North Idaho housing starts follow national trend

Posted: Tuesday, Aug 19, 2008 - 11:11:41 pm PDT
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By AMANDA WINTERS
Staff writer 

Lower numbers mean fewer jobs in construction

COEUR d'ALENE -- Construction in Kootenai County, as it is across the country, is slowing down.

"(Construction activity is) running about 10 percent below what it was last year," Kathryn Tacke, Idaho Department of Labor, said of the Panhandle region. "That's about 730 fewer jobs than we had last year in construction."

National construction of homes and apartments fell in July to the lowest level in more than 17 years, the government reported Tuesday.

The U.S. Commerce Department said that builders broke ground on 965,000 housing units on an annualized basis, down from 1.08 million in June and the weakest showing since March 1991.

The report showed that construction of single-family homes in July fell by 2.9 percent to 641,000. That was the lowest since January 1991.

Housing permits in July fell to a rate of 937,000, a 17.7 percent drop from June.

Wade Jacklin of Silverstone Homes and Land said the company is doing fine with custom home building in North Idaho, having neared completion on one high-end home and starting plans for three more.

"As far as custom homes I'd say year to date we're probably exactly the same," he said. "But this fall will be more than last fall."

Jacklin said Silverstone will have to continue to work hard to maintain steady business in a collapsing housing market.

"It's affecting everybody," he said. "We can sense it just like everybody else. We're friends with a lot of other builders; some are doing well and some are struggling a little bit."

Tacke said the latest housing figures show damage to the Panhandle region beyond the construction industry.

"The really important thing for our region with the housing market hurt is that it's devastating for our timber industry," she said, adding that timber prices are plummeting and mills are shutting down.

Tacke said there will be fewer jobs in finance lending, lumber and building material stores, gravel pits and tree nurseries among other areas because of the construction market's impact. When combined, that could mean as many as 600 fewer jobs, she said.

There are fewer building permits being issued in North Idaho.

Coeur d'Alene issued 155 building permits for single-family homes through July 31. That's the lowest number since at least 2004.

Previous years' numbers were: 304 in 2004, 420 in 2005, 161 in 2006 and 268 in 2007.

Post Falls issued 98 single-family permits through July 31, which is lower than recent years. Last year, considered to be a market softening time, 127 had been issued to that point.

Rathdrum issued 40 single-family permits through July 31, compared to 76 in 2006 and 58 in 2007.

Cities have been conservative when estimating their building permit income for their upcoming budgets.

Post Falls scaled back its original estimate of $900,000 to $700,000.

"I think you need to be very conservative when you look at the trends in 2008," Post Falls City Administrator Eric Keck said. "We are not certain what to expect in 2009."

Homebuilders are hoping the housing rescue package approved by Congress last month will boost the real estate sector. The law includes a temporary $7,500 tax credit for first-time homebuyers that essentially works out to a 15-year, interest-free loan.

The Associated Press contributed to this report.