Permits up, worker availability down


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  • | 12:00 p.m. October 13, 2016
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A sold sign in front of a D.R. Horton home as workers finish framing a house in Northwest St. Johns County. Crews are working overtime to keep up with the demand for new housing the area.
A sold sign in front of a D.R. Horton home as workers finish framing a house in Northwest St. Johns County. Crews are working overtime to keep up with the demand for new housing the area.
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By Jamie Swann, Contributing Writer

When driving around Northeast Florida, it’s hard to ignore the changing landscape.

New houses are springing up daily and builders are steadily buying more land for new subdivisions.

The desire for new homes in Clay, Duval, Nassau and St. Johns counties is climbing so rapidly that contractors can’t get them built fast enough.

“Mortgage rates are still low and the job market is good, which brings out buyers,” said Corey Deal, executive officer of the Northeast Florida Builders Association.

According to NEFBA, 5,690 new home permits were issued from January through August in the four-county area. That’s up nearly 28 percent from last year’s end-of-August total of 4,330.

With 6,725 total permits issued in 2015, it’s projected 2016 will see the highest number of permits in a single year since 2006, when 11,127 were issued.

“The municipalities are doing a great job keeping up with the market,” said Brad Muston, head of construction for the Jacksonville division of DreamFinders Homes. “They are pumping out the permits as fast as they can.”

But with a boom, also comes problems.

Some residential builders say they continue to have trouble finding construction workers for their job sites — and that demand is expected to grow.

“It’s a huge challenge, no question about it,” stated Muston. “And it’s not only a quantity issue, it’s a quality issue as well. The skilled trades labor market is really tight.”

According to data from the Florida Department of Economic Opportunity, the state’s construction industry this year added 22,000 jobs, of which 4,300 were in Northeast Florida.

Even with the increase in workers, many companies are still seeing labor woes. Some are resorting to creative methods to tackle the workforce problem in attempt to stay on schedule.

“We’ve hired workers according to proximity to the jobsite,” said Doug Moran, Jacksonville division president of DreamFinders Homes. “We’re making it more efficient for everyone so we can stay on schedule.”

DreamFinders Homes is second in the area to D.R. Horton for number of permits issued.

With communities from St. Augustine to Fernandina Beach, the builder is familiar with the impact a labor shortage can cause.

“Until the demand comes down or we get more labor, we will see prices increase and longer construction schedules,” Moran said.

Some in the industry feel training a new generation of trade people will help solve the skilled labor shortage.

Apprenticeship programs in the area are recruiting and preparing new workers for a career in construction.

Typically, these programs offer an entry-level introduction to trades within the industry, including plumbing, electrical, ironwork and basic construction framing.

“Our apprenticeship program at NEFBA is a four-year program,” said Deal. “It teaches skills for a lifelong career and allows for the opportunity to be independent.”

 

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