Residential Construction Booms in N.Va.
Fairfax County approved construction of more homes last year than at any time since the last recession, reflecting a robust economy that is expected to continue to grow in 1999 but at a slower pace.</br></br>Residential building permits issued by the county rose 23 percent last year, to 8,342, from 6,774 in 1997, according to figures released this week. The level of activity was the highest since the mid-1980's, when a housing boom added 11,000 to 13,000 new homes a year.</br></br>Last year "was the best year since before the recession in total number of {residential} units," said Stephen S. Fuller, a George Mason University public policy professor who tracks the local economy. "Everybody thought it couldn't go on like this {after a strong 1997}, but it did."</br></br>Fairfax wasn't alone. Neighboring Arlington and Alexandria also reported an increase in both residential and commercial construction as Northern Virginia benefited from lower interest rates and a surge in new jobs. Some 41,000 jobs were added in the region, economists said, as mortgage interest rates dipped to a 30-year low.</br></br>Economists keep a close eye on the number of residential and commercial building permits issued because it provides a leading indicator of the economy's health. Builders construct more new homes and offices if they sense growing demand and curtail activity if they see signs that it's weakening.