Missouri Real Estate News

Trends & Insight for Missouri Home Buyers and Sellers

MISSOURI REAL ESTATE NEWS
Trends for MO Home Buyers & Sellers

HOME IMPROVEMENT

Smart Upgrades That Add Value Before You Sell Your Missouri Home

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When it’s time to sell your house, small updates can make a big difference. Many Missouri homeowners spend money on kitchens or bathrooms, but curb appeal still matters most. What buyers see first—your yard, lighting, and overall care—sets the tone before they ever step inside.

The front of your home tells a story. A neat lawn says “I care about this place.” Dead grass or cracked walkways say “I’ve been putting things off.” Buyers notice those details in the first five seconds. And those first five seconds shape everything that comes after.

The good news? Most curb appeal fixes don’t cost much. They just take some time and attention. Here are a few simple upgrades that help your home stand out and sell faster.

1. Refresh the Landscaping

A clean, healthy yard gives buyers confidence that the home has been cared for. Trim bushes, edge walkways, and remove weeds. Add a few colorful plants near the entryway for a welcoming look.

Start with the basics. Cut back anything that’s overgrown. Pull weeds from flower beds and between paving stones. Edge along sidewalks and driveways so they look clean and defined.

Then add a little life. A few pots of bright flowers near the front door make the entry feel warm. Mums work great in fall. Petunias or marigolds pop in spring and summer. You don’t need a big garden. Even two or three colorful spots help the home feel loved.

You don’t need a professional landscape plan. Just keep it neat, balanced, and well-maintained. Even one weekend of effort can make your photos look better and attract more showings.

Think about what buyers see when they pull up. Is there a clear view of the front door? Does the yard look tidy? Can you tell someone takes pride in the property? If yes, you’re on the right track.

2. Add or Upgrade Irrigation

Nothing hurts curb appeal faster than brown grass and drooping plants. A smart sprinkler system keeps your lawn green and healthy all season long, even when you’re busy or away.

Missouri summers can be brutal. One dry week and your yard starts to suffer. Hand-watering takes time most sellers don’t have. And when you’re juggling showings, repairs, and packing, the lawn becomes an afterthought.

An automatic sprinkler system solves that problem. It waters on a schedule so you don’t have to think about it. Your grass stays green. Your flowers don’t wilt. And buyers see a yard that looks cared for, not stressed.

For example, Lawn System in Fenton designs irrigation systems that adjust automatically for weather and soil conditions. That means your lawn gets the right amount of water without waste. A system like that can lower your water bills and protect your landscaping investment.

Modern systems are smart. They check the weather forecast and skip watering if rain is coming. They adjust for hot days or cool spells. Some can be controlled from your phone. That kind of tech appeals to today’s buyers who want homes that make life easier.

Tip: Mention your irrigation system in the real-estate listing. Buyers love seeing “smart” features that make home care easier. It’s a selling point that sets your home apart, especially for busy families or anyone who travels often.

3. Update Outdoor Lighting

Good lighting improves both safety and style. Install solar or low-voltage lights along walkways, driveways, and entryways. Use warm white bulbs for a soft glow that looks great in evening photos.

Lighting does two things. First, it makes your home safer. Buyers can see where they’re walking when they visit in the evening. That matters for older buyers, families with kids, or anyone checking out the property after work.

Second, it makes your home look inviting. A well-lit entry says “welcome.” Dark corners say “I didn’t finish the job.” String lights or small path lights along the walk create a warm, finished look that shows up beautifully in listing photos.

Highlight special features, like a garden or porch, to show off your home’s best side day and night. Got a nice tree in the front yard? Light it from below. Pretty front steps? Add lights on either side. These touches cost less than $100 but make your home feel polished.

Solar lights are easy to install. No wiring needed. Just stick them in the ground and they charge during the day. Low-voltage kits work well too and give you more control over brightness and placement.

4. Repair Walkways and Driveways

Cracks in concrete or uneven pavers can make buyers worry about drainage or foundation issues. Seal small cracks before they grow larger. If needed, have a contractor resurface worn areas.

