Home builder demand drives market growth in parish

66-lot subdivision is positive indicator

Announcement of St. Charles Parish’s first major subdivision in more than eight years was spurred by one thing – demand.

“Home builders are asking for more lots,” Joel Chaisson, who is sole owner of JCJR Enterprises developing the subdivision. Chaisson, also the parish’s district attorney, said of lots sold in his earlier subdivision on Allie Lane that is adjoining the proposed project in Luling. “All of a sudden it kicked up and now they’re gone – that was a market indicator to me.”

Most of the sales have been in the last 12 to 18 months, said Chaisson. His first project dates back to more than 20 years ago with Ormond Trace with 22 lots.

As with most housing markets nationwide, sales disappeared and/or lagged since the housing bubble burst in 2008 and were worsened by the nation’s “Great Recession” or economic downturn.

But Chaisson, who sells lots not houses, said the downturn that slowed sales on Allie Lane has ended and prompted his permit application for the 66-lot subdivision to be called Ashton Oaks Subdivision, also in Luling. The lots average 6,000 square feet each.

“There is a tremendous demand for lots in this price range,” he said. “I thought the timing was right and I’m happy to be investing in the growth of St. Charles Parish.”

The project has already jumped one hurdle with the parish’s Planning and Zoning Commission and goes to the parish government for consideration.

Wendy Benedetto, Realtor with Latter & Blum in Destrehan, who helped sell Allie Lane lots, said residential construction is up and it’s much needed.

“It’s pretty healthy in our little parish,” Benedetto said of demand for new residential property. “I think a new subdivision is going to do well. It’s got to be well planned and priced to the area.”

Increasing demand for new construction is driving the market and prices, she said. Lots that sold for around $159,000 now sell for around $179,000 depending on the plan.

But more properties are needed, especially new ones, Benedetto said.

Area market indicators are improving and are the driving force behind the planned subdivision.

Planning Director Michael Albert said residential building permit numbers are showing steady growth.

They’ve grown from 91 in 2012; 106 in 2013; 112 in 2014, and 124 in 2015.

New growth is a welcome opportunity for Benedetto, who pointed to the kind of development that lets residents step up housing.

New housing prices averaging $190,000 to $220,000 are anticipated, she said, which would still qualify for 100 percent financing with Louisiana Rural Development loans that has helped sustain sales since Hurricane Katrina. These loans are what she attributes to the substantial success of house sales in areas like Allie Lane.

“I think it’s great … it’s growth,” she said of the proposed subdivision. “It’s what we need.”

Dawn Morales, agent with Latter & Blum in Boutte, said it’s a seller’s market and that points to the need for housing inventory to give buyers more choices.

“Inventory is low all the way around and that helps sellers being able to ask a little more right now,” Morales said.Strongest sales are being reported in the $250,000 price range, she added.

Morales also welcomed news of residential expansion in the parish.

“I think it’s great,” she said. “We need more new construction … more new inventory.”