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Just as every home is important to the family that lives in it,
housing is very important to local, state and national economies
and accounts for about 15 percent of the nation's Gross Domestic
Product. Included in that total are new construction of
single-family and multifamily homes, remodeling, and the value
existing homes provide to owners.
The National Association of Home Builders (NAHB) has recently
completed its 800th annual impact study that 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
And the annual, ongoing impacts (resulting from the home
becoming occupied and the occupants participating in the local
Similarly, the new estimated one-year impacts of building 100
rental apartments are
While the annual ongoing impacts are
Finally, the one-year impacts of spending $1 million on
residential remodeling in the typical local area are estimated
Because remodeled homes are in general occupied before the
remodeling takes place, the annual local impacts are limited to
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 (link to
which also gives a quick overview of the methodology NAHB used to
generate the estimates.
Moreover, the employment effects of new home construction and
remodeling extend far beyond the physical structure. About half of
the jobs created by building new homes are in construction.
They include framers, electricians, plumbers, finish carpenters and
all of the other workers who contribute to preparing the land and
building the home.
The rest are in housing-related industries that produce building
materials and provide services to home builders, buyers and owners.
These include: furniture and appliance industries; metals and
plastics; architecture and engineering; real estate agents,
brokers, finance and insurance; wood products, concrete and gypsum;
construction equipment and other products; selling, moving and
storing products; and management, administration, government and
Housing has been a major contributor to the economy historically
and, following the downturn of the past, is making a steady
comeback. We must recognize the importance of the nation's
home building industry in spurring and sustaining economic
growth. Home building is vital to achieve job growth, build
healthy communities and move our economy forward.
Mari McAllister-Charles, Executive Officer
BROWN COUNTY HOME BUILDERS ASSN.
811 Packerland Drive
P.O. Box 13194 | Green Bay, WI 54307-3194
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