Did you know that for every $1,000 in added costs to a new home, nationally over 250,000 prospective families are effectively priced out of the market?
Despite a slow an unprecedented down turn in the housing market, government continues to look to new home construction as a major revenue generator. In many ways new construction is a major revenue stream for government, but this relationship can easily be destroyed by over taxation, unfair fees and impractical building codes. Although $1,000 in and of itself may not seem an exceptionaly high figure, it increases exponentially when added into a long term mortgage. $1,000 can in this case be the difference between a thriving new home which adds income, sales and property taxes into the local economy, or a vacant house. In the current down market, with consumer lending power at an all time low, its is essential for builders and government staff to work together to reposition housing costs to meet consumer demand. The Home Builders Association of Greater Chicago’s Government Affairs Committee includes the earea’s leading builders, developers and trades banning together for the purpose of opposing the unfair government mandates and special fees that quietly drive up the cost of a new or remodeled home.
The Government Affairs Committee of the Home Builders Association of Greater Chicago meets throughout the region on the second Wednesday of every month. To find out more information on the next meeting, or the issues currently facing the industry, please contact HBAGC for more information.
Home Builder Quick Facts:
The National Association of Home Builders estimate:
- For every $1,000 increase in the price of a home, approximately 250,000 potential families are priced out of the market nationally.
- For every 100 single family homes built in a typical US metropolitan area, $16 million in new local income is generated in the first year, with an additional $3.2 million every year there after.
- For every 100 single family homes built in a typical US metropolitan area, $1.8 million in new taxes generated in the first year, with an addional $648,000 in taxes and other revenue each year there after.
- For every 100 single family homes built in a typical US metropolitan area, 284 new jobs are created in the first year, with an additional 63 local jobs each year there after.
- For every 100 multifamily homes built in a typical US metropolitan area, $7 million in new local income is generated, with $3.2 million each year there after.
- For every 100 multifamily homes built in a typical US metropolitan area, $710,000 in new taxes and fees are generated, with an additional $461,000 each year there after.
- For every 100 multifamily homes built in a typical US metropolitan area, 133 new local jobs are created, with an additional 52 local jobs each additional year.
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