Home building generates income and jobs for local residents, as well as revenue for local governments. Home building also imposes costs on local governments that supply education, police and fire protection, and other public services to support the new homes. NAHB has developed models to estimate these economic impacts. The models can be used to show that, from the standpoint of local governments, home building will usually pay for itself.

The Typical Case:

NAHB has estimated the impact of building 100 single-family housing units, 100 multifamily housing units, and $10 million worth of residential remodeling in a typical U.S. metropolitan area. The value of the units, as well as the taxes and fees collected by local governments, are based on national averages. The results are summarized in a report for those who need quick access to estimates of the local economic benefits generated by building either single family or multifamily housing. View the report on local jobs, income, and taxes generated.

NAHB has also estimated the extra costs to local government associated with the new single family and multifamily units. The cost results are summarized in a separate report, which also compares the costs to the revenue generated to show how, in the typical case, home building pays for itself. View the report on local costs compared to local revenue.

Customized Reports:

For some purposes, the typical city reports may not be totally sufficient. In order to get a project approved, or counter the arguments of no-growth advocates, results for a specific area may be needed. For a fee, the NAHB models can be customized to a particular local area. Members and local associations can request the customized analysis electronically through this Web site. View the electronic input requirement form.

Special Categories of Home Building:

NAHB has developed a version of the model specifically to estimate the income, jobs, and taxes generated by Low-Income Housing Tax Credit (LIHTC) development. View a report showing impacts for typical family and elderly LIHTC developments. 

Another version of the model is designed to handle units built in an active adult project. Results for a typical active adult project are included in the for-sale publication Approving 55+ Housing: Facts that Matter.