National economist explains benefits of home building

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Story Published: Dec 10, 2009 at 11:52 PM MDT

Story Updated: Dec 10, 2009 at 11:52 PM MDT

By Anthony Congi

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IDAHO FALLS - In front of a packed crowd of home builders, realtors, agents and various other members of the community, Dr. Elliot Eisenberg, a Senior Economist with the National Association of Home Builders, showed how new homes can revitalize our area.

"Builders and the community at large simply don't know what the benefits of home construction are. We're aware that it creates jobs and they pay property taxes of course, but beyond that, we're sort of off and in the dark," explains Eisenberg.

Dr. Eisenberg explained the total benefits of building a house which include hiring more than just builders, roofers and plumbers. Jobs also go to interior decorators, real estate agents, and lawyers. Plus, a new move-in spends money and causes a ripple effect by putting dollars into the local economy; such as stores, gas stations, etc.

"So when you build 500 homes or 465 which is the number they built last year here in Idaho Falls, the question is how much employment do you get? It turns out you get a little over 1,000 jobs," explains Eisenberg.

As for the homes already built in the area and the housing market itself, Dr. Eisenberg believes we're doing a lot better than many parts of the country and even our own state; and that things will get better.

"I don't expect housing prices here to decline much further. They might a little bit, 1 or 2 percent possibly. Certainly nothing in the realm of 5, 10, or 20 percent that really scares people which is what you're seeing in places like Phoenix, Las Vegas, Southern California, or Florida. Which suggest that the market is probably at a stable place and hopefully it will begin to improve as the economy improves," says Eisenberg.

A local impact study of the housing market was released to the public today. For information on how to get a copy, go to the Newslinks section of our website.

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