When a new home is built in our community, it’s not just the buyer and builder who benefit from that transaction. In fact, the positive impact of new residential construction is far-reaching, benefiting many people, families, businesses and government agencies, both short term and long term.
According to economists at the National Association of Home Builders, of which we are the local affiliate, the one-year estimated local impact of building 100 single-family homes in a typical metropolitan area such as Las Vegas includes $21.1 million in local income, $2.2 million in taxes and other government revenues, and the creation of 324 local jobs.
Last year, our industry built and sold about 3,700 new single-family homes in metropolitan Las Vegas. The National Association of Home Builders estimates that produced $596.8 million in local income, $140.8 million in taxes and other revenues for our local governments, and created 10,244 local jobs.
When a person or family moves into their new home, they are likely to shop at local businesses for new furnishings for the home. They’ll fill their gas tanks at that neighborhood’s gas station. They’ll seek out a nearby auto shop or mechanic to fix their cars. They may even purchase a new car at a nearby dealership. They’re likely to hire local companies to do home maintenance such as the landscaping and pool care. They may hire a housecleaning service and a pet sitter.
These new homeowners may have children, who will enroll in our local private and public schools. This increases enrollment, so more teachers, janitors, cafeteria workers, bus drivers and other school support staff will have to be hired. The children are likely to sign up for a sports league or some other after-school activities, buy equipment and pay registration fees that provide stipends for the organizers of those sports and activities.
This economic activity puts income into the pockets of our local businesses and their families, who can then afford to go out and spend some money themselves — a recycling of money into our community’s economy.
This newly created household will pay local and state taxes and fees. That revenue to government will help pay for a wide range of services, such as education, public safety and parks/recreation, to name just a few categories.
Over the long term, as these newly created households become part of the community, their positive economic impact continues. The National Association of Home Builders estimates that those 100 new homes also provide the community with additional, annually recurring impacts of $3.1 million in local income, $743,00 in taxes and other revenues to government, and 53 local jobs.
In the Las Vegas area, the annually recurring impact of building and selling 3,700 new homes last year includes $94.2 million in local income, $23.8 million in taxes and other revenue for local governments, and 1,799 local jobs, according to NAHB research on behalf of our association.
The advantages of new housing extend far beyond the buyers and builders. Residential construction has a positive, direct impact on our community for years to come.
Direct questions about new homes to firstname.lastname@example.org. We will try to answer as many as we can given space and time limitations and constraints. For more information about SNHBA, visit www.snhba.com. This column is published bimonthly.
Rocky Cochran is the 2013 president of Southern Nevada Home Builders Association.