Lot Shortage | VideoAlex Hagan | 1/18/2013
The way the housing market is right now, buying a home may be better than renting. That means contractors are building to keep up with demand in the Capitol City.
"The demand has been strong in the past year. Definitely, it`s picked up," said Eric Brenden with Northwest Contracting.
"We`re starting to ramp up here and start planning houses for spring. The market looks very good. Consumer confidence is high," said K and L Homes President Chad Moldenhauer.
The City of Bismarck issued more than 800 single family housing permits in 2012. However, because of high demand, there is now a shortage of lots to build on.
Moldenhauer says builders need to be aggressive. "You have to get in early. You have to get in to the development while it`s being built or maybe before it`s started."
That can be tough without the infrastructure already in place. Roxy Jacobson with the Home Builders Association says there`s much more to just building. "So many more things that you have to do before you can just go out there and start excavating and building."
To fix the lot shortage, builders are working with the city on a master plan for the future to prevent overbuilding. "We`ve been working really hard with them to try and coordinate with them as much as we can," Jacobson said.
For now, builders only have one thing in mind, and that`s to keep building to keep up with the housing demand.
"Start working with your builders early, get on their schedule because it`s going to be a busy season again next year just as busy as it was last year," Moldenhauer said.
Because construction never takes a break in North Dakota.
Jacobson says there are some builders still waiting for lots to become available to start construction while others are holding back their own lots.