Arizona Housing Market Feels the Heat From Impact Fees
Government-imposed impact fees, taxes and surcharges last year added about 14.5% to the sales price of a typical new home in the Pima County area of Arizona, according to the Southern Arizona Home Builders Association (SAHBA).
“During this recession, government fees that raise costs on new homes have a negative, devastating impact on demand,” said Roger Yohem, vice president of the association. “As consumer demand falls, job losses in the housing industry accelerate and ripple throughout the entire community.”
The 2008 baseline of the updated SAHBA study was for a 2,100-square-foot, newly built home with a median price of $217,393.
Last year’s median price of new homes in the county would have dropped to $189,806 in the absence of the average $27,587 per home in government surcharges.
According to NAHB economists, every $1,000 increase in home prices puts homeownership beyond the reach of about 833 local residents in the Tucson area.
To make matters worse, Yohem reported, two Arizona cities have just decided not to collect commercial impact fees and to narrow their focus upon residential properties instead.
The Government Fees and Surcharges Study was conducted independently by Nathanson Consulting and Bright Future Business Consultants.
Tax Credit Web Site Looks at Opportunity of a Lifetime
Builders and other industry professionals can help spur home sales by referring prospective first-time home buyers to www.federalhousingtaxcredit.com. The NAHB Web site provides detailed information on the $8,000 federal tax credit for first-time home buyers included in the economic stimulus legislation signed into law by President Obama.
Consumers can use the Web site to find information on the tax credit — including a detailed question and answer section. It also includes information about other housing-related and small business measures in the legislation and a number of home-buying resources for consumers.
Spanish Version Also Available Online
A Spanish version of this increasingly popular Web site is also available to provide detailed information on the tax credit to Spanish-speaking first-time home buyers.
Industry professionals are encouraged to highlight either tax credit Web site when marketing to their potential first-time home buyer market.
Plan to Attend Construction Forecast Conference
Plan to attend or watch the 2009 Spring NAHB Construction Forecast Conference & Webcast on Thursday, April 23 in Washington, D.C. to get the latest facts, insights and analysis of the housing industry.
Panels of nationally recognized experts at the day-long conference will discuss economic trends, government policies, developments in the housing industry and the results from NAHB's recent surveys.
For more information and to register, visit www.nahb.org/cfc.
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