Home builders optimistic for Miami County in 2024, at various market segments

Jan. 22—TROY — Miami County builders say they continue to see a "robust" housing market for 2024, despite a late 2023 dip.

"Our builders are extremely busy despite the interest rates. Some have reported a slight slowing in the last six months due to the rising interest rates, but others say they are still extremely busy," said Donna Cook, executive director of the Western Ohio Home Builders Association.

Cook, who used the term robust to describe the market, said a few local builders have indicated they are booked with jobs already for this year.

Work in smaller villages

Among areas leading the construction in the county is the village of West Milton, where building in the Stillwater Crossing development is underway. This includes homes under $200,000, which county Development Director Richard Osgood defined as "workforce affordable."

In Stillwater Crossing South with 133 single-family lots, 74 permits have been issued and 57 houses are occupied, said Jeff Sheridan, West Milton village manager. The project will include 84 units of independent living in a Randall Residence section along with those in a Randall Residence facility.

"The growth is a positive for the community, one sign is the new businesses in the downtown and even new commercial construction in the downtown, the first since the 1960s," Sheridan said.

Osgood said higher density/lower cost housing at this time appears to fit best in villages such as West Milton and possibly the Covington/Bradford areas.

"Tipp City and Troy have significant housing construction ranging from $200K to $300K, which is a range that is considered workforce-type housing," Osgood said.

In Covington, a new residential subdivision is in the works, which would be the first new housing in the village in approximately 20 years, according to information released in a village monthly report.

The proposed project is seven acres to include single-family homes and multi-unit buildings and was to go before the village planning commission this month.

Countywide data, and Troy

Miami County building department data showed 271 residential permits issued in 2022, and 197 in 2023. The construction valuation for 2022 was $104,267,801, while it was $79,365,410 last year.

Osgood, the county development director, said he sees housing construction in the county as "very strong."

The city of Troy issued 48 new residential home permits in 2023. The city has six active subdivisions — Halifax Estates, Reserve at Washington, Fox Harbor, Halifax Villas, Heritage at the Country Club and Redwood.

Several of these subdivisions have just started, while others are close to being built-out, said Tim Davis, city development director. When completion of these subdivisions occur, Troy will have 450 new single-family homes, 159 patio homes, 181 condos and 138 units of apartments.

"We continue to seek different housing opportunities to fit the needs of Troy residents," Davis said.

The newest housing project approved by Troy City Council was the Somerset subdivision to be located along West Market Street and Nashville Road. The three-phase development plan calls for 189 single-family homes.

Tipp City market different

Tipp City sees an average of 40 to 50 new homes a year. "Our growth is steady but slower than other areas around such as Huber Heights," said Matt Spring, Tipp City's development director. "We are trying to do measured growth so we can keep up with it regarding our infrastructure and school systems as well."

For example, the city is having a study done to make sure it has the ability to supply the area near the city post office, where interest has been expressed in property rezoned single-family residential.

Spring said Tipp City tends to "be a little higher-priced in general, so it is hard to have brand-new homes that lend themselves to first-time home buyers."

"That is one thing we probably could do better on," he said. "That is a function of the property being expensive to begin with and the cost of building infrastructure going up. It makes lots, homes pricey to start."

Tipp City Council recently approved a construction agreement for a new subdivision located east of Peters Road north of the Oak Lea, Windmere and Woodlawn subdivisions.

The Summit Landing Subdivision plans call for four sections combined for 172 single-family lots on an 81-acre site. The first section calls for 21 lots in a project by Clayton Properties Group Inc. doing business as Arbor Homes.

The Summit Living Subdivision property is in the city limits of Tipp City and will receive city services but lies within the Troy City Schools district.

Mortgage rates discussion

The average 30-year fixed mortgage rate late last week was 6.89%, according to Mortgage News Daily. That's nearly 1 point down from last year's peak, but still much higher than the 3-4% rates buyers were getting in recent years.

Cook, of the Home Builders Association, said that doesn't affect all of the housing market.

"Home buyers who are looking to downsize or looking to build their retirement home are many times cash buyers," she said. "The interest rates generally don't affect them. If you talk to a lot of our builders, you'll hear they are more and more building for that clientele right now."

Although interest rates for others have been high, Spring said, construction continues. "There certainly doesn't seem to be any loss of interest in building. They seem to be very anxious to do it," he said.

Contact this contributing writer at nancykburr@aol.com