Page 162 - South Mississippi Living - March, 2018

THEFINALSAY JOSHUA
WORKMAN
President of the Home Builders Association of the Mississippi Gulf Coast and co-owner of
Butler Homes
story by Joshua Workman
It’s a great time to be a builder on the Mississippi Gulf Coast. Our local home building industry is strong and we’ve seen a gradual increase in the number of single family building permits issued each year since 2013.
That year, around 1,300 permits were issued in Harrison, Jackson, and Hancock counties. Last year, those same three counties issued almost 1,700 permits. On the national level, we saw a 10 percent growth in the number of single family building permits issued over the last year.
A thriving economy plays a large role in maintaining a high demand for new homes. The GDP growth rate for 2017 was good and is expected to maintain a healthy growth rate for 2018. The economy, along with low mortgage rates, will continue to encourage a strong buyer confidence. Although the mortgage rates are expected to increase this year, they will still be at historical lows. The expectation is that the number of single family homes built in 2018 will continue to rise.
Despite the overall positive outlook for the home building industry, there are still some challenges facing local home builders. Rising material costs, high insurance premiums, low appraisals, and a shortage of skilled craftsmen are
all important issues local home builders are dealing with today. Lumber costs have risen almost 30 percent in some areas in the past year.
Since the cost to build is getting higher, the sales prices obviously have to go up. Many builders, especially in the custom home market, struggle to get homes to appraise for what they cost to build. When you have appraisal issues,
buyers can
have problems getting the financing needed to purchase a home. Another challenge we are still facing is insurance premiums. Insurance premiums remain high in all three counties, especially near the water.
More houses being built means more jobs for local sub- contractors. The most concerning issue we have is finding enough skilled craftsmen to keep up with the demand. This shortage could become a long term issue if we don’t have more of the younger generation attending trade schools or gaining the experience needed to become skilled craftsmen. Without these obstacles, the growth of the home building industry on the Coast could be even greater.
There are lots of trends going on in the home building industry today. Websites such as Houzz and Pinterest are helping buyers become more creative and knowledgeable when it comes to custom homes. Exposed wood beams, interior brick, wood ceilings, barn doors, and custom cabinets are just a few ways buyers are making their homes unique. Open floor plans continue to be very popular. Most buyers want their kitchen opening to
the rest of the living area with large islands so they can entertain guests.
Speaking of entertaining, outdoor living spaces are also very popular. Buyers are no longer settling for just a grill on the back porch. TVs, fire pits, sinks, refrigerators, and bars continue to be popular additions to today’s back yards.
162 SOUTH MISSISSIPPI Living • March 2018
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