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Companies, Realtors agree: Natchez is out of housing space
Published Sunday, March 30, 2008
NATCHEZ — As Natchez plans and prepares for the growth spurt that many view as imminent the issue of housing will become increasingly more important.
With each new casino and business locating in the area come employees who need houses.
And one such project, already under construction, has illuminated what housing problems might face the Natchez area in the near future.
The new prison being built by Corrections Corporation of America currently employs approximately 160 construction workers.
And while the yet-to-be inmates are guaranteed housing, the same cannot be said for the crew building the prison.
Bobby Smith, senior project manager, said several members of the construction crew had great difficulties finding housing when they came to Natchez to start work on the CCA project.
“It was definitely an unexpected problem,” he said. “I haven’t seen this before.”
In fact Smith, who regularly relocates to work sites, said he had problems finding housing for himself when he arrived in Natchez.
Smith said several members of the construction crew went up to one-and-a-half months before they could find adequate housing in Natchez.
“A lot of guys were living in motels,” he said.
Smith said some members of the crew eventually gave up the hunt for housing and bought travel trailers to live in until the project is completed.
Smith said enterprising investors would do well if they would build middle-income apartment complexes in the area.
“People just can’t find a place to stay,” he said. “This area really does need more housing.”
Up for grabs.
While the Vidalia, Adams County and Jefferson County housing market normally keeps approximately 190 houses available, right now there are 230 houses on the market, said Vicky Ratliff, association executive for the Natchez Association of Realtors
There are several reasons for the availability of more houses on the market than normal, Ratliff said.
“Right now, interest rates are low and people are thinking they can get a bigger house for not much more,” she said. “People also know that businesses are coming to town, and they are thinking maybe it’s time to put it on the market because people will want something when (the companies) come in.”
Spring usually sees more houses on the market because parents who have taken jobs elsewhere want to wait until the end of the school year before they move their children, Ratliff said.
The low price for a house on the market right now is $50,000, located in the Morgantown area, but the high end — where construction and industry workers are not likely to move — is $500,000, Ratliff said.
The median home price on the market right now is $69,000.
Already home?
CCA’s Marketing Director Steve Owen said he does not think a housing shortage will impact CCA in the long run.
Owen said many of the problems being seen at the site deal with construction workers that will eventually leave when the prison opens in January 2009.
Owen also said since most of the 325 employees CCA is expected to hire will be local, new housing needs will be further decreased.
“We expect the overwhelming majority (of employees) to be local,” he said.
Owen estimated 85 percent of the new hires would be local, leaving very few individuals needing new housing.
Squeezing in, spreading out.
For those who will move in, there’s only one solution to the housing crisis, and it’s building more houses.
Such a seemingly simple solution proves to be complicated in Natchez.
While Realtors, developers and city officials realize that housing is desperately needed, not much land is available.
Interim City Planner Walter Huston said there is not enough space for the needed housing developments.
“Any type of housing projects are probably going to take place in the county,” he said. “We just have a lack of land here at the present time.”
Sue Stedman, of Crye-Leike Stedman Realtors Incorporated, echoed this sentiment.
“We’re pretty much built out,” Stedman said. “We’ve got pockets for small developments.”
She said what is needed is another development like Montebello or Westover neighborhoods, that have hundreds of houses in them.
“You’d have to get pretty creative to create that space,” she said.
She said a solution to the limited space would be to annex in county property.
Mayor Phillip West said he’s been gunning for annexation for awhile now, and the vote of support he had from the board was withdrawn and tabled.
“I know we need to expand the city but I can’t do it without the board,” he said.
West said a “high ranking official” from the U.S. Department of Housing and Urban Development is coming to Natchez within the next few weeks and the housing dilemma is a hot topic to be discussed.
“That’s part of the reason we’re going to speak with officials,” he said. “We’re going to expand the city.”
Desperately developing
There are developments that are taking place, but not enough to sustain the estimated amount of people that Grand Soleil, CCA and Rentech will be bringing in.
One development would help the situation, but has been stalled.
The Preserve, a housing development in the works behind the Natchez Mall, was to bring between 75 and 80 units, from single-family dwellings to duplexes and townhouses.
But Butch Stewart, owner of Coldwell Banker Stewart Realty, said negotiations are being made to sell part of the property to another entity.
“The process has slowed down because of that,” Stewart said. “The project is still ongoing but it’s not as fast as I like.”
The property has been cleared he said and engineers are working on getting the final plans done.
Huston backed this up when he said the site plan approving committee has not seen these plans.
Stewart said he believes the houses that will be built on this property will assuage the problem, but not solve it.
“We don’t have the housing to support the new jobs that we think are coming in,” he said.
Stedman said there is a high demand for single dwelling houses.
