It’s not just buyers and builders who benefit from the sale of a new home in our community.
The positive impact of new residential construction is far-reaching, bringing immediate and long-term benefits to families, businesses and services throughout our area.
According to economists at the National Association of Home Builders, the one-year estimated local impacts of building 100 single-family homes in a typical metro area include $28.7 million in local income, $3.6 million in taxes and other local government revenue, and 394 local jobs.
But there is other, perhaps less dramatic, economic benefits.
When a person or family buy a new home, they will likely shop at local stores to buy furniture and accessories to decorate the home. They will fill their car’s gas tank at local gas stations so they can get to the stores, have local mechanics work on the car when it breaks down or needs the oil changed, or buy a new car at a local dealer when it’s time to replace the old one.
They may need to hire local companies for regular services to maintain their home, such as landscaping, house cleaning, pet sitters or pool upkeep.
The children will enroll in local schools. This increases enrollment, which means more teachers, janitors, cafeteria workers and other school support staff must be hired. Those children will also join sports leagues and other activities, buy equipment and pay registration fees that provide stipends for referees and coaches.
All of this economic activity puts income into the pockets of local business owners and their families, who can then afford to go out and spend money themselves, which recirculates even more money into the community’s economy.
The new household also pays local and state taxes. These tax revenues help pay for a wide range of government services, including school teachers, police departments, refuse collection, parks maintenance and road repairs.
Over the long term, as the people who move into new homes become part of the community, their positive impact continues. NAHB estimates that those 100 new homes also provide the community with additional, annually-recurring impacts of $4.1 million in local income, $1 million in taxes and other revenue for local governments, and 69 local jobs.
People who buy a newly built home enjoy benefits such as safety, amenities, energy efficiency and floor plans to fit a modern lifestyle. The advantages of new homes extend far beyond the buyers and the builders – residential construction has a positive, direct impact on the local community for years.