As the housing industry celebrates New Homes Month in April, newly released data from the U.S. Commerce Department confirms the significant contribution that residential construction has on the U.S. economy.
Final estimates of fourth quarter 2016 gross domestic product (GDP) growth show that housing’s share of GDP stands at 15.6%.
“Home building is a key driver of the American economy,” said Granger MacDonald, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Kerrville, Texas. “Housing creates new income and jobs, purchases of goods and services, and revenue for local governments.”
NAHB research shows that building 100 single-family homes in a typical metro area creates 297 full-time jobs and generates $28 million in wage and business income and $11.1 million in federal, state and local tax revenue.
The industry continues to add jobs at a fast pace, with monthly employment data for February showing that home builder and remodeler employment increased by 18,900. Over the last 12 months, home builders and remodelers have added 136,000 jobs on a net basis and residential construction employment now stands at 2.707 million.
“Our builders remain optimistic about the market for newly-built single-family homes and consumer confidence is strong, which should set the stage for a strong spring home buying season,” MacDonald said. “Americans continue to place a high priority on homeownership and work hard to achieve this goal for their families.”
During New Homes Month, home builders also bring attention to the advantages of newly-built homes, including safety, amenities, energy efficiency and floor plans to fit a wide variety of modern lifestyles.
Home buyers can access home buying and home building information and resources at http://www.nahb.org/en/consumers/home-buying/new-home-benefits.aspx