׉?ׁB!בCט  (u׉׉	 7cassandra://5LrWCAVvKyZzlgEVCoHPCoXDEm5ax1hSvSA0wUuOdCI C6`׉	 7cassandra://9Pbtv6RV-V2CaO-XCAdUroNb8nQWrtoEn5ZTeGltuwU͆`s׉	 7cassandra://_tsNQua2ixQcx03kgV4NO8FYq_bUz5nMr8cT6ZKQKgA+` ׉	 7cassandra://RgjX3nA4vgxn_W0rEuB8C1oTr901hjtsAuoQVSAWVuQ o͠]`O7<貌ט   (u׈   CNSvu  נ`O7<貋 xف9׉H Mhttp://hbrmea.org/wp-content/uploads/2021/01/Showcase-Home-RFP-with-plans.pdfGׁׁr׈E`O7<p׉E>MAY 2021
NEWSLETTER
To promote, educate and advocate for the Residential Building & Remodeling Industry; providing
resources that benefit industry professionals and consumers in the communities we serve.
This year the Sport Clay Shoot is raffling off a
Weatherby Orion Over/Under Walnut 12 gauge
Shotgun! As we know, there are many members
that hunt and would appreciate having this in
their hands.
Tickets are $20 for one (1) or $50 for three (3).
Pictured: Janice Wolters with Busey Bank, winner of the
2020 Shotgun Raffle.
WHATS INSIDE
Upcoming Events
 May 21 - Sport Clay Shoot Challenge
 June 9 - Industry Product & Tool Expo
 June 24 - Bury The Hatchet / Axe Throwing Event
 July 16 - Herschel E. Johnson Golf Classic
EXCAVATION START DELAY…………
FIBER OPTIIC LINE IN THE WAY!
Membership Announcements
New Home Start Permit Report
NAHB News:
Is the Market Too Hot?
National Housing Starts
Illinois Policy Institute:
IL to Lose 1 Seat in U.S. Congress
New event for members!
MarketGraphics Chairman, Edsel Charles
Issues Affecting New Housing Construction
Page 1
׉	 7cassandra://_tsNQua2ixQcx03kgV4NO8FYq_bUz5nMr8cT6ZKQKgA+` `O7<q`O7<p(בCט   (u׉׉	 7cassandra://IHqF6U-v0pM0IKaX4SsLPjAeV0n5I9CLQHecXnaTOoQ ñ`׉	 7cassandra://916P86KsYgDO5ZU7sDb4rr7EokFB9udxpncfKYnc7Cs͚`s׉	 7cassandra://4UTz-8IbzYTqWFyp6evQ3yFhibnE_bZX4ID8QchhJtY0` ׉	 7cassandra://Q7rmkFkoTEbyTUf6DUnhE1auwtXQQcqSZDiNmOh99Ck D͠]`O7<貐ט  (u׉׉	 7cassandra://H4WtMB86JY2hsdtL9o9pBpo3VWQlX_p_KWwToGFPjQg `׉	 7cassandra://s7tCweWOqhQK4dy9Sxc-I_dM4ACM1hZ018di5whYMz8{`s׉	 7cassandra://XQFkrTtri4x9ed9_axV2JJ3zv5nDEyBgBG6vZ1MvzpA(e` ׉	 7cassandra://-VHXmxB7dR4CVCzULhKsyCws_Fmn8GyC8CMWkUMFISk ,͠]`O7<貑נ`O7<貏 -d9׉H Mhttp://hbrmea.org/wp-content/uploads/2021/01/Showcase-Home-RFP-with-plans.pdfGׁׁr׉E:The excavation that was scheduled for Friday, April 16th
did not happen because of the fiber optic line
from AT&T is running thru the middle of the house! Ron Woods Excavating was able to talk to a high
up person at AT&T that sent someone out that same day to confirm they screwed up. Now we are
waiting for the engineer to come out and get it refigured.
Unfortunately this will put us further behind than we anticipated. Ron Woods Excavating spent the rest
of the day leveling out the pile of dirt between our lot and the house next to us and has started digging
the hole on the other side of our lot hoping that the
engineer will show up when he is there.
