BUILDING BOOM

Low mortgage and unemployment rates and a solid local economy have helped new home sales climb to new highs in Cape Girardeau County.

Housing starts are up more than 35 percent in Cape Girardeau, where 41 starts during the first five and a half months of 1998 have resulted in a $6.2 million boom to the economy.

Single-family housing starts are even more impressive in Jackson, where 56 permits have been issued for new homes compared to 34 during the same period a year ago.

Construction of homes adds to the economy in other ways, benefiting builders, suppliers, furniture and appliance manufacturers and retail stores, architectural firms and landscaping companies.

"I see the growth continuing in the residential market this summer, especially as long as interest rates stay down and there's an incentive to build," said Richard Murray, inspection services director for Cape Girardeau.

Murray said several subdivisions are in various phases of development. Subdivisions also are being built in the Jackson, Fruitland and Scott City areas.

Over the past five years, Jackson has been a beehive of activity in new single-family housing, with more than 700 starts from 1994 through June 15. A third of those starts came in 1994, when 286 new home permits were issued. House construction in Jackson was over the 100 mark in 1995, at 151, and 1996, at 115, before falling to 93 in 1997.

Although Jackson recorded only 34 permits through the first half of 1997, a total of 93 new homes were constructed before the end of the year.

Home construction could top the 100 mark again this year at Jackson, with 56 permits through the first five and a half months having been issued, averaging about $100,000 per home.

Leisa Floyd of Jackson's public works department said the 56 permits this year have a value of about $5.8 million.

New construction of single homes has been steady in Cape Girardeau over the past five years, ranging between 68 and 86, with the 68 last year.

"We're way ahead of last year at this point," said Murray. As of June 15, a total of 41 new home permits had been issued, with an average of about $150,000 each."

A year ago at this time, 30 home permits had been issued in Cape Girardeau.

New construction of single-family homes is down a bit in Missouri, from $810 million during the first five months of 1997 to about $800 million this year.

Nationally, housing starts are up 6.4 percent over the same period a year ago. Construction of new homes is continuing strong into June, according to the National Association of Home Builders. The association's survey of builders' plans for this month showed anticipated construction at a record high for the 13 years the group has done the poll.

By region, housing starts in the Northeast region of the nation were up by 14.4 percent and 2.6 percent in the South. However these gains were slightly offset by an 11.2 percent drop in housing starts in the Midwest.

Construction of new homes is on the rise throughout the Midwest Federal Reserve district that includes eastern Missouri, western Kentucky, western Tennessee, Southern Illinois, southern Indiana, northern Mississippi and Arkansas.

In the most recent "Beige Book" report, which reviews economic happenings in the seven states, a strong demand for new housing was reported, with residential permits up in nine of the district' 12 metropolitan areas.

The U.S. Bureau of Census, in a recently report, said new homes are larger and have more amenities today. New homes nationally are averaging just over 2,100 square feet, up almost 500 square feet from the 1,660 average in 1973.