Economic Benefits of New Home Construction

From the National Association of Homebuilders

Economic Benefits of New Home Construction

Jobs, Jobs Jobs

Residential construction has a positive, direct impact on the U.S. economy.

For each new single-family home that is built, NAHB estimates that three jobs are

created.

Jobs are generated in the industries where lumber, concrete, lighting fixtures, heating and

cooling equipment, and other products that go into a home are produced. More jobs are

created when real estate agents, lawyers and brokers provide services to home builders

and home buyers.

About half of the three jobs created by building an average single-family home are in the

construction industry. Other jobs are spread over other sectors, with manufacturing

ranking second.

Housing is “Made in America.” Most of the products used in home construction and

remodeling are manufactured here in the United States.

A Generator of Tax Revenues that Builds Vibrant Communities

A strong housing industry not only means more jobs, but more money in our

communities.

Home building increases the property tax base which generates revenue that supports

local schools and communities.

For each new single-family home that is built, NAHB estimates that it generates a

total of $90,000 in government revenue — $67,000 in federal taxes and $23,000 in

state and local taxes.

Housing Can Put America Back to Work

In 2011, housing units started in the U.S. totaled only 609,000. This is well below the

long-run trend of 1.7 to 1.8 million new homes that are necessary to accommodate

population growth and replacement of older housing stock.

The gap between current production and potential housing construction is more than 1

million homes. That represents more than 3 million untapped American jobs.

In normal times, housing accounts for more than 17 percent of Gross Domestic Product.

Restoring the health of the housing industry is a crucial first step in putting America back

to work.

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