The City of O’Fallon has gotten involved and helped
to get AT&T moving forward to install the new fiber
optic line in the correct location quickly as this could
have taken weeks. The City of O’Fallon was told by
AT&T that the new line has been installed and
spliced. When we went to confirm the news this is
what was onsite……
With this setback we anticipate the completion of the
Showcase Home to be in July.
Page 2
׉	 7cassandra://4UTz-8IbzYTqWFyp6evQ3yFhibnE_bZX4ID8QchhJtY0` `O7<s׉EPage 3
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׉	 7cassandra://owwbSeZYO3m67s1A8aOV6kmWgAth6rCNW8J2YK-n2Jc(+` `O7<u׉EPage 5
׉	 7cassandra://oUkJb-9UOHfmZcRXvKIZ0eCAaSYWnkhaWrEcJCBRHPc,` `O7<v`O7<u(בCט   (u׉׉	 7cassandra://qbCV8RZ59q-c6v-fZUP4EpdX8am_1pjsTrzpzKpKU4w `׉	 7cassandra://jLi2o-Ms-pjjOAQft0Jz4j19mhYRNYyg8up9rgDsYDs͙`s׉	 7cassandra://EHH-Jc7xuccq1NqjjO2_0C4mU5JU7BYqyulad7Yr5eQ*` ׉	 7cassandra://an3eC2dKw2i9S2AVxcCgsZx4yR6xY-GFOC1OERQKKE0E͠]`O7<財ט  (u׉׉	 7cassandra://DlbZfBTifbpUnGwwIdbeio7JA_m5nfMbtpiGQ8S_w4U Ko`׉	 7cassandra://KsgGEgzaBCotwtukYZUxLeGTQUdbcZrQSA0FOp8Jm-oj`s׉	 7cassandra://ZtdCkYClGvHZ_A0zaikx79qYhO5qPO_GzNcbdfCmCxg,` ׉	 7cassandra://-Ekle0hj-6G-DE1Q1kfogd8yLSZmjykK0K0Nu7Oe0Kg r͠]`O7<貢נ`O7<貗 ̦̄9׉H mhttps://illinoispolicy.us1.list-manage.com/track/click?u=7fe208d3c85ffa1d03aeaade4&id=42ecbb0a57&e=d47d9f03aeGׁׁrנ`O7<貘 }܁p9׉H https://www.chicagobusiness.com/greg-hinz-politics/illinois-lose-one-house-seat-due-slow-population-growth?utm_source=breaking-news&utm_medium=email&utm_campaign=20210426&utm_content=hero-headlineGׁׁrנ`O7<貙 ȁj9׉H https://chicago.suntimes.com/2021/4/27/22406717/remap-flip-flop-pritzker-redistricting-durkin-census-independent-campaign-promiseGׁׁrנ`O7<貚 i9׉H Yhttps://www.illinoispolicy.org/can-pritzker-keep-promise-to-stop-illinois-gerrymandering/Gׁׁrנ`O7<貛 uہF9׉H mhttps://www.sj-r.com/story/news/2021/01/05/illinois-house-republican-propose-redistricting-reform/6551834002/Gׁׁrנ`O7<貜 A9׉H ihttps://www.chicagobusiness.com/greg-hinz-politics/pritzker-makes-it-clear-hell-sign-democrats-remap-planGׁׁrנ`O7<貝 ف[9׉H chttps://reptimbutler.org/2021/04/27/rep-butler-to-pritzker-stand-by-your-word-for-independent-maps/Gׁׁrנ`O7<貞 nOm9׉H Yhttps://www.illinoispolicy.org/nearly-half-of-illinois-house-candidates-face-no-opponent/Gׁׁrנ`O7<貟 b9׉H Yhttps://www.illinoispolicy.org/nearly-half-of-illinois-house-candidates-face-no-opponent/Gׁׁrנ`O7<負 vi9׉H Yhttps://www.illinoispolicy.org/nearly-half-of-illinois-house-candidates-face-no-opponent/Gׁׁr׉EILLINOIS TO LOSE 1 SEAT IN U.S. CONGRESS
Jobs & Growth
Brad Weisenstein
Illinois’ decade of population loss, with last year being the worst loss of people since World War II,
will cost us one seat in the U.S. House of Representatives, not the two seats that Illinoisians thought.
