As the cost of a new home increases, two cities take proactive approaches
With the cost of housing increasing at a rate much faster than wages, two cities in Minnesota are working to reduce what new-home buyers pay.
Why? Growth is good for Minnesota cities. New homes bring new residents which, in turn, create jobs and expand the tax base of cities.
According to a 2015 study from the National Association of Home Builders, for every 100 new homes built there is a one-year economic impact of $28.7 million in economic activity, $3.6 million in local government revenue and 395 jobs created.
In the following years, the sustained effect of these 100 homes is $1 million in added local government revenue, 69 jobs and $4.1 million in added economic activity.Read More