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Housing Virginia Releases Report Exploring the Connections between Housing and Economic Vitality
 Housing Virginia recently released a new publication titled The Effects of Housing on the Local Economy that explores five key areas of economic impact related to the housing activity. Find the full article in The Effects of Housing on the Local Economy.
"This report will be the basis for regional conversations that can lead to a greater understanding of the importance of housing to economic growth, as well as to policies that will expand housing opportunity and development," said Kit Hale, Housing Virginia Board Chair and General Manager / Managing Broker of MKB, REALTORS in Roanoke.
Organized into five articles, the report examines the direct and indirect impacts of housing development on local economic growth; housing development's contribution to the cost of local government and education; and the future of homeownership at a time when foreclosures are still widespread and significant changes have taken place in housing finance. In addition, the report explores the positive impact that mixed use housing development has on neighborhood vitality. Finally, the roles of major institutions and large employers - such as hospitals - are examined in the context of neighborhood and housing revitalization.
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Measuring Economic Impact: The Multiplier Shows the Effect of Housing Dollars Spent in Our Communities
 How does housing connect with the relative economic health of a community? How do the expenditures for housing development translate to income for workers, vendors and local government? An article from Greg Chmura of Chmura Economics and Analytics, notes the major housing impacts that economists typically quantify are jobs, spending, and tax revenue. The economic impacts from building housing in a community occur in two phases: when the housing is constructed and during occupancy. Measuring Economic Impact: The Housing Multiplier digs into these impacts and reveals some important facts. Find the full article in The Effects of Housing on the Local Economy.The economic benefit of housing can be measured by the number of jobs it creates. Jobs are created for the construction workers who are building the structure, as well as for workers in their firms who support them, such as office managers, cost estimators, and accountants. Housing production creates positive economic ripple effects for the community because of the increased sales by building material suppliers and cabinet manufacturers and additional services provided by architectural firms and trucking companies. Induced economic impacts result when the workers involved in the construction project spend their income in the region at regional restaurants, retail stores and health care establishments. Read More... |
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Does Housing Pay Its Way? Budget Numbers Tell an Unexpected Story
 New housing is sometimes considered a liability not an asset to a community, and land use policies frequently discourage new housing construction-resulting in substantial fees and requirements attached to residential rezoning requests. Neal Barber from Community Futures explores these ideas in his article Does Housing Pay Its Way? The Fiscal Impact of Housing on Local Government. This piece looks at some old assumptions and offers perspective on the value communities should place on housing for economic sustainability. Find the full article in The Effects of Housing on the Local Economy.
The white paper compares the revenue generated from housing to the cost of running our schools and providing local government services. The article shows that in the majority of Virginia localities studied, homes generate sufficient local tax revenue to cover the total cost of local government-including the cost of educating the children who will reside in those new homes.
Additionally, household expenditures in the local economy help local businessmen and women who then pay additional taxes to the local government.
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Homeownership Future:
Is the "American Dream" still Alive?
 In The Future of Homeownership: Can We Sustain the American Dream? VHDA's, Barry Merchant explores the centuries-held value that homeownership holds the key to economic sustainability. From the beginnings of the American story, land holdings equated with power and wealth. In our national tradition, achieving homeownership conveys stability and forward movement for families. Despite economic up and downturns over the last century, homeownership has held true as a goal and inspiration. Find the full article in The Effects of Housing on the Local Economy.
During the more recent housing boom, home equity also came to be viewed as a short-term return on investment and as collateral to support increased household borrowing. But significant drops in home values have substantially depleted household wealth and left as many as quarter of Virginia home mortgage holders owing more than their home is worth.
Read More...
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