Remodeling makes up for dip in housing growth
August 3rd, 2008
Remodeling projects contributed strongly to increased metropolitan construction activity, according to second-quarter 2008 statistics released by the Home Builders Association of Fargo-Moorhead.
Overall, second-quarter home and commercial remodeling and construction increased $7 million, from $186.1 million in 2007 to $193.1 million this year, the report shows.
“It looks like we’ve caught up and we’re ahead in total construction value,” said Bill Blixt, HBA president. “What we are seeing locally in the Fargo-Moorhead area is different than what we are seeing nationally.”
F-M metro-area housing construction, however, was down 24 percent over second-quarter 2007, but improved compared to the 60 percent decline posted in first-quarter 2008.
Fargo posted a $41 million increase in second-quarter total construction growth – $133.4 million this year compared to $92.6 million last year – while Moorhead, Dilworth and West Fargo saw their numbers decline.
Projects including the Urban Plains Center arena, Microsoft additions, the new Bethany Homes, Houston Engineering and 45th Street Business Center lifted Fargo’s second-quarter commercial construction to $46.9 million this year compared to $13.8 million last year.
Second-quarter construction in Moorhead dipped to $38.9 million this year compared to $43.1 million last year.
A significant decline was seen in Dilworth with $3.7 million recorded this year compared to $16.3 million in second-quarter 2007 and in West Fargo, where construction declined from $33.9 million last year to $16.9 million this year.
Metro-area remodeling permits were up 130 percent – 1,395 in 2007 and 2,795 this year – due to increased demand for roofing and siding after a fall 2007 hailstorm, the HBA report noted.
Construction of new metro-area housing units dropped from 484 in second-quarter 2007 to 366 this year.
Fargo saw a slight increase in quarter-over-quarter home construction with permits issued for 184 new dwelling units this year compared to 178 last year.
Second-quarter new home construction in Moorhead dropped from 170 permits issued last year to 106 this year. Dilworth registered 14 new homes during second quarter compared to 11 last year. West Fargo dropped from 122 to 65 during the same period.
“The local economy in Fargo has shown solid employment and population growth, which are the fundamentals of a healthy housing market,” said Robert Denk, National Association of Home Builders assistant staff vice president for forecasting and analysis.
“The Fargo market avoided subprime mortgages and the unsustainable house price increases that have roiled some markets,” Denk said.
