The Fargo-Moorhead area building industry continues to experience an astounding resurgence. Overall construction values have surpassed last year’s third-quarter peak, as evidenced by the Home Builders Association of Fargo-Moorhead’s year-to-date building permit report. This brings the area back to levels it hasn’t experienced since the mid-2000s.
Total construction value is already over $523 million, which is the highest posted through the first three quarters, and supersedes last year’s record by just under $90 million. For reference, the previous third quarter high was in 2006 at $428 million, and current numbers are almost $100 million higher.
HBA of F-M President Darrick Guthmiller, Kochmann Brothers Homes, Inc., says “Our members continue to enjoy a wonderful work season here in the valley. Although there was a late winter and wet spring, we are still building houses at an amazing rate!”
For the F-M area as a whole, single-family construction has exceeded the previous high of 745 permits in 2004, hitting 770. Residential construction is still at record levels, posting the highest number of housing starts (single-family, twin home and row houses) since 2005: there have been 982 housing starts in the F-M area through September. This pace is up 34 percent from the 732 starts in 2012, which was itself a 64 percent increase from the previous year.
- Moorhead has shown great growth, with 43 more total housing starts than last year at this time, and a 24 percent increase in single-family residences.
- In Fargo, every category, other than residential remodeling, has experienced an increase from last year, with total housing starts increasing by just under 40 percent from third quarter of last year.
- Dilworth has seen its total housing starts double, as that number rose from 12 to 25.
- In West Fargo, where housing (and all construction) numbers have seen the most impressive growth in the region, there has been another 20 percent increase over last year’s total housing starts; multi-family construction has almost doubled.
“Despite this record growth, our metro area still faces challenges in flood insurance mandates and the wait for permanent flood protection,” Guthmiller says. “Our industry is working hard to keep up with demand and to find the workforce necessary – these are positive challenges as it means we are busy putting people to work and creating jobs.”
Access a video of today’s news conference releasing this information here.
Each quarter, the HBA compiles the building permits from Dilworth, Fargo, Moorhead and West Fargo into a uniform report for the industry’s and media’s use. It includes summaries for each city, types of construction, valuations and comparisons to the past four years, as well as comparisons to five-year and 20-year averages.
The HBA of F-M promotes an environment where members and their businesses can prosper. It is a non-profit trade association of nearly 800 members that has been in existence since 1956. Its public events include the Spring Parade of Homes, Fall Parade of Homes, Remodeled Home Tour, Red River Valley Home & Garden Show and Fall Home Show. For more information, visit www.hbafm.com.