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.
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.
View this original post at NAHB’s blog, Eye on Housing.
