NIBCA: Housing impact
Dale Cargile
When examining the effects of constructing 1,629 single-family homes in Kootenai County, we can project remarkable economic impacts that ripple throughout the community for years to come. Let's break down the numbers to see just how significant these effects are.
Immediate economic benefits
Firstly, the construction phase itself is a powerhouse of economic activity:
• $953.6 Million in Community Income: The influx of nearly a billion dollars into the local economy is no small feat. This income isn't just limited to construction companies— it filters down to local businesses where construction workers and stakeholders spend their earnings.
• $129.7 Million in Government Revenue: Local governments can look forward to an additional $129.7 million through taxes and fees like permits. This revenue is crucial for funding public services and infrastructure improvements.
• 14,016 Local Jobs Supported: The building activity will create around 14,016 jobs. These aren't just temporary gigs; we're talking full-time equivalent positions that keep people gainfully employed for a year, aligning with industry standards for weekly work hours.
These figures reflect both the direct impact of building homes and the indirect benefits when construction workers spend their earnings locally.
Long-term economic ripple effects
Beyond the initial construction, the benefits continue to multiply:
• $96.0 Million in Annual Local Income: Once the homes are occupied, residents contribute an additional $96.0 million every year to the local economy. This sustained income is a testament to the long-term economic vitality these new homes bring.
• $29.0 Million in Annual Government Revenue: With ongoing taxes and economic activities, residents will also add $29.0 million to government coffers annually. This consistent revenue stream is invaluable for maintaining and enhancing community services.
• 1,693 Local Jobs Sustained Yearly: Each year, these new homes will support around 1,693 local jobs. Whether through routine maintenance, local spending, or increased demand for services, the job market gets a lasting boost.
This yearly impact highlights how new homeowners continuously contribute to the economy, driving local businesses and increasing property values.
Financial projections and assumptions
• To give you a clearer picture, let's delve into the financial specifics behind these projections. We assumed an average home value of $890,500 in Kootenai County. This figure breaks down into several components:
• $195,000 for Raw Land: The foundational value before any construction begins.
• $14,750 in Local Government Fees: This includes permits and connection fees, crucial for integrating these new homes into the community infrastructure.
• $5,500 in Annual Property Taxes: Each property contributes significantly to local government funds, aiding in the upkeep and enhancement of public amenities.
Our data sources include comprehensive reports from the National Association of Home Builders, ensuring that these projections are grounded in industry standards and real-world data.
The construction of 1,629 single-family homes in Kootenai County is not just a real estate venture; it's a catalyst for profound economic growth. From nearly a billion dollars in immediate income to sustained annual contributions, the impact is both immediate and enduring. With substantial job creation and robust local government revenues, these new homes promise a brighter, more prosperous future for the entire community.
Every time a new development is scuttled the existing property owners around that area will naturally be called upon to pay for the maintenance and expansion of services, infrastructure and additional parks. Usually through higher property taxes. This is one of the rarely discussed aspects of limiting new development.
So, whether you're a local resident, a business owner, or a public official, understanding these figures helps appreciate the transformative power of new housing developments. Let's embrace the growth and opportunities that come with it, as we build a thriving, resilient community together.
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Dale Cargile is the 2024 NIBCA president, North Ridge Contracting.
