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ECONOMIC IMPACT STUDY RESULTS |
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Welcome to Home Builders Association of |
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ECONOMIC IMPACT STUDY SHOWS HOMEBUILDING PAYS ITS WAY IN ALBANY, GA ALBANY – An economic impact study conducted by the National Association of Home Builders (NAHB) Housing Policy Department shows that Albany’s home building industry not only pays for itself, its economic impact results in new income and jobs for Georgians and additional revenue for local governments. The 504 single-family homes that were built in Dougherty County and Lee County in 2007 will generate a cumulative $85.6 million in revenue, compared to only $81.1 million in costs over the next 25 years. By the end of the second year the housing industry’s economic impacts more than offset the fiscal costs resulting in a fiscal surplus to local governments, and by the end of the 20th year the fiscal surpluses are more than enough to pay off all debt and result in a surplus available to pay for additional government services. Single-family housing produces a net income to local governments of $391,000 in the second year, and rises every year thereafter reaching a plateau of $862,000 in year 2021 and in each and every subsequent year thereafter. “These results show that home building is more than paying its own way and should put to rest the notion that existing home owners are subsidizing new home construction here in Dougherty and Lee Counties,” said Dr. Elliot Eisenberg, the economist who conducted the analysis of both counties. “This is an excellent result and tells me that Dougherty County and Lee County residents should be thanking the building industry for footing the bill for a lot of city services.” Economic Impact Study – Page 2 The economic impact study looks at the impact of the construction industry in three phases: the construction phase; the ripple effect; and, the occupancy phase. The impact of the three phases are added up, and then compared to the cost of services such as education, fire, police, utilities, parks and recreation and roads that are required to support the new housing units. During the construction phase, the building of 504 single-family creates 1,043 jobs (739 jobs in construction alone), generates $4.8 million in local taxes and $44.7 million of local income in the first year. The ripple effect of those homes, which includes the wages and profits local area residents earn during the construction period that are spent on other local goods and services, results in 564 jobs, $2.3 million in local taxes and $22.8 million in local income, also in the first year. The ongoing annual effect of those homes, which includes local jobs, income and taxes generated as a result of the home being occupied, is 358 jobs, $3.2 million in local taxes and $13.7 million in local income per year. “It is important for us to look closely at these numbers,” said HBA President Chad McDonald. “We’ve been saying for a long time that local home builders are doing their part to build community, and these numbers show that we are a very important player in the overall economic health of the local economy.” Economic Impact Study – Page 3 The NAHB model used to determine the economic impact of the housing industry was first developed by NAHB in 1997 and has been applied to construction in more than 510 areas of the country. This study looks at the number of homes built Dougherty County, GA and Lee County, GA. Complete copies of the study are available by contacting the HBA at (229) 436-9700. The Home Builders Association of Albany & SWGA is a non-profit trade association representing more than 200 members who employ more than 4,000 people in the Albany, GA MSA. HBAA members include residential builders, remodelers and businesses related to the housing industry. Learn more at www.hbaofalbany.com |
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