Residential construction slows in Northwest Indiana region in 2007

BY MARISA KWIATKOWSKI, Times of Northwest Indiana
mkwiatkowski@nwitimes.com

Southern Lake County continued to outpace its northern counterpart in residential growth in 2007, figures released by the municipalities show.

But even the region's cities experiencing booming development are not exempt from the nationwide housing slump, local officials said.

Dyer's single-family building permits issued in 2007 plummeted 65.7 percent from 2006, the data shows. Its 62 permits issued in 2007 mark the town's lowest number in at least eight years.

Dyer Town Manager Joe Neeb said there is not a lot of space left for residential development within the town limits.

"More than anything else, it's attributed to our build-out and that we don't have a lot of residential development going on right now," he said of the drop in permits. "I'm not sure I could point at one thing and say, 'That's it right there.' In all the areas that have the potential for growth, there is building going on."

The only land available for annexation is just south of the town limits, Neeb said. He said the town met its expectations for revenue from building permits for 2007 but could begin to see the impact of the slump in 2008.

Other area municipalities recorded less sharp drops in residential permits.

Crown Point recorded a 30.9 percent drop in its single-family detached building permits between 2006 and 2007, data shows. It dropped from 249 residential permits in 2006 to 172 in 2007. Commercial and industrial permits for the city rose in the same period.

Schererville's single-family residential permits dropped about 32.3 percent, and Merrillville declined about 41.2 percent last year.

Cedar Lake's residential permits dropped about 21.9 percent, data shows. Michelle Bakker, building and planning director for Cedar Lake, said the town's permits fluctuated with the market.

Even so, the town is pleased with its rate of growth, Bakker said.

"Last year was a really good year for us for all permits," she said. "It was pretty spread out. There are a lot of new subdivisions, and they just keep coming."

St. John recorded the least severe drop in single-family residential permits among the development powerhouses, data shows. Its permits declined about 4.1 percent between 2006 and 2007.

St. John blew past other Lake County municipalities and unincorporated Lake County by issuing 232 single-family detached housing permits.

"For the most part in the past several years, we've been immune to that trend," St. John Town Manager Steve Kil said of the housing market slowdown. "It's the geographical location and the school corporation. And I believe it's just the quality of housing you'll find in St. John."