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Tuesday, Aug. 4, 1998
Builders in race against new code
Many are getting permits before more costly regulations kick in
By GLASTON FORD
Staff WriterHome builders in Corpus Christi are rushing to get new single family homes permitted before a new windstorm code, which they say will increase the cost of a new home, takes effect.
Single family housing permits in Corpus Christi reached their highest June level in 14 years, as builders sought to get their projects approved under the existing code, which remains in effect until the end of August.
Builders permitted 97 new homes in June, up 86.5 percent from 52 new homes in June 1997, according to the City of Corpus Christi. The last time the city had that many new housing permits in June was 1984, when builders permitted 129 new homes.
``I am of the opinion we are facing a blip due to the windstorm code,'' said Fred Braselton, owner and president of Braselton Homes Inc. ``We are just trying to get stuff on the ground so we will have competitive pricing in the last quarter. Expect things to drop off in September.''
The permit figures give an erroneous picture of the health of the home building industry, said Cliff Zarsky, president and owner of Texan Homes, who has been in the home building business since 1964.
``My experience right now is there is very little traffic in the subdivisions for new homes,'' he said.
The figures are skewed because of concerns builders have about the effects of the windstorm code, he said.
The code will increase the cost of a home by about 5 percent, according to industry estimates. The price increase could push more people to buy an existing home, some builders fear.
A similar surge in single-family housing starts happened in May, which set an all-time record for dollar volume of new home construction, when builders thought the code would go into effect June 1. Builders expect to see a substantial drop in new home construction starting Sept. 1, when the code takes effect, many say.
Some people think the strong figures are an indication of a good economy.
Strong demand for new housing, and not the new windstorm code, is driving the increase in single-family housing permits, said Romeo Bazan, permit officer for the City of Corpus Christi.
``I think that people are asking for homes and they are being built,'' he said. ``But I don't think the increase is due to the mandate that comes around.''
Those builders who are permitting more homes may find themselves looking hard for buyers this fall, said Bart Braselton, vice president of Braselton Homes.
``There will be a lot of homes available on the market, more than the demand would typically warrant,'' he said.
The windstorm code was not a concern for Joe and Donna Loth, who closed on their $95,700 new home Thursday, said Donna Loth, human resources manager for the Lexington Museum on the Bay.
They heard about the code from their home builder, Texan Homes, but it was not a factor in buying their house when they did, she said.
The Loths, like may new home buyers, decide to have a home built, versus buying an existing home, because they could design it to their tastes, she said.
``This way we knew we would get exactly what we wanted,'' said Loth, 42. ``We are kind of empty nesters. We had certain ideas of what we were looking for in a home.''
The couple went by the home site every day during its construction to see what had been done and check on the work, Loth said.
But the coming windstorm code is a big factor for many builders, particularly for production builders, or those who build several homes to preset plans with no specific buyer in mind, said Fred Braselton.
Custom builders can't necessarily permit more homes because they have to wait for plans from the homeowners, he said.
The windstorm code, which was originally set to take effect June 1, was designed to reduce damage and losses in the event of a hurricane.
State Insurance Commissioner Elton Bomer has since delayed implementation of the code until Sept. 1 to give the industry time to get supplies that meet the new requirements.
June's strong total follows a strong May, which had 103 new homes permitted, the highest total since 162 in 1984.
Total dollar volume of new single-family residential construction permits in May set a record for any month at $15.28 million, eclipsing the previous record of $11.3 million in March 1983. That is more than double the May 1997 total of $7.45 million.
Single-family housing starts through June were 514, up 27.2 percent from 404, last year. Despite the strong May and June showings, 1998 is still 8.3 percent behind 1996 when 562 new homes were permitted in the first six months.
New home construction is not limited to the Corpus Christi city limits. Al Hogan Homes is about to open a new subdivision in Portland, called Bay Ridge, said Barry Sullivan, vice president of sales and marketing for Al Hogan Homes. The subdivision will have 1,000-square-foot to 1,600-square-foot homes in the $70,000 to $99,000 range, he said.
Sullivan agrees that builders are ``still trying to take advantage of that window'' before the code takes effect.
Staff writer Glaston Ford can be reached at 886-3678 or by e-mail at fordg@scripps.comPost your comments about local news eventsFront Page || Main Index || News || Business || Texas || South Texas Outdoors || Birdwatching || Sports || Entertainment || Selena || Education || South Texas Attractions || World Wide Web