
369
369
418
429
347
289
266
253
Alterations Multi-Family Addition Multi-Family Alterations
TOTAL
TOTAL
YEAR TO DATE STATISTICS
NEW COMMERCIAL Assembly (Church)
0
0
0
0
Assembly (General)
0
0
0
0
Assembly (Restaurant/Bar)
1
1,800
0
0
Business
0
0
0
0
Education
0
0
1
24,279,684
Factory/Industrial
0
0
0
0
Institution
0
0
0
Mercantile
0
0
Miscellaneous
0
Residential (Apartment) Residential (Care/Assisted Living) Residential (Care/Hotel/Motel) Storage (General)
2022 NO.
VALUATION
2021 NO.
BUILDING PERMITS ISSUED TO DATE
110
VALUATION
1036
324,639,685
1167
261,332,738
Single Family Dwelling
93
37,325,817
125
43,240,669
Multi-Family Buildings Total Units: 276
4
33,175,115
1
14,800,000
0
TRADE PERMITS ISSUED TO DATE
4988
86,912,853
5425
66,199,793
0
0
Electrical
1962
40,412,806
2097
30,896,060
0
0
0
Electrical (Temp. Service)
106
63,100
124
45,755
0
0
0
0
Mechanical (HVAC)
1341
18,143,813
1521
17,548,368
0
0
0
0
Mechanical (Gas Piping)
255
421,720
306
420,637
0
0
0
0
Mechanical (Fireplace)
141
711,500
170
876,017
1
1,400,000
0
0
Mechanical (Hydronic)
133
12,490,957
88
5,209,297
Storage (Parking Garage)
4
1,290,705
2
1,421,775
1060
14,688,957
1119
11,203,659
Storage (Warehouse)
0
0
0
0
Utility (General)
1
9,999,999
0
0
6024
411,552,538
6592
327,532,531
Utility (Private Garage)
0
0
0
0
1,747,000
1
348,989
25
8,314,109
27
9,723,578
Structural Shell
0
0
1
3,600,000
“White Box”
0
0
1
800,000
Interior Demolition Only
0
0
0
0
Other Phased Permits
Information and downloads available at Rochester Building Safety Department’s website: Rochester Permits
Key metrics by report month and for year-to-date (YTD) starting from the first of the year.
3
Alterations
TOTAL PERMITS YTD
Activity Overview
EXISTING COMMERCIAL Addition
Plumbing
1
10,600,763
0
0
OTHER CONSTRUCTION
Key Metrics
Historical Sparkbars
New Listings 6-2019
6-2020
6-2021
6-2022
6-2019
6-2020
6-2021
6-2022
6-2019
6-2020
6-2021
6-2022
6-2019
6-2020
6-2021
6-2022
6-2019
6-2020
6-2021
6-2022
6-2019
6-2020
6-2021
6-2022
6-2019
6-2020
6-2021
6-2022
6-2019
6-2020
6-2021
6-2022
6-2019
6-2020
6-2021
6-2022
6-2019
6-2020
6-2021
6-2022
Pending Sales
Closed Sales
Days on Market
Median Sales Price
Avg. Sales Price
Pct. of Orig. Price Received
Business Signs
5
29,813
23
199,702
Advertising Signs
0
0
0
0
Footings & Foundations
3
2,562,393
1
500,000
Homes for Sale
Demolition
0
0
1
0
Months Supply
Affordability Index
6-2021
6-2022
Percent Change
YTD 2021 YTD 2022
760
759
- 0.1%
3,566
3,618
+ 1.5%
614
545
- 11.2%
3,365
3,183
- 5.4%
769
704
- 8.5%
2,958
2,902
- 1.9%
24
22
- 8.3%
37
34
- 8.1%
$265,000
$295,000
+ 11.3%
$240,000
$272,250
+ 13.4%
$289,685
$331,725
+ 14.5%
$270,446
$309,669
+ 14.5%
102.3%
101.3%
- 1.0%
100.2%
100.1%
- 0.1%
160
112
- 30.0%
176
121
- 31.3%
630
770
+ 22.2%
--
--
--
1.1
1.5
+ 36.4%
--
--
--
Percent Change