“And there’s a lot of pressure on what I call you middle income range, anything in that $150,000 give or take,” she said. “That’s always a real hot market because that’s where you have the most purchasers.”
She said she believes developers realize the need for these houses.
“I think they’re well aware of that and I think as soon as that demand materializes, you’ll begin to see some new construction,” Stedman said.
Someone who is developing some of those houses is Jody Foster, of River Homes.
Last year he built three patio homes on North Pearl at Madison.
“Two of them sold immediately,” he said.
He also recently purchased property on Auburn Avenue near Duncan Park.
“We’re probably going to start construction there pretty soon,” he said.
The property is divided into two separate pieces.
He said the first piece, which has already been cleared, will have nine lots. The other will have 15, and Foster said it will be a gated community.
Not far from Foster’s location, on Duncan Avenue, developer Dick Thompson has been constructing the first of a group of 20 houses he has planned.
On U.S. 61 South Glenn Green of Paul Green & Associates and Ricky Edgin of Edgin Construction Co. are working to clear 760 acres of land for a housing development — Hedges Plantation Land, LLC.
This is a start, but not where the city needs to be, Foster said.
“If everything that is talked about comes to fruition, I would say (we would need) anywhere between 75 and 150 new houses,” Foster said.
No need to commit
Not all the people coming into town are looking to stay here permanently — like construction workers who just want a place to rent.
Stewart said Natchez is lacking rental properties.
“Right now, it’s going to be a problem,” Stewart said. “We have no rental units, check the apartments, we have hardly any vacancies.”
Foster said he is looking into purchasing property to build an apartment complex.
He said he’s having a feasibility study conducted.
“I’m looking at the market demand’s current situation and evaluating it,” he said.
Supervisor President Henry Watts said there is a proposed development off of Morgantown Road, where 10 rental units will be built.
Watts said affordable housing is in high demand in the county, but the county currently does not have a plan to bring more in.
“The county should have some strategic housing plan,” he said.
Comments
Posted by watcher (anonymous) on March 30, 2008 at 9:15 a.m. (Suggest removal)
I'm confused AGAIN! I thought we had 25,000 people here not so long ago. Where did THEY live?
Maybe we had less than 25,000 or we have more than 19,000. Or sumpin.
Posted by shedevil (anonymous) on March 30, 2008 at 9:43 a.m. (Suggest removal)
Im confused too...where did the people that worked at ip, armstrong, johns manville & diamond national live?
Posted by fire39212 (anonymous) on March 30, 2008 at 9:44 a.m. (Suggest removal)
Good point you two..
Posted by destiny (anonymous) on March 30, 2008 at 9:52 a.m. (Suggest removal)
I'm with you WATCHER. This article is completely baffling to anyone's mind. When was the last census taken? Do we not deserve an accurate account of how many citizens we have living in Natchez? And if more housing is needed, does that not reveal a hidden agenda? If they are going to hire locals who need work, these people already have a place to live. Does this not tell us that all these companies are bringing in their own people and leaving the locals out? Something smells fishy here. With all the natives moving out, which I know are many, didn't that leave plenty of open housing. Sorry Hogan, but you have created a lot of unanswered questions in this article. Can you clarify. Would appreciate it.
Posted by freedom42 (anonymous) on March 30, 2008 at 9:55 a.m. (Suggest removal)
If we have no houses, how come I see for sale signs out everywhere I go? You cannot drive down any street or go through any subdivision without seeing at least one home for sale.
Posted by sayitloud (anonymous) on March 30, 2008 at 10:13 a.m. (Suggest removal)
Apparently what we have isn't good enough?
Posted by watcher (anonymous) on March 30, 2008 at 11:54 a.m. (Suggest removal)
AHA sayitloud! Maybe the houses we have don't have granite countertops or sumpin.
Posted by watcher (anonymous) on March 30, 2008 at 12:14 p.m. (Suggest removal)
destiny - I long ago came to think that when a new industry comes they not only bring their own people but the wives and teens who will be looking for work. In addition many "local" hires will come from LA, Woodville, Meadville, Fayette, Brookhaven, etc.
The net employment change for actual locals could be negative.
Posted by sayitloud (anonymous) on March 30, 2008 at 12:32 p.m. (Suggest removal)
or maybe they are looking for a skyrise penthouse?
AIN'T here dudes!
Posted by watcher (anonymous) on March 30, 2008 at 12:34 p.m. (Suggest removal)
Some years ago (in the 70's) when I was in the demographics business I came across a Mississippi publication that showed: almost 2,000 coming into Natchez to work and 400 or so leaving Natchez to work.
QED - Latin; "that which was to be demonstrated"
Posted by sayitloud (anonymous) on March 30, 2008 at 12:37 p.m. (Suggest removal)
What about B&B's? I have heard of many people who work out a deal with the owner and rent a room out on a weekly or monthly basis. Has no one even thought of this?
