DILLIGAF
10-10-2006, 12:14 PM
way down:
Building permits on the decline
BY DAVID BELL
Tuesday, October 10, 2006 10:52 AM MDT
The number of new home starts in Lake Havasu City in August fell to one of the lowest points of the year.
According to numbers released by the Lake Havasu City Development Services Department, September saw issuance of just 21 permits for single-family home construction. That's a drop of more than 55 percent from the previous month and more than 70 percent below September 2005.
If it weren't for the commercial development, September would have been a drop off a cliff, said Bud Schulz, executive director of the Colorado River Building Industry Association.
Schulz said he never has seen building permits issued this low since he has been with the organization. He attributed some of the drop-off to market factors and energy prices but couldn't directly blame the drop-off on any one thing.
Look at the cost of energy, said Schulz. Just transporting things has become more expensive. Gas prices are coming down now, but for how long?
There were three commercial development permits issued in September, with the projects showing a total value of $1.7 million. That's up significantly from August's one commercial permit for a project valued at $579,485.
September's commercial activity was just a bit behind September 2005, when four commercial permits were issued. However, the aggregate value increased this year from $1.3 million in 2005.
One of the commercial projects contributing to the increase is the proposed Polidori Hospice House facility on Bahama Avenue, a home to care for up to six incurably ill patients. Construction of the building and the land was donated to Hospice of Havasu by Victoria Polidori in honor of her late husband Quinto. The permit for the building was issued Sept. 7.
The drop-offs in single-family building activity resulted in a corresponding slide in revenues to the city. The Building and Planning Divisions combined to take in $130,950 in September, compared to $216,895 in August and $264,987 in September 2005.
Year-to-date revenues also are off more than 22 percent, falling to $523,118 from $677,898 last year.
But while the number of housing starts is down, the average value of the projects continues to climb. The average value of a single-family home project was at $208,728 in September 2006, up from $198,555 in August and climbing more than 26 percent over the average value of $165,176 in September 2005.
You may reach the reporter at dbell@havasunews.com
Building permits on the decline
BY DAVID BELL
Tuesday, October 10, 2006 10:52 AM MDT
The number of new home starts in Lake Havasu City in August fell to one of the lowest points of the year.
According to numbers released by the Lake Havasu City Development Services Department, September saw issuance of just 21 permits for single-family home construction. That's a drop of more than 55 percent from the previous month and more than 70 percent below September 2005.
If it weren't for the commercial development, September would have been a drop off a cliff, said Bud Schulz, executive director of the Colorado River Building Industry Association.
Schulz said he never has seen building permits issued this low since he has been with the organization. He attributed some of the drop-off to market factors and energy prices but couldn't directly blame the drop-off on any one thing.
Look at the cost of energy, said Schulz. Just transporting things has become more expensive. Gas prices are coming down now, but for how long?
There were three commercial development permits issued in September, with the projects showing a total value of $1.7 million. That's up significantly from August's one commercial permit for a project valued at $579,485.
September's commercial activity was just a bit behind September 2005, when four commercial permits were issued. However, the aggregate value increased this year from $1.3 million in 2005.
One of the commercial projects contributing to the increase is the proposed Polidori Hospice House facility on Bahama Avenue, a home to care for up to six incurably ill patients. Construction of the building and the land was donated to Hospice of Havasu by Victoria Polidori in honor of her late husband Quinto. The permit for the building was issued Sept. 7.
The drop-offs in single-family building activity resulted in a corresponding slide in revenues to the city. The Building and Planning Divisions combined to take in $130,950 in September, compared to $216,895 in August and $264,987 in September 2005.
Year-to-date revenues also are off more than 22 percent, falling to $523,118 from $677,898 last year.
But while the number of housing starts is down, the average value of the projects continues to climb. The average value of a single-family home project was at $208,728 in September 2006, up from $198,555 in August and climbing more than 26 percent over the average value of $165,176 in September 2005.
You may reach the reporter at dbell@havasunews.com