Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, December 8, 1994 TAG: 9412230098
SECTION: EDITORIAL PAGE: A-19 EDITION: METRO
SOURCE: ROBERT H. FETZER
DATELINE: LENGTH: Medium
If you're like most people, you probably see something that you wish was yours - a spacious new home with lots of amenities and attractive, up-to-date features.
Seeing new homes under construction in your neighborhood might also raise some questions in your mind. You might wonder what the overall impact of these new homes will be; you might question how these new homes will affect the neighborhood.
The answer to those questions is that new residential construction definitely is a benefit to the community.
Perhaps most important, it is essential to economic growth. Businesses will not even consider opening new facilities or relocating to an area unless it has an ample supply of housing that is affordable to their employees. Likewise, businesses already operating in the community will be forced to relocate or close if employees cannot find affordable housing near their jobs.
In addition to enhancing the climate for economic growth, new residential construction has a significant direct effect on the local economy by generating jobs, wages and tax revenues.
On the average, the construction of 100 single-family homes generates almost 210 worker-years of employment (210 jobs for a period of one year) in construction and construction-related industries. It also generates $6 million in wages and $3.3 million in combined federal, state and local taxes and revenues.
The construction of 100 multifamily units generates 80 worker-years of employment, $2.3 million in wages and $1.6 million in combined federal, state and local tax revenues and fees.
In addition to generating jobs, wages and taxes, new construction has a significant effect on the local economy as demand for goods and services "ripples" outward from each new home. For example, a buyer might decide to purchase all new draperies for the home or might find that the old lawn mower just can't handle a larger yard. New furniture, new appliances, fences, landscaping and more - demand for all is generated by the construction of new homes.
In addition to bringing welcome funds into the local economy and generating significant demand for goods and services, new construction also brings new infrastructure and public facilities. Often builders and developers are required to build or contribute funds or land for new roads, sidewalks, water plants, wastewater-treatment facilities, parks and schools. Thus, facilities and amenities that benefit an entire community are created or upgraded as a result of new residential construction.
Some of the most important benefits from residential construction are the least obvious. New homes and the families that live in them bring new resources and perspectives to the community and improve it immeasurably. And the home-ownership opportunities that development brings strengthen the community by providing a strong, secure foundation on which residents can build their futures and work toward fulfilling their fondest dreams.
Robert H. Fetzer is president of the Roanoke Regional Homebuilders Association.
by CNB