Steady home construction tied to Jackson County's job growth

In 2013, 32 housing permits were issued in Seymour, and 24 were issued in Jackson County, dropping only a few from 2012, when 33 city and 26 county permits were issued.

In 2007, 75 permits were issued in the city, and 52 in the county. In 2004, a total of 167 permits were issued, making it the best year in Jackson County in 12 years.

The drop was a result of the recession, which lasted from 2007 through 2009, and caused the U.S. labor market to lose 8.4 million jobs, according to the U.S. Bureau of Labor Statistics.

The housing numbers then decreased dramatically.

Mike Weir, the county’s building commissioner, said there was a brief spurt of activity for a couple of months in mid-2013, but activity has since died back down.

Jobs boost housing

A Columbus based-developer sees progress in the housing market in Jackson County because companies such as Cummins Inc. are hiring and expanding in the area.

Jeff Bush is developing an apartment complex and subdivision on 73 acres on the northeast side of the city. The property is bordered by Burkart Boulevard, O’Brien Street, Enos Road and the Martha Vineyard’s subdivision.

The project, which has not yet been named, started during the summer and will include 206 apartments and houses. The homes will sell for $200,000 to $250,000.

“Market studies indicate growth is starting to occur, strictly because of the perception of job growth in the community,” Bush said, alluding to the $219 million Cummins expansion in Seymour.

The enginemaker has announced plans to add 290 jobs by 2015, most of which will be higher-paid engineering positions.

“To be able to make this kind of investment, you have to have communities that have job growth,” Bush said of his project. “Without job growth, there is limited need for additional housing.”

Bush said he plans to monitor the entire economic market in Jackson County, not just Cummins.

He foresees the apartments and subdivision being filled with individuals and families who are possibly new to the community.

After zoning requirements are approved by the city, construction should start in March.

Buying a home

A real estate agent in Jackson County also has noticed more people coming to the area to buy a home.

Steve Silver, an agent with RE/MAX Professionals, credits not only Cummins’ plans to hire but also Valeo Sylvania and Aisin.

Those who once might have rented are now choosing to buy, he said.

“We are starting to see that effect on our home sales,” Silver said. “I’m very optimistic. Interest rates have gone up just a little bit, but now is a great time if you’re thinking about buying a home.”

Home sales in Jackson County through Dec. 30 totaled 417, Silver said, which was an increase over the previous year. In 2012, 369 housing units were sold, up 306 units sold in 2011.

Prices have remained steady the past three years, he said. The average sale price for 2013 was $110,402. In 2012, it was $105,201; and in 2011, it was $110,686.

Silver said for 2013 the average sale price came down about 5 percent off the average listing price.

With these numbers, he said, Jackson County is not far from getting back to where the housing market was before the recession.

He said in 2006 479 units were sold with an average selling price of $108,804.

“We’re really not that far away,” Silver said.

Other projects

With two projects underway and another in the works, Mayor Craig Luedeman foresees a possible jump in the new housing market in the near future.

He said he recently spoke with builders who are seeing more work.

“I talked to several of them that are building more than they have in the past,” Luedeman said. “(Housing growth) hasn’t hit as hard yet, but it’s still coming.”

In addition to the northeast housing project, Luedeman said there have been talk of the former Ash Hollow Golf Course turning into a property for homes.

Efforts by owner George Pfaffenberger to convert the golf course into new lots for houses has come up short because the county has not granted approval for that plan.

Residents in the Leslie Lake & Country Club Homeowners Association have opposed the proposal because they contend they were told the golf course always would be there.

But Pfaffenberger said the venture was not making money and shut it down.

The property is zoned for agricultural use and would require a plat approval from the county Board of Zoning Appeals. In order to build the existing subdivision and golf course, Pfaffenberger received a special exception from the county years ago.

There are other issues that also would need to be worked out by the city before housing can increase.

“We have a sewer main that is overloaded,” Luedeman said. “A second main will need to be put out that way.”

He also touched on the completion of Phase III of Ashwood Subdivision, behind The Home Depot, which will offer new homes.

Luedeman said he noticed the biggest hurdle for contractors is borrowing money.

“A lot of builders are ready to get going but still are a little leery of marketing influences and things out of their control like bank financing,” Luedeman said.