Posted by NatchezEnema (anonymous) on March 30, 2008 at 12:48 p.m. (Suggest removal)
Read the fine print people. A high ranking official from HUD is headed our way. In other words, Natchez wants another handout from the goverment. So they have to put on a good song and dance like we have a problem around here with housing to get it. and of course, we have the annexation deal looming. How can the population drop almost 50% in 20+ years and this town not have enough room for more people. I bet when this person gets to Natchez the first thing they will do is hand him a copy of the Democrat and say," see, housing is so bad, even the paper is writing about it". My Natchez brothers, there is a lot of hype on this so called Natchez boom that is going on because of the amount of construction workers that are in the area. If this town is not careful, and the realtors don't stop being so greedy, this town is is going to have a lot more empty houses that will not sell. Some of the new houses that were built and sold right after construction were bought by people from out of town with insurance money from Katrina. That same money that is almost gone now is why a house that was going for 75,000 went to 150,000 after the storm. Look at some of these flyers with homes for sale. It's a joke what some people are asking for them. Most of the time when you try to screw someone else you end up screwing yourself. When the construction is over it will be a lot easier to judge what the market really needs for housing around here. Natchez needs a good correction in the housing market around here. Prices are over inflated since Katrina and because of the construction. I remember the same hype when the convention center was being built and downtown was so busy with all the workers.
Posted by watcher (anonymous) on March 30, 2008 at 12:57 p.m. (Suggest removal)
If HUD wants to help us UPGRADE existing housing for Natchez citizens that's fine with me.
Make no mistake I'M FOR NATCHEZ and our folks.
Posted by NatchezEnema (anonymous) on March 30, 2008 at 1:20 p.m. (Suggest removal)
What good is a mayor, or anybody for that matter, that all they want or can ask for is a handout. This lack of drive and false hype has made things dismal in Natchez as it is. And after what Mr. West did to the public schools here, I don't trust him on any deal. There was a lot of people who were all for that a lot of years ago and LOOK WHAT IS THE RESULT! I have the paper saved somewhere of that day how everybody talked about how much more money the school would get and how much better things would be for the students in the Natchez area. Your name is watcher, and you better watch out anytime these people get their heads togeather on anything!
Posted by rushinghjr (anonymous) on March 30, 2008 at 1:28 p.m. (Suggest removal)
Watch HUD and the projects?
Posted by hitormiss (anonymous) on March 30, 2008 at 6:23 p.m. (Suggest removal)
The population has not declined 50%. The statement that asks what good the Mayor and others are doing asking for a handout from HUD is soooooo small minded. Our government has vast resources (knowledge, not just funds) that could benefit Natchez. All those involved in getting the top level official from HUD here are to be commended.
Natchezenema, your views on our city have never been positive but this last comment has taken you to a new low.
Posted by anonymouscoward (anonymous) on March 30, 2008 at 8:11 p.m. (Suggest removal)
The point of the article is that there is no "affordable" living around here, especially for the short term. I've lived in many cities, and in every one it only took a few days to find a suitable place to rent. Not in Natchez. It took more than a month and I finally had to rent a house out in Kingston.
Recently I had a friend move to Natchez for a job. He and his family have spent the last month trying to find ANYTHING to rent that is not trash. They're not looking for granite counter tops, just someplace with reasonable rent that isn't falling in on itself.
There is truly little or no places to rent for middle income families.
Posted by emp (anonymous) on March 30, 2008 at 8:47 p.m. (Suggest removal)
There are plenty of houses for sale but the construction workers are looking for houses to rent.
Posted by watcher (anonymous) on March 30, 2008 at 8:50 p.m. (Suggest removal)
The problem then, perhaps, is affordability rather than availability. Sounds reasonable,
Posted by NatchezEnema (anonymous) on March 30, 2008 at 9:27 p.m. (Suggest removal)
First I did not say it had dropped 50%, I said almost, I knew that would bring some pop shots out. This town has lost at least about 8000 good paying jobs in the last 20+ years. Most of those people who left were married and had children, so, you do the math. If the town has so many resorces maybe they should use it to repair some of the streets, or use it instead of talking about raising our taxes. And If they have so much knowledge they should use that also instead of paying advisors or our elected officials to go out of town to see how things are done elsewhere and come back with no results or action. You know most of my comments I guess are viewed as negative by many. But they are the truth. I point out problems. A alcoholic has to admit to his or her problems before a resolution or solution can be found. The same with this city and the goverment here. We do need more good middle class housing but at what cost. I say first do something that will get the middle class back in Natchez like good jobs and the housing market will take care of its self. This idea of build the housing and the people will come is the same as build a convention center and the people will come. Or build all these hotels and the people will come. Wake up in the morning and drive by our old hotels and our new ones and look at the parking lots. They are mostly empty. Natchez is at a crossroads once again in it's history. If things are played right this town will turn around for the better. If decisions on our future are made with the old mentality that has been around for years this bubble will pop and Natchez will never recover. The truth hurts hit or miss. This town could fall off in the river and it wouldn't hurt of affect me one bit, but I do love this city and want the best for it. If you think our leaders have done a good job in the past, or most of their decisions have been winners, I think you have sunk to a new low, are blind, ignorant, both, or one of them.
