Yesterday, MarketWatch reported that the start of construction on new US homes fell 10.6% in April while permits declined 4%. Permits for single family homes dropped 1.8%, to an annualized rate of 385,000 last month.
Just a week earlier, the Park Record reported that Park City’s construction industry posted the year’s best month. The Park City Building Department issued 84 permits worth nearly $5.7 million in April. Both the number and dollar amount rose significantly from the previous month and the previous April. Of the $5.7 million overall figure, the department issued one permit for a new home and close to 90% of the $5.7 million was for “alterations and additions”.
I think it’s great that the Park City construction industry is “staying alive” with additions and remodels until the distressed properties are cleared from our real estate market and it becomes profitable again to build new construction. Even one permit for a new home is encouraging. Remember, Park City Building Department is only responsible for the 84060 zip code and those properties built in “Park City Proper”. The majority of Park City’s full time residents live in the unincorporated 84098 zip code.