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The National Association of Home Builders (NAHB) says, "the production increase of <br />640,000 homes in 1983 over the prior year created 924,000 man-years of employment, $18 <br />billion in wages andS8 billion in local, state and federal taxes. The f,!rst year of the housing <br />recovery pumped $86 billion in new activity into the economy. <br /> Fconomically, the housing and light construction industry is extremely important to <br />the U.S. Last year, for example, construction spending accounted for a high 3,8 percent of <br />our entire nationalproduct. And the ripple , <br /> gross <br />effect of housing on the total ecoflomy is J Im/~cf of One New Home <br />tremendous, in 1984, there will be $16.922 { o~ the Economy' <br />billion spent directly and indirectly on lumber I A single-family delached home in1984 sold for a median <br />~ao/~r~r~OcrtiSo,~gle-fam,l~' and Iow r, se res,dent,al <br />t. · ~ and to lOCal, state and federal lax revenues <br /> The people who buy houses also purchase I Median New Home Cost = $80.900 <br />wallpaper, paint, and furniture. For each unit of <br />housing purchased, there is a ripple effect that <br />takes place throu§ho,, the economy. As the <br />adjacent chart shows, this impact of housing on I <br />the economy is enormous. The building of one <br />median-priced house, for example, adds ! <br /> $31,5oo in labor salaries to the economy, pro-i/////Y2" ..__._.lXX\\\ \ \ <br /> rides 1.3manyearsofdirectemployment, usesi ///////' . ~~~.\\\ \ \ \ \ <br /> $25,888inbuildingmaterials, uses$1,393ingas !111//// ' xT~- \\\\\\\ <br /> and electrical utilities and accounts for$688in I I 11 i i t I/.~% ~ \ \ \ \ \ I \ <br /> realestate taxes. The owners of this new home <br /> also spend an average of $3,500 in additional <br /> first-year retail purchases. Source: BBMR <br /> <br />It's a "buyer's market .... Declining interest rates and end of year <br />pressure on sellers...produce a genuinely advantageous point in <br />the market cycle to negotiate...for a new home." <br /> <br />Kenneth Harney, the nation's housing, Mpls. Star & Tribune. Dec. 15, 1984 <br /> <br />Welcome Io the first monthly edition o! New <br />Housing Update---a publication of the'twin Cities <br />Housing Council. <br /> '[he Housing Council proudly represenls <br />registered builders of Ihe Minneapolis and St. <br />Paul Builders Associations in the Metropolitan` <br />area. <br /> ! encourage you to call me at 544-4~61 ify~u <br />have an)' questions, or if you need additional <br />information on housing or housing related <br />subjects. <br /> We are hopeful that this newsletter will <br />acquaint you with our organization and with <br />positive climate that exists for the new home <br />buyer, <br /> I look forward to hearing from you. <br /> <br /> · Carla ~.oehl, Editor <br /> <br />Twin Cities Housing Council <br />7325 Wayzata Boulevard <br />Minneapolis, MN 55416 <br /> <br />CiTY OF RANS£Y <br />15155 N0~THEN BLVD <br /> <br />RA~SEY RN <br />LLOYD SCHNELLE <br /> <br />553C3 <br /> <br /> BULK RATE <br /> u.s. POST^SE <br /> P^~D <br />PERMIT NO. 2109 <br />MPLS., MN <br /> <br /> <br />