STRONG COMMUNITIES THINK LOCAL
Housing makes up roughly 15% of the GDP. It's a diverse industry that has a greater impact than you may have ever realized. When you see new homes being built in your COMMUNITY it means LOCAL jobs are created, LOCAL tax dollars are being generated, LOCAL goods and services are utilized, LOCAL friends and neighbors are living in your community, and on-and-on the list goes.
Local Industries Involved in Home Building
The jobs, wages, and local taxes (including permit, utility connection, and impact fees) generated by the actual development, construction, and sale of the home. These jobs include on-site and off-site construction work as well as jobs generated in retail and wholesale sales of components, transportation to the site, and the professional services required to build a home and deliver it to its final customer.
The wages and profits for local area residents earned during the construction period are spent on other locally produced goods and services. This generates additional income for local residents, which is spent on still more locally produced goods and services, and so on. This continuing recycling of income back into the community is usually called a multiplier or ripple effect.
Ongoing, Annual Effect
The local jobs, income, and taxes generated as a result of the home being occupied. A household moving into a new home generally spends about three-fifths of its income on goods and services sold in the local economy. A fraction of this will become income for local workers and local businesses proprietors. In a typical local area, the household will also pay 1.25 percent of its income to local governments in the form of taxes and user fees, and a fraction of this will become income for local government employees. This is the first step in another set of economic ripples that cause a permanent increase in the level of economic activity, jobs, wages, and local tax receipts.