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ECONOMIC IMPACT STUDY SHOWS
HOME BUILDING PAYS ITS WAY IN KLAMATH COUNTY, OR
An economic impact study conducted by the National Association
of Home Builders (NAHB) Housing Policy Department shows that the home
building industry in Klamath County, OR not only pays for itself, its
economic impact results in new income and jobs for Oregonians and additional
revenue for local governments.
Every 100 single-family homes built in Klamath County in 2008
will generate a cumulative $14.6 million in revenue, compared to only $10.6
million in costs over the next 15 years. By the end of the first year the
housing industry's economic impacts more than offset the fiscal costs
resulting in a fiscal surplus to local governments. Moreover, by the end of
the fourth year the fiscal surpluses are more than enough to pay off all
debt and result in a surplus available to pay for additional government
services. Collectively new single-family housing produces a net income to
local governments of $347,100 in the first year, and $357,800 each and every
year thereafter.
"These results show that home building is more than paying its
own way and should put to rest the notion that existing home owners are
subsidizing new home construction here in the Klamath Falls area," said Dr.
Elliot Eisenberg, the Senior Economist who conducted the analysis of the
impact of home building here in Klamath County. "This is an excellent
result and tells me that local residents should be thanking the building
industry for footing the bill for a lot of city services."
The economic impact study looks at the impact of the
construction industry in three phases: the construction phase; the ripple
effect; and, the occupancy phase. The impact of the three phases are added
up, and then compared to the cost of services such as education, fire,
police, utilities, parks and recreation and roads that are required to
support the new housing units.
During the construction phase, the building of every 100 single-family homes
creates 214 jobs (148 jobs in construction alone), generates $1.3 million in
local taxes and $11.1 million of local income in the first year. The ripple
effect of those homes, which includes the wages and profits local area
residents earn during the construction period that are spent on other local
goods and services, results in another 108 jobs, $683,400 in local taxes and
$5.1 million in local income, also in the first year. The ongoing annual
effect of those homes, which includes local jobs, income and taxes generated
as a result of the home being occupied, is 54 jobs, $873,100 in local taxes
and $2.4 million in local income per year.
"It is important for us to look closely at these numbers," said KBHBA
President Amanda Blodgett. "We've been saying for a long time that local
home builders are doing their part to build community, and these numbers
show that we are a very important player in the overall economic health of
our economy."
The NAHB model used to determine the economic impact of the housing
industry was first developed by NAHB in 1997 and has been applied to
construction in more than 525 areas of the country. This study looks at
economic impact of building 100 representative average priced single family
homes across all of Klamath County, OR.
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