During the past year, housing markets have bolstered our national and state economies. Home sales have remained strong, home builders have kept busy with new construction starts, and home owners have refinanced their loans in record number, taking advantage of historically low interest rates.
The economy has not only benefited directly from housing activity, but indirectly, Housing's multiplier affect on consumer goods and services has rippled through our economy with an astounding impact. The sharp contrast of this last year's "housing sector" to other economic sectors, which have not performed well, has highlighted both the opportunity and importance that housing plays in our economy. Interestingly, these same economic benefits are not so quickly recognized when the overall economy is performing well. In these situations, housing can take a back seat to other community issues and economic priorities.
Only recognizing "housing" as economic factor when the business cycle is down can impede or even undermine long-term economic development planning and local outreach efforts.
The link between available, affordable housing and economic strength and stability is undeniable. The two have been intimate partners, critical components of each other's success and vitality for hundreds of years. The dynamics of the relationship may vary a little as we move from region to region and state to state, but the underlying core truth remains the same-Housing is the key to Economic Recovery.
Housing plays a vastly underrated part. Community leaders do not usually mention "housing" as one of their top three or four priorities-unless they have an acute housing problem. Likewise, economic developers in the state do not necessarily rank "housing" as a main component of economic health-but they are quick to recognize the link when there is a noticeable shortage.
Determining the requisite components of economic health and vitality is not always easy. In nearly every region of the state, a unique set of factors influences the equation. In some places, the leading local business is the major player. In others, tourism reigns, or something else based on non-productivity factors. However, there is always the need to have affordable housing available for the workers who staff the business, or the out-of-towners who frequent an establishment and generate dollars in the local economies.
In school, we were all taught the things, aside from air, that we need to live. Food, water and shelter. Housing satisfies the need for shelter, and the affordability of housing has a direct impact on a person's ability to obtain the required amounts of the first two. It's a simple equation.
