General News in the 316

[SubGod22]

I'm not sure how much of an impact this will truly make, but one can hope. I think Butler County has a lot to offer for the metro area to help grow business and industry. El Dorado is set up will to take on more industrial jobs and Andover can always attract more to its area. Then there are some good schools and communities that are ready for growth and can play a part if things would ever take off. This probably doesn't mean much, but one can hope.

WBJ - Butler County achieves national recognition for workforce readiness

The recognition means Butler County has met certain criteria around its number of current, emerging and transitioning workforce, and number of participating employers.

“Butler County is proud of the efforts of our local schools and communities for obtaining this certification," said Butler County administrator Will Johnson in a news release. "It gives students graduating from Butler County schools a competitive advantage, supports business and industry in the region, and assists economic development efforts.”

The effort to become certified as a WRC began nearly four years ago and was led by a team of organizations: Butler County, Butler Community College, the El Dorado Chamber of Commerce, Circle Public Schools and El Dorado Public Schools, as well as 70 regional employers that recognize the principles of the program.

"This communicates a shared interest by the community to develop strategies that facilitate workforce development opportunities and better prepare our youth with real-world skills before entering the workforce," said El Dorado city manager David Dillner in the news release. "It enhances El Dorado’s pursuit of recruiting industry and commercial prospects because companies know the community is committed to providing them with the workforce they will need to succeed.”

[SubGod22]

Scheels has fish

KAKE - Fish arrive at new Scheels aquarium as grand opening nears

More than 600 different species of fish from across the world made their way to the 16,000-gallon saltwater aquarium, located at the yet-to-be-opened Scheels in east Wichita.

Aquarium company 'Reef On' provided a new home for the fish, to be part of the multiple activities families can do while shopping at the store.

"When kids come in and they press their face against the glass, that's exactly what we want to see," says Reef On president Jerry Ohrn. "It's part of the draw, so you can come in, bring the kids, see the fish be fed, and interact with the divers while we're cleaning and maintaining the aquarium."

Along with the aquarium, assistant store leader Paul Reese said that he hopes other amenities like an arcade and sports simulators can bring people in.

Scheels is expecting to hire more than 500 employees to help in their operation.

Reese said that while they're still looking for part-time workers, they're on track to meet that goal.

July 1

[SubGod22]

Ike continues to see improved numbers and keeps inching towards pre Covid levels

WBJ - Latest data shows demand outpacing capacity at Wichita's Eisenhower Airport

According to the airport’s data for February, released earlier this month through the Wichita Airport Authority, the second month of the year saw a 22.3% increase in outbound passengers but only a 19% increase in the number of available seats on scheduled flights.

February saw a total of 107,771 people fly in and out of Eisenhower National, marking a 23.1% increase over the same month of 2022.

Through the first two months of the year, total ridership has increased 23.4% year over year to 223,210.

That’s not far off the pace of 236,529 passengers in January and February of 2019 — the year in which the airport would go on to set an annual record for ridership.

I'm sure these numbers can only help the consulting firm sell the idea that carriers adding flights/destinations to Wichita would be a good thing for all involved.

Concessions are also up over 29% over the same two months last year. Parking is up over 48% and car rentals up over 14%.

[SubGod22]

Owner still has high hopes for Thorn Building after Ascension Via Christi has departed.

New Thorn Building listing agent looking to attract new-to-Wichita business

"What we'd really to find is a tenant that's new to the market as opposed to taking someone else's tenants," said Ahern, who's looking regionally and nationally for companies which could fit the building northeast of 37th and Rock Road.

The Tennessee-based McNabb struck an optimistic tone with the WBJ in December after news of Ascension Via Christi's planned departure hit. Integra Technologies, which has plans for a $1.8 billion semiconductor facility in Bel Aire, is still working out of Thorn but is set to leave the building later this year, as well.

Part of that optimism, which Ahern also voiced in a Wednesday walk-through of the two-building complex, is tied to investments McNabb made in Thorn since buying the former Rent-A-Center headquarters in 2019.

According to commercial building permits issued in 2020, McNabb has put at least $2.5 million into renovations at the property built in the 1980s.

The fitness center has been enhanced, the break room is improved and there have been HVAC upgrades and a new roof added, Ahern said.

The three-story building also has patio space in the front and back, Willowbend Golf Course views and a multi-purpose gym that can be used for pickleball, basketball or racquetball.

He mentions Wichita's recent ability to attract Cybersecurity business is one reason for optimism, and he believes that would be a good fit.

I also like that they're looking to bring in someone from outside of Wichita and I think the planned development off of 37th, in front of the building, could help attract someone to it.

