No burst bubbles in Caldwell building boom

by Lora Volkert @ Idaho Business Review
10/16/2006

Caldwell is defying the construction slowdown that’s hit other parts of the Treasure Valley.
Most cities had construction levels equal to or less than the abnormally high levels of 2005. However, Caldwell issued over 1,000 more building permits through September than were issued for the same period in 2005.

Higher real estate prices elsewhere in the Valley seem to be driving development in Caldwell, where land and housing are consistently cheaper, Caldwell Building Official Brett Clark said.

“Caldwell’s the place to be right now. Everybody else has had their turn,” Clark said. “With the cost of housing going up, it’s Caldwell’s turn.”

Things are likely to speed up again next year, he said. Some subdivisions are on hold as streets, fire hydrants and other infrastructure are built.

On the other end of the spectrum, Meridian’s downward trend in construction is becoming more pronounced. In 2005 the city issued almost three times as many building permits for the first three quarters of the year as were issued for the same period in 2006.

The Meridian Building Department has had to downsize its staff by four inspectors, according to building official Daunt Whitman.

The city issued 76 residential building permits in September, up from 52 in August, though the number is down from the triple digits of the last three Septembers.

The most recent permits are being used to build less expensive homes. The average residential permit value for September 2006 was $222,602, down from $248,934 in August and $292,438 in July.

Construction stayed almost flat in Boise and Nampa this year compared to the first three quarters of last year.

Other cities may be down, but not for long.

Kuna issued fewer than 400 building permits in the first nine months of the year for the first time since the turn of the century. The Kuna downturn is apparently in response to last year’s rapid pace. In 2005, the city issued nearly 700 permits in the first three quarters of 2005, compared to 400 to 450 in most recent years.

But this is just the calm before the storm, said Interim Planning and Zoning Director Diana Sanders. Five new subdivisions have recently been approved or are under review by Ada County, she said.

Though Eagle’s permit numbers are down from 2005, the city is still on track compared to prior years.

Eagle issued 765 permits in the first three quarters of 2006, compared to 744 for the same period in 2004.



Permits for first three quarters


Caldwell

2006 — 6,732

2005 — 5,620


Boise

2006 — 12,691

2005 — 12,632


Eagle

2006 — 765

2005 — 982


Fruitland

2006 — 94

2005 — 78


Kuna

2006 — 386

2005 — 693

Meridian

2006 — 2,188

2005 — 6,202


Nampa

2006 — 1,694

2005 — 1,653


Twin Falls

2006 — 871

2005 — 863