Illinois will lose one seat in Congress, according to the
U.S. Census Bureau. Illinois currently has 18 House seats.
It could have been worse: some predictions called for
Illinois to lose two seats in the U.S. House of
Representatives.
Illinois had 12.8 million residents, the U.S. Census count
found in 2020. Gains by other states drew bigger
representation out of the 435 seats in the U.S. House.
Illinois lost a seat along with California, Michigan, New
York, Ohio, Pennsylvania and West Virginia, the Census
Bureau reported. Those seven seats went to Colorado,
Florida, Montana, North Carolina and Oregon, each
gaining one, and Texas gaining two seats.
The other states remain the same.
seats since it peaked at 27 seats before 1943.
“So now, as we reach the end of this session, and I look to
the Legislature for their proposal for a redistricting map, I’ll
be looking to it for its fairness. And that’s something that’s
vitally important for our state, as an effect on the next 10
years and representation throughout the state,” Pritzker
said April 27.
Republican House leader Jim Durkin said Pritzker must
suffer from “retrograde amnesia.”
Illinois has been losing
Pritzker in 2018 campaigned on the need for independent
congressional and state legislative redistricting. He
repeated that vow as recently as January, when his
spokesman said Pritzker “has been clear he will veto a
partisan map.”
He said it is now too late for an independent commission,
which would require amending the Illinois Constitution. He
said the Democrats’ map was fair after the 2010
population count and he trusts them to be fair again.
“The map that was put together for the last 10 years
started out with a very strong leaning toward fairness,
which was the Supreme Court rulings of the past dictated
the drawing of minority districts in the state to start with
that map – and then you have to draw from there,” he
said.
News of the lost House seat comes on the heels of a
decade of population loss that saw about 18,000 fewer
Illinoisans than in 2010.
Illinois state lawmakers are tasked with redrawing the
congressional districts, as well as their own state House
and Senate districts by June 30. The partisan process in
the past has been abused and gerrymandered by
whichever party was in power at the time.
Illinois Gov. J.B. Pritzker promised on the campaign trail
and repeatedly after that, including earlier this year, to end
partisan gerrymandering of political maps. Now he says,
‘Nevermind.’ He trusts lawmakers.
Gov. J.B. Pritzker has been clear on two issues: He wants
to increase taxes and he has repeatedly vowed to veto
any partisan, gerrymandered legislative districts. It turns
out that second promise was meaningless, as the
governor now intends to trust state lawmakers to draw a
fair map.
But it’s not too late to create an independent commission,
Illinois House Assistant Minority Leader Tim Butler, RSpringfield,
said. Pritzker earlier said if there were not an
amendment, he would still support creation of an
independent commission, Butler said. Butler added that
he has a bill ready to go, but Democrats have blocked the
effort rather than Republicans as Pritzker now claims.
“I would say it’s your friends and the Democratic Party
that are not engaging. And we need to have you hold to
your word, governor, that you will veto, veto, a partisan
map like your office has said,” Butler said April 27 on the
House floor.
Both parties have abused the mapmaking process when
they were in power to benefit their parties by squeezing
out opponents and keeping their incumbents safe. The
results have been that in the 2018 election, nearly half of
the Illinois House of Representatives seats were
uncontested. In the Illinois Senate, 20 of 39 senators up
for election faced no opponent.
That hurts voter turnout, because there is little incentive to
vote when there is no choice on the ballot.
Page 6
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Is the Market Too Hot?
A number of unsustainable trends have developed in
the housing market. The combination of a decade of
underbuilding, favorable demographics, historically
low interest rates, and a shift in consumer preferences
have pushed single-family housing demand to
the strongest levels in over a decade.
However, there is simply not enough resale inventory
to meet demand. Existing single-family inventory in
March stood at a very lean 2.1-month supply — less
than half of what a healthy market needs. Consequently,
median resale pricing increased 17.2% year
over year to more than $329,000. This magnitude of
price growth — far in excess of underlying income
growth — is not sustainable over the long run.
The best means of protecting housing affordability is
to boost inventory by increasing new home construction.
Although home building is moving at its fastest
pace since 2006, inventory stands at a thin 3.6-month
supply. Moreover, inventory and sales of new homes
are increasingly coming from homes that have not yet
started construction, with this count up 150% over
the last year.
