• E-Edition
• Home
• News
• Sports
• AP
• Obituaries
• Classifieds
• Jobs
• Autos
• Homes
• Garage Sales
• Coupons
• Subscribe
• Archive
• Services
• Contribute
• Blogs

Sign of times: New home construction is down in region

Share Story:     E-mail Story    |    Print Story    |    Comments    |   

By HEATHER BAUGHMAN

baughman@crescent-news.com

Thursday afternoon, Mike Eagle and Josh Andrews of Kahle Design and Build were taking advantage of the nice weather by working outside on a deck at a new condo unit being built on Defiance's Deerwood Court. When the pair finishes the two-unit condo, they will begin working on another condo one street over, keeping their summer construction schedule pretty busy. However, that is not necessarily the case for all construction workers this year.

Home construction "this summer is going to be one of the worst ones" since the 1980s, said Home Builders Association of Northwest Ohio secretary-treasurer Dick Kahle. Not to say that more projects won't creep up yet this building season, but so far, the outlook in the area -- and the most of the country -- is a bit grim.

"We've got some work, but it's not booked the way it should be," said Kahle, who is also owner of the Kitchen Center Home Supply Inc., Defiance.

"The established contractors will fare a lot better in these times, vs. the new contractors," Kahle said.

Nationally, the U.S. Census Bureau reported that new home building permits issued for April 2008 were down 34.3 percent from April 2007.

So far, the city of Defiance has issued one building permit for a single-family house, and three permits for two-unit condos. That is down significantly from the total number of permits issued in 2007: 19 single-family house and seven two-unit condos.

Surrounding areas are also feeling the effects of the economy, with few housing permits being issued so far this year.

Last year at this time, Napoleon had already issued six building permits for new homes. So far this year, the city has issued two, with one being for the demolition and reconstruction due to a house fire. Total permits issued in Napoleon in 2007 was 11.

The Paulding County auditor's office reported that six building permits have been issued countywide this year, compared to a total of 25 in 2007.

Not too far off the mark this year is Wauseon, where four new home permits (one being a Habitat for Humanity home) have already been issued, compared to five single-home and one two-unit condo permits that were issued last year.

Not all the tool belts of area contractors have been hung up, though, with people opting to make home improvements rather than construct new. "New homes are way down, but it has brought on a little more remodeling," Kahle said.

In the city of Defiance, "permits for renovations and additions, such as decks and little additions have remained about the same as last year," said Rex Robison, residential building inspector.

At the Kitchen Center, Kahle has noticed that people have been more willing to spend a few extra bucks on their current homes these days.

"Since the first of the year, it's been very good in here, but most of it is going in to remodeling," Kahle said, noting that kitchen and bath upgrades appear to be the most popular with home renovators today.

"Surprisingly, the amount of granite and those things going in is remarkable," he said, adding that the store has already installed or ordered more countertops this year than the total number last year.

"It seems to be that people are picking nicer things for their kitchens and baths, too," he said.

Looking at the bigger picture, Kahle said he only believes this decline in new home construction will be short-lived.

Since moving to Defiance in 1953 with the promise of a new four-lane highway, Kahle has been looking for the city to bloom. "I've always said, once (U.S.) 24 is done, Defiance will prosper."