Home building tapers off in Eagle, Meridian

The city of Eagle may have been the proverbial canary in the coal mine for the Treasure Valley home-building market.
Building permits began tapering off earlier in Eagle than in neighboring cities. They appear to have fallen off in late 2005, when other parts of the Treasure Valley were still in the midst of a building boom.
Though the number of Eagle building permits grew from 2004 to 2005 – the city issued 528 permits in 2005, about 40 more than in 2004 – that growth was fading by October. There were fewer building permits overall in October 2005 than in October 2004, but the declines were most striking in permits for new homes.
The city issued 48 permits for new homes in October 2004, a dozen more than in October 2005. That number fell again to a mere five in October 2006.
Declines in other cities with weak home-building markets seem to have hit much later.
The drop-off in residential building permits in Meridian seems to have started in May 2006. Starting in that month, the city has had an unbroken six-month streak in which the number of new home permits fell below both 2004 and 2005 levels.
Since July, Meridian’s residential building permit numbers have dropped into the double digits and hovered near 2001 or 2002 levels. In October, the city issued 64 residential building permits, down from the low 200s in October 2004 and October 2005.
The building spike in Star was still going strong in October 2005. The city issued 66 permits for new homes that month, far more than the 12 issued in October 2004. Building fell off dramatically in 2006 – the city issued four residential building permits last month.
A combination of high land prices and high inventory seems to have hit Eagle early on.
Shirley Kline, administrative clerk for the Eagle Building Department, said she’s heard a few builders talk about how expensive lots are.
“Just the cost of building a house – and the housing market, just the way that it is – it’s kind of scary to build a house you’re not sure you can sell,” she said.
Commercial construction is still growing in Eagle, said Jean Walker, administrative assistant for the Eagle Building Department. Tenant improvements are continuing in the Clocktower Building, the Eagle River development and several office buildings on State Street and Plaza Drive, where the Merrill’s Egg Farm used to be.
Commercial development has been strong because Eagle now has the population to support new businesses, so demand has been high despite higher land prices, Walker said. Developers have responded to demand by making more commercial lots available, she said, whereas the number of available housing lots in Eagle has dropped.

By the numbers:

Eagle
October 2006: 77
October 2005: 99

Boise
October 2006: 1,461
October 2005: 1,347

Caldwell
October 2006: 675
October 2005: 571

Fruitland
October 2006: 10
October 2005: 3

Kuna
October 2006: 48
October 2005: 33
Lewiston
October 2006: 74
October 2005: 70

Meridian
October 2006: 220
October 2005: 576

Moscow
October 2006: 38
October 2005: 24

Star
October 2006: 11
October 2005: 73

Twin Falls:
October 2006: 86
October 2005: 101

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