New homes boost economy

An economist says new home construction usually pays for itself in the form of local jobs and revenue.

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While not a fail-proof theory, National Association of Home Builders Senior Economist Elliot Eisenberg says new home construction is not a burden to local governments.

Rather, home building pays for itself in the form of local jobs and income for residents, and additional revenue for governments.

Eisenberg said an economic impact study conducted by the NAHB concludes that every 1,000 single-family homes built in Washington, Clackamas and Multnomah counties in 2007 will generate a cumulative $156.5 million in revenue. That is compared to only $94.3 million in costs to local governments for services over the next 15 years.

“These results show that home building is more than paying its own way and should put to rest the notion that existing homeowners are subsidizing new home construction here in the Portland area,” Eisenberg said. “This is an excellent result and tells me that local residents should be thanking the building industry for footing the bill for a lot of city services.”

Read the full story at the Portland Tribune.

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