JUNE 2022
ROCHESTER AREA BUILDERS, INC.
AUGUST 13TH - LTS BREWING COMPANY
SPONSORSHIPS AVAILABLE!
JOB POSTINGS RAB Offers FREE postings
6
ROCHESTER PUBLIC WORKS DEPT Expanding Pollinator Habitat
SHOWCASE MAGAZINE Advertising Information
9
11
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 | JUNE 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 Julie Herrera-Lemler, Braun Intertec Corporation Vanessa Hines, Widseth
BUILDERS EXCHANGE COUNCIL CHAIR
Elizabeth Sullivan-Burton, Elizabeth@RochesterAreaBuilders.com Builders Exchange Trustees and Showcase Committee, Website
Katie Reinhart, Kraus-Anderson Construction
GOVERNMENT & PUBLIC AFFAIRS CONSULTANT
Hal Henderson, HGA Architects & Engineers
Rick Dold, Rick@GodwinDold.com
Krista Weisz, Stier Construction, Inc.
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.
COMMERCIAL BUILDERS COUNCIL CHAIR
Robbie Danko, The Boldt Company
DEVELOPMENT COUNCIL CHAIR REMODELERS COUNCIL CHAIR
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
10
9
PERMIT REPORTS
9 RAB CALENDAR........................................... 4
JUNE 2022
2022 CALENDAR.......................................... 5 RAB Events
MEMBER REPORT........................................ 6
Welcome New Members
LETTER FROM RAB PRESIDENT.................... 7
12
20
FALL SHOWCASE MAGAZINE...................... 11
Advertising Opportunity
KITCHENS FOR KIDS.................................. 12
2023 Home Show Activity Registration
NAHB EYE ON HOUSING............................. 13
Annual Permits Per Capita: 2001-2021
NAHB EYE ON HOUSING............................. 18
Becky Holmen, Haley Lighting, 2022 RAB President
Building Materials Prices Move Higher, Up 19% Year-over-Year
BUILDERS, BAGS & BREWS.......................... 8
40 BELOW................................................. 19
Sponsorship Information
STUDS, STRUTS & STILETTOS...................... 8
Design Entry & Sponsorship Information
PUBLIC WORKS DEPT.................................. 9
Expanding Pollinator Habitat
FALL SHOWCASE....................................... 10
Event information
REMODELERS TOUR................................... 10
Event information
Photos
BUILDING PERMITS.............................. 19-20
Rochester & Pine Island
OLMSTED BUILDING PERMITS ................... 21
April 2022
SEMR HISTORICAL OVERVIEW................... 21
April 2022
NAHB EYE ON HOUSING............................. 26
Credit for Builders and Developers Tightens in the First Quarter
4 | JUNE 2022
June 2022 Sunday
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
1
2
3
4
8
9
10
11
16
17
18
23
24
25
7:30 AM CBC Meeting 12:00 PM Showcase Committee
5
6 12:00 PM Government Affairs Committee
7 8:30 AM Remodelers Council Exec.
7:30 AM Green Building Committee
12:00 PM Sporting Clays Committee
11:30 AM Executive Committee 3:30 PM Builders Exchange Board of Trustees
12
13
14 3:00 PM Board Meeting
15 12:00 PM Ambassadors Committee
7:30 AM Membership Committee
4:30 PM 40 Below Exec Committee
19
20 11:30 AM Fashion Show Committee
26
27
21 11:00 AM Builders, Brats & Building Safety STEWARTVILLE
28
22 3:00 PM Development Services Advisory Committee
11:30 AM Community Relations Committee
29
30
11:30 AM Home Show Committee
MEETINGS ARE NOW BEING HELD IN PERSON UNLESS NOTIFIED DIFFERENTLY BY JOHN
5 | FOUNDATIONS NEWSLTR
Rochester Area Builders 2022 Calendar of Events
MAY JUNE
JULY
30
Office Closed – Memorial Day
2 28
RAB Golf Outing @ Willow Creek Golf Course Networking Night @ Knutson Construction
4 TBD 26
Office Closed for Independence Day NAHB Mid-Year Board Meeting – TBD Member Appreciation Night @ Mayowood Stone Barn
AUGUST 13 30
Builders, Bags & Brews @ LTS Brewing Company Networking Night @ Valor Mechanical & Tulip Tree
SEPTEMBER 5 Office Closed – Labor Day 15 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
ROCHESTER AREA BUILDERS, INC.
