New construction slow to pick up in the region
Eva Russo / Times-Dispatch
Angel Ramos and his crew install natural-gas service for new homes in Watermark in Chesterfield County.
Published: July 14, 2009
Updated: July 14, 2009
If building-permit activity is a true indicator of economic recovery, the Richmond region has a ways to go.
New construction remains at a crawl in the area's major localities.
The slowdown has afforded Chesterfield County, the region's largest bedroom community, some relief from the rapid residential influx of years past but is making the county's effort to balance its population with commercial growth more challenging.
Henrico County is seeing the same trends but with the luxury of an already strong commercial base.
So far this year, 376 building permits for new homes have been issued in Chesterfield, a 69 percent decline compared with the same time period in 2008. In Henrico, 267 home permits have been issued this year, a 51 percent decline from the same period in 2008.
Richmond and Hanover County have seen similar trends, although on a smaller scale.
"In the last year, we definitely saw a reduced trend in residential construction, and that's no surprise," said William D. "Bill" Dupler, Chesterfield's director of building inspections.
Even so, Dupler said, the number of businesses coming into the county remains relatively steady given the economic climate.
"We had a pretty strong year in terms of commercial, including the retail sector," he said, adding that work on the large-scale Watkins Centre development in western Chesterfield had much to do with that.
To date this year, the estimated construction costs for new commercial buildings in Chesterfield has been $60.8 million. Last year at this time, it was $120.2 million.
In Henrico, commercial construction costs have totaled $26.6 million so far compared with $116.6 million at the same time last year.
"Activity levels certainly aren't where they were, but we're currently seeing some revived interest in commercial," Henrico Planning Director Joe Emerson said.
Said Dupler: "I think the commercial sector is finding construction. If they have the financing lined up to do it, the prices are very attractive, and that's encouraging construction."
To speed up the recovery and encourage business growth, Chesterfield is exploring the idea of slashing planning fees for commercial projects.
If approved, the measure would reduce charges for office, commercial and industrial development applications -- which could run as high as $8,200 -- to just $200 until June 30 next year.
In November, Henrico decreased waterand sewer-connection fees for the same reason.
E. Wilson Davis Jr., Chesterfield's economic-development director, said there's promise that the county could land some major office and manufacturing additions in coming months.
"We're working with some nice clients and seeing some good activity," he said. "If some things fall into place and we see some additional shifts in the economy, I think we're in a very good position."
Chesterfield Planning Director Kirk Turner said he hopes housing soon will show similar signs of life.
"I'd like to see residential pick up. To my way of thinking, a 2 percent residential growth rate is healthy," he said, noting that a sharp decline in home-occupancy permits is evidence the county is well behind that pace.
Emerson said residential permits should pick up quickly when the economy turns around.
"As far as new rezonings for residential cases, we're not seeing those and haven't for some time," he said. "But we do have a number of projects already approved and ready."
Henrico building official Greg Revels said building permits shouldn't be considered the first sign of a rebound, as developers and builders will invest only after they regain confidence from elsewhere.
"It looks to me like things have leveled off," he said. "It's kind of like the market has reached equilibrium. You hear signs of optimism, and hopefully by the end of the year we'll see a swing back in the other direction and things will start improving more noticeably."
Contact Wesley P. Hester at (804) 649-6976 or
.
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Reader Reactions
They need to fire most of these planners and so-called inspectors and replace them with common-sense volunteers. Cut all fees to a flat $10 per site permit.
Ok, that should be ‘fewer people’ not “far less few” still nearly anyone building today is still living by that same adage of keeping up with the Joneses. How many of the mcmansions built in the last 2 years are already for sale? Quite a few. Buy new now and your property values are sure to go down immediately. I do not feel sorry for people who still feel they must make some kind of statement about themselves to impress others and then find themselves jobless. Sorry, no sympathy here. So, I hope all you people overlooking perfectly good inventory readily available at a discount can live with yourselves and your obligations if someone loses a job or a family member passes away or sustains a significant disability. You’re supposed to be prepard for all of that. If so, best wishes to you. If not, you’re beyond stupid.
There are probably a whole lot more homeowners who need to sell than there are illegals who desire an income. Shutting down homebuilding for the time being would go a lot farther and affect far less few people than allowing it to continue. There is too much existing inventory and not enough buyers to go around, period.