With the strong pace of single-family starts, building
materials prices continue to rise on short supply.
While not limited to lumber, lumber pricing is now up
nearly 250% from a year ago, adding close to
$36,000 to the average price of a new single-family
home. A recent NAHB survey revealed that as a result
of higher material costs, almost half of builders
are including price escalation clauses in contracts,
29% are pre-ordering lumber prior to need, and 19%
are delaying some building activity.
Given these price increases for materials and existing
housing, some analysts are talking about bubbles.
However, the market is not in a bubble because this
price growth is predominantly driven by lack of supply
and true demographic demand (as opposed to
loose mortgage underwriting). Nonetheless, the current
pace of housing price growth is pushing affordability
down. And clearly, inflation pressures are building
in the economy. The question for the Federal Reserve
is whether these forces will be long lasting or
transitory as the economy restarts after the unusual
recession of 2020.
–NAHB Chief Economist Robert Dietz
Page 8
Housing production jumped in March despite rising lumber
and other material prices affecting the housing industry.
Overall housing starts increased 19.4% percent to a
seasonally adjusted annual rate of 1.74 million units, according
to data from the U.S. Department of Housing and
Urban Development and the U.S. Census Bureau. This was
the fastest pace for combined single-family and multifamily
construction since June 2006.
The March reading of 1.74 million starts is the number of
housing units builders would begin if development kept
this pace for the next 12 months. Within this overall number,
single-family starts increased 15.3% percent to a 1.24
million seasonally adjusted annual rate. The three-month
moving average (a useful gauge given recent volatility) did
dip to 1.16 million starts, as charted below given past
month data revisions. Single-family housing starts are up
19.6% on a year-to-date basis, when comparing the first
quarter of 2021 to the first quarter of 2020.
It is also worth noting that the number of single-family
homes permitted but not started construction continued
to increase in March, rising to 124,000 units. This is 39%
higher than a year ago, as building material cost increases
and delays slow some home building.
As an indicator of the economic impact of housing, there
are now 636,000 single-family homes under construction.
This is 19% higher than a year ago. There are currently
670,000 apartments under construction, off a post-Great
Recession high mark set in August 2020 (683,000) and
down slightly from a year ago.
On a regional basis and on a year-to-date basis, combined
housing starts are 23% higher in the Northeast, 28% higher
in the Midwest, 5% higher in the South, and 10% higher
in the South.
Overall housing permits increased 2.7% to a 1.77 million
unit annualized rate in March. Single-family permits increased
4.6% to a 1.20 million unit rate. Multifamily permits
decreased 1.2% to a 567,000 pace.
Looking at regional permit data compared to the previous
month, permits are 8.0% lower in the Northeast, 2.0%
higher in the Midwest, 6.4% higher in the South and the
West remained even.
׉	 7cassandra://Adhsvm88GY35hB3Fvn-mVi-c64DPKRtt08rWi-8w9Rc,H` `O7<貃׉EIssues Affecting New Housing Construction & Sales
“Over-starting” in an area by rushing new home inventory could
lead to: spot “overbuilding” or putting foundations in on an
“early basis” sometimes several builder-starts are taken through
foundation, silt fence, garage floor, drive-gravel base, yard soil
movement, temporary electric, sewer and water lines-street to
foundation, foundation sealing, back patio slab (all this is after
building permit is obtained and posted on site).
Then Builders at Times Might Pause “Starts” can also include
single family detached rentals and this investor can put in several
foundations at one time.
The large builder that does not build to match sales but builds
just to produce homes; if they over-build, they discount to lower
inventory, but the production rate is an even flow.
All is complicated by builders dealing with price increases and
how to pass off the increases.
Serious material shortages, much due to the pandemic and some
due to market manipulation, and some just short of supply; and
some by growing housing demand.
Supplier surplus material buying months ahead to try and fill the
supply chain which complicates the issue. Some builders who
pre-buy (one builder buys windows by the truck load for a warehouse)
with no designation for an actual house.
We need a 2.5-year supply of developed lots - In many markets
the range is generally 1 year and 2 months to just over 2 years. If
you remove the junk lots, it is less than 1 year supply of developed
lots-to about 1.5 years; lot shortages will push up prices of
raw land and developed lots.