MEMBERSHIP REPORT April 2022
Membership Total: Retention rate:
402 92.5%
WELCOME
SEARCHING FOR COMMITTEE MEMBERS
MAY 2022 NEW MEMBER
As of April 30, 2022 ONE TO FOUR YEARS
The RAB Home Show is our largest event and with that needs a large committee to make the event successful.
LRS Recycles.................................................................... 2021 Majestic Events................................................................ 2021 Pederson Homes............................................................. 2021 McNeilus Properties, LLC............................................... 2020 Junge’s Flooring.............................................................. 2019
FIVE TO NINE YEARS Godwin Dold......................................................................................2017 Molin Concrete Products Company...........................................2017 MedCity Consulting.........................................................................2016 Destination Building Center..........................................................2015 Range Custom Homes, LLC..........................................................2013
TEN TO 14 YEARS R. Fleming Construction, Inc........................................................2012 Advanced Building Center, Inc.....................................................2011 Braun Intertec Corporation...........................................................2011 Lacina Siding & Windows, Inc......................................................2011 Burdick Builders, Inc.......................................................................2010 Data-Smart Computers, Inc..........................................................2008 On Site Companies..........................................................................2008
ERIC HABBERSTAD
If you are interested in being apart of the committee, please contact Shelly.
Banks & Mortgages (507) 460-4500 yourwaymortgage.com
15 YEARS TO 19 YEARS Kirkland Enterprises, LLC.............................................................2007 Dolan’s Landscape Center, Inc.....................................................2006 Majestic Homes, Inc........................................................................2006 Med City Builders of Rochester, LLC..........................................2006 Anderson Construction..................................................................2005 Scott Berberich Construction, LLC.............................................2004
20 YEARS TO 24 YEARS Expert Insulation of Minnesota, LLC..........................................2001 Golden Tee Development..............................................................2001 KTTC / KXLT-TV...............................................................................2000 American Waterworks...................................................................1999 CHS, Inc..............................................................................................1998
25 YEARS OR MORE HGA Architects and Engineers...................................... 1997 Sterling State Bank......................................................... 1993 Grinde & Dicke Law Firm P.A......................................... 1990 Countryside Builders, LLC.............................................. 1989 People’s Energy Cooperative......................................... 1987 Thomas Tool & Supply.................................................... 1987 North Risk Partners........................................................ 1970 Post-Bulletin Company, LLC........................................... 1955
JOB FREE
POSTINGS ABETH A S E N D E L IZ ED FORM COMPLET
E UND HER O F S M R FO
7 | FOUNDATIONS NEWSLTR
FROM THE PRESIDENT The Fall Showcase is a great way for builder members to “showcase” (see what we did there?) their product to prospective buyers. Unlike the Spring Showcase, all homes in the fall are finished. We also Our second annual Builders, send judging groups and select Bags, & Brews will be held at winners in each category. If LTS Brewing on August 13th you’re a builder member, entry (rain date is 8/14). Team forms are available. The registration will open on June Remodelers Tour (near and 6th, so get you buddies together dear to me as past Remodelers and joins us for this really fun Council chair) is held the first event and help support The weekend of the Fall Showcase Jeremiah Program at the same and entry forms are also time! We do have sponsorships available. The Tour is a little available you can find those different than the Showcase. It’s here. not limited to builder members only. If you’re a siding company, Even though I started out talking about summer, we have a window installer, kitchen already started planning for our cabinet company, or a landscape company you can 2023 Home Show next enter a project in the Tour. It’s a February. The committee is also great way to show off your really excited about adding projects to prospective buyers. some new things to the weekend to help drive traffic all If everyone is as busy as I am, weekend long. If you would like I hope you were still able to to join the Home Show enjoy the long Memorial Day Committee and help us plan the weekend with family and largest home show in southeast friends! Minnesota, send Shelly an email and we’ll get you added. You can also take part in the Home Show preparation and build a Kitchens for Kids play kitchen. Build a play kitchen that we’ll display at the Home Show. Raffled tickets will be sold The Becky Holmem Jeremiah Program to support Haley Lighting their programs. 2022 RAB President great facility and really did a great job of setting up a nice space. Our next event is on June 21st in Stewartville hosted by Valor Mechanical. Stop on by!
