BENEFITS OF DEVELOPMENT IN THE HUDSON VALLEY

In recent years, thousands of people and many new businesses have moved into the Hudson Valley. There has been construction of housing and commercial and industrial buildings through the Valley to meet this growth.

The Builders Association of the Hudson Valley realizes that economic growth can create both benefits and problems. How4ever, trying to totally stop growth leads to economic stagnation, and can create problems which are worse than any problems caused by the growth itself.

When a community adopts a “raise the drawbridge” mentality, the results can be disastrous. Just because few new houses are allowed to be built in a community does not mean that many more people will not want to move in. When a great number of people are competing for an unchanging number of homes, the law of supply and demand will drive up the prices of housing for everyone.

Current homeowners may welcome rising home prices, because their property values will increase. However, the gains may be short-lived. Communities through the United States are beginning to realize the relationship between affordable housing and the vitality of their local economies. Businesses do not want to locate in areas where their employees cannot afford housing. Existing firms may consider moving out of areas where housing is unaffordable.

Business leaders point to secondary impact of a lack of affordable housing. Consumers are likely to buy less from local businesses if they must spend a greater share of their income on shelter. Governments, in turn, realize lower sales tax revenues and must turn to other sources to maintain customary levels of public service.

New home construction is a major contributing factor to the economic vitality of the Hudson Valley. The impact of home building ripples throughout the economy to virtually all sectors of the community.

A typical new home contains more than 3,000 component parts. New home construction creates jobs in industries which produce lumber, concrete, windows, nails, paint, drywall, appliances, carpeting and numerous other products. Employment is also created for the carpenters, plumbers, electrician s and other workers who actually construct the homes. For every 100 single family homes built, enough work is created to employ the equivalent of 175 people full time for a year.

New housing also results in numerous spin-off purchases. People who buy new homes are likely to buy furniture, lawn equipment, and a vast array of other items. Such purchases create business for local merchants. Additional business is crated when construction workers and building material suppliers take their wages and profits and purchase food, clothing, and other necessities.

In the service sector, jobs and wages are generated in the mortgage lending industry to originate and serve home loans. The insurance industry benefits when new home buyers purchase policies to safeguard their properties.

New homes expand the property tax base of a local government. State government derives sales tax and income tax receipts. The federal government receives corporate and personal income tax payments as well as Social Security contributions. The jobs created by new home construction allow many workers to stay off the unemployment rolls – they are tax-paying citizens.

The benefits of development far outweigh the costs. Many of the problems thought to be created by development can be minimized or resolved with proper planning. For instance, the increase strain on our sewer and water systems can be addressed through expansion financed by increased tax revenues created by the expanded tax base. Municipalities can use existing zoning laws and other controls provided by state and local governments to create a comprehensive pattern of growth for their respective communities in order to maintain the character of the region.

The Builders Association of the Hudson Valley believes that the growth of our region can and does provide a great number of benefits. We think that growth should be viewed as an opportunity for positive change rather than as a difficulty to be avoided. It is our philosophy that sensible, planned growth contributes to a health local economy which promotes the financial and social well being of us all.