By SARAH MICHALOS, Daily Journal of Johnson County staff writer
The number of single-family homes being built in Johnson County has dropped for several years.
Last year, 38 percent fewer building permits were issued than in 2006. That follows a drop of 26 percent in 2006 from 2005.
And the decline affects not only subdivisions but local businesses dependent on building.
In Greenwood, the number of permits last year was the lowest since 2003. In 2007, 314 permits were issued, compared with 555 the year before.
The decrease was anticipated based on a three- to four-year cycle that housing follows, said Ed Ferguson, Greenwood planning director. Despite the decline, he said, the number still is strong.
"With 250 to 260 working days in a year, that's more than a home per day," he said. "I think it's a cycle in the economy; and obviously if it lingers for a few more years, then it might become a problem or a concern."
What might become a concern for the county is an anticipated continuing drop in new single-family homes. In data compiled by MarketGraphics Research Group, 4,086 homes are predicted to be built in the next five years. That's about a third less than the number predicted a year ago.
In Prince's Lakes last year, no new single-family home was built. In New Whiteland, 21 were built, down from 56 in 2005 and 152 in 2003.
Franklin also saw a drop, but not as drastic. In 2007, 123 permits were issued. In 2004, the city saw a peak of 287 permits issued.
The change was felt across the county. Last year, for the first time in a decade, no new subdivisions were planned. The Abbey, a 2,000-home development near Bargersville, was delayed in the fall by developer Mike Duke because of a slow housing market.
"What we have seen instead of new subdivisions coming in is existing ones that have continued to build out, but not nearly at the rate we've seen the past few years," Franklin planning director Krista Linke said.
Her thoughts are echoed in Whiteland, where growth in large subdivisions has stalled. In Brunnemer Ridge, a subdivision with more than 200 lots, only about 60 are developed. The subdivision was started in 1990, town manager Dennis Capozzi said.
Another Whiteland subdivision, Millstone, was started in 2005, but only about a dozen homes out of a planned 100 have been built.
Capozzi said that in the late 1980s and '90s, about 85 homes per year was typical.
"With this new trend, single-family housing is virtually nil," he said.
The 84 Lumber in Greenwood is feeling the effect of fewer homes being built, manager Tom Ramstrom said. The company deals primarily with residential builders.
"Most of the (residential) builders are becoming commercial builders because it's just better," Ramstrom said. "Business has taken a real hit from that."
One company that has seen relatively consistent sales is Premier Villages, the builder for Heather Glen at The Legends in Franklin. Company spokeswoman Cathy Armour said the group sold 18 condominiums last year, compared with 21 in 2006.
Armour said sales have been less than originally projected in 2005. She said she is still satisfied, though, and said a new program may have attracted buyers.
If potential buyers qualify, the program guarantees the sale of their previous home. Armour said the buyers can close with them, and Premier Villages will essentially buy the former home.
"It's a buyer's market," she said, "but it comes down to the individual community and what they're willing to do to help the buyer."