BECKY HOLMEN President Rochester Area Builders, Inc
Summer better get here soon, I’m getting a little tired of all this rain and chilly temperatures! Hopefully, we’ll get some of that summer weather for our golf outing on June 2nd at Willow Creek golf course. Shelly tells me that the spare office is filling with door prizes – thank you to those who provided one! – but there is still room for more. If you want to provide a door prize you can drop it off at the RAB office by June 1, or, if you’re coming to the outing, you can bring it with you. The Remodelers Council’s Builders, Brats & Building Safety, hosted by Elias Construction was a success. Mickey and his crew have a
8 | JUNE 2022
SPONSORSHIPS AVAILABLE
8.13.22
LTS Brewing Company Presented by:
Benefiting:
Team Registration Opens June 6th Headlining Sponsor:
9 | FOUNDATIONS NEWSLTR
Expanding Pollinator Habitat in Rochester the cost for design, plants, mulch, soil amendments, related materials, and labor. More details of the grant award and requirements can be found within the grant application packets. 2. Master Gardeners of Olmsted County: Our local Master Gardeners will be hosting a “Tour with the Masters” on Wednesday, July 20 from 4pm – 8:30pm featuring gardens in Southeast Rochester. Check out the website for details and how to purchase tickets.
M
innesota is home to more than 450 native bee species and other species — including butterflies, moths, beetles, hummingbirds, and flies — that play a key role in pollinating many food crops and native plants. Many populations have declined worldwide in recent years due to habitat loss and related lack of nutrition, as well as pesticide use and pathogens. The planting projects in Minnesota’s Lawns to Legumes program provides opportunities for almost anyone who wants to do a project. Even small plantings of native flowers can help pollinators by connecting important habitat corridors! Lawns to Legumes offers cost-share grants, technical assistance, coaching and planting guides to eligible residents who install pollinator-friendly native plantings in their yards. The emphasis is on protecting the federally endangered state bee, the rusty patched bumblebee. In Rochester, you’ll find native plantings that supports pollinators and clean water all over town and more are being added. Some local resources include: 1. Rochester Garden Grants: The City of Rochester is offers grants for residents and land managers to establish pollinator habitat and water stewardship gardens. A limited number of grants for $1000 or less will be available each year. Eligible expenses include
3. Blue Thumb Partnership: Learn about individual support grants to install Lawns to Legumes gardens, as well as discover garden types and Minnesota partners and businesses that can help! There’s also an awesome native plant selector tool. 4. Board of Water and Soil Resources: This MN state agency is leading the work on developing pollinator habitat through Lawns to Legumes and they have many resources for residents to explore. For developers and contractors: consider adding pollinator habitat to the landscaping at your projects this summer by installing native plants through plugs or seeds mixes. The University of Minnesota Bee Lab and turfgrass science programs have vetted several seed mixes for bee lawns – which adds low growing flowering species to your traditional turfgrass lawns. Check out the list of suppliers here.
10 | JUNE 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
11 | 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
12 | JUNE 2022
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
13 | FOUNDATIONS NEWSLTR
Annual Permits Per Capita: 2001-2021 BY DANUSHKA NANAYAKKARA-SKILLINGTON on MAY 10, 2022 Population growth in the United States amounted to just 0.12% in 2021 (between July 2020 and July 2021), the slowest rate on record dating back to 1900. The sharp slowdown in population growth over the past two years is almost entirely due to pandemicrelated factors, namely decreased birth rates, increased mortality and decreased net international migration.
than the 2020 level of 979,360. At the state level, Texas (179,620) issued the highest number of single-family permits in 2021 followed by Florida (148,735) and North Carolina (68,636). The top 10 states issuing the highest number of single-family permits combined accounted for 62.6% of the total single-family permits issued in 2021. Between 2021and 2022, 48 states and the District of Columbia saw growth in single-family permits issued. The District of Columbia recorded the highest growth rate during this time at 170.5%, going from 139 permits to 376, followed by Florida (+29.1%), and Maine (+25.3%). Maryland and Montana reported declines in single-family permits during this time.
Thirty-three states registered a net gain in population during 2021, while 17 states and the District of Columbia contracted. On an absolute basis, Texas (310,288), Florida (211,196), and Arizona (98,330) gained the most residents. Several large states such as New York (-319,020), California (-261,902), and Illinois (-113,776) posted the largest declines in its population. On a relative basis, Idaho (2.9%), Utah (1.7%), and Montana (1.7%) expanded rapidly while the District of Columbia (-2.9%), New York (-1.6%), and Illinois (-0.9%) reported the sharpest percentage In 2001, Nevada, Arizona, Georgia, declines. Colorado, and North Carolina were the top 5 states with the highest number of per capita single-family permits.