[SubGod22]

WBJ - Wichita-area colleges tout scholarship that can help retain talent

Particularly relevant for local businesses looking for talent, it's a program that also ensures participants stay in the state for two years after they complete their degree or certificate.

WSU Tech recently announced it has awarded over $1 million in scholarships over the past year through the Kansas Promise scholarship program, while Butler Community College said it has awarded $916,520 through Kansas Promise since it began in the 2021-2022 academic year.

“We are very excited about this program and what it means for our students and their futures," said WSU Tech president Sheree Utash in a news release. "The Kansas Promise scholarship, thanks to our state legislature, provides a great opportunity for individuals to pursue their educational goals without having to worry about the financial burden of tuition costs."

The program requires participants to work in Kansas for two years upon completion, which in theory will keep more people home. I think Tech stated that they have more than 30 eligible programs. It definitely helps train people to step into the workforce in these fields and helps fill needs of local companies. One would think that as more people complete these programs that the workforce capabilities could help some companies grow and expand knowing they have quality staff available to do so and to do it correctly.

Kansas is also thinking about adding more areas that would qualify.

And upon further thinking, this could also be a benefit to some companies outside of the metro that might need access to more qualified individuals, assuming those who complete it are willing to move.

[SubGod22]

An interesting article on housing in the Wichita area.

WBJ - ALL-IN ON ICT'S MOVE-INS: Is the area ready to house more workers?

Housing Wichita’s workers

Wichita’s supply of housing is perhaps more critical than ever given its need for workers.

Wichita is projected to see 2,900 new jobs in 2023 — a 1% increase over last year, and that same annualized growth is expected to continue in 2024, according to January projections from the

Center for Economic Development and Business Research at Wichita State University.

Not to mention Integra Technologies’ plans to eventually hire around 2,500 workers for its 1 million square-foot semiconductor facility planned in Bel Aire, with at least 1,600 full-time employees within the next six years.

Other employers have announced major hiring efforts in the Wichita region, including JTM Foods’ goal to hire 200 within three years at its new plant in ICT21 Industrial Park. Bouncing back from mass layoffs in 2020, Spirit AeroSystems has projectedhiring for 1,500 new jobs by the middle of the decade.

“We have these businesses that are poised to expand and so we have to work harder at attracting people,” said Keith Lawing, president and CEO of the Workforce Alliance of South Central Kansas. “As we’re wanting people to come look at our community — housing, that’s the first thing they’re looking at. Where can I live? How much is it going to cost? And we are currently under-supplied in I think everything right now.”

Housing is very much a driver in Wichita’s ability to grow the economy, Lawing said.

“We’ve got to have places for people to live,” he said.

Following the build-it-and-they-will-come approach, however, presents the risk of overbuilding, Lawing added.

Jeremy Hill, director of CEDBR at WSU, said even if employers did, in fact, attract all new people to Wichita to fill their job openings, it wouldn’t expand the overall employment at a rate that is beyond attainable.

“Keep in mind that there are still people with skills living within the region who will likely migrate to some of the new jobs,” Hill said. “Unfortunately, the region has suffered from slow growth, creating additional issues. In particular, the slow growth created problems within the housing market, as there were fewer projects to sustain the developers and laborers. Our capacity to meet the demand is limited. But, this sector tends to be agile, and both investments and labor will follow.”

Lawing said he thinks project announcements such as Integra may trigger increased housing development.

“That K-254 corridor right by Bel Aire, that’s going to be real busy five years from now when everything comes to fruition,” he said.

Longhofer said he's "more sanguine" about the potential housing impact of the Integra deal and the market's ability to absorb demand.

He pointed to the National Bio and Agro-Defense Facility's addition to Manhattan — anticipated to bring in more than 400 employees — and the impact on housing being more smooth, and less shocking, than some expected.

"It's not like all of a sudden you flip the switch and boom, you have this huge, huge demand for new housing," Longhofer said.

This was interesting timing for me as my hometown is going through the process of creating a new 20 year plan and had a town hall meeting over it recently and housing was discussed. Much like Wichita, the whole metro area is lacking in what is described as affordable, or attainable, housing. It's a difficult market for first time home buyers, or even some second time home buyers looking for a bit of an upgrade. As someone who can't afford a $250K+ home, it's been frustrating the past couple of years while looking. My hometown will on occasion have something cheaper pop up, but then it's not really upgrading over what I currently live in, which is nowhere close to being worth $200K, or it's in the $250K+ range. Many residents in my hometown seem to be very resistant to any kind of multi-family homes going up, which I think is short-sighted. Not all who rent are pieces of **** like they make them sound.