While all of this is going on, existing home resale inventory is
down significantly because many people have deferred listing
their existing house because of the virus; with low interest rates,
people are buying many newer homes. In 4-6 months, the vaccine
will result in a significant jump in available listings of existing
homes and have a modest softening effect on new home
sales.
Lot price increases are forcing builders in some cases to over
price a county land area. There must be increasing caution not to
over-run a local market price. Today it is common to sell a
house quickly all the way to getting 4 to 20 contract offers on a
house with over 60% of the contracts over the asking price.
Meanwhile the new administration is pushing up gas prices,
spending money in unrealistic ways and the Federal Reserve will
need to sort out how inflation will show up and when and to
what degree - the start of a financial problem.
Here are the cautions in order of priority – most difficult
first:
a. The over pricing of homes in some land areas because of lot
shortages
b. Buying land to develop, i.e., creating land shortages
c. Material shortage and pricing increases
d. Builders are not only finding a lot shortage now and it will
not get better over the next 3 years
e. Existing home inventory shortages with spots of no inventory
f. Price issues across the board is the single issue driven mostly
by shortages
g. Single family permit count is “not all real” – many permits are
single family detached rentals which contributes to shortages
Then we have in this pandemic, buyers transfer from New York,
California, Chicago & other markets to southern markets – increasing
new home absorption rates. We see 5% to 30% of market
parts as a market with incoming transfers. Starts are up because
of a good market plus a current (temporary) lack of existing
homes for sale; plus, a strong “transfer” in market; and many
single families “starts” look like a new for-sale house but are in
reality single family detached rentals.
Thank you,
Edsel Charles
Chairman
MarketGraphics Research Group, Inc.
Page 9
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׉	 7cassandra://l88vwX0NvrSSzNZMl9QGDf4xUBj35eNP1euuX3j4QDo){` `O7<貅׉ERENEWING MEMBERS
Ambassador Floor - 8 years
American Portfolio Mortgage - 2 years
Belleville Supply Company - 45 years
Benchmark Title company - 23 years
Brennan Building & Remodeling - 19 years
Champion Waterproofing - 20 years
City of Troy - 4 years
Crown Roofing & Exteriors - 10 years
Custom Floors & More - 21 years
Custom Marble, Inc. - 35 years
D.M.I. Plumbing - 11 years
Drake Construction - 7 years
E.D.C. Drywall - 1 year
Earthworks - 5 years
Econ-O-Johns - 23 years
Fulford Construction - 6 years
Henges Interiors - 21 years
Kappert Construction - 20 years
Kaskaskia Mechanical Insulation - 13 years
REMODELERS COUNCIL RENEWALS
Arrowhead Building Supply
Himstedt Roofing
Landscapes unlimited
L.D.C. Homes - 7 years
Landscapes Unlimited - 8 years
Lantz Homes - 61 years*
Liese Lumber - 46 years
Light Brite - 21 years
MDB Electric - 20 years
Padgett Building & Remodeling - 27 years
Peoples National Bank - 1 year
Quantum Homes - 8 years
RE/MAX Results Realty - 4 years
Rebel, Inc. - 29 years
Schrage Service Company - 8 years
Spencer Homes - 8 years
Srogus Construction - 10 years
Wade Sales & Service - 6 years
Wausau Supply - 1 year
Wells Fargo Home Mortgage - 31 years
Yaekel & Associates Insurance Services - 18 years
NEW MEMBER
Share this newsletter with your
industry friends!
Point out this page to help strengthen
our influence and consumer confidence.
