FARGO - The construction industry in the Fargo-Moorhead area is having its strongest year since 2007, building permit information compiled by the Home Builders Association of Fargo-Moorhead shows.
Total construction value for the first half of the year is more than $263 million, up almost $100 million from the same period in 2011, said Terry Becker, the association's president.
"After three years of flooding and a shaky national economy, it is refreshing to see the home-building industry thriving again and crews are extra busy on job sites," Becker said.
The association's report said housing starts are up 90 percent compared to the first half of last year, with West Fargo showing the biggest gains.
West Fargo posted 178 housing starts so far this year, compared to 69 last year at this time.
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Fargo went from 104 housing starts in the first half of 2011 to 172 this year, while Moorhead numbers went from 27 to 44.
In Dilworth, housing starts fell from 10 in the first half of 2011 to four this year.
In addition to housing, total permit numbers and construction values in the Fargo-Moorhead area increased for residential remodeling, new commercial construction and commercial remodeling, said Becker, who added that a mild winter and no flooding this past spring likely contributed to the jump in construction.
He said attention, however, must remain focused on the threat future flooding may pose.
"The home-building industry still faces some large hurdles in upcoming flood insurance mandates and the long wait for permanent flood protection," he said.
"But with our strong local economy," Becker added, "the housing needs are prevalent and that's a good thing, because we are putting people to work and we are continuing to create jobs."
With the area seeing a nearly 49 percent increase in building permits, it is one of the few places in the country experiencing an increase in housing value, according to Becker.
Still, it's a buyer's market, Becker said. With interest rates remaining low and area banks ready to lend, there are many reasons to build or buy a home, he said.
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"It is what we work for each day and want to provide for our families," he said.
Besides the mild winter and relatively dry spring, Becker said another factor driving growth is an influx of people moving from the hectic Oil Patch of western North Dakota.
"We are seeing that," he said, adding that his own business has built homes for families moving here from the west.
"It is directly related probably to the busyness of that area," Becker said.
Readers can reach Forum reporter Dave Olson at (701) 241-5555
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