The home builders, for example, are partners, along with the U.S. Department of Housing and Urban Development and the U.S. Conference of Mayors, in the effort to increase the number of homes built in America's cities and inner-ring suburbs. This is one of many smart growth solutions that we believe can make a difference. Unfortunately, the Sierra Club report on the costs of sprawl ignores the challenges of meeting this nation's demand for housing. Over the next 10 years, some 15 million new homes will be needed to meet the demand created by the formation of new families as the nation's children grow into adulthood and by immigration. We, as a society, need to plan for that demand and provide the necessary infrastructure in a way that creates and maintains healthy communities and makes housing affordable to all Americans.
New housing does make a significant financial contribution to local communities.
Property taxes, for example, represent less than half the economic contribution made to local government from the construction and use of a new home. New residents pay for services in many ways. They pay first because their new house costs more as a result of impact fees and hook-up fees. Additionally, they make regular payments for water, sewer and other services they receive. They also pay for services in the form of significant annual property taxes.