County home construction hits all-time high in 2005

After all, Morrow said, “You can't set a record every year.”

In Greene County, more single-family homes were built in 2005 than ever before - 1,268 of them. The previous record was 1,254 in 2003. Also, the 2005 housing-start numbers are nearly 23 percent higher than in 2004.

“There's still very strong demand for new homes in this part of the state,” Morrow said. “There's no reason to believe that (2006) wouldn't be another very strong year.”

Morrow said 1,000 annual housing starts in Greene County is a benchmark for strength - a standard that has been reached every year since 2002.

Greene County's growth mirrors national growth, which was up 11.8 percent for single-family home starts through the first 11 months of 2005, according to Joe Huesman, survey statistician for the U.S. Department of Commerce.

He said total construction spending in the United States was $1.03 trillion through the first 11 months of 2005, up from $946 billion during the same period in 2004.

“I believe it will be a record,” said Huesman about 2005, noting that final figures won't be available until Feb. 1.

Locally, Morrow credits housing growth to land affordability, plenty of recreational amenities and a diverse, “recession resistant” economy.

Morrow said Greene County housing starts are a better measure of area growth than city of Springfield housing starts because city construction remains fairly constant - about 425 homes started every year - due to land limitations.

Nick Heatherly, director of Springfield's Building Development Services Department, said both permit fees and total estimated construction spending in Springfield were up in 2005 even though the number of building permits issued was down.

Springfield had $363.1 million in new construction in 2005, up 18.5 percent from $306.4 million in 2004.

Those numbers include remodeling, electrical and plumbing projects.

In 2005, Springfield issued 2,782 permits for all building construction - single-family, multifamily and commercial - down 12 percent from 3,169 in 2004.

However, Springfield issued 439 single-family permits in 2005, up 5 percent from 418 in 2004. Total single-family construction in the city was estimated to be down about $2.5 million, or 3 percent, to $73.9 million.

The new year, Heatherly said, should again see steady growth, something that allowed the city to raise permit fees Jan. 3 for the first time since 2002.

Typically raised on an annual basis, the minimum building permit fee went from $65 to $85.

“The purpose of the increase is to recuperate our actual costs of providing (our) services,” he said.

While Springfield's growth remains steady, the HBA's Morrow said land west of Springfield is becoming more popular.

“There are good school districts in Republic and Willard where people … particularly growing families, tend to gravitate,” he said.

Morrow said areas to the south and east of Springfield remain the most popular places to build new homes.

The only potential downfall to construction growth, Morrow said, would be higher interest rates.

However, Stacey Clem, president of the Greater Springfield Board of Realtors, said consumers shouldn't be deterred by interest rates.

She said the 30-year fixed rate home loan - 6 percent on Jan. 23 - should stay under 7 percent during 2006.

Clem predicted 4 percent to 6 percent fewer homes will be sold in 2006 but said the market should remain strong after a record 2005 when 8,808 homes sold through the Board of Realtors, up 12 percent from 7,845 in 2004.

“I feel very good about it,” Clem said.

A Record

Number of Greene County housing starts since 2000:

2005 - 1,268 (record)

2004 - 1,032

2003 - 1,254

2002 - 1,051

2001 - 878

2000 - 759

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