table of contents

February 2007         

 

New construction in 2006 reaches $1.1 billion; but falls short of record $1.5 billion in 2005

An official publication of the Volusia County Department of Economic Development 6
New construction in Volusia County during 2006 reached $1.1 billion, but fell short of
2005 when the combined value of residential and commercial building permits soared
to a record $ 1 . 5 billion.

According to permit data collected by the Volusia County Department of Economic
Development from the county and city building permit offices, the value of new construction permits issued in 2006 was $1.1 billion. Permit offices across the county issued 3,463 single-family home permits and 248 commercial permits. This compares to the 6,856 single family home permits and 246 commercial permits issued in 2005. Residential construction in 2006 continued to be by far the largest percentage of new building activity. The value of single family home permits last year amounted to $774.7 million or 70 percent of the total value of permits issued. While home building in Volusia County last year lagged behind the torrid pace of 2005, the value of commercial construction last year outpaced the value in 2005. Last year the value of commercial construction permits was $341.5 million. This compares with the $231
million in commercial building recorded in 2005.

"Although last year’s permit values were considerably less than 2005, I would say that building activity in our county remained strong," said Volusia County Economic Development Director Rick Michael. "And while residential building activity slowed considerably, it appears the commercial side is reacting to the residential growth and is responding to the needs of our growing county."

There were 36 commercial permits issued in the fourth quarter last year that had a value of $97.9 million – the highest dollar value by quarter of the year. On the residential side, the second quarter was by far the busiest with 1,143 single family home permits issued that had a value of $277.8 million.

For the year, there were more single family home permits issued in unincorporated Volusia than any other jurisdiction. The county issued 798 residential permits worth $170.7 million, 22 percent of the single family home permits issued countywide. Daytona Beach topped all jurisdictions on the commercial side. Daytona Beach issued 39 commercial permits worth $68 million.

Building industry officials noted that principles of the "smart growth" concept began to show up in 2006. According to Dave Castagnacci, director of the Volusia County Association for Responsible Development (VCARD), one smart growth tenet is the mixed-use concept -- a combination of commercial and residential development.

"In 2006, the mixed-use plans started to come together and move forward," Castagnacci said. "We have been trying to encourage more downtown development."

Mike Disher, Port Orange Planning and Development Manager, said that in 2006 these types of initiatives gained momentum. He cited one mixeduse project in the zoning stages -- the Palms, on the southeast corner of Madeline Avenue and Clyde Morris Boulevard. "We now are seeing a lot of interest in the mixed-use model. There has been an increase in the number of commercial projects. Now that all of these people are moving here, they need a place to shop and work."

Many Volusia County cities are planning and developing based on smart growth aspects of the suburban model -- larger lots and separation of uses. "We try to have plenty of open space," Disher said. "And our reclaimed water system gives people a
way to irrigate their lawns without using potable water." In 2006 Port Orange hired the city's first transportation planner. "It's imperative we have someone devoted to that issue," Disher said.

In areas such as South Daytona, where commercial construction has held strong, mixed-use development became a focal point in 2006. Castagnacci cited the Town Center, a mixed-use lifestyle project in the southeast quadrant of South Daytona
as a prime example of this trend. The 50-acre mixed-use project has no end date yet, although preliminary plans are done. "We are interviewing national and regional marketers to start marketing the project," said Chris Di Nardo, property manager,
Clark Properties.

Town Center will include residential retail and commercial in one facility. "This project follows the national trend of mixed-use facilities, and we are hoping the center will be pedestrian-friendly and community-oriented," Di Nardo said.

John Schoch, South Daytona Assistant City Manager and Community Development Director, said the center will serve as a magnet -- drawing in members of the community for shopping. "Town Center is going to be a major lifestyle center. There will be condos, apartments and a variety of retail. There might even be residential above retail."

With these trends started in 2005 and continuing in 2006, this year should be another year of vibrant development. "Hopefully, cities around the county will join together in 2007 to enact some of these smart growth policies," Castagnacci said. ■

Commercial construction soars in fourth quarter

Commercial building activity during the fourth quarter of 2006 soared to $97.9 million, the highest of the four quarters, although the 36 commercial permits issued were the fewest of the year.

There were 456 single family home permits issued in the fourth quarter last year worth $107 million, by far the smallest quarterly total of the year. Residential permit activity in 2006 peaked in the second quarter and then declined in the third and fourth quarters.

South Daytona issued only three commercial permits during October, November and December but those three had a value of $52.2 million. Daytona Beach issued 12 commercial permits in the last quarter with a value of $22.8 million. Orange City also issued 12 commercial permits during the quarter with a value of $15.7 million.

On the residential side during the fourth quarter, 127 single family home permits worth $29.6 million were issued in unincorporated Volusia. Port Orange issued 74 residential permits worth $19 million; Daytona Beach issued 59 single family home permits worth $13.9 million while New Smyrna Beach issued 28 single family home permits worth $10.2 million. "Activity levels slowed in 2006," said Morgan Gilreath, Volusia County Property Appraiser. "We are seeing some prices going up, some leveling off, and a few dropping. We are in the middle of analyzing the current market. It is definitely not a typical ‘real estate as usual’ market."

According to a study of single family residential sales released by the Volusia County Property Appraiser's Office, the number of homes sold dropped from 2,358 in the third quarter to 2,072 in the final quarter of the year.

Although residential construction slowed in the fourth quarter, Sue Darden, executive director of the Volusia Homebuilders Association, said there is good reason for the stabilization. "In the past three years, we did not experience a normal pace in residential construction," she said. "Housing is going to come back."


Department of Economic Development
700 Catalina Drive, Suite 200, Daytona Beach, FL 32114
Telephone:
386-248-8048   FAX: 386 238-4761   Toll Free: 800-554-3801

Richard Michael
Director

doed@volusia.org