Posted by rushinghjr (anonymous) on March 30, 2008 at 10:26 p.m. (Suggest removal)
The Mayor's office should have the population figures for the last audits of the population for the last several ones or the contact for the factual census information!
Posted by hawk (anonymous) on March 31, 2008 at 9:23 a.m. (Suggest removal)
what a joke ///local construction companys should be the ones building what few bussiness are locating in natchez what happend to shop at home??? these new business will all employ out of town workers what few locals that get a job will be the low paying jobs no out of towner will want. its been like this forever people wake up. look at the prison it will be people from other states running it they will hire from the state they come from not natchez. the casinos and the new hotels well we know. the population of natchez has grown since katrina and natchez is making progres but some of our elected officials need to hit the trail natchez is so far behind it is unreal.
Posted by EnKiKur (anonymous) on March 31, 2008 at 2:47 p.m. (Suggest removal)
hitormiss, regarding funds our government does not have vast resources, what it has is a 9 trillion dollar debt. That is one 9 and fifteen 000,000,000.000.000's. If you are a taxpayer, your share of that is about 72,000 dollars, and it is getting larger by the day, what with the over 400 billion the Fed has recently promised the banking industry as bail out money, plus the 3.2 trillion dollar budget the president is currently asking for.
As for knowledge, I think there is plenty of evidence the government has been operating deficits in that area for some time as well.
HUD is from the government, and they are coming to help us? I wouldn't count on it, and I sincerely hope they don't come down here throwing more IOU's around until the public becomes educated enough to know the difference between an IOU and lawful money.
The only resource the government has is it's human capital (check the Treasury Dept. and Commerce Dept. for their definition of human capital); what the government is claiming as its' capital is your butt and mine, if you are a taxpayer. If you want to sell yourself to pay for HUD handouts, go right ahead, but leave me out of it. I suggest you balance your checkbook and see how much you can donate to the cause, because if you don't let them know ahead of time they are likely to ask for your some of your mortgage and food money as well as your disposable income. Is your house paid off? Mine isn't, and before I go paying for houses for other people to live in I would like to own mine!
Posted by EnKiKur (anonymous) on March 31, 2008 at 3:13 p.m. (Suggest removal)
For heaven's sake, this article is really about the Democrat's drive to annex parts of the county so the city will be able to collect taxes on the new residents, if any come.
What are these industries bringing all this growth? CCA prison, a company that makes a profit by storing people for an amount of money that is less than it takes in from various government bodies who get the money from taxpayers. This is a company that is incentivized to promote longer periods of incarceration, spends tons of money in campaign contributions and lobbying efforts to support politicans who will support CCA's goals of keeping more people in prison longer. Produces nothing.
Then there is Grand Soleil, to join Isle of Capri who is already here. Two businesses that make money by giving people back thirty cents of every dollar the people give to them. I don't blame them for doing it since people are dumb enough to consider giving their money to Las Vegas slicksters as entertainment. But, these companies produce nothing.
Then there is Rentech. If they do build this plant, as far as I know it will be only the fourth plant of its type in the world. So far produces nothing, and its industry as a whole produces very little, and I am willing to bet Rentech is hoping for some type of government subsidy.
I am amazed at the joy people feel over this. Two industries that are a drain on society, and one that hopes to be. In all, three industries that are like a snake eating its own tail economically. How many times can a snake eat itself?
The purpose of government is not to collect taxes. To read the Democrat one would think that the sole purpose of government is to do just that.
Posted by EnKiKur (anonymous) on March 31, 2008 at 11:26 p.m. (Suggest removal)
I hope it wasn't this guy that was coming:
By David Jackson, USA TODAY
WASHINGTON — For the first time in President Bush's tenure, one of his Cabinet members is stepping down amid a criminal investigation.
Housing Secretary Alphonso Jackson, a longtime Bush ally from Texas, said Monday he'll leave his post on April 18. He announced his departure on the fourth anniversary of his Senate confirmation.
The FBI has been investigating the ties between Jackson and a friend who was paid $392,000 by the U.S. Housing and Urban Development Department as a construction manager in New Orleans, according to the Associated Press. Jackson's friend got the job after Jackson allegedly asked a HUD staffer to pass along his name to the Housing Authority of New Orleans.
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