Economic impact from homebuilding shapes the U.S. economy (infographic)
The substantial local economic activity from new homebuilding isn't always visible, but it is substantial.
It can include new income and jobs for residents, and additional revenue for local governments. The National Association of Home Builders has developed a model to estimate these economic benefits. The NAHB;'s model captures the effect of the construction activity itself, the ripple impact that occurs when income earned from
construction activity is spent and recycles in the local economy, and the ongoing impact that results from new homes becoming occupied by residents who pay taxes and buy locally produced goods and services. In order to fully appreciate the positive impact residential construction has on a community, it is important to include the ripple effects and the ongoing benefits, according to the NAHB.
In the Impact of Home Building and Remodeling on the U.S. Economy report, Paul Emrath, Ph.D., head of Economics and Housing Policy for the NAHB, wrote that "Probably the most obvious impacts of new construction are the jobs generated for construction workers. But, at the national level, the impact is broad-based, as jobs are generated in the industries that produce lumber, concrete, lighting fixtures, heating equipment, and other products that go into a home or remodeling project. Other jobs are generated in the process of transporting, storing and selling these projects. Still others are generated for professionals such as architects, engineers, real estate agents, lawyers, and accountants who provide services to home builders, home buyers, and remodelers."
Here is an interactive infographic from the NAHB depicting the economic impact from homebuilding and remodeling.