The total number of building permits issued in Mitchell inched up in 2008, but the number of permits for new houses sank by 50 percent to a 15-year low.
City of Mitchell Building Official John Hegg said the economic downturn probably caused the drop in new-home permits, but he said there was plenty of other construction work to make up for the lack of new homes.
"A lot more people chose to do an addition to their home and stay put, rather than build new," Hegg said. "Or instead of looking at a house with a bigger garage, they opted to add on a stall to their garage or put an accessory building out back."
Even though building permits for new homes dropped from 40 in 2007 to 20 in 2008 -- the lowest number since 1993 -- the total number of building permits increased from 158 to 162.
The total valuation of new construction in the city dropped by 20 percent from $16.253 million to $12.972 million, the lowest total since 2003. The building-permit fees collected by the city dropped from $58,188.50 to $53,542, which also was the lowest since 2003.
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The biggest growth in any category of 2008 building permits was in commercial additions, which increased from 11 permits in 2007 to 27 last year. Other increases came in the categories of schools (from zero to one with the building project at Mitchell Technical Institute's south campus), duplexes (from one to four), new commercial (from nine to 10), residential additions (from 27 to 32) and demolitions (from six to 13).
Decreases occurred in the categories of new residential (from 40 to 20), garages (from 59 to 54) and church addition/rectory (from two to one).
Bob Mueller, of Mueller Lumber, blamed the downturn in new-home construction on the national economy while also noting the irony that, with interest rates falling, it's a great time to build.
"Interest rates are the lowest that I've ever seen them, as far as long-term housing interest rates," said Mueller, who's been in the construction business for 45 years.
As contacts from potential new-home customers have fallen, Mueller said homebuilders have stayed busy with other projects.
"Certainly there's more remodeling of homes and repairing of homes if the new homes aren't built," Mueller said, "and we do other work than residential."
