St. Louis Study Adds Credibility to 'Housing Pays for Itself'
While the argument of whether housing pays for itself has been going on for years, a study recently conducted by the Home Builders Association of Greater St. Louis gives solid arguments to bolster builder claims that new housing is good for the local economy.
"The Fiscal Impact of Five New Residential Subdivisions in the Greater St. Louis Area" looked at five new home communities in 30 different taxing districts, all 30 of which made an annual net profit as the result of the new home construction.
Findings include:
- The homes produced a total net profit of more than $13.9 million each year, on average, for the local governments in which the new home communities were built.
- The average profit to local government for all the homes in the study was $3,249 per home per year.
- New home communities improve the quality of life for all residents by adding bonding capacity for local governments that was not included in the numbers above. Added bonding capacity allows local governments, often without raising taxes, to finance major community improvements like new schools, parks, fire stations and libraries. New residents then pay their share in retiring the long-term debt for those improvements.
Impact Data Source in Austin, TX, conducted the study, which was funded by the HBA working through the Urban Choice Coalition. To view the study and an executive summary online, or to download it, click here.