Economic Impact Study Says Tyler’s New Housing Market Stays Steady
“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 the Tyler area,” said Elliot Eisenberg, the senior economist for the National Association of Home Builders.
-->
By DANNY MOGLEAssistant Managing Editor
The home construction industry is a major contributor to the local economy and pumps money into it long after a house is built.
That was one of the findings of an economic impact study presented Wednesday by Elliot Eisenberg, the senior economist for the National Association of Home Builders. He discussed the findings during a news conference and a luncheon at Rose Garden Center recognizing government officials.
He told news media that despite major problems in home-lending markets and a downturn in new home sales and prices in some places, the Tyler new housing market remains steady.
"If (what is happening in) Eastern Texas was (representative of) the housing market nationally, there would not be a problem," Eisenberg said.
Areas in which loose lending practices were common and new housing prices had spiked are now "suffering," he said.
"You've got it about right," he said of the balance of factors that affect the local home construction industry.
Eisenberg said he used a model developed by the NAHB to gauge the economic impact during the construction phase and ongoing occupancy phase as well as a ripple effect caused as money spent by those within the industry circulates through the community.
The results are based on figures from 2007 showing that 883 new homes were built in the Smith County at an average price of $208,408.
Over the next 25 years, those 883 homes, through the jobs they create or help support and the taxes and economic spending produced by those who occupy them, will generate $127.7 million in revenue compared to $117.5 million in costs associated with the building of the homes and government services required to support the residents, according to the report.
"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 the Tyler area," Eisenberg, said in a prepared written statement.
"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," his written statement said.
The report found that in regard to the 883 homes built in 2007:
During the first-year construction phase they generated 1,525 jobs (1,082 jobs in construction alone), $3.2 million in taxes and $74.8 million of local income.
They set into motion a ripple effect -- wages and profits local residents earned during the construction period that were then spent on other local goods and services -- that resulted in 689 jobs, $2.7 million in taxes and $32.5 million in income, also in the first year.
They will have a calculated ongoing annual effect -- which includes local jobs, income and taxes generated as a result of the home being occupied -- of creating 547 jobs, $5 million in local taxes and $24 million in local income per year.
The luncheon was presented by Tyler Economic Development Council, Tyler Area Builders Association, Fair Management and Genecov Group and sponsored by numerous area builders and affiliated businesses.
Copies of the study are available by contacting the Tyler Area Builders Association at 903-561-3964.
Thursday, October 30, 2008
Thursday, February 21, 2008
City of Tyler Debt Free
Article published Feb 21, 2008Tyler Set To Be Free Of DebtBy CINDY MALLETTEStaff
WriterAt 2 p.m. Thursday, the city of Tyler will be debt free.
City leaders will gather at Tyler Pounds Regional Airport to symbolically sign the last check for general obligation debt payment. The ceremony begins at 2 p.m. near the ticket counters.Since 1995, the city has been able to fund major municipal projects through a half-cent sales tax voters approved in the spring of that year. The sales tax money has allowed the city to pay for projects with cash, so the city didn't have to issue bonds and go into debt."That's unheard of in Texas," said Mayor Joey Seeber. "We've been able to pay for multi-million dollar projects with cash."Some of those major capital improvement projects included the Glass Recreation Center, Tyler Pounds Regional Airport and Faulkner Park. The tax also paid for more than 40 street and traffic projects totaling $39.8 million.Each year, the tax generates about $11 million. That money pays for capital improvements in public safety, parks, streets/traffic, drain-age, airport and general projects. A half-cent sales tax board meets once a month to review, prioritize and fund projects within those categories.The original goals of the half-cent sales tax were to lower property taxes by 15 percent and pay off the city's general obligation debt."Thirteen years ago, when we had the election, a lot of people didn't believe that a local government could reduce property taxes," Seeber said. "We've proven we can fulfill the promises we made."Since 1995, property taxes in Tyler have dropped 60 percent, falling from 52 cents per $100 valuation to just 20 cents, saving $134 million in property taxes in 13 years. Susan Guthrie, city of Tyler spokeswoman, said Tyler has the lowest tax rate of Texas communities similar in size. Cities such as Abilene, Denton and Beaumont - all with populations around 100,000 - have tax rates exceeding 62 cents."Our citizens have over $100 million in their pockets that they would not have had if we hadn't implemented the half-cent sales tax," Seeber said.On Thursday, the mayor, City Council and State Sen. Kevin Eltife - who was Tyler's mayor when voters originally passed the half-cent sales tax - will fulfill the second part of the original goal by paying off the last of the city's general obligation debt."I am very proud to be participating in this moment in Tyler's history," Seeber said. "It's really exciting for the city and for the residents."
WriterAt 2 p.m. Thursday, the city of Tyler will be debt free.
City leaders will gather at Tyler Pounds Regional Airport to symbolically sign the last check for general obligation debt payment. The ceremony begins at 2 p.m. near the ticket counters.Since 1995, the city has been able to fund major municipal projects through a half-cent sales tax voters approved in the spring of that year. The sales tax money has allowed the city to pay for projects with cash, so the city didn't have to issue bonds and go into debt."That's unheard of in Texas," said Mayor Joey Seeber. "We've been able to pay for multi-million dollar projects with cash."Some of those major capital improvement projects included the Glass Recreation Center, Tyler Pounds Regional Airport and Faulkner Park. The tax also paid for more than 40 street and traffic projects totaling $39.8 million.Each year, the tax generates about $11 million. That money pays for capital improvements in public safety, parks, streets/traffic, drain-age, airport and general projects. A half-cent sales tax board meets once a month to review, prioritize and fund projects within those categories.The original goals of the half-cent sales tax were to lower property taxes by 15 percent and pay off the city's general obligation debt."Thirteen years ago, when we had the election, a lot of people didn't believe that a local government could reduce property taxes," Seeber said. "We've proven we can fulfill the promises we made."Since 1995, property taxes in Tyler have dropped 60 percent, falling from 52 cents per $100 valuation to just 20 cents, saving $134 million in property taxes in 13 years. Susan Guthrie, city of Tyler spokeswoman, said Tyler has the lowest tax rate of Texas communities similar in size. Cities such as Abilene, Denton and Beaumont - all with populations around 100,000 - have tax rates exceeding 62 cents."Our citizens have over $100 million in their pockets that they would not have had if we hadn't implemented the half-cent sales tax," Seeber said.On Thursday, the mayor, City Council and State Sen. Kevin Eltife - who was Tyler's mayor when voters originally passed the half-cent sales tax - will fulfill the second part of the original goal by paying off the last of the city's general obligation debt."I am very proud to be participating in this moment in Tyler's history," Seeber said. "It's really exciting for the city and for the residents."
Subscribe to:
Comments (Atom)
