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November 20, 2009


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Sprawl Arises From Population Demands, Not Builders

Presidential hopeful Al Gore, a man who claims to have been a home builder before entering public life, has managed to raise the hackles of the nation's home builders by saying too much land is being gobbled up by suburban development.

National Association of Home Builders President Charlie Ruma doesn't dispute the fact that during the five-year period between 1992 and 1997, some 16 million acres of raw land was converted to urban uses. But the Columbus, Ohio builder says the Clinton Administration can't have it both ways.

On the one hand, the White House "is the first" to take credit for perhaps the longest and most prosperous economic expansion in the country's history as well as an unprecedented increase in home ownership to record levels, Ruma points out. But on the other hand, the Administration "turns around and blasts development" for taking too much open space.

The Democratic front-runner is a staunch advocate of so-called "smart growth," the catch-all planning strategy that, among other things, encourages comprehensive land use planning in local communities and the use of such innovative techniques as cluster developments and higher density zoning.

But so is the NAHB, which is working with the nation's mayors and the Administration to encourage infill development and to stimulate new housing in the inner cities and older suburbs. Indeed, the 200,000-member trade association has pledged to build 100,000 houses a year in urban areas over the next decade.

Furthermore, while there are probably more avowed environmentalists than there are builders, builders consider themselves environmentalists, too. And considering their long reach into the economy, they may just be able to generate more votes.

Building a single house creates 2.5 jobs for a year. Not just carpenters and plumbers, but furniture salesmen and moving truck drivers, too. In total, new residential construction accounts for 5 cents of every dollar spent in the U.S. economy, and that doesn't include the impact the buyers of all these new homes have on their local economies for years to come.

So the vice president may want to tread a little more lightly, or at least stop speaking out of both sides of his kisser. That said, here's the NAHB's take on the nearly 16 million acres of forest, cropland and open space that was converted between 1992 and 1997:

  • Using a conservative estimate of just two single-family houses per acre and six multi-family units an acre, the 5.6 million houses and 1.2 million apartments built during the five-year period accounted for just 3 million of the 16 million acres. The remaining 13 million acres were used for schools, shopping centers, roads, employment centers and other uses.

  • Those 3 million acres represents only about 1/10th of 1 percent of the nation's total land mass, which is 2.4 billion acres. Even the 16 million converted acres is relatively small, accounting for less than 7/10ths of the total.

  • The suburbs are growing because that's where the majority of people want to live. For most first-time owners, the outlying suburbs, where land is cheapest, is about the only place they can afford to buy. And for many repeat buyers, the further out the better.

  • Furthermore, that's where the work is. Labor Department stats show that three out of every four new jobs created in urban markets are located outside the central city.

  • During the next decade, demographic demand calls for the construction of between 1.3 and 1.5 million new houses a year. Home builders don't create the demand, they just satisfy it.

    Put another way, they don't make the babies, they just house them. And it might do well for all political candidates, not just former builder Al Gore, to recognize that fact.

  • Published: December 20, 1999

    Use of this article without permission is a violation of federal copyright laws.





    Editor's Note: This article reflects the opinions of Lew Sichelman only and not necessarily the views of this or any other publication, organization or Website owner.

    When Lew Sichelman first started writing about housing in 1969, he was the youngest real estate writer in the country. Now, 37 years later, he's one of the oldest -- and most decorated.

    He has been rated the top housing columnist in the country by the National Association of Realtors as well as by his peers in the National Association of Real Estate Editors. Indeed, NAREE has recognized his work on numerous occasions. One year - due to his advancing age, he can't recall which one - he earned top honors in the annual NAREE Journalism Contest in three out of the four major writing categories. It was the first time one writer has won so many NAREE awards in a single year.

    Known for his ability to make even the most difficult topics understandable, Sichelman also has been honored by the National Association of Home Builders and the Mortgage Bankers Association.

    He began providing in-depth coverage of and consumer-oriented information about housing and housing finance at the Washington Daily News, where he was real estate editor. He held that same position for nine more years at the Washington Star, which purchased the News in 1972.

    The Star, a so-called "writer's newspaper" which also had the misfortune of being an evening paper, was put out of its misery in 1981, and Sichelman, who had begun self-syndicating his column in 1978, decided to become a full-time columnist. Today, his column, "The Housing Scene," is distributed by United Media to newspapers throughout the country.

    He also is on the staff of National Mortgage News, an independent newspaper which is considered the bible of the mortgage business. And he writes for numerous other publications, including MarketWatch.com, where he answers readers questions once a week, Sports Illustrated (don't ask), RealtyTimes.com, BigBuilder and others.

    Sichelman is married, the father of five and grandfather of eleven.








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