html5-img
1 / 27

THE COUNTY IMPACT OF HOME BUILDING IN THE CITY OF ROSEBURG, OREGON

THE COUNTY IMPACT OF HOME BUILDING IN THE CITY OF ROSEBURG, OREGON. Presented by : Elliot F. Eisenberg, Ph.D . October 2, 2009 Roseburg, OR. LOCAL ECONOMIC IMPACT. Construction phase Jobs Materials Local fees, taxes, contributions Ripple or feed-back from construction

redell
Télécharger la présentation

THE COUNTY IMPACT OF HOME BUILDING IN THE CITY OF ROSEBURG, OREGON

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. THE COUNTY IMPACT OF HOME BUILDING IN THE CITY OF ROSEBURG, OREGON Presented by: Elliot F. Eisenberg, Ph.D. October 2, 2009 Roseburg, OR

  2. LOCAL ECONOMIC IMPACT • Construction phase • Jobs • Materials • Local fees, taxes, contributions • Ripple or feed-back from construction • Wages spent in local economy • Occupancy phase • Earnings spent in local economy

  3. The model does not say build housing to stimulate the local economy • Rather, it is job creation that results in increased demand for housing, but remember that….. HOUSING => JOBS

  4. CONSTRUCTION PHASE $$ VALUE OF CONSTRUCTION $$ SERVICES PROVIDED AT CLOSING PERMIT/HOOK-UP FEES $ $ $ $ $ (Obtained from Local Sources) INPUTS: MODEL OF THE LOCAL ECONOMY INCOME FOR LOCAL RESIDENTS & TAX/FEE REVENUE FOR LOCAL GOVERNMENTS OUTPUTS:

  5. RIPPLE PHASE LOCAL INCOME & TAXES FROM PHASE 1 INPUTS: SPENDING ON LOCAL GOODS & SERVICES Consumer Expenditure Survey (U.S. Bureau of Labor Statistics) MODEL OF THE LOCAL ECONOMY OUTPUTS: LOCAL INCOME & TAXES

  6. OCCUPANCY PHASE INCOME OF HOUSEHOLD OCCUPYING NEW HOUSING UNIT INPUTS: SPENDING ON LOCAL GOODS & SERVICES PROPERTY TAX PAYMENTS MODEL OF THE LOCAL ECONOMY OUTPUTS: LOCAL INCOME & TAXES

  7. Douglas County, OR

  8. The Douglas Co., OR Multiplier Only Captures Spending that Stays in the County Includes: Banking, Car Repair, Dry Cleaning, Day Care Services, Dental Services, Electricity, Landscaping, Legal Services, Manicures, Medical Services, Newspaper Delivery, Restaurants and Psychiatric Care. But Not: Auto Manufacturing, Beer Bottling, Mattress Manufacturing, Meat Packing, Movie Production, and Travel Agency Services

  9. History of the Model • Over 600 Economic Impact Analyses Performed • Users of the Model Include: • Boone County Kentucky • Habitat for Humanity, International • MI State Housing Development Authority • Michigan State University • Missouri Housing Development Commission • University of Florida • University of Massachusetts • University of Montana • West Virginia Housing Development Fund…

  10. Assumptions of the Model Inputs To ModelSingle Family Average house price: $268,882 Average raw lot cost: $7,735 Permits/Infrastructure: $8,545 Annual prop. taxes: $2,455

  11. Economic Impact of Single Family Home Building • 1st - Construction phase • 2nd - Ripple effect from construction phase • 3rd - Occupancy phase • 4th - Ten year total

  12. FIRST YEAR IMPACT: SF Construction Every 100 SF Homes INCLUDING: 184 Jobs in Construction 40 Jobs in Wholesale & Retail Trade 21 Jobs in Business and Professional Services

  13. FIRST YEAR IMPACT: SF Ripple INCLUDING: 36 Jobs in Wholesale and Retail Trade 22 Jobs in Health, Education & Social Services 18 Jobs in Eating and Drinking Places

  14. ONGOING SF ANNUAL EFFECT INCLUDING: 16 Jobs in Wholesale and Retail Trade 9 Jobs in Health, Education & Social Services 8 Jobs in Eating and Drinking Places

  15. Total SF Impact: First Ten Years Along with 401 temporary jobs And 59 permanent ones!

  16. Largest Local Private Employers Employer# of FT Jobs Roseburg Forest Products 2,500 Mercy Healthcare, Inc. 1,100 Seven Feathers Hotel & Casino Resort 735 Swanson Group, Inc. 429 Wal-Mart Stores, Inc. 281 New SF Residential Construction 266 First Call Resolution 237 Ingram Book Company 210 Orenco Systems, Inc. 207 Fred Meyer 186

  17. BUT NEW HOMES REQUIRE: INFRASTRUCTURE • Fire and police protection • Garbage collection • Parks and recreational opportunities • Roads • Correctional facilities • Primary and secondary education • Etc…

  18. Required Current Expenses per SF Unit

  19. Required Capital per SF Unit

  20. Now that we know: The benefits of construction & The costs of construction Does new construction pay for itself?

  21. Yes it does! For every 100 SF units-- • By the end of the 10th year the debt is fully paid off • By the 2nd year economic impacts offset fiscal costs • In the 10th year, net is $103,761 and is $105,517 thereafter

  22. Over 15 years, every 100 SF units generate a cumulative $8.2 million in revenue for local governments—but only $7.6 million in costs

  23. What does 10 years mean? • That is, should it be done faster, or is it O.K.? • Big purchases take time to pay off. • Car loans now last 5 years, and many lease! • How fast did you pay off your student loans? • How fast are your kids paying off theirs? • Did you pay off your home in 10 years?

  24. Almost done, just a bit more

  25. How Large Are Non Property Tax Revenues • Single family property taxes are $2,545/unit per year but, yearly revenue is $4,645/unit per year, which is 83% more. • Clearly, property taxes are not the whole story!

  26. A Closer Look at Primary and Secondary Education • 12.6% attend private schools nationally • 1.7% are Home schooled nationally • 0.4 school age children/MF unit nationally • 0.6 school age children/SF unit nationally • OR State aid is $112 million or 74% of budget

  27. ANY QUESTIONS? • Elliot F. Eisenberg, Ph.D. • Call: 202.266.8398 • Fax: 202.266.8426 • eeisenberg@nahb.com • 1201 15th Street NW • Washington, DC 20005-2800 • Thank you very much!

More Related