A cracked driveway doesn’t just look bad. It raises red flags. Buyers wonder if there’s a bigger problem underneath. They start asking about water drainage, soil shifting, or foundation movement. Even if those things aren’t issues, the worry can cost you offers.

Small cracks are easy to fix. Pick up concrete filler at any hardware store. Clean out the crack, fill it, smooth it, and let it dry. It takes less than an hour and makes a noticeable difference.

Bigger problems might need a pro. Sunken sections, large gaps, or crumbling edges should be patched or resurfaced. It’s not cheap, but it’s cheaper than losing buyers over something fixable.

Fixing these spots not only looks better—it shows that the home has been well cared for. Smooth, safe paths also make open houses and inspections easier. No one trips. No one worries. And the house presents better overall.

5. Tidy Up Outdoor Living Spaces

Missouri buyers love outdoor areas where they can relax or entertain. Clean your patio or deck, power-wash the furniture, and add bright cushions or planters for color.

Your deck or patio is an extension of your living space. Buyers imagine themselves there with coffee in the morning or friends over for a cookout. If it’s dirty or cluttered, that picture falls apart.

Start with a deep clean. Sweep off dirt and leaves. Power-wash the deck boards or patio stones. Scrub furniture cushions or replace them if they’re faded. Wipe down railings and tables.

Then stage it like a room inside. Add a few pots of flowers. Set out clean cushions in fresh colors. Put a small side table with a book or candle on it. Make it look like a place someone would actually want to sit.

Even a small space can feel inviting with a few easy touches. Think about how you’d want it to look in a real-estate photo—fresh, clean, and move-in ready. If your outdoor space looks good in photos, more buyers will want to see it in person.

Remove personal clutter. Toys, hoses, tools, and garden supplies should be tucked away. Store bikes and grills neatly. The goal is to let buyers imagine their own life there, not trip over yours.

6. Keep Maintenance Simple

Low-maintenance yards are a major plus for buyers. Choose plants that thrive in Missouri weather and need little watering. Replace old mulch, remove dead plants, and keep tools neatly stored.

Not everyone wants to spend weekends mowing, trimming, and weeding. In fact, most buyers today are looking for homes that don’t add work to their already busy lives. They want a yard that looks good without constant effort.

Native plants are your friend. They’re used to Missouri soil and weather. They don’t need as much water or fussing. Black-eyed Susans, coneflowers, and ornamental grasses all do well here and come back year after year.

Mulch makes everything look cleaner. It covers bare soil, holds in moisture, and keeps weeds down. Fresh mulch costs about $30 a bag and makes flower beds look instantly better. Go for natural brown or dark tones that won’t fade fast.

Pull out dead or dying plants. Don’t leave empty spots or brown patches. Fill in gaps with something green and healthy. Buyers notice bare spots and wonder if the yard struggles.

Smart irrigation, durable walkways, and simple landscaping help future owners save time and money. When your home looks great and is easy to maintain, it stands out from the competition. It says “this place won’t be a burden” and that’s exactly what buyers want to hear.

Final Thoughts

You don’t have to spend thousands to add value before selling your home. Focus on visible, practical upgrades that make life easier for the next owner. Fresh landscaping, outdoor lighting, and an efficient irrigation system create a strong first impression and help your property shine in any market.

Start with what’s broken. Fix the cracks. Replace the dead plants. Get the lighting working. Then move to what’s missing. Does the yard need color? Would a smart sprinkler system make life easier? Could the patio use a quick refresh?

Every improvement should pass one test: Does this make the home more appealing to a buyer scrolling through listings on their phone? If yes, it’s worth doing. If it’s just for you, save your time and money.

The homes that sell fastest in Missouri aren’t always the biggest or fanciest. They’re the ones that look cared for, feel welcoming, and make buyers think “I could live here.” Small outdoor upgrades help you get there without breaking the bank.

