The Local Economic Impact of Home Building

NAHB owns proprietary models that estimate the costs and benefits of new home construction. The benefit model estimates the local income and jobs generated by home building, as well as the tax and other revenue generated for local governments. The cost model estimates the costs of serving new homes imposed on local governments (to supply education, police and fire protection, etc.) and compares costs and revenue to show how housing usually pays for itself. This page provides links to previously prepared economic impact reports for a typical metropolitan area, and information on ordering customized reports for a particular local area or individual construction project.


"Typical Case" Reports Available at the Click of a Mouse

By using national averages for key inputs like value of the homes, and taxes and fees collected by local governments, NAHB has estimated the economic impacts of home building in a typical metropolitan area and made them available here.

The reports estimate the impact on Income, Jobs, and Taxes Generated from building 100 single-family and 100 multifamily homes, as well as $10 million of residential remodeling in a typical metropolitan area.

The reports also Compare Costs to Revenue for Local Governments and show how long it takes, in the typical case, for home building to pay for itself.

NAHB has versions of the local impact model designed specifically to handle special types of home building. The Local Economic Impact of Typical Housing Tax Credit Developments (LIHTC) is readily available on-line. Results for a typical active adult project are available as part of the publication Approving 55+ Housing: Facts that Matter.


Customized Local Impact Reports that Can be Ordered for a Fee

Customized reports for a particular area may be ordered by providing some specific information on the construction to be analyzed and agreeing to pay a fee. The information may be provided for construction in an entire market area (a metropolitan area, a county not part of a metropolitan area, or a state), or a jurisdiction or individual project within a market area. However, the local impacts estimated are broad and always spread over the entire market area. Analyzing an individual project usually involves extra work to make sure specific circumstances applicable to that project are captured and described appropriately. Typically, reports analyzing home building in a market area, or city or county within the market area, are ordered by state and local Home Builders’ Associations. Reports analyzing individual projects are usually requested by the developers of the projects.


For more information about this item, please contact Joshua Miller at 800-368-5242 x8398 or via email at

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