With each hammered nail, a homebuilder strengthens a new home’s foundation and increases the nation’s wealth. The demand for goods and services created by the construction of new homes ripples through the economy. By generating wages and tax revenues, the housing construction industry uplifts local economies nationwide and accounts for about 4 cents of every dollar spent in the United States during a typical year.

Think about all the knowledge, skills and hands needed to construct one single-family home. The housing industry helps create jobs for architects, carpenters, plumbers, mason, electricians, landscapers, bankers, suppliers, and realtors, just to name a few.

About 1,000 single-family homes are built in our community each year. Using surveys from the U.S. Bureau of Labor Statistics, the National Association of Home Builders estimated that the construction of 1,000 single family homes generates the equivalent of 2,448 full-time jobs in construction and other industries. Approximately 1,125 of these employees work in construction and 1,323 work in other related industries. In addition, the construction of 1,000 multifamily homes creates 1,030 jobs in construction and other industries.

Together, workers involved in the construction of single-family and multifamily housing collect roughly 79.2 million dollars in local wages and salaries in our community and generate more than 42.5 million in federal, state and local tax revenues and fees each year.

Housing’s economic impact doesn’t end when the home is sold. The excitement of owning a brand new home entices its owner to spend significant amounts of money on furnishing and other decorative items. So, the housing industry brings homeowner’s business to local shops and furniture stores to decorate. In the first 12 months after purchasing a newly built home, owners spend an average of $6,500 to furnish, decorate and improve it. That ‘s an additional 6.5 million dollars spent in our community, creating jobs and stimulating economic development.

WHAT DOES HOUSING MEAN TO ME?

Typically, home equity is the largest share of a household’s net worth. Compared with renting while investing in stocks, buying a home comes up a winner over the long term. For example, two identical families have $16,800 to invest. One family uses the money for a down payment on a $140,000 single family home and the other invests in stocks while renting a comparable single-family home at an initial monthly rent of $750. At the end of 10 years, the family that bought a home is $34,660 richer than the family that invested in stock. The homeowner’s net return on the $16,800 investment is $66,556. The renter’s net return is $31,896. Meanwhile, the homeowner has paid about $5,000 less for housing than the renter has over the 10 years because of tax savings.

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