Home Builder Developer - Interior Renovation and Design

Housing The Bottom Line Other Business Features Local Stories from ThisWeek More Articles By Jim Weiker The Columbus Dispatch Sunday July 20, 2014 5:48 AM

For homebuilders, market conditions seem ideal: The demand for homes is up, prices are on the rise, and the number of existing homes for sale is down.

Why, then, are so few new homes being built?

Central Ohio home construction is off 9 percent so far this year compared with a year ago when the housing industry appeared to be starting to recover from a devastating crash.

With the industrys annual Parade of Homes now underway in Delaware County, builders say they are busy and optimistic. Two issues, though, have prevented them from fully capitalizing on rising consumer demand.

First, very little central Ohio land has been cleared, rezoned and platted for subdivisions during the past several years. In addition, lenders burned by the crash have kept builders on a short leash, preventing them from trying to get ahead of demand by building homes without buyers.

Adding to the challenges is a lingering nervousness from the housing recession, during which central Ohio home construction dropped by more than 80 percent from a peak of 11,693 in 2003 to a trough of 2,432 in 2011, according to the U.S. Census Bureau.

Theres a bit of an adjustment in the industry now, said Tim Shear, vice president of custom-home builder Coppertree Homes. The most important word is the B word: balance. You want to grow but not get too big that you cant manage.

Nonetheless, larger builders are jockeying to position themselves for what they see as optimum conditions for growth.

Were all talking to the same landowners, said Jon Jasper, who manages the Columbus region of the Cincinnati homebuilder Fischer Homes. Every builder who has the capacity to develop is knocking on doors.

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New home construction in central Ohio ready to rebound

Home and Garden More Home & Garden On The House By Jim Weiker The Columbus Dispatch Sunday July 20, 2014 5:08 AM

The annual Parade of Homes, which kicked off yesterday in Delaware County, offers an unlikely quandary for a homebuilder: Do I try to sell the home before the parade?

Of course the answer must be yes. After all, no builder even the most comfortable can afford to sit on a million-dollar home indefinitely.

But selling a home before the parade can carry a big price, as veteran builders know.

For builders, the homes serve as million-dollar billboards. They want the houses to shout, not whisper, and they dress them accordingly, with features and designs that might be over the top for average homeowners.

If the home isnt finished when it is sold, buyers are likely to want it decorated the way they want it, which isnt necessarily the way builders want their advertisement displayed.

In addition, bringing a buyer into the process midstream can turn a cruise to the finish into a mad dash of fits and starts as buyers ponder each wall color, doorknob and faucet.

Its a blessing and a curse, having a buyer, said Lee Simonides, director of sales with

3 Pillar Homes, which sold its parade model a few months ago. Having a buyer certainly slows the process down. ... Every day there is a change.

Simonides was happy to sell the parade home, but the sale required several changes, including redesigning the secondary entrance. A few weeks ago, as the home was being finished, Simonides was still waiting for a decision on the lower-level flooring.

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