Kalispell's building economy remained down last year, according to the 2011 Construction, Subdivision and Annexation Report released by the Kalispell Planning Department.

There were 72 new housing starts, a 21.7 percent drop from 2010 and below the five-year average of 105 and the 10-year average of 252.

Year-over-year, construction was down 16 percent for single-family homes, 30.8 percent for townhouses and duplex units and 27.6 percent for multi-family units.

According to the report's data, building permits for new residential units were the lowest since 1992.

The report found about 856 vacant residential lots in just the subdivisions the city has approved since 2004. All those lots ready to be built on with city services available. 

Between 2004 and 2008, at the height of the housing and real estate market, an average of about 250 lots a year were being sold and built on. That has fallen to about 50 to 100 lots a year.

"There has been a declining number of new housing starts in Kalispell each year since 2004, in which a record number of new homes were constructed," the report said.

"While there is still demand for new housing locally, there still appears to be a surplus of unoccupied homes for sale, probably a result of the nationwide economic situation, as well as several years of speculation in the local housing market."

Kalispell issued building permits for 33,334 square feet of new commercial and retail construction in 2011.

Major projects included the renovation and expansion of Syke's on Second Avenue West, the construction of a new Applebee's on U.S. 93, a new AutoZone on West Idaho Street, and a permit for a new painting shop at Hagestad's Painting and Drywall on West Center Street.

For the second time in the last three years, the city issued no permits for new office space construction.

It issued permits for 1,720 square feet of new industrial construction - a new storage building for Northwestern Energy on North Meridian Road.

Government, public and quasi-public organizations got the most permits for new construction at 43,168 square feet.

Flathead Valley Community College got a permit for a 10,000-square-foot storage and maintenance building. 

Kalispell Regional Medical Center continued with its ongoing expansion, which is expected to continue through 2013 and ultimately add about 125,000 square feet to the facility.

Immanuel Lutheran Communities added a 5,000-square-foot addition to its skilled nursing facility and an 18,000-square-foot addition to the Buffalo Hill Terrace Assisted Living Facility.

On the Web:

The full report is available at www.kalispell.com/planning/documents/kal11report.pdf.

Reporter Tom Lotshaw may be reached at 758-4483 or by email at tlotshaw@dailyinterlake.com.