The only people who benefit when a house is built are the family members who get to live there,
and the builder who constructed and sold the home, right?
Wrong. The positive impact of new residential construction is far-reaching, bringing benefits to
families, businesses and services throughout a community immediately, as well as for years to
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.
When a family moves to a community and buys a new house, 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. The family 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, meaning more teachers, janitors, cafeteria workers
and other school support staff will need to be hired. Those kids will also join sports leagues and
other activities, buy equipment and pay registration fees that provide stipends for referees and
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 recycles even more
money into the community’s economy. The new family 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 families 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.
Families who buy a newly built home enjoy benefits including safety, amenities, energy
efficiency and floor plans to fit a modern lifestyle. But 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.
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