Attractive interest rates, an ever-increasing U.S. Navy presence and a stronger, more diversified economy will help maintain last year's brisk building pace on the residential front through 1997, according to construction and real-estate sales authorities.
Last year, home builders constructed 1,020 single-family houses valued at $98 million, the largest number of homes in 12 years.
"We had an excellent year, and I don't see the pace slowing down in 1997," said Bob Bennett, executive officer for the Builders Association-Corpus Christi Area. "We've seen a steady climb in home building in recent years. Last year was not a spike year, but the result of positive growth at a steady pace. Our members are very optimistic about the year ahead."
During a building boom in 1984, the local economy was driven by the oil and gas industry. That year, 1,433 houses were constructed.
When the oil industry began to falter in 1985, construction tapered off considerably, Bennett noted.
In 1985, 962 houses were built, followed by 906 houses in 1986. Home building dipped to a low of 420 single-family dwellings in 1990.
But, as the city diversified its economy, relying more on the tourist industry and attracting new businesses, housing construction starts began to improve. In 1992, 640 houses were built.
"That was the year we started seeing a remarkable improvement in housing starts," said Romeo Bazan, permit officer with the city's housing and community development department. "Now, housing construction appears to be on a very solid incline. There is room for much more construction because we are no where close to being overbuilt."
By the end of 1996, 265 houses had been built in four Southside subdivisions alone -- Cimarron Crossing, Kings Crossing, Bear Creek and Barclay Grove. Padre Island added 168 houses in seven subdivisions.
While existing neighborhoods have plenty of room for additional homes, Bennett said, no new subdivisions are in the works for 1997.
"Padre Island is a real hot spot for new building and that will continue through 1997," Bennett said. "There you can buy an affordable waterfront home. Now that there is a new hospital clinic on the island, a major concern of residents out there has been addressed. And now, there are plans to build the first grocery store on the island."
Foster Edwards, executive vice president of the Corpus Christi Board of Realtors, agreed that the construction will continue to develop on Padre Island, as will home sales.
"Island homes are so affordable and very attractive to people from out of state," Edwards said. "That's part of why we're expecting great sales in 1997."
Just as the home construction business boomed in 1996, so did home sales, Edwards said.
"Last year was the best year we have ever had in terms of total sales," Edwards said. "We had a little over 2,200 sales and expect the pace to continue. This year will be excellent for those of us in the real-estate business."
As long as interest rates on home loans continue to hover at 8 percent, Edwards said, home sales will continue to increase. During the years when home construction dropped considerably, he said, interest rates had risen to 17 percent.
Also, because the home rental market is so tight, he said, more residents are opting to purchase homes.
"What happens when the rental market gets tight is that landlords increase the rent," Edwards said. "Then, the tenant realizes that for the $900 in monthly rent, you can buy a house."