Upswing in new homes could mean boon to retail
Story by Carol Pappas
Photos by Susan Wall and Submitted
The saying goes, “Retail follows rooftops.” And if the recent flurry of new housing construction around St. Clair County is any indication, more retail offerings might not be far behind.
Commercial developer Bill Ellison, president and CEO of I-20 Development, knows more than most the importance of residential growth. He has been recruiting commercial business to the Pell City area for more than a decade.
“Retail does follow rooftops, and we just haven’t had enough rooftops to ignite significant growth in the national chain stores and restaurants people would like to see near Interstate 20 and US 231. We have had some successes with Publix, Buffalo Wild Wings and the new Premier Cinertainment movie theater, bowling alley and entertainment complex. But new rooftops coming in gives us an encouraging look at the future.”
St. Clair Economic Development Executive Director Don Smith agreed. “It is important for a community to continue to have a growing population base. Young families are an ideal demographic because they have upward mobility in there new careers, typically shop locally, and are in a high consumption phase of their life.”
He noted that young children require new clothes and supplies on an annual basis. “New residential developments that provide a safe neighborhood with good schools and convenient shopping is ideal in attracting young families.”
And that bodes well for retailers looking for a place to locate. “New retailers are attracted to communities with a growing population and increasing household income. Many times, it’s not the number of homes that are being built, but the quality of the development that will determine the type of future retailers a community will attract.”
In Pell City, upper scale, craftsman homes are being built in Hillstone Heights, and Fox Hollow is opening new sectors.
Dave Elmore, president and CEO of Crossings General Contractors, had actually gotten out of the construction business when he was building his own home on Logan Martin Lake. But he “saw an opportunity when not many homes were being built, and Realtors did not have an inventory.” He bought 21 lots in the Hillstone Heights subdivision off US 78 and began building speculative homes. Two have sold already.
“There was an opportunity or a need for more upscale homes,” and he created a gated community there. “They are a little more expensive with more amenities, and the craftsman style trend is what everybody seems to want.”
Plans in Fox Hollow near Interstate 20 and US 231 call for 91 new homes to be built as the final phase of that subdivision. Twenty are already under construction.
According to Brian Muenger, city manager for Pell City, the City issued an average of 30 new home permits a year in the 2012-2016 calendar years. “In 2017 we saw 55 new home permits issued, and in 2018 it surged to 74. With the final phase of Fox Hollow and Hillstone under construction, we should see the trend continue throughout 2019, and hopefully beyond that point.”
He noted that the Horizons lakeside development, which has around 200 remaining lots, was sold last year. “I understand that they plan to begin construction in 2019 or 2020.”
Muenger called the economy in recent years “extremely strong, and the houses that are being built have been moving quickly. The supply of existing lots, specifically in the sub-$250,000 price range, will likely be depleted within two years, and there is a significant need for additional subdivisions to be developed in that price range.”
To encourage additional residential development, the city council enacted a substantial reduction of its impact fees and subdivision fees in 2017, lowering those development costs by more than 40%, he said. “This was done in recognition of the need our area has for additional rooftops, as well as the benefits that additional population has in driving our retail sector. Current third-party projections indicate that by 2019 there will be more than 44,000 people residing within 10 miles of the city center.”
While not all of that population is inside the city limits, “the entirety of that population is comfortably within our trade area, making the city an attractive market for additional retail development. The city’s existing retailers have seen substantial increases in sales in recent years, which is indicative of the market demand. Statistics show large opportunity gaps in our existing retail landscape, including a gap of over $50 million in the food service and beverage space.”
To the west, Moody is experiencing a sizable surge in new home construction. Mayor Bill Lee said his city is seeing a building boom in the new housing market with an estimated 500 new homes to be built in four new subdivisions. Also under construction is a senior living complex with 26 duplexes being built.
“The housing market does push commercial growth,” Lee said. Moody has made sure it has a good mix of residential options over the years. What is being built now are larger homes, enabling those in starter homes to move up and stay in Moody. With the city’s proximity to the Interstate 20 corridor and the growth it is experiencing in the residential market, “retail is right behind it.”
Longtime Realtor and owner of Lovejoy Realty, Lyman Lovejoy, is seeing plenty of movement in the northern half of the county as well. In Moody’s Edgewater subdivision, “we are selling out fast.” There are several custom homes under construction at the present time.
There are several new homes going up in The Village at Springville, which has 20 lots left. “Spec houses are selling fast across the county, Lovejoy said. Magnolia Lake in Margaret is seeing its share of growth with several homes under construction, and the city of Margaret’s total of construction is more than 40 homes being built right now.
Lovejoy’s Canoe Harbor development on Neely Henry Lake, a joint venture with Freeman Land Co., has enjoyed much success since it opened for development a year ago.
There are 26 lots on the water and 10 off the water. More than half the lots have been sold in the lakeside development that sits between Ashville and Rainbow City. He credits the positive housing market plus no water level fluctuation at Neely Henry with the success in such a short time.
Lovejoy Realty Broker Brian Camp, who owns Waterstone Homes, built 20-25 homes in 2018 in Moody, Odenville, Margaret and Springville areas.
And just as the saying goes, Lovejoy concluded, “If we have enough rooftops, retail will come.”
