Residential development down, commercial development up in 2019

While permits for new residential construction are down compared to previous years in Vestavia Hills, new commercial development is up, City Manager Jeff Downes said.

The city averages about 100 new residential construction permits per year but has had only 50 this year, Downes said.

However, the number of commercial permits issued is at the highest level since 2016, with 13 permits issued as of mid-September, compared to eight and seven permits issued in 2018 and 2017, respectively.

Downes said new residential construction has been slowed down by permit issues, mostly with the review processes of Jefferson County entities and Birmingham Water Works. The heavy amount of rainfall received in the spring also played a factor, he said.

Current residential projects include the Helen Ridge subdivision off Cahaba Heights Road, the subdivision being built off Shades Crest Road by Wedgworth Realty and homes being built in Liberty Park, among others.

Commercial development is ongoing at Liberty Park and Patchwork Farms, as well as along the U.S. 31 corridor, which includes the new Dunkin’, Baumhower’s Victory Grille, Vestavia Medical Plaza and others.

Downes said the value of residential developments usually doesn’t differ from year to year, but the value of commercial development can fluctuate, depending on the size of the development. The current value of commercial development this year is a little less than $40 million, the highest since 2016, when values were at about $40 million.

Downes said he believes residential permits will pick up again next year. With the average home value in the city somewhere between $350,000 and $400,000 and a strong economy, it’s possible home values will rise in the coming years, Downes said. Websites such as Zillow predict about a 2% increase, he said.