HBA: Home builders play key role in area's economic strength

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Matt Morrow is executive officer of the Home Builders Association of Greater Springfield.|ret||ret||tab|

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As the greater Springfield area pauses to offer its salute to construction, it makes sense to consider the critical role that residential construction plays in our local, state and national economy.|ret||ret||tab|

Did you know that for every 100 single-family homes built in an average city in the United States, $11.6 million in local income and $1.4 million in taxes and other local government revenue is generated?|ret||ret||tab|

How about the fact that, as a result of those same 100 new homes, 250 local jobs are created? And those are just the initial impacts. Ongoing, annual local impacts that result from the new homes being occupied, and the occupants paying taxes and otherwise participating in the local economy, further illustrate the benefits of the home-building industry.|ret||ret||tab|

Approximately $2.8 million in local income and $498,000 in taxes and other revenue for local governments is generated annually, on an ongoing basis, by those same 100 new homes. Further, 65 more jobs are created locally each year as a result of those 100 homes and the people who live in them.|ret||ret||tab|

Overwhelmed yet? Try to hang in there for just a few more statistics. Last year, in just the city of Springfield and unincorporated Greene County, 1,479 single-family homes were built. Through the first three quarters of 2003, these same areas have produced 1,149 new homes already, and we are on pace for the strongest year in our city/county combined history!|ret||ret||tab|

For those of you who may be like me and are suffering from the early stages of "numb brain" from staring at all those numbers, I'll skip the part where we multiply the number of local housing starts by each of those economic impact numbers. Suffice it to say, a robust home-building industry is essential for the economic welfare of our community.|ret||ret||tab|

As these numbers indicate, there has never been a better time to build a new home. Home buyers see the combination of exceptionally low interest rates, tax deductibility and steady appreciation in home values as an irresistible invitation to take a close look at their housing goals. And, as new home construction continues to boom, new jobs, economic growth and prosperity all naturally follow. |ret||ret||tab|

Of course, space limitations and my own aversion to all things statistical prevent me from outlining the specific impacts of multifamily housing construction or of residential remodeling both areas continue to surge forward, and both carry similar positive economic impact to all of us.|ret||ret||tab|

Whether you want to build new or remodel your existing home, the conditions are right to act now. Not only are interest rates at or near all-time lows, but the competition in our industry has never been tougher in this area. Demand for new homes and remodeling contractors in the greater Springfield area is as strong as ever, but supply also is very strong. Our market is unique in that most of the homes here are built or remodeled by small-volume contractors. That means builders and remodelers must keep profit margins narrow and quality high to compete for your business. And that is to your advantage.|ret||ret||tab|

The next time you take a look at your home, consider it more than just a place to hang your hat. Consider it for what it is: the most important investment of your life. Financially, your home makes a sensible, steady and appreciable investment for the future. It also is an investment in your family, as memories will accumulate over the years you spend in your home.|ret||ret||tab|

Of course, for most of us, our home is the largest single investment we will ever make. That's why it is important to take great care in this decision-making process. The first step is to call the Home Builders Association of Greater Springfield and ask for a list of qualified builder members. At the HBA, you will find members who are proven professionals in the greater Springfield area, offering some of the highest quality home construction and remodeling services anywhere. |ret||ret||tab|

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