Make us your home page

New home starts in 2009 hit new low

Businesses are scarcely hiring, banks are scarcely lending and consumers are scarcely consuming. So it's probably no surprise that Tampa Bay builders are scarcely building.

Tampa Bay housing starts spiraled to a new low in 2009. Builders broke ground last year on 3,545 homes in Hillsborough, Pasco, Pinellas and Hernando counties.

That's an 83 percent dive from the 21,438 housing starts in the supercharged real estate year of 2005. The previous low was 4,721 in 2008.

The numbers were compiled by Tony Polito, housing consultant with Tampa's Metrostudy.

"We've been here since 1986, and this was by far the lowest housing start total since then," Polito said Monday.

The end-of-the-year news wasn't all bleak.

Piggybacking on the government's $8,000 first-time home buyer tax credit, Tampa Bay builders ended the year with a flourish, selling 1,342 new homes in the final three months of the year. Some builders whispered a word not uttered for years: profit.

The credit requires a contract be signed by April 30 and a closing by June 30. The deadlines limit the credit's future usefulness to builders, who require at least a couple of months to complete a house.

Steve Kempton, west Florida president for Taylor Morrison Homes, vouched that the tax-credit fueled a sales pickup in late spring/early summer. Among Taylor Morrison's Pasco and Hillsborough communities: Connerton, Stonebriar, Avelar Creek and FishHawk Ranch.

"We had a fantastic May, June and July in Hillsborough and Pasco," Kempton said. "The sweet spot was homes under $200,000."

Polito predicted 2010 would be "marginally better" than 2009. Starts will probably rise by 300 to 500. But Tampa Bay's 12.3 percent unemployment rate is doing builders no favors. It's hard to select floor tile and kitchen cabinets when you think you might be one paycheck away from a layoff.

"All this is smoke and mirrors if we don't get job growth," Polito said.

At a Tampa Bay builders breakfast last week, Polito pointed a way forward for the Florida housing industry. Despite the rotten returns in 2009, sales rose for one category of new home: those priced below $150,000.

That suggests to Polito that empty-nester baby boomers, the first cohort of which is reaching retirement age, will prefer smaller homes. The same goes for so-called "echo boomers," the children of baby boomers buying their first homes in their 20s and 30s.

"Unfortunately it's going to be a 10-year period with less demand for 3,000-square-foot homes," Polito said. "The youngest baby boomers, who are 46 this year, have probably bought their larger, move-up houses already."

Mortgage borrowing remains a problem. Many buyers can't access the record low, 4.8 percent interest rates because of down payment requirements. If you don't snag an FHA loan — 70 percent of the market — banks want 20 percent down.

"We cannot have capitalism without capital," Polito said.

That has forced builders to slash prices. Taylor Morrison, for example, is selling 1,300-square-foot stand-alone houses in Ruskin's College Chase neighborhood for $99,000, a price not seen in about a decade.

After the price bloat of 2006, Tampa Bay homes are again cheaper than North Carolina's. That might help steer retirees back to a Sunshine State many abandoned because it was too expensive.

The Tampa Bay housing market also continues to whittle down its surplus of unoccupied new homes. By the end of 2009, vacant new homes totalled 1,931, down from 2,665 a year earlier.

The new homes also have to compete with a huge volume of existing homes for sale — 28,000 at last count around Tampa Bay. That so many of those homes belong to people struggling with their mortgages only makes things worse.

"I would settle for prices picking up just a little bit this year," Kempton said. "I think we've got a whole other year to bleed through all these short sales and foreclosure homes."

Fast decline

Since a banner year in 2005, Tampa Bay builders have seen business slow.

YearHousing starts

Source: Metrostudy

New home starts in 2009 hit new low 01/11/10 [Last modified: Monday, January 11, 2010 10:17pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times


Join the discussion: Click to view comments, add yours

  1. Marina at Hudson Beach poised to become 24-unit condominium-hotel


    HUDSON — One of the mainstay businesses at Hudson Beach is poised for redevelopment into a 24-unit condominium-hotel.

  2. Have your say Tampa Bay on the region's future transit options

    Mass Transit

    TAMPA — It's time, yet again, for Tampa Bay residents to tell officials what kind of transit options they want for their region.

    The Cross-Bay Ferry docks at the Tampa Convention Center on its maiden voyage on Nov. 1, 2016. A regional premium transit study will determine whether a ferry, or other options such as express buses or light rail, would be a good addition to Tampa Bay. [SCOTT KEELER  |  Times]
  3. SOCom seeks civilian drone pilots to develop new technology through ThunderDrone


    TAMPA — For the last three years, Nicole Abbett has been using drones as part of her photography business, with clients like the city of Tampa and construction companies.

    Josh Newby, 31, Palm Harbor, of Tampa Drones fly's a drone in England Brothers park, Pinellas Park, 8/25/16. As drone popularity increases as a hobby and business, local governments are navigating a legal grey area- where, when, and how should drone flights be allowed?
  4. New apartment complex delivers unique floor plans


    RIVERVIEW — A new luxury apartment community has opened in the Progress Village area touting itself as a distinct living option just 10 miles from downtown Tampa.

    Alta at Magnolia Park dubs its new apartment community, that opened earlier this year in Riverview, a modern and distinct option for living just 10 miles from downtown Tampa.
  5. 'Road to Nowhere' is back: Next phase of Suncoast Parkway coming


    Despite intense public opposition and dubious traffic projections, the Florida Department of Transportation has announced that construction of the toll road known as "Suncoast 2" is expected to start in early 2018.

    The Suncoast Parkway ends at U.S. 98 just south of Citrus County. For years residents have opposed extending the toll road, a project dubbed the "Suncoast 2" into Citrus County. But state officials recently announced that the Suncoast 2 should start construction in early 2018. [Stephen J. Coddington  |  TIMES]