Report sees growth in area home starts

The Naples-Fort Myers market added 3,300 new jobs in the third quarter of 2003, for an annual growth rate of 2.0 percent, said Bradley F. Hunter, director of Metrostudy's South Florida division. "Consumers are starting to feel better about job prospects. That will translate into a stronger housing market."

The Naples-Fort Myers market recorded 1,539 single-family starts during the third quarter of 2003, an increase of 11.7 percent compared to last year's rate of 1,378 units. The annual starts rate increased by 1.2 percent to 5,290 units.

The annual starts rate for Lee County increased 15.6 percent to 3,061 units. "At 2,229 starts, Collier's pace is slightly lower than Lee's, and diminishing land supplies will cause Collier County to fall farther behind Lee County in coming years," said Hunter.

Single-family quarterly closings totaled 1,338 units, a 5.4 percent increase compared to the 1,269 units closed during the third quarter of 2002. The annual closings rate was 5,308 units, 1.9 percent higher than the annual closings rate of 5,208 units reported last year at the end of the third quarter.

Single-family inventory in subdivisions, which is composed of units under construction, finished vacant units and model homes, totaled 3,584 units at the end of the third quarter, an 8.1-month supply. Inventory decreased by 0.5 percent compared to last year.

This quarter, 1,595 lots were delivered to the Naples-Fort Myers market as compared to 1,923 lots at the end of the third quarter of 2002. Vacant developed lot inventory was 9,809 units, a decline of 1.5 percent compared to 9,955 lots last year. Based upon the annual starts rate, this level of lot inventory represents a 22.3-month supply, an increase of 0.6 months compared to last year, said Hunter.

The inventory of lots in Lee County increased to 6,364 units, with a significant percentage in North and Central Lee. The supply of lots in Collier County, however, declined to 3,445 units.

The top 10 communities in the Naples-Fort Myers market, ranked by annual new home starts are: Islandwalk (Collier) 270; Ibis Cove (Collier) 187; Brooks (Lee) 185; Stoneybrook (Lee) 176; Lely Resort (Collier) 162; Cascades (Lee) 141; Gateway (Lee) 140; Saturnia Lakes (Collier) 133; Plantation Preserve (Lee) 124; and Danforth Lakes (Lee) 107.

Metrostudy provides primary and secondary market information to the housing industry and related industries nationwide.