One of HBA’s key priorities is bringing awareness to the implications of government policies impacting our industry. Among other things these impacts include rising regulatory fees that contribute to the cost of housing and financial setbacks that can result from permitting and other delays.
Equally important in these policy discussions, are the beneficial impacts that our industry has on the local economy.
To this end, the HBA recently commissioned a report from the National Association of Home Builders (NAHB) that captures the powerful effect of construction activity, the resulting income earned from construction activity being spent in the local economy, and the positive impact of those living in new homes paying taxes and buying local goods and services.
This is a study we commission every few years, the last time being 2013, and it covers single family and multifamily residential types. The impacts of our industry’s efforts are unmistakable for our region. Some key takeaways from the report:
- The estimated one-year impact of building 1,000 single-family homes in the existing areas of the Portland Metro results in:
- $295.5M in local income;
- $54.1M in taxes and other revenue for local governments;
- 3,986 local jobs.
- The estimated one-year impact of building 1,000 stand-alone apartments in the existing areas of the Portland Metro results in:
- $191.6M in local income;
- $32.3M in taxes and other revenue for local governments;
- 2,528 local jobs.
In addition, there are also annually recurring benefits of building that result from these new homes being occupied and those residents being active participants in the local economy. In both cases, this can result in tens of millions of dollars of revenue for local and state government.
Another important statistic to consider is the cost to municipalities compared to the revenue realized for local jurisdictions. When 1,000 new single-family homes are built in the Portland Metro region, within the first year that will generate $60M in tax and other revenue for local governments, while costing local jurisdictions just $2.7M in expenditures for public services and $13.1M in capital investments. Stand-alone multifamily homes amount to $36.5M in tax and other revenue for local governments, while costing local jurisdictions $1.9M in expenditures for public services and $8.1M in capital investment. And these numbers show even greater benefits in expansion areas.
We are all aware of the many positive economic impacts our work has on the region, but it’s good to see that validated by the results of this study. The Home Builders Association has been working to communicate this positive impact to the public and to elected officials, and the results of this study will serve as a useful tool for furthering these conversations. If you are a member interested in reading the full reports, contact Megan at email@example.com.