The National Association of Home Builders recently released a report showing the ripple effect of home building on the economy. Home building generates substantial local economic activity, including new income and jobs for residents, and additional revenue for local governments. The estimated one-year metro area impacts of building 100 single-family homes in Seattle include:
- $28.3 million in local income
- $4.3 million in taxes and other revenue for local governments
- and 317 local jobs.
These are local impacts, representing income and jobs for residents of the Seattle Metropolitan Division and taxes (and other sources of revenue, including permit fees) for all local jurisdictions within this metro area. They are also one-year impacts that include both the direct and indirect impact of the construction activity itself, and the impact of local residents who earn money from the construction activity spending part of it within the local area. Local jobs are measured in full time equivalents—i.e., one reported job represents enough work to keep one worker employed full-time for a year, based on average hours worked per week by full-time employees in the industry.
The additional, annually recurring impacts of building 100 single-family homes in Seattle include:
- $4.0 million in local income
- $1.1 million in taxes and other revenue for local governments
- and 50 local jobs.
These are ongoing, annual local impacts that result from the new homes being occupied and the occupants paying taxes and otherwise participating in the local economy year after year. The ongoing impacts also include the effect of increased property taxes, based on the difference between the value of raw land and the value of a completed housing unit on a finished lot, assuming that raw land would be taxed at the same rate as the completed housing unit.