Building permit values in Houston fall far below last year’s

New residential hardest hit

Wendy Natt, Mar 30, 09.

This news from a recent Greater Houston Partnership email newsletter on building permit values from February 2008 to February 2009:

“The value of building permits issued by the City of Houston for construction in the first two months of ’09 fell 40 percent from the same period last year to stand at $657 million, according to data from the city’s building permit department. More than 60 percent of that total was permitted in February, which nonetheless saw permit value fall 37 percent from February ’08.

Permits for new residential construction have been hardest hit, down 83 percent for the month and 70 percent for the year to date. Permits for new nonresidential construction also fell more than 50 percent for both the month and the first two months.”

Retails sales, including gasoline, in the third quarter of 2008 were higher than in 2007, while motor vehicle sales fell, and some retail growth did not keep pace with population growth, according to Texas Comptroller figures, says the GHP newsletter:

“Gross retail sales in the 10-county Houston metropolitan area totaled $23.9 billion in Q3/08, up 14 percent from Q3/07, according to the latest figures (unaudited) from the Texas State Comptroller’s Office. Gross retail sales for the first three quarters of last year rose to $68.9 billion, up 16 percent from the same period in ’07.

With rising gasoline prices last summer, gasoline station sales in Q3/08 more than doubled from Q3/07, up 133 percent to $5.1 billion, accounting for more than one-fifth of total retail sales. Sales of motor vehicles, on the other hand, fell 16 percent to $2.7 billion. Presumably boosted by Hurricane Ike in September, sales of building materials rose 11 percent to $1.6 billion. Food and beverage sales grew 0.7 percent, not even keeping pace with population growth, and despite a 1.5 percent rise in the cost of food at home here during the quarter.”

GHP Houston Economic Indicators, March 30, 2009.