While homeowners across the nation are having a hard time selling their home, it's quite the opposite here in the Twin Cities.
In fact, the numbers just keep getting better for residential real estate sales in Bryan/College Station.
An economic impact study conducted by the National Association of Home Builders, or NAHB, shows that the home building industry in Bryan and College Station not only pays for itself, but its economic impact results in new income and new jobs for Texans. In addition, it also generates extra revenue for local governments.
"A key thing to remember is how much employment these houses bring in," says Senior Economist Dr. Elliot Eisenburg. "We found out that they are the third largest employer in the Bryan College Station area behind Texas A&M and Texas A&M system."
In 2007, new construction generated 2,500 new jobs in Bryan-College Station.
"These results show that home building is more than paying its own way and should put to rest the notion that existing home owners are subsidizing new home construction here in Bryan-College Station," says Eisenburg.
Each of the 952 single-family homes that were built in the City of Bryan and the City of College Station in 2007 will generate a cumulative $178.9 million in revenue, compared to only $105.3 million in costs over the next 15 years.
Eisenburg explains that the advantages of new home construction are more powerful here and more quickly felt here than in many parts of Texas.
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. More importantly, by the end of the second 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.
The results found that new single family housing produces a net income to local governments of approximately $5, 441,455 the second year, and $5,680,775 in each and every subsequent year thereafter.
Eisenburg says it is really important that people not negate new home construction on economic and financial grounds.
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 952 averaged priced single-family homes across the City of Bryan and the City of College Station.