Economic Impact Study Says Tyler’s New Housing Market Stays Steady

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.

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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.