The once-booming home construction industry in Lawrence is entering a third year of decline.

In 2008, a total of 102 building permits were issued for single-family homes, according to Lawrence Home Builders Association. That was down from 166 issued in 2007. In 2006, permits issued totaled 247.

“The building activity in single-family homes has slowed down, but there are other segments of building that have remained pretty strong,” said Bobbie Flory, association executive director.

A couple of large apartment complexes are being built and there is renewed interest in home remodeling, Flory said.

And Lawrence is seeing some custom home-building activity, said Mike Nuffer, owner of his own construction company and president of Lawrence Home Builders. That involves people who already have customized plans for a home — or who want to develop those plans and are approaching a contractor about doing the work.

But homes built by contractors on speculation that someone will buy them has dwindled, he said.

“It does seem that there are a lot of people who want to do something, but they’re just scared,” Nuffer said. “But interest rates are at an all-time low, or at least the lowest since I’ve been around.”

Nuffer agreed with Flory that there is interest among homeowners in remodeling.

“I think the people I’ve been working with are content where they are and just want to make small changes or some updating,” Nuffer said.

The home-building industry in Lawrence has typically been stable, Flory said.

“We haven’t had the highs and the real lows that other places have had,” she said. “We’re optimistic that consumer confidence will return and we’ll have more normal levels of building activity.”