vacancy home for sales and economic impact

The increased pride and responsibility that the residents feel for their dwellings often results in the consumption of goods and services to complement the new home. The economic impacts of developing housing extend beyond the construction stage to the years when the new homes or rental units are occupied by rural residents. While many of these products must come from outside the community, some like milled timber and construction tools may be supplied by local businesses. Building materials must be produced for the construction project, and people must be hired to transport those goods from their source to the building site. In addition, housing production requires an increase in transportation and trade services that can benefit a local economy. Department of Agriculture’s Rural Housing Service estimates that each single-family home financed by the Section 502 program generates 1.75 jobs and $50,201 in wages. This means that a high percentage of the gross outlays for a residential construction project are available for wages and salaries, thus stimulating job creation. The Citizens’ Housing and Planning Association reports that housing construction and rehabilitation have a high ratio (62.3 percent) of value-added to total gross outlays. The development of rural housing creates jobs for those already living in the rural community, and encourages others to enter the community to fill the new demand in the construction-related professions. As the project enters the building process, construction workers and specialized personnel like plumbers and electricians are needed. Initial land development activities will usually involve architects, lawyers, financiers and other consultants. While these strategies affect the economy differently, each contributes to the economic development effects discussed below.īuilding or renovating homes requires the services of a diverse group of persons and the products of many different industries. There are several different methods to improve rural housing conditions: the local government can provide public housing the individuals in need can join a self-help program to build their own housing or a private or nonprofit group can develop affordable housing units. The development of decent, affordable rural housing can improve the lives of those with inadequate shelter, while at the same time benefitting the local economy.

Vacancy home for sales and economic impact