When buyers pull up to your house, you want them excited before they even get out of the car. That excitement leads to better offers and faster sales. And that’s the whole point.

EPA estimates more than 200,000 lead pipes still in Mo.

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More than 200,000 lead service pipes carry drinking water to Missouri families, according to a new estimate from the Environmental Protection Agency.

New lead water pipes have been banned for more than 30 years. But the EPA estimates that 9.2 million American households still get their water through aging lead pipes.

Just over 2% of those are in Missouri, ranking the state 14th in the country for its number of lead service lines. The EPA announced Tuesday that the state would get $106.4 million to update its water infrastructure through the Bipartisan Infrastructure Law.

Over the next 20 years, the EPA estimates the U.S. will need $625 billion to update water infrastructure.

The EPA’s regional administrator, Meghan McCollister, said in a news release that the funds would go to “ensure that Missourians have access to clean drinking water.”

“Missouri’s investments through this fund will aid in securing needed resources to address critical infrastructure needs, threats to drinking water systems such as lead pipes, and emerging contaminants such as (forever chemicals).”

The funding allotment prioritized states according to need, something that the Natural Resources Defense Council applauded. The environmental organization published a report last year saying the states that most needed funds to replace lead service lines were getting shortchanged.

“EPA’s changes will ensure a fairer and more equitable distribution of funding dollars to replace the nation’s millions of lead pipes,” said Cyndi Roper, one of the authors of last year’s analysis. “It’s good news for communities with the highest need that will now have access to more funding to get lead pipes out of the ground.”

The EPA banned new lead service lines — the pipes that carry water from water mains into people’s homes — in 1986 in an effort to combat lead poisoning.

Lead is a neurotoxin that, even at low levels, can harm children’s developing brains. Exposure to lead through water accounts for 20% of a child’s overall exposure, on average. For fetuses and formula-fed infants, leaded water is the No. 1 source of exposure.

President Joe Biden’s administration has pledged to remove the country’s lead service lines. But for now, little is known about where they are.

The EPA’s new estimates are projections based on a survey that water utilities filled out in 2021. But not every utility was required to fill out the survey. And some that did respond reported not knowing what their service lines are made of.

The EPA estimated Missouri has 202,112 lead service lines while the NRDC estimated in 2021 that the state had more than 330,000.

Water utilities treat their water to be non-corrosive so that lead won’t leach from the service line into people’s drinking water.

But a change in the water chemistry or construction that shakes up a pipe can cause it to start leaching the toxin into drinking water.

That’s what happened in Flint, Michigan, the most prominent case of lead-contaminated water in recent years.

But the issue isn’t unique to that high-profile situation. A pediatrician who helped uncover the Flint water crisis said it wasn’t the first, worst or last.

Something similar happened in Trenton, Missouri, where the water utility switched chemicals used to disinfect the water and the lead levels spiked. Trenton, like many other water utilities, doesn’t know where its lead service lines are.

Missouri Independent is part of States Newsroom, a network of news bureaus supported by grants and a coalition of donors as a 501c(3) public charity. Missouri Independent maintains editorial independence. Contact Editor Jason Hancock for questions: info@missouriindependent.com. Follow Missouri Independent on Facebook and Twitter.

 

 

Originally Appeared Here

How A 40 Year Old Company Built a Multigenerational Empire from Scratch

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How A 40 Year Old Company Built a Multigenerational Empire from Scratch

Starting a successful company is one thing. Making the right decisions to ensure that the company will thrive 100 years down the road is quite another. In many cases, business owners are so consumed by the daily grind of running a business that they don’t have time to work on the future of their business.

Many business owners are operating under the assumption that the next generation will have the same leadership capabilities as the founder. Succession requires careful planning as flying on a wing and a prayer and changing the engine on the plane at 30,000 feet is a less than ideal scenario.

“Each generation has unique abilities. Paving the way for the next generation to succeed requires a thoughtful approach to the smooth transfer of roles and responsibilities,” said Dan Loiacono, Managing Partner at DLA Companies, a Kansas City-based mergers and acquisition specialist.