In 2021, according to the U.S. Census Bureau, builders applied for 1.1 million single-family permits, which is 13.9% higher
Ten years later, just after the Great Recession, North Dakota, South Carolina, Delaware, North Carolina, and Wyoming took the top spots for the highest number
of per capita single-family permits. In 2021, Idaho had the highest number of per capita singlefamily permits issued as a result of domestic migration due to the COVID-19 pandemic. South Carolina, Utah, Delaware, and
Florida round out the top five states in 2021. Below are the top 10 states with the highest number of per capita single-family permits in 2001, 2011, and 2021.
14 | JUNE 2022
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
15 | FOUNDATIONS NEWSLTR
Reach
Qualified Customers
Advertise on the RAB Website!
More than 3,000 people visit the RAB website each month, many of them looking for a contractor. Advertise on our site and reach them when they’re primed to buy! Banner ads are available in a variety of locations on the RAB site, from job posts to the contractor directory. Higher tiers come with priority placement in directory search results too. Contact us today to learn how you can start advertising, starting at $299.
Contact Elizabeth Elizabeth@RochesterAreaBuilders.com or 507-282-7698
16 | JUNE 2022
WEBSITE PROFILE ENHANCEMENTS
STANDARD LISTING
UPGRADED LISTING
ENHANCED LISTING
PREMIUM LISTING
NO ADDITIONAL CHARGE
$100 ANNUALLY
$300 ANNUALLY
$500 ANNUALLY
Company Name, Address and Phone Number Links to Website, Address, and Phone 5 Categories Medium Placement in Search Results Link to Profile Page 12 Categories Company Description (200 Characters) Keywords (240 Characters) Hours of Operation Driving Directions Higher Placement in Search Results Company Description (1600 Characters) Keywords (Unlimited Characters) 200 Characters on Search Results Bulleted List with Hyperlinks Logo on Profile Page Can Be Added Search Results Summary (200 Characters) Profile Page Header Can Be Added Gold Map Pin Logo On Search Results Can Be Added Social Networks Can Be Added Photo Gallery Can Be Added YouTube Video Can Be Added
Contact Elizabeth for more information
17 | FOUNDATIONS NEWSLTR
Building Materials Prices Move Higher, Up 19% Year-over-Year BY DAVID LOGAN on MAY 12, 2022
According to the latest Producer Price Index (PPI) report released today by the Bureau of Labor Statistics, the prices of goods used in residential construction ex-energy (not seasonally adjusted) climbed 0.5% in April, following upwardly revised increases of 1.9% and 2.4% in March and February, respectively. This adds up to an 4.9% increase in building materials prices since the start of 2022. Year-over-year, building materials prices are up 19.2% and have risen 35.6% since the
13.3% since the start of the year. Year-over-year, the index has increased 18.1% and is up 45.6% since the start of the pandemic.
the first four months of 2022 have been positive for the cost of derivative steel products after increasing 128.0% in 2021.
Softwood Lumber
Ready-Mix Concrete
The PPI for softwood lumber (seasonally adjusted) declined 15.6% in April following a downwardly revised 5.4% increase in March and a 2.5% gain in February. As a result, the index is down 8.9% over the first four months of 2022. Since reaching its most recent trough in September 2021, prices have risen 60.4%.
The PPI for ready-mix concrete (RMC) resumed its upward trend after a small decline in March (-0.2%) as prices rose 1.3% (SA) in April. The index has climbed 8.9% year-over-year and is 12.6% higher than the January 2021 reading.
Gypsum Products start of the pandemic. The price index of services inputs to residential construction registered a similar increase, rising 0.9% in April. However, the index was upwardly revised for March, causing the monthly increase to jump from 3.2% to 6.8% over the month. As a result, the price index of services used in home building (including trade services, transportation and warehousing) has climbed
Steel Products Steel mill products prices (NSA) climbed 2.4% in April–the first monthly increase since December 2021. Nonetheless,
The PPI for gypsum products (SA) was flat in April. Yearover-year, the prices of gypsum products are 17.8% higher and have increased 23.5% since January 2021.
