MOUNT VERNON — New home construction in Knox County continued to fall in 2007, according to county and city data.
Brian Benick, director of environmental services at the Knox County Health Department, said the number of health department site evaluations conducted for new septic systems in the county has been on the decline. There were 49 evaluations for septic systems for new homes in 2007, compared to 237 in 2006 and 218 in 2005.
The Knox County Sewer Department, which services Apple Valley, reported that there were 40 new wastewater service connections in 2007, compared to 100 in 2006 and 115 in 2005.
In Mount Vernon, housing starts are also on the decline, according to Safety-Service Director Dave Glass, who reported 32 new zoning permits issued for new buildings in 2007, compared to 49 in 2006. He said the permits issued in 2007 resulted in 49 new housing units, compared to 75 new units in 2006.
Vince Squillance, executive director of the Ohio Homebuilders Association, described the current home building market in the state with one word — flat. The number of new multifamily and single-family homes for 2007 was 25,200, compared to 28,300 in 2006 and 42,000 in 2005. He said he expects the number of new home starts to continue to decline, with the possibility of an upswing near the end of 2008.
“The rash of foreclosures in Ohio has exacerbated the inventory [of available homes]. There are more homes on the market than the market can absorb,” Squillance said. “That’s why you see a reduced number of housing starts. Home builders are very cautious.”
He said a weak state economy, a steady decline in manufacturing and an overall downturn in the housing market has made Ohio one of the worst states in the nation in terms of new home starts. Michigan is also one of the worst. In the 1940s, 1950s and 1960s, the two states were high-growth states, but, the loss of hundreds of thousands of manufacturing jobs since that time has changed that.
Squillance said most experienced builders in Ohio understand the market and are very cautious about building new homes.
New home starts have been falling on the national level as well, according to the National Association of Home Builders, a Washington, D.C.-based trade association. In 2007, there were an estimated 1,355,000 new home starts, the lowest total since 1995. In 2006 and 2005, the figures were 1,801,000 and 2,068,000, respectively.
In the Midwest, the same trend is evident: 210,000 in 2007, 280,000 in 2006, and 357,000 in 2007.