Although
building activity appears to be slower
than last year’s record pace, the value of homes
being permitted continues to climb. New
construction in the second quarter of this year
hit $310 million, according to permit data
collected by the county Department of
Economic Development from the permit
offices of the county and cities.
Residential construction continues to set
the pace. New home permits accounted for
$239 million of the second quarter total;
commercial building permits issued totaled $71
million. There were 963 residential permits
issued and 86 commercial permits.
There has been an increase in unsold
homes and less market activity, according to
Don Shreve, Volusia County’s Chief Deputy
Property Appraiser. “At a recent Board of
Realtors meeting, people were saying that
residential inventory is three times as high,
compared to the same time last year,” he said.
Recent reports indicate that median home
prices are up in Volusia County, although sales
are slowing. “I am hearing that sales are down,
and people are not building spec homes the
way they were,” Shreve added. “It’s not like
recent years. Today people are not selling their
homes in three or four days. The market is just
a little colder than it was.”
Through the second quarter of last year, the
total value of permits issued was $675 million.
Through the second quarter this year there had
been 1,900 single family home permits issued in
comparison with 3,401 through the second
quarter of last year. The average value of a
single family home permit issued in the second
quarter of this year was $248,000. In the first
quarter of 2005, the average value of a
residential permit was $155,000.
Daytona Beach Shores topped the
residential list in value with $59 million in
home permits followed by $42 million in
unincorporated Volusia County where the most
home permits were issued in the quarter – 229.
Commercial construction in Daytona
Beach reached $25 million in the second
quarter, by far the biggest total among
jurisdictions. Through the second quarter this
year, the value of permits issued totaled $575
million.
Unincorporated Volusia topped the
commercial list with the most permits issued –
21.
Daytona Beach issued 171 residential
permits during the second quarter worth $41
million. DeLand issued 110 home permits
valued at $24 million.
“You’re going to see prices increase, but at a
slower rate than we’ve seen in the last five years
- how much slower is yet to be determined,”
said Volusia County Property Appraiser
Morgan Gilreath.
Florida is a viable market in the face of
national trends, Gilreath noted. “Florida is
isolated from a lot of the economic conditions
that affect the rest of the country.”
Shreve pointed to New Smyrna Beach as an
area in Volusia County where ocean and
beachfront values are strong. New Smyrna
Business Development Director Shannon Lewis
said that although there is a property surplus,
there is continued interest in the area.
“We have light manufacturing and light
industrial companies taking interest in
relocating or expanding in our area,” she said.
The New Smyrna Beach historic district
has generated much interest, especially in the
renovation of older homes and the maintenance
of existing homes. “These homes are selling for
much higher prices now,” Lewis said. Lewis
pointed to additional inventory of new
developments on the west side of the city.
New Smyrna Beach is looking at ways to
incorporate workforce housing with a recently
approved workforce housing overlay district.
Mark Rakowski, the city’s Development
Services Director, said the city has made some
changes to accommodate housing that the
average worker can afford. “The Mary Street
workforce housing development recently went
before the Planning Board, and we probably will
go before the City Commission in August,” he
said.
In Port Orange, the building boom is going
strong. “We haven’t seen any signs of a
slowdown here,” said Port Orange Planning
Director Mike Disher. “We still have a lot of
projects under review and construction – both
residential and commercial.”
Disher said the healthy residential activity
in Port Orange includes the Palms, a project in
the initial stages of review and zoning. The
Palms is the city’s first mixed use development,
at the southeast corner of Madeline Avenue and
Clyde Morris Boulevard.
Commercial development is a strong suit
for Port Orange, Disher said. “We have 115
projects under review and construction right
now – both residential and nonresidential
combined. The project with the most interest
right now is probably WalMart, which is under
review with the planning commission. City
Council consideration likely will happen by the
end of this year.”
The city is also in early discussions with
CBL Corporation on a project on the east side
of Williamson Boulevard, north of Taylor Road.
“There is no official application, but a lot of the
discussions focus on a proposed lifestyle
center,” Disher said. “This center would be a
neotraditional commercial development —
almost like an outdoor mall. It would have
components of a standard retail center but also
offer a lot of walkability. I’m sure they’d like to
break ground on this project within a couple
years.”
Port Orange is on pace to add 20,000
people this decade, Disher noted, so the city
has smart growth plans in place to
accommodate the city’s changing
demographics and needs. “There are some
growing pains,” he said. “But we will be
prepared for future growth.”
