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Mike Erdmann, CEO of the Home Builders Association of Marion and Polk Counties, sees Salem as a company town.

That company just happens to be the state of Oregon, with its assorted elected officials, bureaucrats and the people who support them.

While the private sector may be sluggishly shaking off recessionary effects, Erdmann said times remain harder for government. The capital city’s homebuilding activity reflects that struggle, he said.

Nonetheless, he added, there are some encouraging signs.

鈥淢ultifamily has been strong,鈥� Erdmann said. 鈥淪ingle family is lagging behind other markets in the state.鈥�

The reason for the uptick in multifamily developments is obvious, Erdmann said.

鈥淭he economy is still slow,鈥� he said. 鈥淭here have been a lot of foreclosures. People have to live somewhere, so they’re turning to rentals and multifamily.鈥�

Tom Phillips, the building and safety administrator for the city of Salem, said that might not be an entirely accurate picture of the homebuilding market.

鈥淭hey’re probably looking at number of units rather than the number of permits,鈥� Phillips said.

In October 2009, in the teeth of the recession, Salem’s Community Development Department issued 13 building permits for single-family residences. Community Development Director Vickie Hardin Woods said 24 single-family building permits were issued last month.

鈥淭hat might be kind of spiky, but that’s a good sign,鈥� she said. 鈥淚t was bouncing along the bottom there for awhile. Still, I hate to be optimistic and then get disappointed.鈥�

Erdmann said Salem’s homebuilding industry has nowhere to go but up.

The period between 2002 and 2010 produced the slowest growth for the housing market since Salem was founded in 1857, he said.

Woods said that might be a tad melodramatic.

鈥淚 think there’s something askew,鈥� she said.

Looking at her department’s statistics, 2009 was the low point 鈥� with only 182 permits issued for single-family dwellings. Between 2006 and 2009, the average was 436.

No matter whether the housing slump was historic, it still hurt, Erdmann said 鈥� especially in West Salem.

鈥淭he housing market really hit West Salem hard,鈥� he said.

The area enjoyed a brief homebuilding boom after West Salem High School opened in 2002. The school required new water and sewer lines as well as other infrastructure upgrades that made construction in surrounding neighborhoods attractive.

That spike didn’t last long, Erdmann said. While West Salem is gaining some large apartment complexes, the market is no longer for single-family homes.

鈥淩ight now, South Salem is the strongest part of town,鈥� Erdmann said.

Woods said some sizable subdivisions are being built at the south end, but the recovery of the housing market is still anemic.

鈥淭here’s more activity, but there is less value,鈥� she said.

Phillips said people are staying in their 鈥渟tarter鈥� homes and generally not seeking larger ones. That’s going to be the trend for now, he said.

New industry to drive Salem’s economic recovery is just not coming to town, despite the availability of industrial land, perhaps partially because of that 鈥渃ompany town鈥� reputation, he added.

鈥淲e’re just going to crawl along the bottom for awhile,鈥� Phillips said. 鈥淲e’re going to grow a little slower than Portland.鈥