Construction is sparse in Kane County

The Kane County Development Department released a report Tuesday that shows the dramatic drop in construction the area is seeing this year.

Fewer permits, less money:

When construction grinds to a halt, it has a direct impact on one of the county's income streams. Building permits (residential and commercial) through July last year raked in almost $550,000. This year, the county has only collected about $405,000.

Summer provides little relief:

Warm weather always means more construction, and this summer is no different. Numbers for building permits are still up this summer vs. the cooler months, but not as much as last year. June was the bellwether month for permits in 2007 with 215. This June, the county only issued 154 building permits. All told, the number of permits issued this year so far is 12 percent less than 2007.

Residential hardest hit:

Comparing the month of July for 2007 vs. 2008, residential new construction for homes valued at or more than $500,000 is the most sluggish. A total of 26 such new residential permits were issued this year, only 42 percent of the number of permits issued in July 2007. The difference there is most stark in construction in the St. Charles area. Last July, 13 single-family permits were issued for the St. Charles area. This July, not even one single-family building permit was issued for the area. Year to date, the total number of single-family building permits issued is down 41 percent.

Cautiously optimistic:

Despite the downtrend, county staff told county board members Tuesday they are hopeful of an upward swing in building permits and resulting revenue in the fall as the construction season comes to a close. Permits for home improvements and repairs have remained steady compared to last year, showing more of a willingness by homeowners to invest in their property while riding out the slow economy.

The downward trend was not unexpected as proven by the county fee revenues hitting 51 percent of projections through July.