Congratulations At the recent Midwest Region Spring Forum in Souix Falls, SD the Southeast Minnesota Chapter 346 brought home several awards. Congratulations to everyone for their dedication and hardwork. Emerging Professional Spotlight Award - SE MN Chapter 346 Memberhip Committee Safety Excellence Award - Hunt Electric Corporation Midwest Region Recruiter of the Year - Jodi Wiemerslage Midwest Region Member of the Year - Jodi Wiemerslage
SAVE THE DATE Registration & Sponsorships available in June!
28th Annual Golf Outing
Friday, August 12 Willow Creek Golf Course
Visit nawicsemn.org or email info@nawicsemn.org for more information.
Follow us
@NAWICSEMN
19 | FOUNDATIONS NEWSLTR
April 2022
CD Report BUILDING DIVISION
Thank you to all the 40 Below members that helped pick up trash for Litter Bit Better. 40 Below had a Social this month at Chip Shots. Thank you to all that came!
Commercial building plans submitted
Residential building plans submitted
Commercial inspections completed
18
38
828
Residential inspections completed
YTD NEW Housing Units
Residential plan review time
1,642
335
<1 Weeks
Commercial plan review time
2 Weeks
YTD Residential permits issued
YTD Commercial permits issued
YTD Trade permits issued
2022: 681 Average: 484
2022: 141 Average: 121
2022: 3131 Average: 3187
YTD Residential valuations
2022
YTD Commercial valuations
2022
YTD Alterations valuations
2022
YTD Trade valuations
2022
$59,012,509
$106,746,319
$76,843,464
$49,738,964
$45,904,972
$53,824,509
$67,794,227
$45,209,422
Average
Average
Average
Average
PLANNING DIVISION
YTD Building permit plans reviewed
YTD Zoning Certificates submitted
YTD Type I Applications submitted
2022: 822 Average: 606
2022: 16 Average: 16
2022: 5 Average: 7
YTD Type II Applications submitted
YTD Type III Applications submitted
2022: 0 Average: 0
2022: 4 Average: 8.5
20 | JUNE 2022
ROCHESTER BUILDING PERMITS NEW RESIDENTIAL Single Family Dwelling
2022 26
VALUATION 2021 9,691,847
19
APRIL 2022
VALUATION 5,961,802
2014 2015 2016 2017 2018 2019 2020 2021 2022 January
11
20
25
15
19
6
17
23
9
14
19
15
20
16
5
13
8
11
Townhome Dwelling
2
631,500
0
0
February
Two-Family Houses
0
0
0
0
March
28
30
31
44
25
27
32
35
21
April
25
22
33
45
40
23
19
19
28
113
110
160
167
128
84
81
85
69
May
35
19
56
43
28
27
19
26
June
47
51
41
52
38
31
21
30
July
38
29
44
45
36
26
26
25
August
60
33
47
30
31
24
17
24
September
23
27
52
35
39
12
30
20
October
35
49
25
36
29
27
28
16
November
26
23
12
41
21
47
23
19
December
27
42
37
33
25
34
21
8
369
369
418
429
347
289
266
253
Manufactured Home
0
0
0
0
Multi-Family Bldgs (Units)
0
4,453,115
127
14,800,000
EXISTING RESIDENTIAL Deck Addition
15
240,150
34
69,136
Room Addition
0
0
0
0
Porch Additions
0
0
4
69,000
Other Additions
5
74,600
3
23,100
Basement Finish
22
537,735
30
548,288
Alterations
61
1,291,993
51
649,826
Multi-Family Addition
0
0
0
0
Multi-Family Alterations
2
4,600
5
70,500
TOTAL
TOTAL
69
*Total may differ as permits may have been voided.
NEW COMMERCIAL
YEAR TO DATE STATISTICS
Assembly (Church)
0
0
0
0
Assembly (General)
0
0
1
3,000,000
Assembly (Restaurant/Bar)
