New-home study shows Baltimore Co. tax gain
A report prepared for the Home Builders Association of Maryland suggests that the average new home in Baltimore County pays for itself in taxes.
The report, prepared by the Legg Mason Realty Group, says the "break even" price of a new home in the county is $141,996. That is, the tax revenues to the county from the construction and occupancy of the new home pay for the county's school and other government services required by the new residents.
The average new home built in the county in the second quarter of this year had a base price of $149,959, according to a recent Realty Group "Housing Market Profiles" report on the Baltimore region.
"Given that the median base price of new production housing offered for sale in Baltimore County is approximately $150,000, the overall positive fiscal impact of residential development is evident," said Fritzi K. Hallock, vice president of the Realty Group, in her report to the homebuilders.
The builders are trying to persuade county officials to end the moratorium on new construction around overcrowded schools.
Baltimore ranks 63rd in affordability index
Baltimore ranked No. 63 and Washington ranked No. 96 in the Housing Opportunity Index compiled by the National Association Home Builders for the second quarter. Wilmington, Del., ranked No. 26.
The index measures the proportion of homes sold in a specific market that an area family earning the median income could afford.
The index also considers differences in property tax and insurance rates.
The survey found the most affordable areas of the country in the Midwest and least affordable in the West. The worst case was California, which had 11 metropolitan areas among the 25 least affordable, including last-place San Francisco.