TBO.com - TBO is Tampa Bay Online

Highlands Today

Construction Industry Hits Bottom

File photo by Kathy Waters/Highlands Today

In 2008, Highlands County issued 135 building pemits for one-family houses compared to one for January this year. In this photo, Thomas Price, owner of Quality 1st Construction and Aluminum Inc., fills out forms to pull a building permit at the Highlands County Zoning Department in August 2008.

ADVERTISEMENT

By GARY PINNELL

Highlands Today

Published: February 11, 2009

SEBRING - In 2006, at the peak of the building boom, 1,752 building permits were issued for single-family, multi-family and mobile homes in Highlands County.

The boom is over. In 2008, the corresponding number was 458 - a 74 percent decrease.

And so far in 2009? One single-family home in January, one in February. And five mobile homes.

"I think it's the lowest ever," said building office administrator Helen McKinney. "At least, it's the lowest since I've been here."

Fewer hammers are pounding across the nation. In Tampa, construction began on 932 single family homes in the fourth quarter of 2008, but that's 33 percent less than the previous year. It's the first time in 23 years that quarterly housing stats have fallen below 1,000.

Soon, there may be more echoes than voices in the building permits offices these days. In 2006, when an average of 96 new homes a month were going up, there were 16 people in the office. More inspectors were desperately needed.

"We're down to 11," McKinney said. Two temps are gone, and workers have been transferred to keep open the county annex offices in Avon Park and Lake Placid.

Nationally, the most troubled housing markets are Florida and California. Single-family housing starts are down 63 percent from peak housing boom levels, according to HousingEconomics.com.

The residential remodeling market also declined during the final quarter of 2008, according to the latest National Association of Home Builders. The Remodeling Market Index slid from 33.5 to 27.7. Future expectations of remodeling work plummeted to 19.6.

Almost 4,300 building permits were issued in 2008, McKinney said, including 276 fences, 105 boathouses, 117 sheds, and 1,578 electrical, plumbing and mechanical permits. They represented an estimated $63.6 million in work performed.

However, $374 million in projects were permitted in 2006, and $262 million in 2007.

New County Commissioner Jeff Carlson doesn't have solutions. "I don't think there's anything we can do to change the nature of the economy."

He opposes building a new sheriff's office, which would cost $11 million in construction. He contends it would cost another $10 million in financing.

And that's one reason why the construction industry has slowed, Carlson said. "Should the county reduce impact fees? I don't think anyone is sitting on the fence, because of that. It's more of a credit problem. The most important we can be doing is cutting spending."

The construction industry may not return soon. Highlands County's senior planner, Don Hannah, said the state has rejected the plans of Bluehead Ranch, which planned to build enough houses for 125,000 people. In Lake Placid, developers wanted to build 8,000 homes.

"We would have to justify the need," Hannah said.

Highlands Today reporter Gary Pinnell can be reached at gpinnell@highlandstoday.com or 863-386-5828

Share this:

Loading Comments...

Email Print

ADVERTISEMENT