0
0
0
0
BUILDING PERMITS ISSUED TO DATE
619
243,714,474
655
163,357,124
Business
0
0
0
0
Single Family Dwelling
59
24,076,794
77
26,191,487
Education
0
0
0
0
Factory/Industrial
1
12,231,120
0
0
Multi-Family Buildings Total Units: 267
3
31,753,115
1
14,800,000
Institution
0
0
0
0
Mercantile
0
0
1
1,300,000
Miscellaneous
0
0
0
0
TRADE PERMITS ISSUED TO DATE
3120
49,689,549
3549
43,339,762
1190
24,420,283
1349
19,310,351
65
28,700
83
28,555
2022 NO.
VALUATION
2021 NO.
VALUATION
Residential (Apartment)
0
0
0
0
Electrical
Residential (Care/Assisted Living)
0
0
0
0
Electrical (Temp. Service)
Residential (Care/Hotel/Motel)
0
0
0
0
Mechanical (HVAC)
824
9,809,526
926
11,428,661
164
273,963
212
245,876
Storage (General) Storage (Parking Garage)
0
0
0
0
Mechanical (Gas Piping)
12
3,950,000
0
0
Mechanical (Fireplace)
85
436,980
123
643,735
84
5,842,141
54
3,578,055
708
8,877,956
802
8,104,529
3739
293,404,023
3366
173,338,200
Storage (Warehouse)
0
0
0
0
Mechanical (Hydronic)
Utility (General)
1
950,000
0
0
Plumbing
Utility (Private Garage)
0
0
0
0
EXISTING COMMERCIAL Addition Alterations
3
3,007,000
1
580,580
44
49,243,430
30
33,036,688
Structural Shell
0
0
0
0
“White Box”
0
0
1
3,000,000
Interior Demolition Only
0
0
0
0
Other Phased Permits
0
0
0
0
Advertising Signs Footings & Foundations Demolition
Information and downloads available at Rochester Building Safety Department’s website: Rochester Permits
PINE ISLAND BUILDING PERMITS APRIL 2022 NEW RESIDENTIAL
OTHER CONSTRUCTION Business Signs
TOTAL PERMITS YTD
NUMBER
VALUATION
Single Family Detached
3
876,159
Single Family Attached
0
0
10
58,335
12
112,704
0
0
0
0
Existing Residential
11
0
0
0
Basement Finish
1
25,000
2
0
2
0
Deck Addition
2
22,250
21 | FOUNDATIONS NEWSLTR
OLMSTED COUNTY PERMITS YTD NEW RESIDENTIAL
2022
VALUATION
2021
APRIL 2022 COMMERCIAL/INDUSTRIAL
VALUATION
Single Family-Detached
22
9,104,937
10
2,366,574
Single Family-Attached
0
0
0
0
Garage
3
134,131
4
187,001
12
Addition Alterations Garage Addition
57,636
4
16,590
3
153,069
3
205,335
73
1,380,003
25
313,725
0
0
1
17,477
Recreational
0
0
0
0
Church/Religious
0
0
0
0
Industrial/Warehouse
0
0
1
136,056
Service/Repair Station
0
0
0
0
Store/Restaurant
1
78,552
0
0
Nonresidential Building
1
616,530
1
134,573
2021
2022
VALUATION $2,657,450 PERMITS 35
BYRON
2021
VALUATION
Addition
0
0
0
Alterations
9
386,509
1
41,000
Re-roofing
3
286,563
0
0
Pool, Retaining Wall, etc.
4
157,857
5
111,790
Manufactured Homes
0
0
0
0
Mechanical
56
274,342
52
311,735
Plumbing
26
79,130
27
187,281
213 12,709,259
140
4,029,147
MISCELLANEOUS PERMITS
NEW COMMERCIAL/INDUSTRIAL
VALUATION $2,126,245 PERMITS 16
VALUATION
0
OTHER STRUCTURES
RESIDENTIAL Deck
2022
VALUATION $432,595 PERMITS 5
VALUATION $0 PERMITS 0
EYOTA
TOTAL PERMITS
BYRON NOW INCLUDED IN OLMSTED COUNTY PERMITS
OLMSTED COUNTY PERMITS APRIL
VALUATION $317,980 PERMITS 18
VALUATION $177,870 PERMITS 11
VALUATION $293,896 PERMITS 9
MARION
VALUATION $0 PERMITS 0
VALUATION $1,668,325 PERMITS 11
VALUATION $506,645 PERMITS 1
VALUATION VALUATION $537,897 $317,352 PERMITS PERMITS 16 20
QUINCY
ORONOCO TWP
STEWARTVILLE
Activity Overview Key metrics by report month and for year-to-date (YTD) starting from the first of the year.
