projects suffer disproportionately from costs associated with regulatory processes and delay. Not surprisingly, fewer attainable housing units are being built. According to the National Association of Home Builders (NAHB), an ever-increasing portion of the cost of a new home is attributable to the cumulative effect of these types of costs. On average, nationally, 25% of the cost of a typical home can now be attributed to these costs— everything from mandated studies to multiple site reviews, delays, permit and other fees, code requirements, etc.
In this landscape, communities that can distinguish themselves by streamlining these processes and removing barriers to investment will benefit now, more than ever. An efficient review and approval process will benefit not only the builder/developer, but the government and taxpayers of communities across the state by keeping housing affordable and expanding the local population and tax base. More families, more children and more homes equal more money for schools and local government.
Regions that develop the most efficient practices designed to attract investment will gain housing options for their citizens and grow. Those that maintain the status quo, or actually increase burdens, will lose out and see their communities passed by.
S. C. is projected to build more than 30,000 single family homes in 2019. The estimated economic impact is at least:
• $4.61 billion in income for South Carolina residents,
• $993.8 million in taxes and other revenue for the state and local governments in the state and;
• 82,252 new jobs in South Carolina.
The additional, annually recurring impacts of building 30,000 single-family homes in South Carolina include:
• $798 million in income for South Carolina residents,
• $292.56 million in taxes and other revenue for the state and local governments in the state and;
• 16,248 new jobs in South Carolina.
These are ongoing, annual local impacts that result from the new homes being occupied and the occupants paying taxes and otherwise participating in the state economy year after year.
Each new home built equates to 3.4 full time jobs over a 12-month period and 1.2 permanent jobs. This multiplier effect stems from all the home furnishings and other products and services purchased by home buyers. New residential construction produces an operating surplus to local governments. Expanding South Carolina’s building industry has numerous positive impacts and is necessary to expand job creation and our population base. SCBJ