Home Improvement Loan Surge Fueling Market in Northern Kentucky

Permits for residential remodeling hit a three-year high in 2006, according to BuildEx, according to the Community Press, which cites the Home Builders Association of Northern Kentucky’s permit tracking service.

A surge in home improvement loan activity helped spark a total of 1,197 permits for home remodeling projects were issued last year in the region, for a dollar volume of $37.6 million.

In 2006, Boone County issued 444 permits, followed by Kenton County with 415 permits, Campbell County with a total of 265 permits and Grant County with 73 permits.

A total of 1,095 permits were issued in the Northern Kentucky housing market throughout 2005, while 947 permits were issued in 2004.

Last year’s dollar volume of $37.6 million was 43.5 percent higher than the dollar volume of $26.2 million registered in 2005, when Kentucky mortgage demand was at its peak, along with most of the U.S. The total came in 56 percent higher than 2004’s dollar volume of $24.1 million.

Boone County’s 444 remodeling permits last year were off slightly from the 451 issued in 2005. The 415 housing permits issued in Kenton County last year were up dramatically from the 320 issued in 2005. Campbell County’s 264 permits issued in 2005, were only one less than the 265 issued in 2006.

The association attributes the increase in remodeling to a combination of factors, including a growing percent of homeowners who prefer to make changes in their existing space to accommodate a changing lifestyle.

In addition, experts believe a number of homeowners have opted to remodel rather than move, due to the slowdown in existing home sales.