Building activity declines

By LESTER MURRAY
news2@kilgorenewsherald.com

New construction here has dropped almost in half this year, according to numbers provided by Mike Green, building inspector for the City of Kilgore.

Comparing numbers from January through May of 2004 to the same months in 2005, the City of Kilgore issued 19 new construction permits for this period in ’04 compared to only ten this year.

Green’s numbers show that money spent on residential new construction is actually up with $1,147,500.00 being spent last year compared to $1,301,996 this year.

However, money spent on new commercial construction has dropped significantly. In the first six months of last year, new commercial building accounted for $1,829,000; this year that number dropped to $588,000.

While total new construction spending was down, Green’s numbers reflect a strong demand for remodeling permits in both periods. There were 23 permits issued for residential and commercial remodeling last year and 19 permits issued this year.

Even though remodeling permits numbered about the same, residential remodeling accounted for far more dollars last year. Green’s numbers show $155,150 was spent for residential remodeling in the first half of last year, compared to only $33,467 so far this year.

More than $4 million – including $2 million at Kilgore College – was permitted for commercial remodeling during the first six months of last year. So far this year only $1,141,117 in commercial remodeling permits were issued, a drop of almost 50 percent in spending for commercial remodeling and a drop of over 70 percent in residential spending for remodeling.

Green said he doesn’t consider these numbers to be a downward trend. “With interest rates low, residential building is up; the cost of steel and concrete is very high and this effects commercial building more,” said Green. “A lot of commercial building is stated towards the end of their physical year, so those numbers could pick up by the end of summer.”

Green said he has been issuing permits since 1976 and there is just no way to predict how or when permits – residential or commercial – will fall or how much money will be spent during any given time period.