Spokes of VW drive new building boom

By Dan Whisenhunt

dwhisenhunt@timesfreepress.com

There is at least a modest turnaround in construction in Hamilton County, though no evidence points to it being what it was before the recession, according to recent county building permit data.

Still, there are degrees to everything, and much of the increased activity is taking place in areas adjacent to the new Volkswagen plant, according to Barry Payne, owner of True North Development.

East Brainered, Ooltewah and Tyner: these are the favorite places of builders these days, Mr. Payne said.

"If you consider Volkswagen the hub, you spoke out from Volkswagen," he said.

Some areas have always been fertile ground for builders, including Soddy-Daisy and East Brainerd.

"The same growth spots are there, but there's more emphasis over here because of Volkswagen right this moment," he said.

Bo Arthur, who oversees construction in the subdivision for developer Emerson Russell, agreed Volkswagen and other industries near it are directing building trends in the county.

"I think Ooltewah is just going to keep getting more popular," he said.

Teresa Groves, executive officer of the Home Builders Association of Southern Tennessee, said she sees growth in Ooltewah and in Soddy-Daisy.

Mrs. Groves said there are different kinds of homebuyers. The 50-and-older crowd looks for one-story housing with low maintenance. Other people are looking for downtown living that doesn't come with a big yard and is close to the nightlife. Then there are families looking for affordable housing in areas with good schools with short commutes to work.

"Builders are looking at neighborhoods they feel like individuals would want to move into," she said.

Pat Payne, director of the county building and zoning department, said the county is issuing more permits in lower price ranges, from $150,000 to $200,000.

"Before the recession, people were buying permits $300,000 or $400,000 up to $500,000 at times," he said.

Tracking growthChattanoogapopulation* 1990: 152,466* 2000: 155,554* 2008: 170,880Hamilton County population* 1990: 285,536* 2000: 307,896* 2009: 337,175BUILDING PERMITSChattanooga residential 1-2 family (including additions)* 2007: 868Value: $32.1 million* 2008: 779Value: $29.1 million* 2009: 786Value: $33.7 million* 2010 (up to May): 365Value: $22 millionHAMILTON COUNTY* Number of houses2006-08: 148,762* Vacant: 15,384* Owner occupied: 88,814* Renter occupied: 44,564Value of owner occupied houses* Less than $50,000 -- 6.1 percent* $50,000-$99,999 -- 20 percent* $100,000-$149,999 -- 26.1 percent* $150,000-$199,999 -- 19.5 percent* $200,000 to $299,999 -- 14.1 percent* $300,000 to $499,999 -- 9.3 percent* $500,000 to $999,999 -- 4.1 percent* More than $1 million -- 0.8 percentSource: City of Chattanooga Land Development Office, U.S. Census Bureau

Home building in unincorporated Hamilton CountyBuilding permitsYear Number* 2010 231** 2009 909* 2008 998* 2007 1,420* 2006 1,600* 2005 1,616* As of March 31type of permits2009* Single-family detached: 403* Single-family attached: 30* Manufactured homes: 582008* Single-family detached: 387* Single-family attached: 27* Manufactured homes: 752007* Single-family detached: 725* Single-family attached: 45* Manufactured homes: 692006* Single-family detached: 950* Single-family attached: 81* Manufactured homes: 752005* Single-family detached: 992* Single-family attached: 85* Manufactured homes: 87

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