Throughout April the housing industry celebrated, New Homes Month; with this they wanted to show awareness for the economic prosperity that building new homes generates.
Historically, generating economic activity, which would include items such as new housing and new jobs, has accounted fro 17 percent of the GDP. This 17 percent puts Americans back to work.
According to economists at the National Association of Home Builders, it is estimated “that the one-year local impacts of building 100 single-family homes in a typical metro area include $21.1 million in local income, $2.2 million in taxes and other local government revenue, and 324 local jobs. Those 100 new homes also provide the community with additional, annually-recurring impacts of $3.1 million in local income, $743,000 in taxes and other revenue for local governments, and 53 local jobs.”
New home constructions create jobs far beyond just the regular home building jobs. Sure, 50 percent of the jobs are related to construction but, in addition, opportunities are created for attorneys, home furnishing providers, landscapers, moving services, and even home production services.
The money that is generated from this construction ends up getting recycled back into the local economy through the purchase of products and services. However, as of Feb. 2011 the annual projection for new houses stood at 500,000, when a desired 17,000,000 is needed to accommodate long running average and the current population growth.