It is far from a foregone conclusion that after future generations take the reins, the company will continue to be as successful as it was with past generations.

But the companies that do succession well are winning.

Case in point, Ben Romans started his tiny window, doors, and siding business back in the late 1960s, and from the very beginning was planning to build something that his whole family could grow into the next century and beyond.

When he passed the proverbial leadership “torch” to his daughter Brenda Walters, she picked up where he left off without missing a beat. The rest is history. Brenda has presided over one of the fastest-growing, largest locally-owned home improvement companies in Kansas City for the past 15 years.

“Now my talented daughter, working side by side with me for over a decade, has stepped up to take our company to new heights for the next 20 years,” said Brenda, who manages an average of over 500 home improvement projects a year for her family’s company.

One of the few women in a male-dominated industry, Brenda entered into this field with aspirations of following in her father’s footsteps, Ben Romans. She then promptly proceeded to transform Cornerstone Home Improvements into a woman-owned business by bringing her daughter into the fold in the most strategic way possible.

Me’Shelle Bishop, the granddaughter of founder Ben Romans and daughter of company president Brenda Walters, has been with the company since 2004. She paid her dues and moved up the ranks from front desk to Co-Owner in 2019.

Her mission is to be true to the original values that made the business successful in the first place. “We deliver to the homeowners a premium product at an affordable price with installation and service second to none,” said Me’Shelle.

Now that’s continuity.

This original feature story was written by Andrew Ellenberg, President and Managing Partner of Rise Integrated Marketing. To learn more about Cornerstone Home Improvements email meshelle@chi-kc.com or visit them here.

Homeowners Would Rather Renovate Than Sell

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Still hot as ever, the housing market is continuing to find new highs in 2022 but consumers now overwhelmingly agree that the time is right to mold the space around you versus putting it on the market and finding another property that better fits your needs. 

According to a survey of 1,000 consumers by LendingTree, 64% of respondents cited risings costs and shortages as obstacles to their home improvement plans, still, nearly half of homeowners planned to make home improvements this summer, citing comfort as their first reason for upgrading. 

72% of respondents said that in an ideal world, they would rather make improvements to their property rather than go through the hassle of selling and finding another property that better fits their needs. 48% of homeowners have renovation or upgrade plans this spring or summer, while 34% say they’re considering it. Millennials (60%) and Midwesterners (55%) are most likely to have home improvement plans. 

That’s not to say that everything relating to renovations are easy: nearly two-thirds of homeowners say recent economic turmoil has impacted their plans with 36% of that number citing higher material and labor costs while 16% cited supply chain issues. 

Overall, 62% of respondents indicated that there was some level of home improvement they want to make, such as renovating a kitchen (18%), but could not afford to do so. Looking to stretch their budgets, many homeowners turn to a DIY approach. 77% say they’ll make at least some of repairs during a renovation to save on costs. 

To fund these improvements, most respondents reported that they would dip into their savings to cover costs (60%), while other would fund with credit cards (25%), personal loans (12%), home equity loans (7%), unsecured loans (6%), home equity lines of credit (5%), and cash out refinances (3%). 

Click below to view the report in its entirety, including generational breakdowns of the data. 

Originally Appeared Here

St. Louis’ new recycling plan starts today

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ST. LOUIS – The City of St. Louis’ plan to clean up its image when it comes to recycling starts Tuesday. That plan includes the return of the city’s recycling program and a crackdown on illegal dumpers. The city also wants to be strategic with its trash pick-up.

City of St. Louis Operations Manager Nancy Cross said the city had to suspend alleyway recycling collection because of a national labor shortage. Last August, the city began offering $3,000 bonuses for new refuse truck drivers. Officials predicted a return of recycling service shortly after Thanksgiving.

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Officials predicted a return of recycling service shortly after Thanksgiving, but that didn’t happen. Still, the city collected $14-a-month refuse fees. About $3 of that is for recycling.

