THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Sunday, March 19, 1995 TAG: 9503170205
SECTION: CHESAPEAKE CLIPPER PAGE: 14 EDITION: FINAL
TYPE: Annual Business Review
Cover Story
SOURCE: BY PATRICIA HUANG, STAFF WRITER
LENGTH: Medium: 64 lines
CHESAPEAKE'S SLIGHT DECLINE in single-family home construction last year is no surprise to Connie Wood.
For 15 years, Wood has been keeping an eye on construction in Hampton Roads. An employee in Chesapeake's Department of Inspections, she has worked with Chesapeake and Virginia Beach builders for more than a decade.
Wood's experience tells her that the city is in for another good year in home construction, despite high interest rates.
``Just in the past week, we've had four self-storage places open up,'' she said. ``That's usually a sure indication of more people moving into the area. I saw the same thing happen in Virginia Beach.''
While Chesapeake's total number of residential building permits increased by about 4 percent to 7,200 in 1994, its single-family construction numbers slipped from 1,717 to 1,554 last year.
A total of 1,206 single-family home permits issued in 1991 climbed to 1,741 in 1992, but began to fall the following year.
Higher finance charges and increasing lumber costs are part of the reason for the decrease, Wood said. At the same time, the value of Chesapeake building permits rose from $173 million to $184 million for 1,554 building permits last year.
The increased interest rates and threat of military cutbacks may have caused more people to rent their homes instead of buying, Wood said.
But it's the availability of land, safety and good schools, that still has many Hampton Roads residents flocking to Chesapeake from Virginia Beach and Norfolk, said Carl E. Hall, director of inspections.
In Chesapeake, the cost of an average home is about $150,000, Wood said. That's considerably higher than the average $75,000 for Suffolk homes and higher even than the regional average cost of $140,000, Wood said.
But lots in Chesapeake are generally larger than most in the region. ``Most people live on almost half an acre,'' Wood said.
Bustling Great Bridge still leads the city as the fastest growing area of Chesapeake with a 7.4 percent increase. And Tidewater Builders Association president Michael D. Newsome is optimistic about the number of residential developments picking up.
Base Relocation and Closing Commission decisions are bringing more military families to the area, Newsome said.
``We started the year out strong. Then the interest rates tended to take the steam out of it. . . I hate to be the eternal optimist but I think the BRAC Commission decision will bring a heavy influx of military families,'' he said. ``This year's looking good.'' ILLUSTRATION: Chart
Building Permits
Source: Chesapeake Department of Inspections
For copy of chart, see microfilm
KEYWORDS: RESIDENTIAL CONSTRUCTION HOMEBUILDING
by CNB