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Construction strong in local cities

Brian Walker; Staff Writer | Hagadone News Network | UPDATED 8 years, 3 months AGO
by Brian Walker; Staff Writer
| September 28, 2016 9:00 PM

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<p>Construction crews level ground for new residences located west of U.S. Highway 41 and north of Poleline Avenue in Post Falls.</p>

Building permits have gone through the roof this year.

With four months of construction data still to be compiled in 2016, some area cities have already topped year-end totals for previous years in many construction categories.

"Vertical, vertical, vertical," Todd Stam, owner of Aspen Homes, said referring to the hot construction activity this year.

"But I don't think it's quite a boom. It feels healthy to me. Healthy growth."

Post Falls, which has plenty of room to grow on the Rathdrum Prairie, had issued 528 permits for new residences through the end of August compared to 436 for all of last year, 165 in 2014, 202 in 2013 and 275 in 2012.

This year's number has even topped the last of the building boom years when there were 425 in 2006 and 478 in 2007. It could break the record of 712 in 2004.

Kim Cooper, spokesman for the Coeur d'Alene Association of Realtors, said he believes a previous shortage of affordable housing is one of the driving forces behind strong construction activity in the region.

He said land is also cheaper in Post Falls and Rathdrum and residents in those communities can qualify for a USDA Rural Development loan, so that opens the door for many first-time home buyers.

"Those are logical places for many people to live," Cooper said.

A healthy economy — Kootenai County's unemployment rate in August was 4.7 percent — has also led to consumer confidence with home buyers, Cooper said.

Ann Beutler, a real estate agent with Century 21 Beutler and Associates, said new construction is up because the inventory of existing homes for sale was low.

"Homes that are $300,000 and less are really moving," she said.

That movement has also had a ripple effect on homes in the $350,000 to $500,000 range that Aspen Homes builds, Stam said.

"We're seeing the fruits of people upgrading from the lower-priced homes," he said, adding that sales for his company are up about 20 percent over last year.

"That's a big number that can be a little scary because you don't want to end up growing too fast and end up with another bubble. But I still feel that we're in good shape."

Beutler said some people have had time to clear up their credit issues from the recession, so that has also helped trigger sales.

Cooper said new construction represents 19 percent — about one out of five — of the total home sales this year.

"That's pretty remarkable considering our recent history," Cooper said, adding the number is the highest it has been in the past five years.

Beutler said, as a result of all the construction activity, there's a demand for tradespeople and subcontractors.

"That has created a lot of jobs for our economy," she said.

Beutler said the real estate industry has also experienced a spike in the number of people who have received their real estate license, which is typical when the market is good.

Many of the residents new to the region have moved here from the Seattle area to escape the rain and heavy traffic and to be close to outdoor opportunities, Beutler said.

"A lot of people can work out of their homes these days," she said, adding that work flexibility can lead to more options on where people live.

Building permit numbers are also high in other areas of the county.

In Hayden, the total number of building permits, including residential, commercial and alterations, reached 545 at the end of August. That's the highest number for the city since 665 permits were issued during the entire year in 2007.

Connie Krueger, Hayden's community and economic development director, said the city has seen a trend in new fueling stations and four new mini storages are coming online.

"There's more traffic and we're seeing more mini storages due to the growth in residential," she said. "There's also people downsizing and needing a place to store their belongings."

Hayden's biggest growth is occurring in the area of Lancaster Road, she said.

"We're seeing both residential and commercial working in step with each other," Krueger said.

Rathdrum, which had issued 103 single-family residential permits as of the end of August, will easily surpass last year's number of 127, which is the most in recent memory.

Coeur d'Alene, which is more landlocked than other area cities, may not exceed recent years' single-family permits as 169 had been issued as of the end of August. Last year's total was 286, while 242 were issued in 2014 and 276 in 2013.

Kootenai County issued 211 single-family permits through the end of August compared to 299 total last year, 221 in 2014 and 224 in 2013.

Beutler described the busy-ness of the local real estate sector as "very healthy."

"It's not crazy like it was before the recession," she said, adding that upper-end homes in the $750,000 range aren't moving like they did during the boom years.

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