This comes as dumpsters are still overflowing in spots. A new map is making the return of recycling possible as the city plans to track which parts of the city produce the most trash. This will allow the department to be strategic with pick-up while freeing up drivers for separate recycling routes again.

“This is the first time we’ve done anything like that,” said Angela Pearson, special projects manager for St. Louis Mayor Tishaura Jones. “We know that everyone will continue to get trash pickup at least once a week. That’s standard practice for any city but we also want to make sure we’re being data-driven in our approach…so that we can continue to keep those bins and those dumpsters from overflowing.”

The city has hired nine new drivers but still needs about 10 more. The City of St. Louis is also more than doubling the number of illegal dumping surveillance cameras.

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“The mayor just geared it up like 5 times, put it on steroids. It’s going to be crazy heat. They’re going to go from 200 cameras to 500 cameras,” said St. Louis Refuse Commissioner Todd Waeltermann. “This is huge.”

Originally Appeared Here

Contact 2 gets results for woman with backyard deck dilemma

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ST. LOUIS COUNTY, Mo. — A north St. Louis County homeowner is ready to dust off her patio furniture and fire up the grill now that her backyard deck is finally complete — but it took months and months of waiting.

Wanda Durns said last May she selected one of the largest home improvement retailers in North America for her new deck project.

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“I spent about $25,000 with Lowes, and everything had to be paid for upfront. I knew in the beginning, that getting the material would take time,” said Durns. “And I was fine with that. I just didn’t realize that a year later, it still wouldn’t be done. Lowes subcontracts. They sent three different groups of people out here.”

Despite the manpower and months of work, one missing hand railing was holding up the job.

“They called me about two weeks ago and told me the piece was in. I said, ‘Why are you calling me? You should be calling the company that’s supposed to install it,’” said Durns. “They asked me if there was any way I could get it. I said, ‘No, wait a minute. When I pick it up, do you want me to install it too?’”

That’s when she wrote Contact 2, and we contacted Lowes’ corporate office. To the company’s credit, it acted quickly. Less than a week later, Durns’ railing was installed, and Lowes gave her $2,000 in-store credit for unused material she paid for that one of the contractors hauled away.

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“I don’t know what you did, because I must’ve made 50 phone calls to them and couldn’t motivate anybody to move, but you certainly took care of it.” Said Durns.

Now if Mother Nature can provide us with some more sunshine and warmer temperatures, Durns will really be able to enjoy her new deck.

“Mike, I can’t thank you enough and everybody at the station,” she said.


Originally Appeared Here

New Design, Luxury Lifestyle, and Home Improvement News Magazine Taps Growing Demand for Ideas and Inspiration About The Hottest Remodeling Trends

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Life in Style Mills EndorsemenLike most homeowners, you’ve noticed remodeling projects in your neighborhood are on the rise, especially in the warmer months. People are spending more time at home, stoking an unprecedented boom in demand for ways to enhance their living and workspaces.  

People are redeploying the money they previously spent on restaurants, vacations, and gas for long commutes into remodeling and renovations that boost the value of their homes.  Houzz, an online home remodeling platform, reported a 58 percent annual increase in project leads last summer. 

“When you don’t venture out as frequently, people need their house to be an enjoyable space where they can bunker down and still be active, live in luxury, and have a blast,” said Martin Taggart, Owner of Team Real Estate, brokered through eXp Realty and publisher of Life In Style. 

The philosophy that his new design, home improvement, and lifestyle magazine brings to its readers every week is empowerment and knowledge. The digital magazine launched in April 2022 and is available online on the new LinkedIn Newsletter platform and the company’s blog. 

The multimedia news magazine is a go-to resource for anyone interested in design, home improvement, or simply living a more modern and luxurious life.  In each episode, readers can find entertaining feature stories on topics ranging from trends in home office design, contemporary homes, sustainable living,  transformative landscaping, and outdoor spaces to home entertainment, smart homes, theme rooms, and color choices. 