But more importantly from my standpoint is I would love to stay in my hometown, but there are virtually no options for me and the city can't find a builder/developer who is willing to come in and build anything less than $300K. Though there is an addition that they're trying to expand where that kind of home would be more than perfect. But there are plenty of other areas where it would be nice if they could build homes that would be great for young, first time buyers or even older people who are maybe wanting to stay in town but downsize because they no longer need or want to maintain a larger household. One of the builders in the article stated he pretty much can't build anything for less than $220K.

Now, I do know the city is hopeful that the new Integra project as well as some other things going up in that NE Wichita area could help attract people to town, as the Circle School District is pretty good and it's a relatively quite town with easy access to everything. However, I think many within the city government want to be more aggressive in growing so we can attract or develop a little more business in town and don't want to wait 3-5 years to begin.

Wichita seems to be going big on a lot of multi-family additions around the area which is good in making moving/living here more affordable for those just starting out or have good, but not great jobs. Most of the houses on the market in SG are in the $350K - $600K range. That doesn't do these expanding companies, or ones just moving into Wichita, much good as most employees who may move here to work at those jobs probably can't afford those levels of homes.

For me personally, I have no desire to rent. My home is paid off and renting can be pretty expensive. Especially if I'm looking for something bigger than what I currently own and has a decent backyard for my dogs. Rent may cost more than a house payment, which I've never really understood how that works. I also don't want to live in a townhouse. I have multiple dogs and really don't want to share a wall with someone. The dogs bark sometimes and you never know what kind of neighbor you may share that wall with. They could be loud and obnoxious or an absolute **** and I'm not risking either. I also do have a couple of requirements to move in regards to a basement is a must, the floor plan must be at least partially open, and the kitchen has to have enough counter space for my anxiety riddled ass to be comfortable with in regards to food prep and other things. Finding all of those things in one home has been pretty difficult, especially in my preferred price range. A little more so at the top end of my affordable price range, which I really don't want to do. Though if I could figure out a way to sell my home before buying a new home, without displacing myself or my girls, so I can use much of that sell price as a down payment then I could more comfortably afford a bit more than my set range.

But this wasn't supposed to be about me. I got a bit side-tracked. The point is that the entire region could benefit from more affordable houses. Though one of the developers in the article did mention that getting new houses in the $180K range is difficult based on labor, materials and interest rates right now. I get that, but it's frustrating as housing in that range would sell and help attract more young people looking for work, or taking jobs here. I also know not everyone is as resistant to renting as I am, so I know rentals are also good for that. But I've heard from many that finding rentals that are affordable for the same types of people are also difficult. The article shows that Wichita's rental occupancy is currently at 95%, which means there aren't a lot of options out there and I'm guessing the ones that are available are mostly really bad, or pretty expensive.

If the Wichita area is going to be bringing in something like 10K jobs over the next five or so years, the metro area needs to find a way to be able to support those needs and I for one hope my hometown figures that out sooner rather than later.

This got long. My apologies.

[Rocky Mountain Shock]

This is a problem the whole country is facing, not just Wichita. We can't seem to get developers in my area to build houses below the half million price point--which is ridiculous to me. I've never understood why a developer can't make money on affordable housing. I'd think the market would be strong practically anywhere for affordable housing. Maybe if we have a shocker fan here whose day job is a developer, they can shed some light on this.

[SubGod22]

It really is a problem. Using my small town as an example, many people don't move out so there aren't a lot of options. And the new houses definitely aren't friendly to first time buyers and most young families. I may not want to leave town, but if there's never anything available I have to look elsewhere. But the same issue arises in Andover, Derby, Maize, Kechi and Park City. One may pop up from time to time but they're so in demand that if you're not willing to jump on it immediately and/or over pay for it, you're out of luck.

And you're right that there is absolutely right that there is demand. And the issue in building such homes predates Covid and supply chain issues and price increases. They now use those as an excuse and right now some of that is justified. But they weren't building them before that either. More expensive houses lead to more profit, but the amount of "cheaper" homes you could build and sell would probably make up for it. Though they also talk about a lack of labor throughout the industry. That might play into why they focus on more expensive houses.

I'm still not happy about any of it and don't want to leave myself no slack financially just to buy a home.

This is probably why you're seeing more multi-family projects and apartments. But the area will absolutely have to figure something out and relatively soon.

[RoyalShock]

"Affordable" housing almost always requires some form of government assistance, likely via one or more grants. There's a development being planned in Hutch that will have modest single-family homes and duplexes, targeted to "moderate income" families, ie, what a teacher, cop, fireman, etc. could afford. And those will still be $225k.

