Construction of homes falls to lowest on records dating to 1959 as builders cut back.
Construction of new homes plunged last month to the lowest level on records going back nearly 50 years as U.S. builders slashed production while Wall Street nosedived.
Embattled homebuilders, who enjoyed a five-year boom, are now building new homes and apartments at a record-low pace, according to government data released Wednesday. New building permits, a barometer of future activity, also plummeted to the lowest pace on record.
The results were the lowest on government records dating back to January 1959. Previously, the slowest pace had been in January 1991, when the country was in recession and going through a similar housing correction. Analysts surveyed by Thomson Reuters had expected construction to fall even further to a rate of 780,000 units
Wachovia Corp. economist Adam York forecasts that construction will fall to around 650,000 units by next summer. While that's going to be painful for the nation's homebuilders, it will help stabilize the overall U.S. housing market, he said.
"The broader housing market needs fewer homes," York said in an interview. "We built too many homes in the United States and building less is one way to work off the excess inventory."
Yet our Merry Band of Leaders have vowed to carry on with the Centerville downtown redevelopment...
Photo above is another vacancy in Circle Pines owned by the Beard Group.
23 comments:
Coming to your town soon...
Empty storefronts and vacant apartments!
From The Beard Group
"A functionally dated and under utilized, 8 square block area of core downtown Centerville, MN."
Just so happens to be the homes of our residents! What a sweet way to say they are worthless...
The Centerville leaders know more than the economist of Wachovia.
Didn't you know that?
If you read the title is states HOME construction sinks to new record low. Not COMMERCIAL/INDUSTRIAL. Isn't the Centerville downtown redevelopment considered a business district? The article you link also states that with the construction of new homes slowing down, it will help sell the exsisting homes. So those of you who want out, get those for sale signs in yards now. And buy an older home in Lino Lakes and save yourself a $100 a year in property taxes.
You must have missed the pic of the EMPTY COMMERCIAL space in our neighboring city.
Didn't Jeff Paar make the same $100 property tax savings comparison in his campaign flier?
By golly, he did! It is featured on the October 25th post.
Click on the second photo to read it verbatim.
To anonymous 1:07 PM
"Isn't the Centerville downtown redevelopment considered a business district?" Your rhetorical question appears to assume that the majority of the 8 blocks of the "downtown business district" has always been zoned commercial/mixed use (commercial w/ residential) and has just been waiting for the right developer/business to snatch it up. Sure, NOW these 8 blocks are considered business district, but only AFTER the current council voted to rezone them from residential to commercial/mixed use a few years ago.
Take a drive on main street....but not Main Street of Centerville (what many consider a 'pass through' town)...drive on main street through downtown Stillwater (a MAJOR DESTINATION TOWN in Minnesota). The new development in Stillwater (commercial store fronts with residential above and behind) continue to sit vacant after 2 years. Not only are the storefronts vacant, but much of the condos/townhouses as well! Woodbury & Coon Rapids are experiencing the same. Really now, do you believe Centerville can make a go of it? The Council members seem to think so, BUT ONLY with HUGE incentives for developers. And those huge incentives come with a GREAT price & sacrifice to Centerville residents!
Great Comment at 2:22
Let's not leave out Hugo, Lino Lakes and Circle Pines. They also have empty commercial/industrial space.
What is wrong with putting the brakes on this until the economy turns around?
I think old, tired, ugly, houses in the "downtown" area should stay. why try to update the city lets just let it all fall in around us so we can look more ghetto.
Nice come back! no I do not live in the downtown area. Have you seen the roof of one of our taverns in the downtown area that is falling in on itself? what's next cars on blocks? Maybe you should drive around the town and look I mean really look at the condition of the houses there. This is why we need to update our downtown to attract people and business to centerville, would not that decrease our overall tax burded as this blog is "fighting" so hard to aleveate. I find it funny that this bolg has people who are offended by other people's language, but then turns areound and uses the same type of language to rip others. hyprocrites.
The reason the roof is falling in on itself is because the City won't allow them to fix it. Don't be so naive.
If you think this blog is full of hypocrites, don't visit it.
The zoning district is for mixed use. Housing and commercial. If a homeowner living in the downtown district needs to repair their structure, go to city hall and get the proper permits. Do not piss and moan that it's the city's fault, it's the property owner's responsibility to maintain their property.
I visit this sight to get as much information about what the people of centerville are thinking. Maybe some people need to start having constructive discussions about the issues instead of name calling and complaining. Thank you centerville council my city taxes went down fifty dollars next year. How about you?
My taxes went down about 50 bucks but my property value also decreased.
I'll save that thank you for the special assessment notice.
By my figure it I'm going to be hit with an additional $4,575. Hardly makes up for the 50 bucks, now does it?
I live in downtown... one of those "ugly" houses. I have tried to get permits to help me live in this house better (like a garden shed, fence, additional space in the house) and NO PERMITS ALLOWED! So yes, the city is helping our houses fall into the ground. Why put more money into your house when the city cries every season, YOU ARE TO BE DEMOLISHED. Our families grow, but we can't improve on our house.
On top of all this, my taxes (without special assessments or levys) when up to the second highest taxes in my area. The County rightly re-assessed it -9% the next year. Thanks Centerville for making my life hell in this town. I CAN'T WAIT TO MOVE along with the other citizens on the market today.
"If a homeowner living in the downtown district needs to repair their structure, go to city hall and get the proper permits."
What you fail to realize is that the people living in the downtown district HAVE TRIED to obtain permits from the City and have been DENIED! Call Dallas Larson the City Administrator and ask him if you don't believe it. 651-429-3232
He has even denied permits to build sheds in this area.
The City does not want the residents to do anything that will increase their property value since the City has a vested interest in purchasing these properties in the future.
You are allowed to repair or replace but not expand. If you think a garden shed will increase the value of your property, I would love to see that shed. Also I believe you can build a shed that is 10 x 12 without a permit. You would have to check the Uniform Building Code, but I think any structure under 120 sq.feet does not need a permit.
Why can't people expand on their own private property?
My friend was DENIED a permit to build a shed. Maybe he should build two or three sheds under 120 square feet to obtain the storage he needs. Ridiculous!
11/21/2008 at 9:02 pm is a City plant!
And why would you want to add anything to your property, if the City is forcing you out anyway?
What gives the City the right to force anyone out?
Private property rights, baby. The eminent domain laws were changed in 2006 but Centerville still chooses to ignore this fact.
The City officials need to get a grip!
It amazes me that if anyone expresses an opinion that is different or half way intelligent they are accused of being a city plant. Why do you people keep living in Centerville? Put your houses up for sale. They will more than likely sell fast because they are not worth very much.
"They will more than likely sell fast because they are not worth very much."
That's correct. Many residents owe more on their homes than they are worth. Talk about rubbing salt into the wound.
What's intelligent about your argument?
NOTHING!
Is it everyone else fault that these people may have borrowed on their homes equity? They don't repair their homes, just let them fall apart and become a "urban blight"? You people need to step up and talk responsibility for your own actions.
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