As the Payson Town Council passed Ordinance 695 in December to limit residential building permits to 250 per year, the Payson Regional Economic Development Corporation contracted for an economic impact analysis of the ordinance.
Applied Economics was retained by the PREDC to do the analysis of the ordinance.
The analysis includes two scenarios -- a look at the economy under regular market conditions and under the growth control scenario.
In total, according to the study, new residential development could generate $12.2 million in total annual revenues for the town over the next six years under normal market conditions, compared to $11.8 million under growth control. The difference would be about 3 percent over the six-year period.
What is not measurable, according to the Applied Economics study, are the short-term perception impacts created by the political climate surrounding growth control, as well as the long-term impacts of increasing home prices due to limits on supply. These impacts are likely to be greater in the lower-priced condominium and multifamily market than in the single-family market.
As the price of housing in Payson continues to increase due to supply constraints, other markets in the region will become increasingly competitive alternatives for buyers seeking retirement or seasonal housing, as well as for local workers, according to the study. The lack of affordable housing in Payson could impact the town's ability to support the type of retail and services that make the community a desirable place to live.