Down here in Florida there is one sure way to reduce the high unemployment rate and that is to get the builders building new homes again. Every new home produces about 4 new jobs. Builders are producing about 20% of what they would build in a normal year. That translates into about half the unemployment in Florida. Customers are purchasing short sales and reo's because they are about 25% less than a new home can be constructed for. Normally they would pay 10% more for a new home because it needs no work. So to make up the difference why not have the counties wave these super high impact fees and water meter fees. And why not have the federal government give builders loans, and tax credits to sell affordable housing.The benefit to all is undeniable and will get the housing market moving again.
I'd like to think the governments would do this, but it makes good sense and that usually means it isn't going to ger done by the government.
Sounds good on the surface, but there is always the issue of taking money from someone/somewhere to give it to someone else.
The impact fees help offset the cost of infrastructure that is incurred by the municipalities. Without them at some level, the cost is shifted to everyone else's property taxes. Short term gain, long term cost.
As a builder, this sounds good. As a consumer and an American, not so sure.
Is it wise for the government to subsidize something we currently do not need? They did it for many years under Greenspan with artificially low interest rates. They continue now and depreciate the Dollar.
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