Volusia County
residential, commercial markets hold strong
Volusia County's
building boom shows no sign of wilting. Barring an unforeseen
construction slowdown in the second half of the year, residential and
commercial permit values again will crack the $1 billion mark for the
third year in a row.
Residential and
commercial construction project values totaled $334 million in the
second quarter, a minor dip from $341 million in the first quarter.
Volusia County
Property Appraiser Morgan Gilreath said he does not see a slowdown.
"What we may be seeing are the effects of developers holding and not
selling lots. We also have situations where builders have full
plates."
The 1,614 single
family home permits issued during the second quarter were 173 fewer
than the first quarter. However, the value of those permits was $16
million greater. There were 68 commercial permits issued during the
second quarter, nine more than the first quarter. But the $41 million
value of the second quarter commercial projects was $23.3 million less
than the value of the commercial projects started during the first
quarter.
Overall,
residential construction accounted for $293 million or 88 percent of
the permits issued during the second quarter.
Port Orange led
all jurisdictions in value of new residential projects ($60 million),
with Daytona Beach leading in new commercial projects ($28 million),
according to a report compiled by the Volusia County Economic
Department of Economic Development, based on city and county permit
data.
According to one
building official, a demographic shift in Volusia County signals a
change in growth. "There's a nationwide trend of people moving to
Florida," said Port Orange building official Mike Dishler. We're on
pace to add 20,000 people to our city's population this decade.
Housing is still affordable, compared to other parts of the country."
According to a
county Department of Economic Development migration study, by far the
greatest number of people moving to Volusia County are moving from
other Florida counties. New York heads the states exporting people to
the area.
The average
value of homes started in Volusia County in the second quarter was
$183,179–up $18,088 from the first quarter. This compares to the
Federal Housing Finance Board's nationwide estimate of $308,800.
Southeast
Volusia County is one key area of development, according to Dave
Castagnacci, Executive Director of Volusia County Association for
Responsible Development (VCARD). “New Smyrna Beach and Edgewater have
seen a lot of growth, including subdivisions, with more annexing of
areas just to the west.”
There also has
been a marked increase in condo development in Daytona Beach, Daytona
Beach Shores, and moving into Ormond Beach, according to Dwight Selby
owner of Selby Realty in Ormond Beach.
 Daytona
Beach has a number of high-rise condo projects in the works, according
to Greg France, a Daytona Beach building official.
Gilreath said
the growth has been strong everywhere. “The level of growth is of
equal proportions throughout Volusia County.”
Experts note
that any deceleration in the number of permits may be deliberate with
an intentional slowing down of sales to allow builders to catch up.
Building offices often don't have enough staff to supply the demand
for inspections and permits.
"DeLand, Port
Orange and Edgewater all have temporary holds on the number of
applications accepted, " Castagnacci said. "They need time for
adequate review of these applications."
Clay Ervin,
planning director for Ormond Beach, said residential development
usually feeds commercial development. "The residential market is very
hot now. We still get daily requests for subdivisions and multifamily
projects. Typically, three to five years from a period such as this
you’ll see an increase in retail demand."
 There
were 68 commercial permits issued throughout the county in the second
quarter in comparison with the 59 commercial permits issued in first
quarter. Daytona Beach led with 41 of these permits. Many factors
contribute to Volusia County's increase in commercial permitting,
including an obliging economy and low interest rates.
Successful
commercial real estate projects fueled more growth in areas such as
Daytona Beach. The Daytona Beach area has some 40 major projects lined
up over the next two years, according to France. Projects such as the
Ocean Center expansion will contribute to this growth. "I think the
Ocean Center's conventions will stimulate the construction of a number
of condos and hotels to support convention participants," he said.
Several large
Ormond Beach projects, including Tuscany Shoppes, are complete. Ervin
said one area trend is the interest in available office space, rather
than speculative development. Building officials have countered the
number of new projects with good design requirements –city
restrictions and regulations that produce quality development and
well-paced expansion. "Sometimes our permits are a year in review,"
Dishler pointed out. "Especially with commercial development, our
architectural, landscape and signage requirements contribute to our
pleasing image."
Managing growth
is essential, because there is no immediate weakening of the area's
real estate market. In fact, experts agree that Volusia County is a
safe bet for investors, both residential and commercial. "The overall
percentage return on real estate investment keeps increasing," said
Gilreath. "It doesn't seem feasible, but it's happening. I don’t see a
top or bottom to this market."
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