Current as of July 11, 2022. All data from Southeast Minnesota REALTORS® and NorthstarMLS®. Provided by the Minnesota Association of REALTORS®. Report © 2022 ShowingTime. | 2
31 | FOUNDATIONS NEWSLTR
OLMSTED COUNTY PERMITS YTD NEW RESIDENTIAL
2022
VALUATION
2021
VALUATION
Single Family-Detached
26
11,002,927
15
4,174,945
Single Family-Attached
0
0
4
513,188
10
857,721
7
315,694
22
137,444
8
43,470
Garage
RESIDENTIAL Deck Addition Alterations Garage Addition
5
272,029
5
362,019
101
1,953,464
34
416,531
0
0
2
36,426
May 2022
CD Report BUILDING DIVISION
Commercial building plans submitted
Residential building plans submitted
Commercial inspections completed
28
61
2022: 748 Average:914
NEW COMMERCIAL/INDUSTRIAL Recreational
0
0
0
0
Church/Religious
0
0
0
0
Industrial/Warehouse
0
0
0
0
Service/Repair Station
1
1,101,813
0
0
Store/Restaurant
1
78,552
0
0
Nonresidential Building
1
616,530
1
134,573
COMMERCIAL/INDUSTRIAL
2022
Addition
VALUATION
2021
VALUATION
0
0
1
121,056
Alterations
10
406,509
2
61,000
Re-roofing
3
286,563
0
0
Pool, Retaining Wall, etc.
7
264,020
8
136,528
Manufactured Homes
0
0
9
0
OTHER STRUCTURES
MISCELLANEOUS PERMITS Mechanical
74
353,395
71
547,900
Plumbing
33
91,578
42
397,850
TOTAL PERMITS
294
17,422,545
209
7,261,190
OLMSTED COUNTY PERMITS - JUNE
YTD NEW Housing Units
Residential inspections completed
2022: 1,631 2022: 84 Average: 1,754 Average: 100
Residential plan review time
Commercial plan review time
4 Weeks
2.5 Weeks
YTD Residential permits issued
YTD Commercial permits issued
YTD Trade permits issued
2022: 526 Average: 531
2022: 173 Average: 153
2022: 3,991 Average: 3,966
YTD Residential valuations
2022
YTD Commercial valuations
2022
YTD Alterations valuations
2022
YTD Trade valuations
2022
$64,150,949
$99,358,319
$96,926,710
$75,201,939
$52,619,880
$59,535,053
$81,907,312
$59,033,651
Average
Average
Average
Average
TOWNSHIPS/CITY
2022
City of Byron
VALUATION
2021
VALUATION
30
1,882,813
57
3,312,807
1
27,840
8
400,914
Marion Township
23
598,948
9
51,872
Oronoco Township
6
979,519
14
371,198
City of Stewartville
19
224,763
25
729,786
2
999,404
0
0
Eyota Township
Quincy Township
PINE ISLAND BUILDING PERMITS JUNE 2022 NEW RESIDENTIAL
NUMBER
VALUATION
Single Family Detached
3
855,000
Single Family Attached
0
0
Existing Residential Basement Finish Deck Addition
1
25,000
11
157,189
PLANNING DIVISION
YTD Building permit plans reviewed
YTD Zoning Certificates submitted
YTD Type I Applications submitted
2022: 2731 Average: 2167
2022: 40 Average: 45
2022: 18 Average: 29
YTD Type II Applications submitted
YTD Type III Applications submitted
2022: 2 Average: 2
2022: 33 Average: 30
32 | AUGUST 2022
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33 | FOUNDATIONS NEWSLTR
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34 | AUGUST 2022
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