WINSLOW — New home construction is on the rise.
So far this year, there are more new houses under construction in Winslow than during the previous three years combined, and Code Enforcement Officer Frank Stankevitz is optimistic the trend, also seen statewide, will continue.
“It’s starting to look up,” he said. “More and more people are looking to build.”
So far this year, Stankevitz has issued building permits for nine homes. In the previous three years, eight homes were built — four in 2011, three in 2010 and one in 2009.
Rene Desrosiers, owner of Desrosiers’ Builders, is constructing four condominium units in Winslow. He plans to build 16 more, including standalone units.
“It’s a heck of a change,” Desrosiers said of the housing market. “It had definitely slowed down in the past three or four years, but this year it seems to have taken a turn in the right direction.”
Although construction has increased in 2012, the estimated combined value of the new homes is lower than previous years. This year, the estimated combined value of the nine homes is about $1.2 million. The combined value of the homes in the previous three years was about $3.5 million, according to town records.
“People seem to be more conservative now, but at least they’re building,” Stankevitz said.
New housing starts are widely considered to be a key indicator of economic health, and they are tracked month by month, state by state by the U.S. Census Bureau. Data from the bureau suggest the rest of the state is following trends similar to Winslow.
In Maine, housing starts declined every year between 2008 and 2011, and combined values fell during same period. Preliminary figures for 2012, on the other hand, could signal an improvement. As of April, 1,403 housing units were under construction in Maine, which is 341 more units than April of last year. The combined value is higher, too, with an estimated value of $214 million by April 2012 compared to $166 million by April 2011.
The Census Bureau doesn’t provide a breakdown of Maine counties, but if housing data from Winslow, Farmington and Skowhegan are representative, then Kennebec, Franklin and Somerset counties could be on an upswing as well.
In Farmington, housing starts this year are already more than double from last year. So far, there are seven new homes on the town rolls for 2012, up from three during 2011, according to town records.
In Skowhegan, growth is more modest. Town records show five permits were issued so far in 2012. In 2011, there were eight.
Skowhegan Code Officer Randall Gray said the year isn’t over yet.
“I think it will outpace last year,” he said. “But, I don’t think it will be quite like the 2009, 2008 years.”
The Skowhegan Code Office issued 12 permits for each of those years.
Gray cautioned that an early surge in 2012 housing starts might be because of state legislation, not an improving economy. Starting in July, every town in Maine with a population greater than 4,000 will be subject the Maine Uniform Building and Energy Code. The code, which requires builders to meet higher standards for home insulation, will result in higher building costs.
“People are trying to beat the new building code,” he said. “Like it or lump it, we’ve got it on July 1st,” Gray said.
Desrosiers disagrees.
“There might be one or two people trying to beat the codes, but I think it’s the economy picking up,” he said.
Desrosiers believes improved sales within the existing housing market have contributed to a growth in new home construction. As owners of existing homes are able to find buyers, they’re able to explore other options, he said. In particular, he has seen increased demand for new condominiums among older people.
“They’re looking to downsize, but stay in the area,” he said. “Most of them are empty nesters, and they’re tired of taking care of the lawn and snow. And, if they want to leave for a month, they leave for a month.”
Stankevitz said he’s seen growing demand for in-town homes, particularly among parents of young children who want to live near schools and services.
“Right now, people aren’t as enthusiastic about moving out to the country because of the cost of fuel for coming to town,” he said.
Demand for in-town building sites has outstripped supply, he said.
“One of our limitations is that we just don’t have empty lots available. That’s a big deterrent right now,” he said. “If we had more subdivisions around with some lots in them, we’d be doing a lot better.”
Ben McCanna — 861-9239
bmccanna@centralmaine.com
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