“Life In Style helps homeowners make more informed and inspired choices. It connects readers to design and home improvement experts who weigh in with original news, commentary and analysis,” said internationally recognized Interior Designer Karen Mills. She joined the news magazine as a regular contributor before the debut episode.  

Taggart underscored his publication’s role in building a community of inspired homeowners and home improvement professionals. Life In Style shines the spotlight on cool projects and exciting transformations. 

Mills was the host of Living Large, the nation’s first interior design radio show featuring exclusive interviews with celebrity designers from HGTV. It ran for eight consecutive years and created over 400 hours of original programming.  Wikipedia lists it along with Martha Stewart Living in the media section. 

“I decided to join the Life In Style bureau of experts because it will be the next hit home improvement and design news magazine,” said Mills, a prolific blogger, published designer, and international media guest. 

Kitchen remodeling saw a 40 percent jump in demand last June compared to the prior year. People cook and eat at home, so kitchens are the center of family life. 

“Homeowners are likely getting an extra incentive from record-high home equity levels. Home prices continue to gain as demand for housing soars. People are crunching numbers to calculate their ROI on projects,” said Justin Rabin, a loan officer at Fountain Mortgage. 

Just over 15 million residential properties were considered equity-rich in the second quarter of 2021, meaning mortgages on those properties were 50 percent or less than the value of the home, according to ATTOM Data Solutions. That represents 27.5 percent of all mortgaged homes in the U.S. 

“Many homeowners still spend most of their time at home and feel a sense of urgency about updating indoor and outdoor spaces. They are redesigning them for work, school, play, exercise, and more,” said Bryce Johnson, owner of Bryce Construction and regular Life In Style contributor. 

Over 75 percent of all U.S. homeowners said they did some type of home improvement project during the pandemic and plan to take on a new project in the next 12 months, per a recent survey by Porch.com. The top motivator was “finally having the time,” followed closely by the desire to increase home value. 

Riding a wave of popularity in the home improvement and design category, Life In Style attracts a discerning and affluent audience while drawing attention from other media. 

Digital publications like Life In Style are growing because they super-serve the “nesting” trend. People are actively seeking new ideas to spruce up their homes. They want to live their best lives. 

This new design, home improvement, and luxury lifestyle publication is an entertaining and educational resource for anyone interested in making their home a welcoming, stylish place to be during these uncertain times. 

Life In Style delivers whether homeowners need design tips or a little motivation to start a long-overdue project. Its original feature stories, stunning project photos, videos, and podcasts are the building blocks of functional and beautiful spaces. 

Home flips increase, but profits drop

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ATTOM’s 2021 U.S. Home Flipping Report shows that 323,465 single-family homes and condos were flipped last year, a 26 percent year-over-year increase to the highest point since 2006. Flips in 2021 represented 5.5 percent of all home sales, down from 5.8 percent in 2020 and 6.1 percent in 2019.

However, gross profit margins on home flips in 2021 sank to their lowest level in more than a decade after dropping at the fastest pace in more than 15 years, according to ATTOM. Homes flipped in 2021 typically generated a gross profit of $65,000, down 3 percent year-over year, and translated into just a 31 percent return on investment (ROI) compared with the original acquisition price, the lowest margin since 2008.

“While gross profits were lower for fix-and-flip investors in 2021, there may have been offsets that protected net profits,” ATTOM Executive Vice President of Market Intelligence Rick Sharga said in a release. “Fewer flippers financed their purchases, so their cost of capital was lower. And it took less time to execute a flip, reducing holding costs, and suggesting that less extensive – and less expensive – repairs were needed to bring the properties to market. A lot of the markup on fix-and-flip properties historically has come from the value of those repairs, but so have a lot of the costs that reduce net profits.”

Home flips as a portion of all home sales decreased from 2020 to 2021 in 53 percent of the metro areas analyzed. The biggest decreases in annual flipping rates were in Honolulu (down 83 percent), Atlantic City, N.J. (down 73 percent), Manchester, N.H. (down 57.7 percent), Rochester, N.Y. (down 48 percent) and Cedar Rapids, Iowa.

