City looking for growth in housing sector
Only 39 new homes built in 2016
The housing boom seen in other parts of Tulare County has still not hit Porterville, but officials are hoping the opening of at least one new large subdivision will kickstart new home construction. In all of 2016, only 39 permits were issued for the construction of new homes in town. That was down 53 percent from 2015 when 60 new homes were constructed. Only 34 homes were built in 2014.
The drop in new home construction played a big part in overall construction being down in the city last year, noted city building reports.
“It’s a lack of lots,” agreed City Manager John Lollis. He said a new Smee subdivision on South Matthew is expected to open up this year and that should get new home construction going once again.
Porterville has not seen much of a jump in new home construction since the recession, yet Visalia and Tulare have seen a surge recently. However, Lollis said last year there were just a few lots here and there, and no real new subdivisions opened.
Local realtors have said for quite some time there is not a lot of inventory in town and that can partly be attributed to the lack of new home construction. New homes tend to create a larger inventory of existing homes for sale.
“There really hasn’t been much,” said Lollis of new home lots available.
Local realtor Geane Lohse said he is surprised by the lack of new homes being constructed in town.
“I would think there would be an impetus. Existing homes have been selling like hotcakes,” he said.
Lohse also said new home activity helps to spur existing home sales.
“The ratio I’ve always heard is every new house creates 2.5 home sales down the chain,” he said, explaining that often those buying new have an existing home to sell.
“It doesn’t make sense. The demand for houses is here,” he added.
Overall, building activity was down in the city last year, but Lollis is hopeful that will change in 2017.
While construction activity amounted to just $32.6 million — compared to $35.9 million the previous year — Lollis said there could be a couple of significant projects this year. The largest could be the Super Walmart in the River Walk Shopping Center. He said he expects work on that store to begin later this year and said that has already stirred more interest from other retailers in that section of town.
Also expected to be constructed this year is Greenpower Motor Company’s electric bus assembly plant at the airport. That project should get off the ground any day now.
“Next year’s spike will be retail,” said Lollis, pointing out several other potential projects in 2017. Among activity expected is a retail development at Prospect and Henderson Avenue [old Ginger’s Corner] and possibly at Westwood Street and Henderson Avenue.
“Walmart will probably be the largest permit this year,” said Lollis, followed by several potential projects on Henderson Avenue.
Last year did see the construction of Tractor Supply on West Henderson Avenue, as well as Sleep Train and Starbucks on the same street. There were several extensive remodels, including the new restaurant on North Main Street and the insurance office on Main Street.