Please note: These words (except for quotes) are my views and opinions gathered from following the residential construction industry and do not represent those of my employer.
Made in America – Residential Home Construction
Residential home construction, which includes knock-downs, major renovation and rehab, generates substantial local positive economic activity by creating income and new jobs for residents and additional revenue for local governments. Local construction has an immediate and sustainable positive impact on communities. In the coming years we can look forward to substantially benefiting from renewed growth in residential home construction. This is because the Tri-State metropolitan area will continue to be a desirable place where homeowners find good job opportunities, convenient shopping, excellent schools and many recreational choices. This metropolitan area is large enough and diverse enough to include the places where construction workers can live locally while pursuing similar goals and opportunities.
According to the National Association of Home Builders, the estimated one-year impact of building 100 single-family homes in a typical metropolitan area include $28.7 million in local income, $3.6 million in taxes and other revenue (permits & fees) for local governments, and 394 local jobs. Residential home construction also creates annually recurring positive economic activity. In established neighborhoods there is not much brand new construction, unless it’s a knock-down. Builders are typically renovating or rebuilding older existing homes.
The gentrification of an area, although controversial, creates sustainable positive economic activity as new homeowners participate in the local economy. Restaurants and local upscale boutique businesses typically follow or precede the increase in residential construction taking place in a gentrified neighborhood. Higher property taxes are expected as the value of newly renovated homes rise. I think any way you look at it, building or renovating a home is a quintessential Made in America product.
Unless someone is fortunate enough to have all the cash needed, almost all residential home construction projects, one way or another, are financed. A “one time close” construction to permanent mortgage makes financing easier and more affordable because there’s just one closing for both the construction loan and permanent mortgage. The homeowner can focus on their project with peace of mind knowing the construction loan and permanent mortgage are approved, the rate for both is set and details of financing each stage from start to finish has been worked out ahead of time.
“The difference between a successful person and others is not a lack of strength, not a lack of knowledge, but rather in a lack of will.” Vince Lombardi
Arthur Aranda • NMLS #1042093
Construction & Renovation Loans
New Jersey, New York, Connecticut
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