Treatment of Housing

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    IMPLAN Support
    Hi Huyla, The IMPLAN model is an input-output style model and thus does not have elasticities built into it. The model shows the record of the economy for the year of the data. So if you know there will be new housing built, you would need to get an estimate of the value of the construction project and then you could create an Event in IMPLAN that looks at the impacts to the economy of that value of construction (if this were strictly new residential construction the appropriate Sector would be Sector 37). Whether or not new residents will move into the region, likely depends on whether the region has a housing deficient, the size of the geography (smaller geographies have more 'non-residents'), and other economic factors or regional factors that may draw people to that location. One caution with this is that if people are moving from one housing structure to another within the region, the effects, except perhaps some moving and retail costs associated to new home purchases, are mostly substitutive and thus net out. IMPLAN cannot make an estimate of how much people might spend on moving or new retail, but there may be survey data available that can help you. Once you decide how much and what will be purchased, these purchases can be modeled through IMPLAN. If you are looking at residents that are known new, then you would need to get either an idea of their [ol] [li]Compensation payments,[/li] [li]Income (less payroll taxes but including income taxes and savings)[/li] [li]Or disposable income (less payroll and income taxes and savings, but including rent, utilities, etc.)[/li] [/ol] Depending on which of these you are able to determine, you can then enter the new income values into [ol] [li]A Labor Income Change Activity,[/li] [li]A Household Income Change Activity,[/li] [li]Or a Household Spending Pattern as Activity Level.[/li] [/ol] The advantage to the Household Income Change over the Labor Income Change is that you can choose Household income groups, and the advantage to the Household Spending Pattern to the Household Income Change, is that you can edit the spending pattern of the Household group if you know that certain purchases are not likely to change. Alternatively, if you know that these new residents are coming as a result of a new industry, you can simply model the new industry based on Industry Sales, Employment, or income if you have it and the industry will spend payroll associated to that production. This spending of payroll will take care of the Household spending for you. Please let us know if you have any additional questions, of if this doesn't address your specific concern.
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    Harik
    Thank you! This was very helpful!
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