Subdivisions blooming all over South Mississippi
By JIMMIE BELL
The expansion and creation of subdivisions over South Mississippi has catapulted new-home building into a multi-billion dollar industry over the past decade.
A slip in new-home sales nationally only emphasizes the phenomenal positive charge South Mississippi is seeing. The Department of Commerce reports that new-home sales nationwide in April posted their biggest monthly drop in 10 years. Yet, South Mississippi builders reported no problem in selling and in June were still continuing their rush to fill demands.
"The woods are yielding to progress," David Bourdette, sales manager for the Home Team, a leading builder of single-family homes in the three coastal counties, "and progress is bringing what our industry sees as a whole new era in home building.
"Our own 'exit polls' show us an unexpected trend. We are finding that out-of-state visitors who frequent the Mississippi casinos, will –-on or just after their third trip to the Coast – begin inquiring about finding a vacation home within the sight or sound of the gaming places," he said.
He said it is "amazing how many families, able to do this, retain their home in California or even Louisiana, and buy a second home near the casinos."
They are also doing this from Florida. "We have them seeking small to large residences particularly in Harrison and Hancock counties."
A significant contributor to the growth has come as a result of casinos locating and expanding in South Mississippi.
"The Census Bureau calls South Mississippi B-C and A-C.” said Jim Cluman of Ocean Springs, Census bureau field rep, who continually watches the construction market at on-site locations. “ B-C refers to construction of new homes prior to the arrival of the casino industry, and A-C refers to home building that has occurred after casinos arrived."
Bourdette said "when the casinos arrived, offering hundreds of new jobs at a relatively higher local pay scale than many locals were providing 'in B-C,' the new employees soon found that with better salaries they could afford a new home with ease."
The "casino solution" contributed such a demand for new homes after 1992 that new subdivisions began sprouting and blossoming far beyond the Coast, extending into the second tier counties of Pearl River, Stone and George.
There are other growth factors. Homebuyers like to be near a major department store, or super market or a school. The lure of convenience helps determine which subdivisions will grow the fastest.
As far north as Hattiesburg, new-home demand is surging. Building officials in the Hub City reported that in all of last year, a total of 90 homes were authorized for construction. "But by mid-May this year we were moving at twice the pace of this time a year ago," said a municipal spokesperson.
As far north as Hattiesburg, new-home demand is surging over and above the norm. Building officials in the Hub City reported that in all of last year, a total of 90 homes were authorized for construction. "But by mid-May this year, we were moving at twice that pace," a municipal spokesperson reported.
Much of Forrest County is experiencing the upward trend. The only exception noted is the southern third of Forrest, which is largely forestland not ideally suitable for such growth. Also the infrastructure necessary for subdivision development is not in place in that particular area.
But over in Petal, a longtime bedroom community just northeast of Hattiesburg, things are popping.
"In Petal, you will find out biggest growth area. Petal recently annexed a portion of county land, a move which has paved the way for a lot of future development.” Jay Estes, county planner for Forrest County said. "Moreover, we are just seeing the very beginning of some commercial development in that area as well."
Demographics also are changing in Petal. As a little bit of commercial development has occurred, the market has begun growing and home-building/home-buying growth has now been extended into Jones, Greene and Perry counties, Estes said.
As the demand for homes increases, so does the demand for goods and services. "In a lot of ways, Petal is coming into its own as a self-sustaining community, Estes added. There's another formula that spells growth for Petal: The median age is dropping and household incomes are going up.
A general calculation, said Bourdette, indicates that "somewhere in the vicinity of 18,000 new single family homes" have in the 10 "casino years" replaced country lanes and long-abandoned farm acreage.
This has raised the single-family home construction industry to a calculated $2 billion in sales in the three coastal counties alone, and in turn, given new employment to hundreds of workers in all areas of construction.
One driver in South Mississippi is the rise of high-tech jobs from Northrop Grumman in Jackson County, Stennis Space and Technology Center in Hancock and others in between.
"Employees in this high-salaried category are ordering homes in the half-million dollar class," one builder said.
The continued expansion of high-tech operations points to a continuing new aspect of South Mississippi's subdivision economy.
Builder Joan Craven said this year has been "one of the busiest in a long time."
McGuire Design owner Dalton McGuire Jr. said his firm is staying “extremely busy” all year long.
Marvin Koury, who’s with Sawyer Real Estate in Gulfport, said the Coast’s biggest real estate story is the boom in new subdivision developments but he also notes that commercial development is faring well and prices are going up.