We've had more demand than product.
Chattanooga planners on Monday gave the OK to what eventually could lead to construction of more than 500 single-family houses as developers try to meet a shortage in the market.
"There's high demand for it," said developer G.T. Issa, who won approval from the Chattanooga-Hamilton County Regional Planning Commission for a 211 home single-family development on the 7000 block of Hixson Pike, though not without some questions from neighbors.
Three other sizable proposed housing projects won the panel's approval:
* 186 units at the Magnolia Farms subdivision on the 10300 block of East Brainerd Road.
A new home is under construction on Dartmouth Street between Curve Street and Knickerbocker Lane on Wednesday, May 31, 2017, in Chattanooga.* 78 units at the Holder Farms subdivision off Grazing Lane in the north part of the county.
* 34 units at Black Creek in Lookout Valley.
Doug Stein, developing The Ridges at Black Creek, said the group also is looking at prepping 50 more lots on which to put single-family homes.
"We've had more demand than product," he said, adding that the new units at The Ridges would sell in the low $400,000 range.
The housing inventory in the Chattanooga area has been at a decade low and developers say there's a shortage of new homes on the market.
But Chattanooga area home starts jumped in the first quarter of the year, up 9 percent, and some experts cite an improving job market and people putting blemishes on their credit behind them.
Issa said that if his project receives City Council approval next month, work could start on the 78.5-acre tract in about a year on the houses which would sell for about $300,000 and up.
"People want something new," the Chattanooga developer said. Issa said about half the homes he now sells are to people who are moving to the Chattanooga area.
But some neighbors raised questions about the proposed development, especially related to stormwater runoff.
"It's about the water," said Eddy Chamberlin. "It's about the environmental impact."
Chamberlin wanted more time for neighbors potentially affected by the development to review the proposal.
Douglas Brager said that while he supports local development, there are two streams that flow through or near the proposed development.
"If the stormwater isn't good, property would turn into a lake," he said.
However, Mike Price of MAP Engineers said there are plans for eight stormwater retention areas for the development, which is more than the housing projects to the north and south.
Chattanooga has stronger stormwater requirements than anywhere within 100 miles of the city, he said.
"We'll meet the city requirements. Typically, we'll exceed those," Price said,
Issa said he is aware of the stormwater rules and the project wouldn't affect his neighbors' property negatively.
Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318.