New construction declines in area

The number of new homes and businesses being built in Cape Girardeau and Jackson dropped this year.

Because a few weeks remain in the year, the results aren't final. But with the totals through October in Cape Girardeau and through November in Jackson, 2015 is turning out to be a less eventful year in the development services office than in previous years.

Through October, 34 permits for single-family homes with a total value of nearly $8.6 million had been issued in Cape Girardeau this year.

The city granted 53 permits in 2014, with values of more than $12 million.

Over the last five years, the number of building permits issued by the City of Cape Girardeau has fluctuated.

From 2011 to 2014, Cape Girardeau averaged 55.5 building permits each year, peaking in 2012, when 62 permits were authorized.

The number of permits for constructing apartment units has dropped as well, with a permit for one duplex and one 10-unit apartment complex issued between January and October.

This is small compared to a surge in multi-family permits in 2013 and 2014 (42 and 55 permits, respectively) but an improvement from 2011, when no apartment permits were issued.

Non-residential or commercial permits remained relatively consistent over the years, although after a spike in 2014 of 15 permits, only six have been issued between January and October.

The higher numbers in recent years came because they followed the period in 2007 to 2009 when the economy tanked, Molly Hood, deputy city manager of Cape Girardeau, said.

"For several years following that, we saw a big increase in permits," she said.

Jackson

New construction in Jackson also is shaping up to be lower in 2015 compared to previous years.

Between 2011 and 2014, residential permits issued by the city of Jackson averaged 53 per year.

By the end of November this year, Jackson had issued 47 permits.

The number of non-residential permits issued in Jackson fluctuated considerably each year.

2013 was a peak year, with 14 new constructions with values totaling over $24 million.

Between January and November this year, seven new commercial construction permits were granted.

Construction of new apartment complexes in Jackson has stayed relatively steady over the last five years, with four permits issued in 2015, one in 2014, four in 2013 and 2012 and two in 2011.

Regional numbers for new residential construction don't follow statewide or national trends.

Permits for single-unit residences and apartment complexes throughout the state, as well the nation, have increased each year, according to the United States Census Bureau.

"The numbers are down slightly from previous years," Hood said.

But because the drop is relatively small, "we don't see this as a cause for concern," she said.

Hood said she expects the numbers to stay on trend in 2016 without a decrease in new construction.

Jeff Martin, president-elect of the Jackson Chamber of Commerce board of directors and executive broker/manager of Realty Executives, agreed.

"In 2016, sales will continue to be strong," he said. "People still need homes, the area continues to grow, there is relatively low unemployment around here, and jobs are what drives a housing market."

Though the number of new construction permits may be down in 2015, residential sales in Cape and Jackson are up from last year when pre-existing homes are included.

Martin said sales of all homes in Cape Girardeau are up 9.5 percent from last year.

In Jackson, they're up 13.5 percent.

"It's a seller's market; sales are up, and listings are down," Martin said. "The younger market always wants new -- they want to start with a blank slate. But you can buy more house, with more square footage, when you buy a pre-existing home, because construction costs continue to go up."

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Building permits issued

Residential and commercial construction permits issued in Cape Girardeau and Jackson over the last five years. Listings provide the number of permits and total value in millions of dollars.

Cape Girardeau single-family homes

2011 57 $10.27

2012 62 $13.63

2013 50 $10.00

2014 53 $12.15

2015* 34 $8.59

Jackson single-family homes

2011 38 $6.11

2012 65 $14.46

2013 49 $11.98

2014 60 $14.58

2015* 47 $9.06

Cape Girardeau commercial

2011 10 $14.04

2012 9 $24.5

2013 10 $5.22

2014 15 $17.57

2015* 6 $8.59

Jackson commercial

2011 8 $13.53

2012 3 $2.43

2013 14 $24.12

2014 6 $6.43

2015* 7 $7.64

*Data for 2015 incomplete

(Source: cities of Cape Girardeau and Jackson)