IMPACT FEE REPORT

Click below to read the full report, or download via the arrow in the upper left corner. 

 

Local Realtor Association Releases Report on Proposed Impact Fees

Coastal Carolinas Association of REALTORS® shares economic consequences of real estate impact fees for Horry County

 Myrtle Beach, S.C. (April 25, 2022) - A new report shows an increase to impact fees in Horry County will have severe consequences on residential real estate, single-family homes and potential homebuyers. The report, released today by Coastal Carolinas Association of REALTORS® (CCAR), shows the cost of a single-family home will increase by more than 4.9% and housing affordability will decrease as much as 7.1%.

In addition, the report shows the impact fees will ultimately result in more than 600 jobs not being created in Horry County. Along with this, it shows nearly-three quarters of all households in Horry County earn less than $50,000, the county’s median income and are currently house cost burdened.

The report was prepared by research economist Dr. Joseph Von Nessen. It analyzed the consequences of the fee on residential and commercial real estate as well as the economic repercussions.

“The sizeable increase in housing prices over the past year combined with recent upticks in mortgage interest rates is already reducing housing affordability across the nation, including in Horry County,” said Von Nessen. “Any new impact fees would be likely to reduce affordability even further, with the effects falling disproportionately on the rural regions of the county.”

Von Nessen also emphasized that commercial properties won’t be exempted from these imposed fees which will drive businesses away from the county. 

The report shows new commercial office space development would reduce 10% to 19% a year while commercial industrial spaces will reduce 15% to 26% in sales activity. Although new commercial real estate is affected in these situations the resale market will also be impacted, according to the report.

“We are proud to have partnered with Dr. Von Nessen and commissioned this independent study. As an association, we are very concerned about the negative economic consequences of these impact fees,” said Laura Crowther, CCAR CEO. “This tax will significantly decrease commercial development, in our community, resulting in $76.4 million being lost in business activity over the next five years. With inflation at a new 40-year high, now is not the time to dramatically increase costs for families in Horry County. We must preserve the ability of all residents to afford homeownership.”

If the new fees are passed, residential real estate sales activity will lose $8.7 million on an annual basis for the county resulting in the lack of $2 million in labor income and 65 good-paying jobs disappearing. As noted, commercial development would also decrease losing the county more than $76.4 million in business activity over the next five years. That would result in 624 jobs not being created and the county losing $23.1 million in labor income.

Overall, any increase to impact fees levies a threat to Horry County and will hurt its local economy. Job opportunities will cease to exist, local families won’t be able to afford housing costs and businesses will be driven away due to the high costs.

To view the report and learn more about the impact of an impact fee increase visit: https://www.ccarsc.org/pages/impactfeereport/

About Coastal Carolinas Association of REALTORS®:CCAR was founded in 1945, serving Horry, Georgetown and surrounding counties as the primary real estate resource for nearly 5,000 active members and fast-growing community. Our programs and services were established to be an advocate for community service, the public’s right to use and transfer real property, and overall membership cooperation. As the primary REALTOR membership association in the area, we also strongly believe in giving back to the community.