New homes stimulate economy

By: Joleene Des Rosiers

ONONDAGA COUNTY, N.Y. -- It was a lesson for homebuilders at a presentation at the Holiday Inn at Carrier Circle. Keep customers happy and keep them coming to maintain the local economy.

"It looks like the home construction industry here creates and maintains about 1,700 jobs. They're the twelfth or thirteenth largest employer in the entire metropolitan area. This is really big. They're on par with P & C," said Elliot F. Eisenberg, the National Association of Home Builders Senior Economist.

"By building a new home in our local economy you are stimulating your local economy," added Todd Loscombe, President Homebuilders and Remodelers of Central New York. "Not only the construction industry are you stimulating, but you're stimulating the ripple effect of our entire community. Both in unrelated jobs right from the grocery market to your hair stylist to daycare centers are all completely affected by the home building industry."

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Eisenburg stressed that for every 10 workers you see on a construction site, they create another 10 jobs not related to construction and all together, those jobs help stimulate the economy.

"Part of the reason house prices get expensive is because of government regulations," said Eisenberg. "When governments tell builders they have to have a certain size setback or so many garages or a facade material or how pitched the roof has to be. In many cases, it's essential for life and safety purposes, sure. But many cases it's purely aesthetic or it's just what someone thinks or feels they would like to see houses look like."

The economist recommends talking to local government agencies when it comes to government regulations that could keep the price of your new home down.

PRESS RELEASE: ECONOMIC IMPACT STUDY

May 15, 2008

Contact: Dr. Elliot Eisenberg - Senior Economist, NAHB
(301) 351-2080 or eeisenberg@nahb.com
Mary M. Thompson, CMP - Executive Officer, HBR of CNY
(315) 463-6261 or mmt@hbrcny.com

FOR IMMEDIATE RELEASE

ECONOMIC IMPACT STUDY SHOWS
HOME BUILDING PAYS ITS WAY IN SYRACUSE MSA

GREATER SYRACUSE –An economic impact study conducted by the National Association of Home Builders (NAHB) shows that the Greater Syracuse home building industry pays not only for itself, but also that its economic impact to the community results in new income and jobs for Central New Yorkers, and additional revenue for local governments.
There were 885 new homes were built in Onondaga County (696 signal family homes & 189 multi-family homes) in 2007 and they will generate a cumulative $150.4 million in revenue, compared to $105.3 million in costs over the next 15 years. By the end of the second year the housing industry’s economic impacts more than offset the fiscal costs resulting in a fiscal surplus to local governments, and by the end of the 6th 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. Single-family and multifamily housing produces a net income to local governments of $4,362,395 the fifth year, $4,554,377 the sixth year, and $4,572,910 in each and every year thereafter.
“These results show that home building is more than paying its own way” said Dr. Elliot Eisenberg, the who conducted the analysis of the impact of home building in the Syracuse MSA.
“This is an excellent result and tells me that Greater Syracuse residents should be proud of
the building industry in their community”.
-more-

Economic Impact Study – Page 2
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 885 (696 single-family and every 189 multi-family) homes creates 1,704 jobs (1,215 jobs in construction alone), generates $9.1 million in local taxes and $85.6 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 911 jobs, $4.8 million in local taxes and $43.6 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 673 jobs, $9.4 million in local taxes and $31.0 million in local income per year.
“It is important for us to look closely at these numbers,” said Home Builders & Remodelers of CNY President, Todd Loscombe. “We are proud to say that local home builders are doing their part to help build community, and these numbers show that we are a very important participant in the overall economic health of the Greater Syracuse 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 500 areas of the country. This study looks at economic impact of collectively building 696 single–family homes and 189 multi-family homes in Onondaga County, NY. Complete copies of the study are available by contacting the HBR of CNY at (315) 463-6261.
The Home Builders & Remodelers of Central New York (HBRCNY) is a non-profit trade association representing more than 300 members who employ more than 12,500 people in the Syracuse metropolitan area. HBR of CNY members include residential builders, remodelers and allied businesses related to the housing industry. Learn more at www.hbrcny.com

MORE INFO FROM HBR of CNY: THE PROS SAY....

The Pros say -‘Do Your Home Work’
Today, given the value and importance of one’s home, all homeowners should ‘Do home work’ first before starting any home improvement or repair project. And, we have the expert, practical and useful information available at the Home Builders and Remodelers Association of Central New York’s website hbrcny.com to help you do so and make wise choices.

Some of the information that will be available under Homeowner Resources includes:
1. why hiring a professional adds value to your home
2. how to implement green building and energy efficiency
3. what general maintenance tips can save money and time
4. what home safety projects should be accomplished first

We encourage Central New Yorkers to stop by and gather information that will help to “do your homework” and ensure quality, well-informed decisions on what your family values most – your home.
Home Builders and Remodelers Association of Central New York believes that the more today’s homeowners know about good residential construction, remodeling and repair practices — including green — the more homeowners will then rely on its members for expert services to enhance the value of their homes.
Why do the Pros of the HBR of CNY want informed buyers?
Quite simply, when consumers take the time to learn more about residential construction and the professionals who follow accepted business practices, the better the outcome will be for all.

Here are some of the accepted business practices homeowners should look for in a Pro:
• is insured
• uses contracts
• hires quality craftsmen
• takes pride in the valuable work that they do
• follows and stays aware of the industry codes and laws
• stays current on the latest products and trends

AND, runs a business in an appropriate and fiscally responsible way.
Our members, the Pros, believe that when consumers learn how to make wise choices when choosing a contractor for your most valuable asset – their home, everyone benefits.

Our Mission Statement
The Home Builders & Remodelers of Central New York is an association of builders, remodelers and related industry professionals. We are committed to building quality homes, protecting our environment and promoting our industry. We open doors to the American Dream.
Our Objectives.

The HBR of CNY's objective is to bring together the best and most reliable industry associated businesses, for the purpose of raising the bar of professionalism and customer service, and moving toward the goal of affordable housing for everyone in Central New York.

When a customer purchases a new home from a member of the HBR, they are assured of performance standards, backed by a written warranty. Customers who choose to use an association member also benefit from our members commitment to improved products, information sharing of concepts and trends, and a dedication to their clients.
What we do.

Beyond all of the resources, we bring to our members…
• We produce the Home & Garden Show, as well as the fall Ready-To-Remodel Expo — events that highlight the latest in residential construction trends, products and services.
• We produce the Parade of Homes — a signature event that allows patrons to walk through fully decorated and landscaped homes, to gather information on products, to see the newest floor plans, designs and enjoy viewing the latest in new home construction.
• We produce “The Home Repair Workshop”, a weekly radio call-in show that offers sound, accurate advice
— Saturday mornings, 8 am to 9 am on News Radio 570 AM WSYR.
• We work to educate homeowners on the importance of doing their homework before hiring any contractor to work on their most valuable asset – their home. We encourage the use of professionals who have good business practices, stay educated in their field and take pride in their work.
• We actively support our community with projects that help our region be a place to work, play and live!