The recent boom in new apartment complexes in Terre Haute is giving way to a resurgence in the construction and sale of single family homes.
“We have sold more homes this year than we have in any year since 2008,” said Rick Jenkins, owner of Rick Jenkins Builders. “Speaking for builders that buy lots off of me, and work in the subdivisions that I have, I know their business is as strong as it’s been.”
One such builder, Mark Clinkenbeard, confirmed Jenkins’ assessment, saying he is also experiencing his busiest year in nine years.
“There is especially interest in higher end homes in the $300,000 to $450,000 range,” Clinkenbeard said. Jenkins is also building homes in that price range.
Jenkins and Clinkenbeard build custom homes but Clinkenbeard also has recently built some houses with no particular buyer in mind.
“Lenders have loosened up a little bit for builders to be able to build spec houses in the last couple of years and that’s helped, but most of the builders are busy building customs,” Jenkins said.
“We’d all rather have a custom than a spec; at least you know you’re not going to be stuck with it.
Idle Creek in southern Vigo County, North Pointe off U.S. 41 north of Terre Haute and Lakewood subdivision near Riley are among places where new home construction is strong. Clinkenbeard is also building in a subdivision off Fruitridge Avenue between Hulman Street and Margaret Avenue inside the Terre Haute city limits.
“That subdivision has been there for a while and is just now taking off,” he said. “It’s a beautiful subdivision.”
Statewide, U.S. Census Bureau data show 6,121 building permits issued for single-family homes during the first five months of the year, according to a news release from the Indiana Builders Association.
“This substantial increase reflects the continual growth of the state’s healthy housing market,” Lance Swank, Indiana Builders Association president, said.
“Home building has reached a peak we have not seen since 2007 … Hoosiers are confident Indiana remains a great place to both buy and build a home.”
That may not be the case in neighboring Illinois and Indiana may benefit. A family with small children who lives about 60 miles inside the Land of Lincoln has inquired about having a home built in Vigo County, Jenkins said.
“They’re looking at their school system and if they end up not passing a budget they’re going to end up not having teachers,” he said.
Fewer existing homes for sale and consistent mortgage rates are helping the housing construction market Jenkins added.
Terre Haute Realtor Troy Helman confirmed a decline in the number of existing homes priced at $120,000 and above and said such homes are in short supply in every major city in Indiana. “I can’t give a specific reason why inventory is low but real estate tends to run in cycles - too much at one time and not enough at others.”
The lack of less expensive new homes being built concerns Brian Conley, a real estate appraiser and member.
“Why are they not building where there appears to be a demand – in the $150,000 to $250,000 range?” Conley asked.
“Part of our market is not being met because they can’t afford to build them,” he said, answering his own question. “That ties in also with the fact that there’s been no major new subdivisions approved in the last several years.”
Homes in that price are not in demand, Clinkenbeard said.
“There are not a lot of places to build those homes,” he said. “We are going to have a subdivision shortage before long.”
Available lots generally cost between $32,000 and $50,000, making it difficult to build a home and sell the house and land for less than $250,000, builders said.