In the
first half of last year there were small
signals of the beginning of a recovery in the local
home building industry. But those signs were snuffed
out by sharp declines in housing starts in the third and
fourth quarters.
Overall,
Volusia County ended 2008 with $537.2
million in residential and commercial building
permits issued countywide. This compares to $830.2
million in building permit activity in 2007.
Rick Michael, director of Volusia County’s
Division of Economic Development, observed that
new construction activity in Volusia County actually
showed modest gains in the first two quarters of 2008
before dipping in the third quarter and plunging in the
last quarter.
“We were
having a
pretty good recovery
last year through the
first half of the year,”
said Michael. “But the
last two quarters erased
indications of a
construction industry
rebound. Eventually
we’ll recover, but it’s
going to happen gradually and take time.”
Michael
said he believes the decline in new
construction activity coincided with the banking
industry meltdown and worsening of the credit
crunch nationally. “The good thing is that Florida will
recover while some areas of our country probably
never will recover from this economic crisis,” Michael
said.
Countywide, 185 residential construction permits
were issued for new projects by the county and city
building permit offices during the October-November-December period. This is down from 306
permits issued in the third quarter and 375 permits
issued in the second quarter of last year.
On the
commercial side, 29 permits were issued
for new projects in the fourth quarter, down from 43
permits issued in the third quarter and 56 permits
issued in the second quarter.
“The
fourth quarter’s always slow,” said Sue
Darden, executive officer of the Volusia Home
Builders Association, who added that the decline in
new construction activity last year shouldn’t come as
a surprise.
Darden
attributed the seasonal decline to a combination of the holidays and
everything else. “People are doing other things with their lives.
Then you add the recession and the credit crunch on top of that and
it’s even slower.”
Although
construction activity for new homes has been declining for the past
three years, Darden believes there are signs that things will
improve—eventually.
“Certainly interest rates are good right now,” said Darden. Another
promising sign is the fact that sales of existing homes in Volusia
County slowly are starting to pick up. “This is an important step
that needs to happen if a recovery of the local home building
industry is to occur.”
As to
when Volusia County might start to see an uptick in new home
construction, Darden said: “We’re being told not until the fourth
quarter.”
Homebuilding during the fourth quarter last year was the most robust
in West Volusia.
The county issued 68 residential permits for new homes in the
unincorporated area, mostly west of Interstate 95.
Among
the cities, Port Orange issued 26 residential permits for homes and
condos, the
most of any city. DeLand issued 21 residential permits; Deltona-17,
New Smyrna Beach-16, Daytona Beach-12, Ormond Beach-nine, Orange
City-eight, and Edgewater-seven. On the commercial construction
side, Daytona Beach led the way in terms of most permits issued for
new projects in the fourth quarter with eight. Ormond Beach followed
with six. New Smyrna Beach and Edgewater each issued three
commercial permits, while Deltona, Port Orange and Orange City
issued two permits apiece.
Notable
commercial construction projects under way include the new Daytona
Live!
mixed-use complex under construction on International Speedway
Boulevard, across the street from Daytona International Speedway in
Daytona Beach, and The Pavilion shopping center, which is under
construction in Port Orange, on Williamson Boulevard, just north of
Taylor Road/Dunlawton Boulevard.
