Despite reports that home construction is expected to set a national record in 2002, the trend bypassed Lawrence.

According to numbers recently released by the city’s building inspections department, Lawrence builders didn’t come close to setting a new record for single-family homes built in the city limits.

In fact, new single-family housing starts actually fell slightly from 2001 totals, and it took an above average December for builders to maintain a 12-year streak of starting at least 300 new single-family homes a year.

Lawrence builders in 2002 started 304 single-family homes, down 1.4 percent from 2001 and well below the record of 486 in 1994. The 304 starts is the lowest annual number recorded in Lawrence since 1990.

The 2002 decline also marks the second time in the past three years that housing starts have declined, albeit slightly. Barry Walthall, who as the city’s code enforcement manager oversees the city’s building inspections department, said he had noticed the developing trend but wasn’t concerned by it.

“I have heard (from builders) that the housing market was a little soft in 2002, but I don’t think it was too bad,” Walthall said. “I think what it comes down to is that the ’90s were very big for single-family homes. So far in the decade of 2000 the numbers have been weaker, but they still aren’t bad numbers.”

Behind the curve

But the 2002 decline came in a year when home mortgage rates hit their lowest levels in the past 30 years and national housing data was pointing to a record year.

The National Association of Home Builders, using numbers supplied by the Commerce Department, projected in late December that sales for newly constructed homes would hit a new high, beating the record set in 2001 by 7.4 percent. Final national numbers for 2002 won’t become available until later this month.

Several area builders, though, said they weren’t surprised that 2002 was slower than previous years.

“I can tell you it was a very slow year for us,” J. Stewart, president of Terravest Construction said. “But I think I can see why. I think there were still some effects from 9-11, and I think this was the year we started to see some industry move out of town, which hurts the housing market.”

Barry Walthall, left, code enforcement manager for the city, does an inspection with Rick Sells, owner of the new Lawrence Athletic Club East. The construction industry in Lawrence in 2002 was slower than the year before. Walthall inspected the new facility on Wednesday.

Ron Durflinger, president of Durflinger Homes, said business for his company dropped in 2002 compared to 2001. Durflinger said he thought part of the reason Lawrence’s home market did not follow the national trend was because it had become too heavily dominated by upper-end housing.

“I think we have evolved into a community that because of our home prices, our primary market is people who are moving in from another town who may or may not be employed in Lawrence,” Durflinger said. “I think because of the economy we saw a lack of that type of movement.

“I think part of the problem is that as a community we’re behind the curve a bit on creating an industrial base that will allow us to be more well-rounded. I think we’re making an effort to correct that, but it will take a little time.”

Depending on duplexes

Despite the slowdown in single-family home construction, Lawrence builders remained busy in 2002. According to building permit numbers, duplex construction was strong.

Lawrence builders started 119 duplexes, or 238 living units, in 2002. That’s the third highest duplex total in Lawrence history, trailing only the record total of 168 in 2001 and the 122 built in 1996.

The reason behind the second straight season of strong duplex construction is no secret, area builders said.

“The reason it is happening is because the single-family market is becoming too high priced for starter homes, and that means first-time home buyers are turning to duplexes for their first home,” Stewart said.

Duplexes have become a popular choice for first-time home buyers because builders can afford to sell them for anywhere from $20,000 to $30,000 less than a comparable traditional single-family home. That’s possible because builders are able to put two living units on one lot, essentially cutting the project’s land costs in half.

Whether the trend is a positive one, though, creates disagreement among builders. Stewart, who does not build any duplexes, said he was concerned by the proliferation of the duplex, which basically is two homes that share a common center wall.

“I think they can be a problem because I think they can destroy the beauty of any town because in duplex construction you usually see the same house built over and over again,” Stewart said. “You see the same house with the same double driveways for block after block.”

Stewart said he also thought most homeowners, if given a choice, would prefer to not live so close to their neighbors.

Durflinger, who does build duplex units, said he thought the housing style was filling a niche in the community. He said from a planning perspective, the density that duplex developments created made it easier for the city to provide infrastructure to their residents.

He also said a number of residents chose duplex development because they often have lawn-care service, snow removal and other services that reduce maintenance tasks.

“If done correctly, they can actually create a unique living environment that can’t be duplicated in a single-family environment,” Durflinger said.

“The negative thing,” Durflinger said, “is that I know there are people in the market who would prefer to have a detached single family home as their choice, but economically in this town it is a choice that they’re not able to make.”