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Renovation permits stay stable as homeowners look for alternatives to moving


1016_biz_Remodel Rise 2
By SCOTT MORGAN | BUSINESSROCKFORD.COM
Tile setter Dave Kosirowski of Quality Floors and More Inc. lays tile Wednesday, Oct. 15, 2008, while remodeling a home with Mark Van Vleck Construction on Corina Curve in Rockford.
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By Sean F. Driscoll
GateHouse News Service

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ROCKFORD, Ill. -

One of the few upsides to the sagging home construction market is that stuff still breaks.

That’s probably why the number of home renovation permits has remained relatively stable.

The number of home renovation permits issued in Boone and Winnebago counties through July was down only 2.7 percent from the same time in 2007, compared with a 76.5 percent drop in the number of single-family residential building permits.

Dennis Sweeney, executive vice president for the Home Builders Association of the Greater Rockford Area, said that’s not a surprise.

“If the roof starts leaking, you’ve got to repair it. If the windows are falling out, you’ve got to replace them,” he said. “Even back in the 1980s, when things were so bad, remodeling was staying strong. It’s really a constant in the construction field.”

The area is bucking a national trend, however. According to the U.S. Remodeling Permit Activity Report, issued this month by remodelormove.com, planned remodeling spending is down 15 percent in the first half of the year.

Sweeney said he doesn’t know whether the remodeling being done is repair work or what he calls an “expansion” remodel, one that increases or changes the living space.

Local builder Mark Van Vleck, most of whose business is remodeling, said he’s still seeing plenty of people who are remodeling their houses.

This year, they’ve tended to be smaller projects, however, instead of extensive renovations.

“We’ve kept busy, but they aren’t large projects,” he said. “I think the total cost for each one is less than last year.”

Van Vleck said when the economy gets rough, people will be more cautious about where and how to spend their disposable income.

“If you develop your clientele list, then even in the bad times, people are going to spend it and spend it with you,” he said.

One local homebuilder is hoping to parlay his reputation into a successful renovation business.

Joe Contarino, a real estate agent and owner of Contry Homes, has recently expanded his company to offer home redos. He said buyers of his homes often asked them to come back and finish a basement or build a custom deck, but they always were referred to another company.

“Times have changed, and I think people are looking for a lot more space in their homes,” he said.

“As their families grow, they’re looking for alternatives to moving. One is to finish a lower level. A lot of people, once that’s finished, they still might be looking for a new home. Right now, it’s more of a stopgap until they’re ready to move again.”

Sean F. Driscoll can be reached at (815) 987-1346 or sdriscoll@rrstar.com.

                                          2008                2007                2006                 2005               2004   
Building permits*           173                   735                   993                   992                  1121   
Value                $22,584,607   $93,614,924  $123,842,219  $93,283,895  $101,924,788   
Permits % change       -76.5               -26.0                        0.1              -11.5                    15.3     

Remodeling permits        721                     741               669                     852                728     
Value                      $9,619,771    $10,893,391  $9,294,810     $11,484,237  $13,398,392   
Permits pct. change         -2.7                    10.8             -21.5                    17.0               -28.3  

*Single-family homes

Source: Home Builders Association of the Greater Rockford Area       
Permits include all of Boone and Winnebago counties except the village of Winnebago

 

 

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