The housing bubble and Fayette County

Some interesting numbers I dug up while working on something else:

  • Building permits for single family residential and townhouse units in 2010 are down 72% from their peak in 2005.  2,384 in 2005 – estimated 668 in 2010 (all but December #s are in)
  • Single family and townhome construction looks to be down 12% from last year
  • Here’s how low permits look this year is relative to earlier years:  2010:  668 units
  • 1996: 1540 units
  • 1997: 1636 units
  • 1998: 1868 units
  • 1999: 1784 units
  • 2000: 1898 units
  • 2001: 1649 units
  • 2002: 2142 units
  • 2003: 2206 units
  • 2004: 2180 units
  • 2005: 2384 units
  • 2006: 1518 units
  • 2007: 1207 units
  • 2008: 708 units
  • 2009: 756 units

This year, we’ll be at less than one half the permitting levels of 14 years ago.   This affects our city’s ability to maintain our standard of living through payroll tax collection, as we’ve lost at least 4,300 construction jobs over the last decade.  Housing has been such a big driver of our economy, and now….what’s in store for 2011?  Lot’s of pent up demand?  Or more declining numbers?

Who’s talking about this?

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1 Comment

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One response to “The housing bubble and Fayette County

  1. I keep a pretty good handle on the number of lots created and lost(consolidated) in Lexington by year and we are down a considerable bit from previous years.

    As you have stated, 2005 was a banner year with 2,665 net lots to go along with with your 2.384 housing units figure which will be compared to just over 100 net lots and the approximately 668 housing units for 2010. It is true that some of these lots are commercial and not residential but we are also not talking about apartments at this point. I will usually assume that 80% or better of the net lots are residential in nature and that apartment complexes are commercial. We are probably working on the “cushion” of excess lots which were created during the boom times

    Housing should not be the (or even a) driver of our economy, we should be producing useful products for society.

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