Local News

Housing slump could mean layoffs for Fuquay-Varina

Posted March 10, 2009
Updated March 11, 2009

— The town manager of Fuquay-Varina said Tuesday that housing woes are forcing him to consider lay-offs.

The town depends on revenue from construction permits and inspections. Since construction has slowed because of the weak economy, Town Manager Andy Hedrick said the town will see fewer permits issued, and less money flowing to city coffers.

Housing slump could mean lay-offs for Fuquay-Varina Fuquay-Varina deals with housing slump

"I think reduction in force is one of the things we look at," Hedrick said Tuesday. "The thing that I fear is that it will be coming sooner (rather than) than later."

Two years ago, Fuquay-Varina issued about 800 permits for new homes. "At the pace that we're on, we'll be lucky to do 250 homes in 2009," Hedrick said.

"Where we had budgeted close to $800,000 this year, we will probably collect less than $400,000 when it's all said and done," Hedrick said.

Although he has not made a decision, Hedrick said extra employees hired to handle the housing boom two years ago could be affected by his decision. He plans to make a decision in the next few weeks, he said.

The housing slump has taken a toll on other Wake County governments, as well. In 2006, more than 11,000 building permits were issued. That number dropped to about 10,100 a year later.

Last year, the number was nearly cut in half, with 5,200 permits issued.


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  • doubletap357 Mar 11, 2009

    Wait a minute, They made their budget up based on revenues from permits? How did they think they could count on something like that? Did they think that building would continue on at a regular pace forever? No wonder we have too many houses. I heard last night that NC was one of the top states for defaults on building loans in the country. If the builders haven't sold the house he built 6 months ago why does he continue to build six and seven more, then gripe because he has to pay the property taxes on them and make the bank payments.

  • CrewMax Mar 11, 2009

    "Now is Fuquay could only synchronize it's traffic lights."

    I think they are just trying to get their money's worth out of those lights!

  • Scarecrow Cow Mar 11, 2009

    Well said, Gork. I agree!

  • bus driver Mar 10, 2009

    Too funny quag!

  • Quagmire Mar 10, 2009

    Now is Fuquay could only synchronize it's traffic lights.

  • Gork Mar 10, 2009

    Here's the good news - there were still thousands of permits issued in Wake County. We're lucky compared to almost every other region in the country. Prices on our homes didn't bubble like many areas and now they're still appreciating. Foreclosures are an issue everywhere, but less here than most areas of the country. We still have a positive "in-migration", responding to a job market that is, guess what, better than most other regions of the country.

    Talk to folks in other areas of the country, where whole sections of towns are boarded-up foreclosures and unemployment is at least twice what it is here in the Triangle.

    We should know how lucky we are and work to keep local builders, suppliers and all the local associated "peripheral" businesses thriving!