Home flipping rates increased in 47 percent of metro areas analyzed. The largest annual increases in the home flipping rate came in Utah and Texas, including Provo, Utah (up 114.3 percent), Salt Lake City (up 113.4 percent), Austin, Texas (up 111.2 percent), College Station, Texas (up 97.4 percent) and Ogden, Utah (up 95 percent).

The percentage of flipped homes purchased with financing in 2021 dropped to 38.7 percent from 41 percent in 2020 and from 39.9 percent in 2019. Also, 61.3 percent of homes flipped in 2021 were bought with all-cash, up from 59 percent in 2020 and 60.1 percent in 2018.

“In an environment where mortgage rates are rising as rapidly as they are today, investors buying with cash are at a distinct advantage over consumer homebuyers,” Sharga said. “The combination of rising home prices, rising mortgage rates and rising inflation is undoubtedly creating affordability issues for many prospective buyers, so it’s possible that there will be less competition overall for the limited inventory of homes available for sale.”

The metro areas with 1 million or more people with the highest percentage of flipped homes purchased by investors with financing in 2021 included Louisville, Ky. (55.6 percent), San Diego (55.4 percent), Seattle (52.6 percent), Portland, Ore. (48.6 percent) and San Francisco (47.6 percent).

The metro areas with 200,000 or more that had the highest percentage of flips purchased with all cash included Tuscaloosa, Ala. (90.6 percent), Buffalo, N.Y. (84.1 percent), Dayton, Ohio (82.8 percent), Detroit (82.2 percent) and Canton, Ohio (82.1 percent).

Homes flipped in 2021 were sold for a median price of $275,000, with a gross flipping profit of $65,000. That’s down from a 15-year gross-profit high of $67,000 in 2020 but up from $60,000 in 2019.

Those metro areas of 1 million or more with the largest gross-flipping profits in 2021 were San Jose, Calif. ($265,500), San Francisco ($172,000), Seattle ($149,950), San Diego ($145,500) and Washington, D.C. ($139,555). Those with the lowest gross-flipping profits include Kansas City, Mo. ($23,456), Houston ($32,300), San Antonio, Texas ($34,357), Dallas ($40,800) and Atlanta ($43,900).

Among metro areas with a population of 1 million or more, the biggest year-over-year percentage-point decreases in profit margins in 2021 were in Cleveland (ROI down from 101.5 percent in 2020 to 40 percent in 2021), Cincinnati (down from 83.5 percent to 40 percent), St. Louis, Mo. (down from 71 percent to 39 percent), Columbus, Ohio (down from 70 percent to 40 percent) and Providence, R.I. (down 65.7 percent to 36.4 percent).

The only increases in ROI in that group of metro areas were in Buffalo, N.Y. (ROI up from 92 percent in 2020 to 98.9 percent in 2021), Raleigh, N.C. (up from 14.5 percent to 19.8 percent), Nashville, Tenn. (up from 33.3 percent to 36.8 percent), Boston (up from 29.1 percent to 31.3 percent) and Phoenix (up from 20.8 percent to 21.3 percent).

Originally Appeared Here

Free Remodeling Idea Book from MARC (Mid-America Regional Council)

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The Mid-America Regional Council (MARC), serving the Kansas City Metropolitan Area, offers a free Remodeling Idea Book for download.

The First Suburbs Coalition Idea Book examines four of the most common housing types found in inner-ring suburbs in Greater Kansas City — Ranch, Split Level, Two Story, and Cape Cod — and provides dozens of ideas for appropriate ways to update and make additions to them.

The 40-page, folio-sized book offers color illustrations of each design and the elements which can be renovated or added.

The book also addresses windows, doors and garages, as well as other basics of exterior appearance.

Considerations such as energy efficiency, financing and universal design are also discussed in the book along with a section of guidelines for selecting and working with reliable contractors.

There is also a Green Idea book – focused on incorporating “green” strategies into remodeling efforts – and a Universal Design Ideas book.

Visit the MARC website to download the books.

