Syracuse Home Building Impact

9/2/08 - Economic Impact Study Shows Home Building Pays its Way in Syracuse

Greater Syracuse - An economic impact study conducted by the National Association of Home Builders (NAHB) on 5/15/08 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”.

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  # # #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