I work for a Community Development Financial Institution. As a non-profit organization, our mission is to support the financial wellbeing of community members. One of the ways we do this is through homeownership services-- we are a one-stop shop for financial coaching, lending (including products such as down payment assistance to make homeownership more affordable), realtor services, and even develop our own affordable real estate in our region.
While we are able to use IMPLAN to understand how our real estate development (construction) impacts the local economy, we want to find out how homeownership, as opposed to renting, is impacting the economy. I have read the article "Housing: Owning, Buying, Selling and Renting" and as IMPLAN notes, "...homeownership generates wealth (the home can be rented out to others or saves the owner from having to pay rent)".
While the article describes that the homeownership and rent payment impacts are included as induced effects, it also suggests that you can get direct effects if an event is run in the Owner Occupied Dwellings Industry. I would like to understand how to run an Industry Output Event for the Owner Occupied Dwellings industry (or, a Commodity Output Event for the "Imputed rental services of owner occupied dwellings" commodity).
I want to model an event where renters buy homes and become homeowners, and understand the value and economic impact of this conversion from renter to homeowner. For example, if we sell, say, 10 homes to first time homeowners, what is the difference in their household spending, and therefore in the regional economy, now that they own their own home.
What we know:
- How many of our clients purchased a home
- Which are first time homebuyers or were previously renting
- How much they had previously been paying in rent
- purchase price of the home
- the amount homebuyers are now paying in housing costs as owners
- We know that these renters are living in their homes and that these are not purely investment properties.
We don't know:
- whether homeowners are renting out some of their property in addition to living there
- to what extent first time homeowners are outfitting their home with new vs existing household products.
- Can I indeed use the Owner-Occupied Dwelling Industry for an Industry Output Event? The Output Value would be "TOTAL VALUE OF HOMEOWNERSHIP". How does IMPLAN define this total? What is included? If the price of the home/mortgage itself is not considered (because it is an asset transfer) what can we use as the "total value of home ownership"?
- Or would we use "Imputed rental services of owner-occupied dwellings" commodity event? How is this commodity defined and calculated by IMPLAN?
- Is there a way to compare the scenario where our ten home buyers rent versus where our ten home buyers own a home?
- Do you have examples of this use case? I have combed through white papers and articles on Mixed Use Development and Residential Housing development and have not yet found this type of analysis. Looking forward to diving into this topic with you!
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