Key Metrics
Historical Sparkbars
New Listings 4-2019
4-2020
4-2021
4-2022
4-2019
4-2020
4-2021
4-2022
4-2019
4-2020
4-2021
4-2022
4-2019
4-2020
4-2021
4-2022
4-2019
4-2020
4-2021
4-2022
4-2019
4-2020
4-2021
4-2022
4-2019
4-2020
4-2021
4-2022
4-2019
4-2020
4-2021
4-2022
4-2019
4-2020
4-2021
4-2022
4-2019
4-2020
4-2021
4-2022
Pending Sales
Closed Sales
Days on Market
Median Sales Price
Avg. Sales Price
Pct. of Orig. Price Received
Affordability Index
Homes for Sale
Months Supply
4-2021
4-2022
Percent Change
YTD 2021 YTD 2022
636
618
- 2.8%
1,895
1,903
+ 0.4%
599
591
- 1.3%
1,832
1,821
- 0.6%
433
449
+ 3.7%
1,390
1,401
+ 0.8%
38
31
- 18.4%
47
42
- 10.6%
$229,000
$270,000
+ 17.9%
$225,000
$259,200
+ 15.2%
$266,886
$314,155
+ 17.7%
$256,744
$298,761
+ 16.4%
100.2%
100.7%
+ 0.5%
98.5%
99.1%
+ 0.6%
186
124
- 33.3%
190
130
- 31.6%
494
456
- 7.7%
--
--
--
1.0
1.0
0.0%
--
--
--
Percent Change
Current as of May 10, 2022. All data from Southeast Minnesota REALTORS® and NorthstarMLS®. Provided by the Minnesota Association of REALTORS®. Report © 2022 ShowingTime. | 2
22 | JUNE 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.
23 | FOUNDATIONS NEWSLTR
24 | JUNE 2022
25 | FOUNDATIONS NEWSLTR
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26 | JUNE 2022
Credit for Builders and Developers Tightens in the First Quarter BY PAUL EMRATH on MAY 13, 2022 During the first quarter of 2022, credit became tighter on loans for speculative single-family construction, and on loans for Acquisition, Development & Construction from 77.4 to 76.0 percent on loans for pre-sold single(AD&C) according to NAHB’s Survey on AD&C Financing. family construction. The NAHB survey produces a net easing index that summarizes the change in credit conditions, similar to the net easing index constructed from the Federal Reserve’s survey of senior loan officers (SLOOS). In the first quarter of 2022, both the NAHB and Fed indices were negative, indicating tightening credit conditions. The NAHB index stood at -2.3 while the Fed index was -4.7, compared to +9.7 and +10.3, respectively, in the fourth quarter of 2021. This is the first time that both measures show tightening credit conditions since mid2020.
Similarly, the average LTC declined from 67.6 to 66.9 percent on loans for land acquisition, from 75.9 to 74.5 percent on loans for land development, from 86.3 to 85.0 percent on loans for speculative single-family construction, and from 90.0 to 86.7 percent on loans for pre-sold single-family construction.
The NAHB net easing index uses information from questions that ask builders and developers if availability of credit has gotten better, worse, or stayed the same since the previous quarter. In the first quarter of 2022, 6 percent of the NAHB builders said availability of credit for land acquisition had gotten better, while 9 percent said it had gotten worse. For land development, 3 percent said credit conditions improved, while 14 percent of the respondents indicated that it had gotten worse. Finally, 11 percent of builders reported that the availability of credit for single-family construction had improved, compared to only 4 percent who said it had gotten worse. One way lenders reduced availability of credit in the first quarter of 2022 was by lowering Loan-to-Value (LTV) and Loan-to-Cost (LTC) ratios. In the NAHB survey, the average LTV on all four categories of AD&C loans declined between the fourth quarter of 2021 and the first quarter of 2021: from 70.9 to 64.4 percent on loans for land acquisition, from 72.4 to 67.7 percent on loans for land development, from 76.7 to 74.1 percent
As of the first quarter, rising interest rates recently reported on other types of loans were not yet consistently evident in the NAHB AD&C survey. The average effective rate (based on rate of return to the lender over the assumed life of the loan taking both the contract interest rate and initial fee into account) decreased from 6.43 in the fourth quarter of 2021 to 6.32 percent in the first quarter of 2022 on loans for land acquisition, but increased from 7.14 to 7.85 percent on loans for land development. For pre-sold single-family construction, the average effective rate decreased from 7.94 to 7.38 percent and from 8.10 to 7.90 percent on loans for speculative single-family construction.
27 | FOUNDATIONS NEWSLTR
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
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Send artwork to Shelly@RochesterAreaBuilders.com by the 15th of the month to be included in the upcoming Foundation Newsletter.
28 | JUNE 2022
NAHB Member Put your membership to work.
Exclusive discounts that benefit you, your business and your family
nahb.org/Savings