Homebuilding in parish has big economic impactLEONARD GRAY / L’Observateur / September 15, 1999LAPLACE – As one might suspect with the building boom in St. John theBaptist Parish in recent years, the economic impact of home building here has meant more than $17 million in local income.
Published 12:00 am Wednesday, September 15, 1999
This is according to a report issued by the National Home Builders Association, prepared for Landcraft Inc. of LaPlace.The report estimated the economic impact of the construction of 204 new single-family homes, representing those building permits issued during 1997 alone.
The executive summary of the report also measured more than $1.6 millionin local taxes and fees resulting from this home construction, and 476 local jobs.
Additionally, that construction generated for the parish $4.5 million inlocal income, $886,000 in local taxes and fees and 152 local jobs, all indirectly associated with that construction.
Those impacts were developed assuming the average price per home was $130,000 built on a lot for which the average value of the raw land is $5,750. This requires the builder and developer to pay an average of$1,975 in local fees and permits and incur an annual property tax of $666 per year, taking into account a homestead exemption of $7,500 of assessed value. These numbers were supplied by the Home BuildersAssociation of Greater New Orleans.
An economic model was developed for this study to measure the local impact of building a home, divided into three phases: construction, ripple effect and ongoing impact.
Construction, according to the model, generates local income of $12,270,000, which includes $3,751,000 income for local business owners, $8,518,000 local wages and salaries and $29,000 wages and salaries per full-time job, supporting 296 jobs.
In addition, local government general revenue includes $252,000 in taxes and $930,000 in local user fees and charges.
Ripple effect, according to the model, generates local income of $5,389,000, which includes $915,000 income for local business owners, $4,474,000 in local wages and salaries, and $25,000 wages and salaries per full-time job, supporting 181 jobs.
Local government generates $504,000 in local taxes and $709,000 in user fees and charges.
Ongoing impact, according to the model, generates local income of $4,503,000, which includes $769,000 income for local business owners, $3,734,000 in local wages and salaries, and $886,000 in user fees and charges.
Local government generates $513,000 in local taxes and $886,000 in user fees and charges.
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