Missouri contractor charged with fraud for minority business claims

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Dive Brief:

  • A Missouri contractor funneled nearly $900,000 through two minority businesses to meet diversity goals on construction contracts without actually engaging the firms for their building services, federal prosecutors alleged in an indictment last week.  
  • Brian Kowert Sr., a former co-owner and chief operating officer at what is now Russell HBD in St. Louis, paid two minority-owned subcontractors small fees to shuttle checks and contracts to non-minority firms on three projects starting in 2014, the feds alleged.
  • Kowert created duplicate contracts and purchase orders and fraudulently claimed the minority firms were doing the actual work, the complaint alleged. He altered checks to include non-minority contractors’ names after recording them as paid to the minority firms, according to the indictment.

Dive Insight:

Minority and women-owned business participation on construction projects has become a hot-button topic. Many government-funded projects set participation goals for underrepresented groups, while the industry has tried to change its White-guys-only image with diversity and inclusion initiatives.

Hal Goldsmith, assistant U.S. attorney for the Eastern District of Missouri who is prosecuting the case, said his office has received complaints of minority business enterprise fraud in the construction industry for years.

“Unfortunately, it’s more common than we’d like,” said Goldsmith. “Hopefully this will deter others in the construction trades from doing the same thing, where they really aren’t using legitimate minority companies and workers to perform on these construction jobs.”

Joel J. Schwartz, listed in court documents as Kowert’s attorney, didn’t immediately return calls seeking comment.

Russell HBD, which succeeded Kowert’s original HBD Construction after the firms merged in 2020, also didn’t respond to Construction Dive’s request for comment. But according to the St. Louis Post-Dispatch, the company said it had no knowledge of Kowert’s actions, and terminated his employment in December.

“This matter begins and ends with Brian Kowert Sr.,” Caitlin Russell, company president, told the paper. “We at Russell are fully committed to transparency and ethical financial stewardship. We do not tolerate fraudulent behavior or misconduct of any kind.”

Kowert’s son, Brian Kowert Jr., still works at the firm, according to its website.  

The indictment doesn’t name the two minority firms Kowert allegedly used as shells, which it said received payments ranging from $2,000 to $2,500, and emphasizes that the clients whose projects he built didn’t know about Kowert’s deception.

For example, the indictment said one client, Springfield, Missouri-based developer RAGA, unwittingly used Kowert’s bogus minority participation numbers in January during a presentation to the Missouri Housing Development Commission as evidence of meeting its goals for a senior housing community known as Logan Villas.

“RAGA and Logan Villas LLP and their employees had no knowledge of Kowert’s fraudulent scheme,” the indictment stated.  

Recent issues

Actual compliance with minority participation goals on construction projects has gained scrutiny nationally.  

The Federal Aviation Administration recently called out officials at the Kansas City airport’s new terminal project for not properly tracking minority contractors, and the Massachusetts state auditor found the state’s construction division failed to meet inclusion goals for women on 95% of projects.

In addition, in Congress last fall, minority contractors testified they were often used as “window dressing” to help prime contractors win bids, only to be pushed off projects after they’re awarded.

Paula L. Finch, an attorney at St. Louis-based Greensfelder, Hemker & Gale, P.C. who focuses on supplier diversity in construction projects, said minority workforce participation compliance varies by jurisdiction and that contractors often face challenges meeting goals laid out in project requirements.  

“From a big picture standpoint, we don’t have enough women and minority-owned businesses out there,” Finch said. “The unintended consequences of these goals is companies who try and get creative so that their bid looks better.”

Indeed, at Providence, Rhode Island-based Gilbane, which recently committed $4 billion to minority and women-owned suppliers, newly appointed CEO Thomas Laird told Construction Dive a lack of capacity at underrepresented firms was one of the biggest challenges he faced.

“The diverse contracting capacity is very thin,” Laird said, who emphasized the company partners with and mentors underrepresented firms to help address the issue. “We are very focused on trying to create that capacity.”

Originally Appeared Here