Residential home construction, which includes knock-downs, major renovation and rehab projects, generates substantial local positive economic activity by creating income and new jobs for residents and additional revenue for local governments. Residential construction has an immediate and sustainable positive economic impact on local communities. In the coming years we can look forward to substantially benefiting from renewed growth in residential home construction. This is because the Northeast metropolitan area will continue to be a desirable place where homeowners find good job opportunities, convenient shopping, excellent schools and many recreational choices. This metropolitan area is large enough and diverse enough to include the places where construction workers can live locally while pursuing similar goals and opportunities.
According to the National Association of Home Builders, the estimated one-year impact of building 100 single-family homes in a typical metropolitan area include $28.7 million in local income, $3.6 million in taxes and other revenue (permits & fees) for local governments, and 394 local jobs. Residential home construction also creates annually recurring positive economic activity. In established neighborhoods there is not much brand new construction, unless it’s a knock-down. Builders are busy renovating or rebuilding older existing homes.
The gentrification of an area, although controversial, creates sustainable positive activity as new homeowners participate in the local economy. Restaurants and local upscale boutique businesses typically follow or precede the increase in residential construction taking place in a gentrified neighborhood. Higher property taxes are expected as the value of newly renovated homes rise. I think any way you look at it, building or renovating a home is a quintessential Made in America product.
Unless someone has all the cash needed, almost all residential home construction projects, one way or another, are financed. A One-Time Close” Construction to Permanent mortgage makes financing simple and more affordable because there’s just one closing for both the construction loan and permanent mortgage. The homeowner can focus on their project with peace of mind knowing their construction loan and permanent mortgage are approved, the rate for both are set and details of financing each stage from start to finish have been worked out ahead of time. Now that’s a good deal!