Most of the houses, which will go up near Plum Creek Elementary School, will have three bedrooms and two bathrooms and sell for approximately $225,000. "We sell to a lot of school teachers, policemen, and people who work for the city," Strawn said.

If received, the Moderate Income Housing/ARPA state-funded, developer-led grant will go toward each homeowner's down payment, funded at the time of closing. The money is vested for 10 years. If the family moves, the city gets back a portion of the money. If homeowners move out in five years, the city gets back half the money and can use it to help a new buyer.

The Plum Creek subdivision has been in the planning stages since 2015 when the City of Hutchinsonwas approved to have several Rural Housing Investment Districts to encourage and assist in the building of new housing, especially for the workforce and young families. For many years, the Housing Commission, Hutchinson/Reno Chamber of Commerce and the City of Hutchinson have identified the lack of new homes being built during the past decade. This has led to a lack of quality housing options in Hutchinson and was affecting efforts to recruit new business.

. . .

Strawn Contracting plans to build 31 single family homes and 16 duplexes in the Plum Creek subdivision within walking distance of Plum Creek Elementary School. The subdivision will have sidewalks on both sides of the street, a pool and a playground. Strawn said he hopes to eventually build about 88 homes in the complex.

The City of Hutchinson, with Strawn Contracting as the developer led project, is requesting $650,000 from this round of MIH/ARPA grants from the Kansas Housing Resources Corporation. If awarded, MIH funds will go to the homeowner to help with down payments and closing costs. It was clarified this request is for State ARPA fundsnot City ARPA funds.

[SubGod22]

Wichita Jazz Festival lands Grammy winning group to headline the event.

Eagle - Yellowjackets bring the buzz to the 2023 Wichita Jazz Festival

Yellowjackets will perform at 7 p.m. Saturday, April 22, at the Crown Uptown Theatre, the only time the Crown will host a WJF event this year.

The band has won two Grammy Awards – one for R&B instrumental, one for jazz fusion performance – and nominated for six others, including last year for best large jazz ensemble album for its “Jackets XL.”

Harshbarger said he considers Yellowjackets sax player Bob Mintzer a friend and has used several of Mintzer’s arrangements with his own group, the 18-piece Delano Jazz Orchestra.

[SHOCKvalue]

Labor and materials have gone up drastically, leading to new construction price increases. Further, the Fed kept rates low for too long, and both Trump and Biden increased the supply of money drastically - leading to generational levels of inflation, which impacts both existing homes and new construction.

The $90K 2BR/1BA 2 car with unfinished basement Klausmeyer/Comfort build is now the $180K build, and developments for those levels of new homes aren't exactly going gangbusters. I can only think of a couple even building, which is a drastic departure for those sorts of developments from say 1995 to 2015. Seems folks would rather just have an older, larger home in an established neighborhood, over a bare bones new build in a wheat field. Those market dynamics have put a de facto floor in the new home market in Wichita, and it sits at about $300K or so right now.

There's also minimal barriers to entry for a home builder. A GC license is not hard to get, and so it simply comes down to relationships with subs. Add to the fact that there is absolutely no shortage of build-able land in the urban periphery, and you have painted a picture that reads that the current issue for entry level new homes in Wichita is fully economic in nature. If new construction here was showing 30% margins then everyone and their dog would show up to Wichita to build homes - including the big nationwide firms like DR Horton or Lennar... but that's not happening.

There's no magic bullet. The actions of the Fed, and both the Trump and Biden admins, have caused a seemingly permanent adjustment between wages and cost of goods and services. It's just the new normal. It's not going to change, short of a very painful reset like a depression.

[Ta Town Shocker]

The $90K 2BR/1BA 2 car with unfinished basement Klausmeyer/Comfort build is now the $180K build

I have the 3bd/2ba/3car version which was built for 100k in 2001. I bought it in 2011 for about 25% more than the build price. At the time I was dead set on a 3 car garage so basically went with the cheapest option in the desired school district, which looking back was probably a good decision. Today a similar home in the neighborhood goes for 250k minimal upgrades or 300k with a finished basement.

Someone on a starter wage like I was in 2011 probably cannot afford the same house today. It's not just the home price increase itself that hits the pocket book but everything else such as repairs, taxes, insurance, etc.

My wife and I have been in the market to buy a home for a family member who will be moving to town in the fall. I can't believe how hot the housing market still is. Anything that comes on with any perceived value whatsoever goes for over asking price. The avg days on market is still less than a week for most places.

