Development Industry Has Profound Impact On Local Economy
Article posted on the San Antonio Business Journal Web site, September 24, 2004
E. Michael Guerra
San Antonio's real estate development industry is one of the most important parts of our local economy. The pace and quality of future economic growth in the city, including opportunities for our young people to make a living here, will depend on the continued vitality of this industry.
It is more important than ever to preserve this source of opportunity in San Antonio, rather than driving development to other nearby cities. Most markets compete fiercely for the opportunities provided whenever real estate development occurs.
Real estate development represents one of San Antonio's largest industries. And it is significant that many small- and minority-owned businesses rely on the development industry for the many opportunities it provides.
So how much of an impact are we talking about? Consider these statistics from a study of San Antonio's development industry, which was performed by the respected economist John Hockenyos. The industry:
- Has an economic impact of $9.4 billion each year.
- Employs nearly 90,000 people in San Antonio.
- Has a local payroll of $2.6 billion.
- Generates nearly $97 million in local tax revenue.
This industry provides good-paying jobs for thousands of people across the community. Many of those jobs are in the construction industry, which in 2001 paid an average of $33,000 in Bexar County, or 8 percent higher than the average private sector wage of $30,400 in the county.
And in an area where economic growth will depend in large part in improving opportunities for the Hispanic majority, the development industry provides nearly 52,000 jobs and $1.6 billion in income for local Hispanic employees.
Many times these jobs are the stepping stones that allow individuals to learn a trade and eventually start businesses of their own. These are the types of benefits that are immeasurable in terms of creating job growth and providing new opportunities in our community.
And it is important to note that many of us in this industry have an additional positive impact through our involvement in the community at many levels, including involvement in schools as volunteers, mentors and tutors; environmental projects; youth activities; United Way; and many other civic and faith organizations.
Because San Antonio is our home, we make a commitment to being responsible in what we do. Our future depends on it. Quality of life is an important aspect of economic development, including the ability to attract new employers, as well as keep employers and our work force here.
And despite reports to the contrary, the vast majority of developers in our community are good stewards as it relates to our environment and to the well being of our community. Developers understand they must meet the needs of the market in order to have a successful project.
For example, current estimates by tree nurseries that service our area indicate that the landscape contractors in San Antonio plant more than 100,000 trees per year. The majority of those contractors are hired by developers, homebuilders and contractors.
Additionally, the Texas Nursery and Landscape Association records indicate there was $142.8 million worth of landscaping installed in San Antonio in 2003. At that rate, over a 10-year period, the real estate-development-construction industry plants 1 million trees and spends $1.4 billion on landscape work in San Antonio. That's enough trees to cover 78 square miles of land at a rate of 20 trees per acre -- almost 20 percent of the current land area within the city limits of San Antonio.
As for parks and open space, in a preliminary study of 1,800 acres of new residential developments since the passage of the Unified Development Code, developers have set aside about 110 acres of parkland. That's more acreage than Woodlawn Lake Park and San Pedro Park combined.
The real estate and development industry provides many benefits to our community. Most benefits are measurable, such as jobs, local payroll and the tax base. However many are immeasurable when you take into account the opportunities available to our residents created from our industry.
I encourage members of our industry to be more outspoken with their friends, neighbors and elected officials about our positive impact on the community. Too often, the public and the local government fail to understand our importance to the economy and our future progress as a city.