BIA Advocacy Update

New Year Celebration offered local and national insights

Jan. 30, the BIA-RRV hosted our annual New Year Celebration, welcoming mayors from Dilworth, Moorhead, Fargo, West Fargo and Horace, as well as Dr. Robert Dietz, chief economist for the National Association of Home Builders. We were honored to be joined by these guests and hear about trends locally and nationally. 

Mayor Olson, Dilworth, M.N., shared updates on the progress of the new fire station and community center projects. He also emphasized the importance the industry plays in our community.

Mayor Carlson, Moorhead, M.N., provided updates on all the projects happening in Moorhead, from downtown redevelopment to playgrounds, parks and more. She also highlighted what makes Moorhead a special place to live. 

Mayor Mahoney, Fargo, N.D., mentioned that they are working on implementing a new growth plan and working on updates to the land development code, with a goal of making Fargo a desirable place to build. He emphasized the tremendous and positive growth Fargo has seen. 

Commission President Dardis, West Fargo, N.D., shared updates on the decommissioning of the lagoons and the amount of land that will be available once the F-M Diversion is complete. While West Fargo saw great growth years ago, building has slowed down, partially due to land limitations. However, with this new land soon becoming available, he emphasized the need to continue building and growing their city.

Mayor Trudeau, Horace, N.D., gave an overview of how many developments are slated to come online soon- in the teens! There's lots of building happening in Horace and he emphasized his desire for public feedback. The city is in the works of collecting feedback regarding a downtown plan and he encouraged BIA members to reach out. 

Dr. Dietz, NAHB's chief economist, provided an economic outlook and information on an economic impact study of building in the Fargo-Moorhead region. 

The study commissioned by BIA-RRV found that single-family home building supports 1,753 jobs directly during the construction phase, 1,134 jobs indirectly and sustains 542 local jobs annually thereafter. He also said the construction of the 663 single-family houses built in the Fargo, ND-MN metropolitan area during 2023 generates $111 million in net fiscal income for public services through taxes, fees and public spending after 15 years.

Dietz’s economic and housing outlook noted that single-family construction will continue to stage tempered growth in 2025. While macroeconomic growth is likely to increase as result of the 2024 elections, elevated interest rates will continue to act as a headwind against supplying the much-needed housing at the national and local levels.

Due to rising government debt levels, he is forecasting that mortgage rates in the 6% to 7% range mark a new normal for prospective homebuyers. He also identified skilled labor development as central to increasing the ability of communities to build more housing, alongside the need for reduced regulatory costs associated with land development and residential construction.

News from NAHB

Additional 25% Tariff on Canadian Softwood Lumber

On Feb. 1, President Trump announced an across-the-board tariff of 25% on Canadian and Mexican goods coming into the United States. These tariffs on building materials will raise construction costs and harm housing affordability.

The 25% tariff on softwood lumber products from Canada is in addition to an effective 14.5% duty rate already in place, meaning that the overall effective Canadian lumber tariffs will rise to nearly 40%. NAHB urged the administration to reconsider this action on tariffs. 

In the week prior to the president’s announcement, NAHB had been in contact with administration officials seeking a building materials exemption on the tariffs because of their harmful effect on housing affordability. In addition, NAHB sent a letter to the president stating that “bringing down the cost of housing will require a coordinated effort to remove obstacles to construction, be they regulatory, labor or supply-chain related. NAHB stands ready to work with you to accomplish these goals.” The letter further stated that the 25% tariffs on Canada and Mexico will be counterproductive by slowing down the domestic residential construction industry.

NAHB will continue to work on explaining the effects that tariffs on building materials have on housing affordability and continue to seek a tariff exemption for building materials. 

On Feb. 3, President Trump reached an agreement with Mexico and Canada to delay the proposed tariffs. NAHB Chairman Carl Harris issued a statement, urging "all parties to remain committed to productive dialogue to prevent new tariffs on construction materials critical to housing our nation.” 

You can read the update here. 

Minnesota Paid Leave January Updates

Click here to read the newsletter from Jan. 2025.

They are hosting a webinar on Wed., Feb. 12 from 12-1 p.m. It will cover: 

• Who’s covered: Understand eligibility for Paid Leave. 
• Types of leave: Learn about medical and family leave. 
• Employer responsibilities: Learn key steps employers need to take to comply with Paid Leave. 
• Tools & Resources: Access helpful materials and interact directly with program staff.  

Minnesota Dept. of Labor and Industry News 

Click here to read the newsletter from Feb. 2025 which includes:

• Minnesota OSHA year in review 
• Webinar: Minnesota labor laws for teen workers
  •  This webinar will provide an overview of Minnesota labor laws affecting youth workers, such as work hour limitations, hazardous work restrictions, training wages and more.
  • Feb. 25, from 10-11 a.m.