Bdb.. glad you saw my point that “getting rid” of any race/culture just isn’t right..debtor prisons wouldn’t work anyway.. costs too much to incarcerate people (tongue in cheek there.. not being serious). I don’t have a problem with some level of social welfare assistance in the country.. but I see the system abused quite often.. maybe due to the rural nature of where I live.. I see it more? I also used to cashier at a grocery store when in college (many yrs ago) and did see people using the food stamp program pretty appropriately at times… There was one lady who kept buying items for less than a dollar.. since you used to have to give back change.. she did this enough times to come up w/the money for a six pack.. I am sure that those packs of gum made a nice square meal for her kids. I know that the new ebt card would eliminate that “scam”.. but there are still ways that people will abuse the system and it irritates me.
Actually, I’m not a farmer.. have dabbled a little in the backyard variety of farming (gardening, goats, pigs, chickens).. but between a FT job, and helping my husband with his business.. all I really do now is a garden for our own use. I know some farmers though.. it is tough on them.. land to lease is getting harder to come by and cost of fuels has been tough to absorb the last couple of years.
“Dee.. we don’t get rid of folks like that.. we provide them with free housing, food and welfare.“
Well, celarly the solution is to bring back debtor’s prisons and workhouses. And if they can’t do that, let ‘em starve!
We won’t have any crime then. No siree!
Hey qhgirl, you said you live in Buckingham. Are you a farmer by any chance?
Dee.. we don’t get rid of folks like that.. we provide them with free housing, food and welfare.
Welshwoman- Why don’t we get rid of all the white trash that lines Jeff Davis hwy and all the “hoodlums” in the city who burn police cars! Incredible how you like to point fingers at one specific community for your troubles but don’t look at who really got you in the situation you’re in? By “you” I mean americans (including myself). Who are the builders? Companies owned and operated by “americans” , corporate america who was greedy and yet the Mexicans get blamed, ah the irony. Let us know when you have a house built by some real “americans” and how that goes since Mexicans are criminals and have such bad social habits. I didn’t know the crack heads on Jeff Davis were such good social examples. Hope you don’t get “stuck” somewhere and need a Mexican to help you because that may be just too much for you to handle.
why do you people hate mexicans so much huh? it is true they could have created a new atmosphere on the places you live but HEY, they are FREE to do as they please, remember that everyone have the same rights on this country. they may be illegal or they may have been born here in the US which would make them as American as everyone else, like you, like me, like everybody. Mexicans are being discriminated by people like you, and others who doesnt know how to respect other human beings, they have the same body composition, the same organs, the same likes and dislikes and you still see only their color? dang thats racist, i respect people who respect others, and they will respect you if you respect them, use your head and think…. if you ever need help and there are more mexicans than people of what you may call your race, i assure you that most mexicans will give what they have to help you. i am telling you from experience, some of them are what you may call bad, but only because people like you discriminate them, torture them not physically but mentally, so they have no resources, of course they will steal or worse, you would too if you needed to mantain a family and everyone else would say get the F_ck out of here bacause your color and then tehy call you with discriminative words. they are humans too, and you never know when you may need them. be polite to people, tell them their flaws in a calm way and accept yours and thank them that they pointed them to you, you people need to change as much as i need to change too, i may be the worst person for someone but i am a positive influence for others because i try to be fair and just and i know you, the ones that read this are as smart or smarter than i am. please be polite, think before acting, you never know when your words will bounce back and hit you in the face.
RTD: “...The slowdown has afforded Chesterfield County, the region’s largest bedroom community, some relief from the rapid residential influx of years past but is making the county’s effort to balance its population with commercial growth more challenging…“
The above atatement makes no sense given the stats. Chesterfield has had the largest drop-off in residential growth, but commercial growth has been “pretty strong” and “remains relatively steady.“ I’d say the county’s opportunity for improved balance between residential and commercial growth has improved, not become more chaallenging.
In my opinion more emphasis should be put on rehabbing the decaying old houses around town. It might be more work and definitely a bigger pain in the rear, but at least your increasing the value of an old neighborhood with better future appeal than building a new monstrosity with no trees, no side walks, and no real sense of community.
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