Should Home Building Be Top Priority?

By Author: Paul Gate
Total Articles: 3764
Comment this article

The present economic situation has affected every sector of the economy, even the home construction industry. Figures show sharp decrease in house constructions over the past few months.

In October, only 2,281 home permits were issued, so far the smallest number for a single month. The running total of house permit issuances for the past ten months of this year is 55,669 44 percent lower than last year.

In San Joaquin County, only 690 permits have been issued from January to October 64 percent lower than the number of issuances last year and 76 percent lower than the issuances two years ago.

The home construction problem has serious repercussions to employment opportunities. When constructions lose pace, job positions are likewise lost. Just in San Joaquin County, 900 construction jobs have been lost over the past year.

Not only are construction jobs suffering the consequences of the home building crisis, even financial service jobs are as these jobs are connected to the real estate industry. 800 jobs have already been lost.

The government can play a part in increasing home constructions. The ...
... Building Industry Association suggests that the government must provide a tax credit for homebuyers. By doing so, the government will be of help in increasing home sales which would eventually lead to the demand for construction workers.

However, there are arguments on whether tax credits should be given to buyers of new homes or to families threatened by foreclosure. Various sectors of the economy are suffering from the present crisis and the dilemma is on which sector gets help from the government.

The economy is undeniably in a bad shape. Foreclosures have been continually increasing and house sales are dropping. The government has implemented measures to address the situation. However, it must be recognized that not all problems can be successfully resolved by the government. What ever measures the government takes, some sectors will be inevitably compromised.