Report shows slowdown in construction

Construction on new single-family homes in Jackson is down through the mid-year point, but city leaders are optimistic that the situation will improve before the end of 2008.

Through June 30, construction on single-family homes stands at 27, compared to 49 during the first six months of 2007, according to the city of Jackson's mid-year permit report.

Janet Sanders, building and planning superintendent for the city of Jackson, attributes the decline to the weak economy.

"Considering the way our economy has fared, this is a reputable number," Sanders said. "While that number does not match the same number last year at this time, the truth is that we're not as far down as we feared we may be when the year started."

Sanders said homes priced between $150,000 and $190,000 are faring best in the area. She added that homes listed at more than $200,000 are not selling as well.

Still, Sanders said the Jackson market is doing better than nationwide housing sales. The National Association of Realtors reported that completed sales of existing homes decreased more than expected in June, even with the news that home sales rose by 5.3 percent.

"People are becoming wiser and more cautious in the homes they build," Sanders said. "The result of that is people building homes that cost less to construct."

Overall construction through June 30 in the city is valued at $7,810,905, compared to $6,202,791 through the first six months of 2006 and $33,720,128 through the same time period in 2007. But Sanders emphasized last year's total includes construction projects at Jackson High School. Begun in 2006, the projects include a new gymnasium, cafeteria, library, music rooms and industrial arts space under one roof at 315 S. Missouri St. in Jackson.

The addition of locker rooms inside the Jackson High School gymnasium remains the most expensive project on record for the first half of 2008 in the city. The project will cost about $1,174,847.

The other projects with the most construction value through the end of June are strictly residential. A multi-housing unit is valued at $400,000, a duplex at $340,000, a single-family home at $332,000 and another single-family unit at $229,000.

Sanders said that while her office expects future projects to be mainly residential, she believes commercial interest will increase. Already Sanders has received an increasing number of phone calls expressing interest in purchasing commercial property.

"Jackson's quality of life will continue to attract people to this area," Sanders said. "There still seems to be a lot of people who want to build and move out here."

"While we are behind compared to last year, our quality of life is what will contribute to what we hope will be an increase in home sales and construction," Jackson Mayor Barbara Lohr said. "Our commitment to keeping up the city's infrastructure is what will help make Jackson a great place to be."

bblackwell@semissourian.com

335-6611, extension 137

Does this affect you?

Have a comment?

Log on to semissourian.com/today