Carson City could see five more housing starts by the end of the year in the Silver Oak Homes development, said Black Pines Construction owner Mark Turner.
Turner, who also owns Silver Oak Homes, said he is planning on breaking ground once the permits are approved by the city in the next 60 to 70 days. He said three of the five homes have been sold.
Only 12 other housing permits in Carson City have been issued this year, eight of them for homes abandoned by a developer and completed by another, according to the Carson City Building Division. That's down from 15 in 2008 and 42 in 2007.
The last housing permit issued in Carson City was in June, said Kevin Gattis, the city's chief building official.
Turner said a recently adopted city policy to reduce hookup fees for water and sewer from $10,000 to $1,000 also helped his decision to move forward with the construction.
"This is the first time we've felt inventory levels are low enough to build a couple houses, not 10 but a couple, which is a pitiful number, but we all know how bad it's been," Turner said.
He said the homes will range from 2,000 to 2,400 square feet instead of the 3,000- to 4,000-square-foot homes his company was building up until the housing market collapsed. He said the homes will sell for under $400,000.
"We're kind of taking a step back in time of about 10 years," he said. "That matches the economy so that's what we'll do for the foreseeable future."