By Paul Emrath
A recent Eye on Housing post reported on NAHB’s 800th customized local impact study.
In addition to studies customized to a particular area, NAHB has traditionally produced a “typical local” report using national average inputs. This report—showing the jobs, income and taxes generated by residential construction in a typical local area—is available free to everyone on NAHB’s web site.
In April 2015, NAHB updated the typical local report. A quick summary of the new numbers is as follows:
The updated estimates of the one-year impacts (including income earned during construction and the ripple effect that occurs when some of the income is spent) of building 100 single-family homes are
- $28.7 million in local income,
- $3.6 million in taxes and other revenue for local governments, and
- 394 local jobs.
And the annual, ongoing impacts (resulting from the home becoming occupied and the occupants participating in the local economy) are
- $4.1 million in local income,
- $1.0 million in taxes and other revenue for local governments, and
- 69 local jobs.
Similarly, the new estimated one-year impacts of building 100 rental apartments are
- $11.7 million in local income,
- $2.2 million in taxes and other revenue for local governments, and
- 161 local jobs.
While the annual ongoing impacts are
- $2.6 million in local income,
- $503,000 in taxes and other revenue for local governments, and
- 44 local jobs.
Finally, the one-year impacts of spending $1 million on residential remodeling in the typical local area are estimated at
- $841,000 in local income,
- $71,000 in taxes and other revenue for local governments, and
- 11 and a half local jobs.
Because remodeled homes are in general occupied before the remodeling takes place, the annual local impacts are limited to
- $11,000 in residential property taxes.
The job estimates are measured in full-time equivalents—i.e., enough work to keep one worker employed full-time for a year. Other details are summarized in a HousingEconomics.com Special Study, which also gives a quick overview of the methodology NAHB used to generate the estimates.
For additional information, including complete reports on the costs and benefits of residential construction in a typical local area and average state, and instructions on requesting customized reports, please see NAHB’s Local Economic Impact of Home Building web page.
News source provided by eyeonhousing.org