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Calculating the Economic Impact of Your Housing Project Rachel Bates Governor’s Housing Conference

Calculate the economic impact of your housing project by quantifying jobs, spending, and tax revenue. Use this calculator for new construction or residential renovation.

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Calculating the Economic Impact of Your Housing Project Rachel Bates Governor’s Housing Conference

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  1. Calculating the Economic Impact of Your Housing Project Rachel Bates Governor’s Housing Conference November 19th, 2015

  2. Quick Facts • The major housing impacts that economists typically quantify are: jobs, spending, and tax revenue • Jobs include: construction workers building the structure as well as workers in the firms that support them (such as office managers, cost estimators, and accountants)

  3. Quick Facts • Ripple effects are comprised of building material suppliers and manufacturers as well as businesses providing services (like architectural firms and trucking companies) • Induced impact occurs when workers involved in the project spend their income in the region

  4. There Are 2 Calculators • Economic Impact Calculator for New Construction • Economic Impact Calculator for Residential Renovation

  5. The Calculator

  6. How to Use the Calculator for New Construction Method 1: Entire Development • Enter the type of building and total number of units and average square feet per unit for an entire development • The calculator will produce a rough estimate of the short term and long term economic impact of a proposed project.

  7. How to Use the Calculator Method 2: Separately by building • Enter type of building, total units per building, and average square feet per unit for each building in the development. • Sum the estimates of economic impact for each building • This method will significantly improve the accuracy of the results!

  8. How to Use the Calculator Method 3: Anticipated Development • Enter the anticipated construction cost of your proposed development (if you know it) • This will provide a better estimate of short term economic impact.

  9. How Does it Work? • Long- term economic growth and job creation estimates use RIMS forecasting methodology • The data that the calculator uses is updated quarterly • Currently: 2015 Q1

  10. Interpreting the Results

  11. Economic Impact • The Residential New Construction Economic Impact Calculator measures: • Job creation • Gross fiscal revenues • Economic growth

  12. Short Term v. Long Term • Short term results: occurs while construction is actually taking place • Long term results: economic growth and jobs supported over the long term occurs while the development is in operation

  13. Gross Fiscal Revenues • Fiscal revenues are collected by state and local government • Short term: fees collected before the development is completed (permitting fees, recording fees, utility hookup fees, etc) • Long term: real estate taxes collected each year

  14. Economic Growth/ The Housing Multiplier

  15. The Housing Multiplier • Direct Construction Jobs  Construction Spending Accountants  Estimators  Office Managers… • Indirect  Supplier Jobs  Manufacturing Jobs Accountants  Sales Managers  Office Managers  Tradespersons  Truck Drivers  Etc… • Induced Jobs created from the spending by all the above jobs  Retailers  Restaurants  Doctors…

  16. Where Can I Find This Data? • Housing Virginia Sourcebook

  17. How Can You Use This Information?

  18. Who wants/ needs to know this information?

  19. Economic Impact of LIHTC Units: District 1

  20. Economic Impact of LIHTC Units: District 1

  21. Economic Impact of LIHTC Units: District 2

  22. Economic Impact of LIHTC Units: District 2

  23. Economic Impact of LIHTC Units in Virginia

  24. Economic Impact of LIHTC Units in Virginia

  25. Economic Impact of a HTF Project

  26. Economic Impact of a HTF Project

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