Katie Tebbe
JT Build LLC
121 Broadway, Highland, IL 62249
O: (618) 830-6171
ktebbe@jtbuild.co
www.jtbuild.co
Page 11
׉	 7cassandra://CTx50VOfwlIL1MHqFtqf3CKgMcx8Enz8l28bx88RSCs'	` `O7<貆`O7<貅(בCט   (u׉׉	 7cassandra://3ymkdfUt2XNYDzkseNnen1-u0CB8ChWcdeme9ubx83E I`׉	 7cassandra://lQt4yQiQYYPFNzo7pt31Qrs8n5iHKPwqIbR7zw5kXyYw`s׉	 7cassandra://SErshrWsMOiXj5FM95boIIu6YUVg01tGBp8rfvEAlmw*d` ׉	 7cassandra://Vmc2bBibmijZBUTMbMfTn5jY76hXrZfaUXeM4OPfr3Y ͠]`O7<貭ט  (u׉׉	 7cassandra://6whmlNa5czJS862fAf6-oXhF9mFMU7m9hzciL_4XJ9M `׉	 7cassandra://d78Jctjmiq23Bw2NfuEXJqxNfVRFXwCYi7q2UVhJHIY͔I`s׉	 7cassandra://bxY6h0u_tFjqZhy4udvLKYlOOq4L_W1c_DqzUBZrN6w/` ׉	 7cassandra://lrvevS3Gyp4GVUJfBPXNlwenPuksRhLJXvlgscS6wSc G͠]`O7<貮׉EPage 12
׉	 7cassandra://SErshrWsMOiXj5FM95boIIu6YUVg01tGBp8rfvEAlmw*d` `O7<貇׉E=OFFICERS
P
L
A
T
I
N
U
M
President, Ryan Butler
Remington Properties
1st Vice President, Mike Lippert
Liese Lumber
2nd Vice President, Mike Needles
C.A. Jones, Inc.
Associate Vice President, Mindy Shafer
Wells Fargo Home Mortgage
Treasurer, Scott Gruber
First Mid Bank & Trust
Secretary, Jerry Yaekel
Yaekel & Associates, Inc.
Immediate Past President, Aaron Klemme
Klemme Construction
DIRECTORS
G
O
L
D
S
I
L
V
E
R
Allen
Roofing
& Siding
B
R
O
N
Z
Page 13
Jason Klein - Ameren Illinois
Barry Buchman - Arrowhead Building Supply
Matt Warren - Carrollton Bank
Coy Mullenix - CMI Construction
Michelle Rauk - Eagle Flooring
Mark Fulford - Fulford Construction
John Snapat - Fulford Home Remodeling
Steve Macaluso - Halloran Construction
Jon Elder - Henges Interiors
Robert Dee, Jr. - Homes by Deesign, Inc.
Scott Blumberg - Huntington Chase
Ken Diel - Kerber, Eck & Braeckel
Mike Lippert - Liese Lumber
Josh McDermott - J.T. McDermott Remodeling Contractors
Derek Brandmeyer - Light Brite
Jason Huelsmann - New Tradition Homes
David Padgett - Padgett Building & Remodeling
Ron Padgett - Padgett Building & Remodeling
Scot Lehr - Quality Installation & Home Improvement
Jeff Schmidt - RLP Development
Sue Schultz - Sandberg Phoenix & von Gontard P.C.
Mike Rathgeb - Spencer Homes
Mark Vogt - Vogt Builders, Inc.
Jim Vernier - Village of Shiloh
׉	 7cassandra://bxY6h0u_tFjqZhy4udvLKYlOOq4L_W1c_DqzUBZrN6w/` `O7<貈`O7<貇(בCט   (u׉׉	 7cassandra://jKDXpNPEz2z2wiTQ18WanoYJDg2-JWuqrbbvkcGW8TQ `׉	 7cassandra://n75hFzVEiY4MEytTDLGvEjnLwqIvLNADi2t87PNKxbU?`s׉	 7cassandra://l6GOh51n_NMcv2JDX5k2ujfVUvLamKMsxUmuX01gl4w` ׉	 7cassandra://VmwHcdwteqFz0enwDjWtsy4W0sGHcp11tQ2LyyGCOqs X͠]`O7<貰נ`O7<貴 ORw9ׁHhttp://www.hbrmea.orgׁׁЈנ`O7<貳 Y<̍9ׁHmailto:tbutler@hbrmea.orgׁׁЈ׉E u6100 West Main Street
Maryville, IL 62062
Phone: 618-343-6331
E-mail: tbutler@hbrmea.org
Web: www.hbrmea.org
Page 14
׉	 7cassandra://l6GOh51n_NMcv2JDX5k2ujfVUvLamKMsxUmuX01gl4w` `O7<貉׈E`O7<貊`O7<貉(,Newsletter - May 2021`OՋRAq