Statistics Contradict Barrett's Claims About the Negative Affects of Impact Fees
Statistics Contradict Barrett's Claims About the Negative Affects of Impact Fees
Desmond Barrett's recent contention that Builder Impact Fees are killing the housing market for young families in Lehigh Acres is provably false. All you have to do is look around at the tremendous construction activity in every section of town to realize that there's a housing boom in Lehigh. The swing sets in the backyards of newly completed homes tell you that this boom is being fueled by people who are Barrett's age.
In fact, according to respected local Realtor, John McWilliams, households headed by Generation X-ers, and members of the "Echo-Boom" generation, like Barrett, purchased over 60% of the 3,700 + new homes, and nearly 60% of the existing homes, in Lehigh Acres in 2004.
If we didn't have Builder Impact Fees for new school construction, think of how much the taxpayers who already live in Lehigh would have to pay for all the new schools we will need to accommodate these newcomers over the next 5 years? And to make matters even more challenging, the growth in the trend toward younger homebuyers is actually accelerating.
This new generation is viewing the housing market from an entirely different perspective than Baby Boomers like John McWilliams and me, who have traditionally dominated industry trends.
According to National Association of Home Builders Executive Vice President and CEO Jerry Howard, these new buyers are, "Techno-savvy and are more likely to do their house-shopping on the Internet. They have a strong awareness of all their options."
Gen-Xers in particular are wielding their buying power to shape today's new-home characteristics and market trends. They, and younger buyers, were responsible for more than half of all new-home purchases in 2004 across the nation, reflecting the Lehigh Acres trend, and are twice as likely to purchase new homes in the immediate future as Baby Boomers and seniors are.
American Housing Survey (AHS) data from the U.S. Commerce Department shows that, while households headed by those aged 27-40 (the "Gen-X" generation) accounted for only 28% of all U.S. households in 2004, they were responsible for fully 51% of new-home purchases that year. Another 6% of newly built homes were purchased by Echo-Boomers (born after 1979), 31% were purchased by Baby Boomers and only 12% were purchased by seniors aged 60 and up.
Meanwhile, NAHB research on consumer preferences indicates that 37% of Gen-Xers and 27% of Echo Boomers intend to buy homes in the next two years, compared to just 13% of Baby Boomers and 6% of seniors. Look out, Mr. Barrett, here they come.
I'm no fan of Builder Impact Fees, but I am dead set against the alternative, which is to tax the people who already live here for the cost of new growth. The facts don't back Mr. Barrett's notion that Builder Impact Fees are hurting the housing market. He is a day care provider, he should know better.
Builder Impact Fees are the hidden cost of doing business, and are passed along to consumers equally in a one-time charge.
The main reason I strongly oppose Mr. Barrett's contention that Builder Impact Fees should be abolished, is the fact that the system works. Why fix it, especially at the expense of those of us who already live here? Like many readers, I paid my impact fees when I bought my new home years ago. Why should my neighbors and I pay for growth again, and again?
Desmond Barrett's recent contention that Builder Impact Fees are killing the housing market for young families in Lehigh Acres is provably false. All you have to do is look around at the tremendous construction activity in every section of town to realize that there's a housing boom in Lehigh. The swing sets in the backyards of newly completed homes tell you that this boom is being fueled by people who are Barrett's age.
In fact, according to respected local Realtor, John McWilliams, households headed by Generation X-ers, and members of the "Echo-Boom" generation, like Barrett, purchased over 60% of the 3,700 + new homes, and nearly 60% of the existing homes, in Lehigh Acres in 2004.
If we didn't have Builder Impact Fees for new school construction, think of how much the taxpayers who already live in Lehigh would have to pay for all the new schools we will need to accommodate these newcomers over the next 5 years? And to make matters even more challenging, the growth in the trend toward younger homebuyers is actually accelerating.
This new generation is viewing the housing market from an entirely different perspective than Baby Boomers like John McWilliams and me, who have traditionally dominated industry trends.
According to National Association of Home Builders Executive Vice President and CEO Jerry Howard, these new buyers are, "Techno-savvy and are more likely to do their house-shopping on the Internet. They have a strong awareness of all their options."
Gen-Xers in particular are wielding their buying power to shape today's new-home characteristics and market trends. They, and younger buyers, were responsible for more than half of all new-home purchases in 2004 across the nation, reflecting the Lehigh Acres trend, and are twice as likely to purchase new homes in the immediate future as Baby Boomers and seniors are.
American Housing Survey (AHS) data from the U.S. Commerce Department shows that, while households headed by those aged 27-40 (the "Gen-X" generation) accounted for only 28% of all U.S. households in 2004, they were responsible for fully 51% of new-home purchases that year. Another 6% of newly built homes were purchased by Echo-Boomers (born after 1979), 31% were purchased by Baby Boomers and only 12% were purchased by seniors aged 60 and up.
Meanwhile, NAHB research on consumer preferences indicates that 37% of Gen-Xers and 27% of Echo Boomers intend to buy homes in the next two years, compared to just 13% of Baby Boomers and 6% of seniors. Look out, Mr. Barrett, here they come.
I'm no fan of Builder Impact Fees, but I am dead set against the alternative, which is to tax the people who already live here for the cost of new growth. The facts don't back Mr. Barrett's notion that Builder Impact Fees are hurting the housing market. He is a day care provider, he should know better.
Builder Impact Fees are the hidden cost of doing business, and are passed along to consumers equally in a one-time charge.
The main reason I strongly oppose Mr. Barrett's contention that Builder Impact Fees should be abolished, is the fact that the system works. Why fix it, especially at the expense of those of us who already live here? Like many readers, I paid my impact fees when I bought my new home years ago. Why should my neighbors and I pay for growth again, and again?
posted by Editor Facts & Myths at 6:30 AM
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