A new-home sale pumps even more money into the economy than a resale. NAHB says 1,000 new homes create 2,900 jobs and generate almost $111M in taxes and fees.
WASHINGTON – A new study from the National Association of Home Builders (NAHB) finds that housing is poised to lead an economic rebound as coronavirus pandemic fades.
According to the study, the build of 1,000 average single-family homes creates 2,900 full-time jobs and generates $110.96 million in taxes and fees – money used to support police, firefighters and schools. The findings are included in NAHB’s National Impact of Home Building and Remodeling report.
While each single-family home has a bigger economic impact that new apartments, the latter also have a strong impact on local economies. The report finds that building 1,000 average rental apartments generates 1,250 jobs and $55.91 million in taxes and revenue for local, state and federal governments.
Remodeling by current homeowners also helps. The report says that ever $10 million in remodeling expenditures creates 75 jobs and generates nearly $3 million in taxes.
“Before the coronavirus pummeled the U.S. economy, housing was on the rise with January and February new home sales numbers posting their highest reading since the Great Recession,” says NAHB Chairman Dean Mon. “The demand is clearly there, and as this study shows, we expect that housing will play its traditional role of helping to lead the economy out of recession later in 2020 when the pandemic subsides.”
The NAHB model finds broad-based job creation. Building homes or apartments generates jobs in industries that produce lumber, concrete, lighting fixtures, heating equipment and other products, as well as related jobs for workers that transport, store or sell those products. It also creates jobs for professional service workers, such as architects, engineers, real estate agents, lawyers and accountants.
On March 28, the Department of Homeland Security designated the construction of single-family and multifamily housing as an “Essential Infrastructure Business,” meaning that construction could continue in places under stay-at-home orders. Local governments could override that designation, but more construction workers returned to their jobs after it was issued.
“Ensuring the health and safety of home builders and contractors is our top priority,” says Mon.