While on the topic of inflation, hotels and vacation home rentals are up significantly too. The same vacation rental in Branson I booked last year is now up 55% which means an increase in taxes and fees too. I can't imagine this is sustainable.

[Kung Wu]

Labor and materials have gone up drastically, leading to new construction price increases. Further, the Fed kept rates low for too long, and both Trump and Biden increased the supply of money drastically - leading to generational levels of inflation, which impacts both existing homes and new construction.

The $90K 2BR/1BA 2 car with unfinished basement Klausmeyer/Comfort build is now the $180K build, and developments for those levels of new homes aren't exactly going gangbusters. I can only think of a couple even building, which is a drastic departure for those sorts of developments from say 1995 to 2015. Seems folks would rather just have an older, larger home in an established neighborhood, over a bare bones new build in a wheat field. Those market dynamics have put a de facto floor in the new home market in Wichita, and it sits at about $300K or so right now.

There's also minimal barriers to entry for a home builder. A GC license is not hard to get, and so it simply comes down to relationships with subs. Add to the fact that there is absolutely no shortage of build-able land in the urban periphery, and you have painted a picture that reads that the current issue for entry level new homes in Wichita is fully economic in nature. If new construction here was showing 30% margins then everyone and their dog would show up to Wichita to build homes - including the big nationwide firms like DR Horton or Lennar... but that's not happening.

There's no magic bullet. The actions of the Fed, and both the Trump and Biden admins, have caused a seemingly permanent adjustment between wages and cost of goods and services. It's just the new normal. It's not going to change, short of a very painful reset like a depression.

This guys know his stuff!

Question SHOCKvalue, are banks tightening up on lending as well? Seems like with inflation and build cost increases, and wages probably not hiking in conjunction with those expenses, that risk has to be substantially higher for the banks now so lending might be more difficult to find? Just a guess, I don't follow this stuff.

[SHOCKvalue]

This guys know his stuff!

Question SHOCKvalue, are banks tightening up on lending as well? Seems like with inflation and build cost increases, and wages probably not hiking in conjunction with those expenses, that risk has to be substantially higher for the banks now so lending might be more difficult to find? Just a guess, I don't follow this stuff.

I don't see that side a great deal in what I do. I'm not an agent or a loan officer, or more relevantly an underwriter for that matter.

Lending standards are generally much higher than they were 2007-2009, so the current run up has little to do with that. It is a supply side problem coupled with artificially low lending rates (until six or nine months ago) plus an increase in the supply of money. Where we sit today was as easy to see coming as a spring thunderstorm on the prairie.

If anything, lending standards are currently experiencing a small relaxation, from my cheap seats. FHA just came out with a 40 year mortgage, so that just throws more gasoline on the housing inflation problem fire. Fannie and Freddie are changing up quite a lot of things at current on the underwriting side that further "grease the wheels", so it's clear they learned nothing by nearly going under water before being bailed out by the US taxpayer and going into conservatorship (where they remain to this day). And in the circles I'm in I've seen references to mortgage products seemingly one degree removed from the ol' stated income mortgage that everyone gamed 15 years ago (non-QM loans, so no Fannie or Freddie to call BS).

I'm no RE savant. It's just the realm I work in every day.

[SHOCKvalue]

I have the 3bd/2ba/3car version which was built for 100k in 2001. I bought it in 2011 for about 25% more than the build price. At the time I was dead set on a 3 car garage so basically went with the cheapest option in the desired school district, which looking back was probably a good decision. Today a similar home in the neighborhood goes for 250k minimal upgrades or 300k with a finished basement.

Someone on a starter wage like I was in 2011 probably cannot afford the same house today. It's not just the home price increase itself that hits the pocket book but everything else such as repairs, taxes, insurance, etc.

My wife and I have been in the market to buy a home for a family member who will be moving to town in the fall. I can't believe how hot the housing market still is. Anything that comes on with any perceived value whatsoever goes for over asking price. The avg days on market is still less than a week for most places.

While on the topic of inflation, hotels and vacation home rentals are up significantly too. The same vacation rental in Branson I booked last year is now up 55% which means an increase in taxes and fees too. I can't imagine this is sustainable.

Until like three years ago, I'm not sure annual residential RE appreciation in the Wichita metro even kept up with federal CPI inflation figures. Good for new entrants into the market like young buyers or folks relocating here, but not building much wealth and equity for the folks already in the system so to speak.

Yeah the summer of 2023 looks like it might be just like the summers of 2021 and 2022, which is not good news for housing inflation or the rate finagling by the Fed. Market activity is down overall, but so is listing activity, so the two work in unison to continue the ball rolling uphill.