Home » Northern Kentucky construction industry mid-year report

Northern Kentucky construction industry mid-year report

ERLANGER, Ky. (July 28, 2017) – The Building Industry Association of Northern Kentucky (BIA) is releasing their mid-year construction data for 2017. 

“For the first time since the great recession ended we differ from single family U.S. housing starts in a positive manner.  While the nation decreased 9.31% over the prior year’s first six months Northern Kentucky increased 3.19%,” said Brian Miller, executive vice president of the BIA.  “Today it is all about supply as the demand is there. You either have it or you don’t. 

“With regards to single family housing that means if you can create a supply of new homes you are doing quite well in a new reality of an anemic supply of homes in the resale chain.  A deep dive into our data reveals that the top three builders in Northern Kentucky capture over 68% of the market. 

“Prior to the recession that number was in the 40’s.  We attribute that to their supply of financing, workforce and lots.  Small to mid-sized builders find it increasingly difficult to develop land given the stranglehold that regulations and local land use policy place on our industry. The ability to secure financing for multiple speculative homes and an adequate workforce to keep pace is a constant issue. 

“It comes down to the three L’s: labor, land and loans.  Campbell County is emerging as a real player and supplier of new residential communities and for all practical purposes has caught up with Kenton’s production as a result.  We believe Kenton County could easily turn the tide if only for a new direction in land use policy.  As time has shown people respond to an increasing supply of new homes in good communities that they want to live in.” 

2017 Single Family Permits YTD

Year

2017

2016

2015

2014

2013

2012

Boone

217

206

226

195

214

206

Campbell

91

91

63

41

48

49

Kenton

113

111

115

117

94

129

Total

421

408

404

353

356

384

PCT */- Prior YTD

3.19%

0.99%

14.45%

-0.84%

-7.29%

“Our remodeling subsector is cooling in volume, while still experiencing general hyperactivity, but the value of the projects has increased 21 over the prior year.  This is welcomed news as our Registered Remodelers are experiencing larger remodeling projects on average meaning a more profitable business,” said Miller.

2017 Residential Remodeling Permits YTD

Year

2017

2016

2015

2014

2013

2012

Boone

452

678

399

398

343

364

Campbell

142

245

113

25

62

114

Kenton

159

255

168

116

112

174

Total

753

1,178

680

539

517

652

PCT */- Prior YTD

-36.08%

73.24%

26.16%

4.26%

-20.71%

“Overall commercial investment in the area has leveled off after climbing for several years to a healthy range.  When you dig into the data there is healthy activity in new construction in Boone County but then it becomes sporadic.  Fits and starts would be an accurate picture of new commercial activity in Kenton County, decreasing to levels seen back in 2012.

“New commercial activity is practically nonexistent in Campbell County that continues to bump around the bottom.  Kenton has the roads and rail lines necessary in many locations to provide commercial and industrial parcels to the market that are sorely needed. Boone County currently has available land and an available supply of businesses that are expanding over and above its neighboring counties, which equates to adequate infrastructure to provide for the growth we are experiencing.  Campbell County is restricted by topography for larger footprint commercial and industrial structures,” concluded Miller.

  

2017 Commercial Reinvestment YTD

Year

2017

2016

2015

2014

2013

2012

Boone

92,616,816

104,736,851

56,844,117

65,044,244

31,538,577

31,893,405

Campbell

4,328,714

14,540,285

1,722,575

1,053,100

14,443,703

9,985,665

Kenton

26,929,032

34,540,705

77,291,827

13,416,683

33,266,498

27,327,904

Total

$123,874,562

$153,817,841

$135,858,519

$79,514,027

$79,248,778

$69,206,974

PCT */- Prior YTD

-19.47%

13.22%

70.86%

0.33%

14.51%

2017 Total Commercial Investment YTD

Year

2017

2016

2015

2014

2013

2012

Boone

117,534,161

120,337,306

96,029,011

85,374,284

43,195,499

54,246,533

Campbell

6,413,714

14,956,636

1,722,575

1,053,100

26,583,703

9,985,665

Kenton

43,761,732

35,465,705

78,791,827

30,831,883

43,266,498

29,866,854

Total

$167,709,607

$170,759,647

$176,543,413

$117,259,267

$113,045,700

$94,099,052

PCT */- Prior YTD

-1.79%

-3.28%

50.56%

3.73%

20.13%

 

The mission of the Building Industry Association of Northern Kentucky is to promote and enhance the integrity and visibility of the construction industry and the members of the organization through advocacy, communication, education and political action.