Construction of single-family homes in the Morgantown metropolitan statistical area (MSA) so far this year is down compared with the past four years, according to the latest edition of theMorgantown MSA Economic Monitorissued by the West Virginia University College of Business and Economics.
During the first seven months of 2007, the number of single-family homes started in the Morgantown MSA has decreased by almost one third in comparison with last year,said George Hammond, associate director of the Bureau of Business and Economic Research (BBER).
After hitting an annualized rate of 160 single-family units during the first seven months of 2004, 2005 and 2006, construction of this type of residence has fallen to an annualized average of 113 houses from January to July of this year.
The number of apartment units started in the Morgantown MSA skyrocketed during the first seven months of 2007.
Activity in this sector tends to be highly volatile with large spikes in years when large apartment projects are begun followed by little or no activity as the additional supply is digested by the market,Hammond said.
Morgantown has experienced a surge of apartment construction during the past four years, reflecting investments in anticipation of rising enrollments at WVU , continued population growth and an overall upgrading of the apartment housing stock in the Morgantown area.
Despite the cooling of single-family construction so far this year, the Morgantown MSA continues to experience sustained increases in house prices. For the second quarter of 2007, single-family home prices in the Morgantown MSA showed a year-to-year growth rate of 8.9 percent, 1.6 percentage points more than in the previous four quarter period. That rate of appreciation outpaced the national average of 3.2 percent and the West Virginia rate of 4.4 percent.
The September edition of theMorgantown MSA Economic Monitor,compiled by the WVU BBER , contains the full analysis of these trends. It is a quarterly publication of the BBER with underwriting support provided in part by Clear Mountain Bank.
Copies of the publication can be found atwww.bber.wvu.eduandwww.clearmountainbank.com. Information about the ACCRA Cost of Living Report can be found atwww.coli.org.