New home starts in New Castle
2001 13 $1,299,165
2002 15 $1,328,900
2003 15 $1,856,849
2004 7 $946,359
2005 10 $795,155
2006 9 $880,500
2007 5 $466,889
2008 2 $160,000
Craig Mauger, Courier-Times News Editor
A nosedive in new-home construction in the City of New Castle continued throughout 2008.
In 2007, the New Castle Building Commissioner's Office issued permits for the construction of five new homes - a 15-year low. In 2008, the office issued permits for only two new homes - a 17-year low.
Raintree Habitat for Humanity constructed one of the two homes, located at 1219 S. 19th St. The other new home under construction is being done by a New Castle Area Career Programs class.
The Building Trades class is working on a 2823-square foot home at 1013 Waterfront Ct.
The last time there were permits issued for only two new homes in a year was 1991. Since 2005 - when construction on 10 homes started - new-home construction in the city has been on a steady decline.
David Baker, owner of Bakers Construction in Lewisville, says the decline has hit the entire county.
But he added, "Everything has almost come to a halt in New Castle."
Baker has been in the construction business since 1967. He says the current slump is getting close to the worst he has ever seen.
"'72 was pretty bad," he said.
Baker, a religious person, says his business's decline has drawn him closer to God.
The housing slump isn't confined to the boarders of New Castle or Henry County. It is a national trend, causing problems for people everywhere who depend on construction to make a living.
According to The Associated Press, new-home construction plunged to an all-time low in December, capping the worst year for builders since 1959.
New Castle Building Commissioner Tony Riggs says he has talked to building officials in other Indiana cities that report the same problems facing New Castle.
"It's not just us," Riggs said.
Mayor Jim Small says he's working to counteract the slump. He's trying to get a grant for housing and working with the Interlocal Community Action Program.
In late 2008, the City Council approved a tax abatement for a project aiming to build 20 new, rent-to-own homes in the Belmont area.
"The bright light at the end of the tunnel is we are a applying for a mayor HUD (Housing and Urban Development) grant that will allow us to demolish a significant number of homes and build at least 12 to 15 new homes in their place this year," the mayor said.
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