Local News

Home building decline continues

Photos

Gary Pinnell | Highlands Today
Published: January 11, 2013

SEBRING In 2006, thirty workers framed houses for Homes by Handley.

"Today, there's maybe five," said Ron Handley. "My business is 15 percent of what it was in 2006. As an example, I might have built 20 houses that year. Last year, we built one."

In 2006, contractors were still catching up with the four 2004-05 hurricanes that tore through Highlands County. At the same time, 1,152 new homes were also built, along with 67 duplexes and apartments. Subcontractors were so busy, it was hard to hire an electrician, drywaller or carpet layer.

In 2012, 30 new homes went up, along with one modular house. By contrast, 50 mobile homes were set up.

"The numbers tell the story perfectly," said Handley, who supplemented his income by successfully running for county commissioner. "Contractors? I could start naming names of people who are out of business. We're down to a third or a quarter of the ones who were here then."

Subs? "Some of them moved north, some of them went out of business, some of them are in completely different lines of work," Handley said. "Some of the skipped town and owed a lot of money, some of them declared bankruptcy and still haven't paid their debts. Some of them are still in business, but they've scaled way back."

The Highlands County Building Office needed 18 temporary and full-time inspectors and clerks then just to keep up with the 11,389 permits issued in 2006. Today, the office has three inspectors and seven total workers, said assistant Helen McKinnney.

"We still stay busy with roofing permits, contractors from other counties, license renewals," McKinney said. "We have to deal with insurance. It takes three inspections for a roofing permit. Smaller projects require just as many inspections.

"We verify if properties have any open or expired permits for lien search/title companies," McKinney said. "We receive approximately 60 a month, and even though this information can be obtained from our website, these companies fax or email forms so they have proof the search was completed by authorized staff."

Before the new housing market will improve, Handley said, "We've got to use up this inventory of foreclosed homes."

Banks and mortgage companies took back 896 last year, and Clerk of Courts Bob Germaine said about 1,970 foreclosures were filed, up 500 from 2011. That's at least a two-year supply, Handley guessed.

"The value of houses is way, way, way down," Handley said. A foreclosed home sells for about 50 cents on the dollar, compared with the cost of a new home. "We can't compete with that."

gpinnell@highlandstoday.com (863) 386-5828