Homebuilding surged in '04

Ivory Homes continued to hold its spot as Utah's top homebuilding company in 2004, a record year for new single-family home permits in the state.

The Salt Lake-based firm obtained 833 residential building permits valued at $149.8 million for the year, the 17th consecutive year Ivory has held the first-place ranking, according to a report by Construction Monitor, a publication that tracks home construction.

Rankings are based on residential valuations, which include the costs of materials and labor but not the costs of land, architectural fees or landscaping.

Also for the year, 17,634 single-family units were permitted in Utah, the highest ever in a one-year period, according to James Wood, director of the University of Utah's Bureau of Economic and Business Research.

The previous high for single-family home permits was in 1977, when 17,424 were issued.

Total residential valuation in 2004, which includes multi-family, single-family and apartment units, totaled $3.5 billion.

"It's an all-time record," Wood said. "The previous high was last year at $3 billion. It's just an amazing jump."

The surge in homebuilding, fueled by low interest rates and an improving economy, propelled builders like Denver-based Richmond American Homes.

Richmond American Homes entered Utah's market in April 2002. In 2004, the company vowed to be Utah's No. 1 homebuilder but instead came in second at 753 permits valued at $101.2 million, an increase from 388 permits with a value of $47.2 million in 2003.

California-based Fieldstone Homes ranked No. 3 at a valuation of $57.3 million and 287 permits.

Yet, owner-builders — people who act as their own general contractors — surpassed Ivory and other Utah homebuilders with 993 permits valued at $221.8 million.

Other Utah homebuilders like Dallas-based Centex Homes, which ranked No. 13 among companies in overall valuation at $18.7 million, said being No. 1 in Utah's market is not the most important goal.

"I think you had a lot of national builders come to town with a goal of toppling Ivory, and they've realized after a couple years, 'Oh, we've made stupid land decisions just to grow,' " said Jeff Southard, sales and marketing manager for Centex's Salt Lake division. "That hasn't been Centex's attitude at all. We expect to be here long term and to grow smartly so that we can stay and remain a force in Utah."

Southard, who also sits on the board of directors with the Utah Valley Home Builders Association, attributes the large number of owner-builders to small custom builders.

"When they have a client and they can only build a certain number of homes because of the access to financing that they have," Southard said, "they'll put that home in the name of the customer and pull the permit in the name of the customer."

But larger builders are gaining more market share, he said, squeezing out custom builders.

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E-mail: danderton@desnews.com