Prepared by the National Association of Home Builders (NAHB), The Metro Area Impact of Home Building in Seattle, Washington quantifies the economic activity homebuilding generates in King and Snohomish counties, including new income and jobs for area residents and additional revenue for local governments. NAHB developed the model for estimating the economic benefits of homebuilding in 1996. It has since been successfully applied to over 600 metropolitan areas, counties and states across the country.
Specifically, the report estimates that the one-year local impacts of building 100 single-family homes in King and Snohomish counties include:
•$28.3 million in local income
•$4.3 million in taxes and other revenue for local governments
•317 local jobs
MBA President Sherry Schwab, president of HCS Construction Services Co in Bellevue, said, “We have always known that homebuilding contributes greatly to the economy and helps fund valuable local services, including schools, parks and other activities. The NAHB report helps quantify these benefits and underscores the fact that a healthy housing industry goes hand-in-hand with a strong economy and vibrant community.”
MBA Executive Officer Sam Anderson added, “The NAHB report provides a compelling reminder of the substantial contributions housing makes in our region and how the housing industry benefits the community at large.”
The report also highlights the ongoing annual local impacts of homebuilding in King and Snohomish counties in terms of local income, revenue and jobs that result from new homes being occupied and the occupants paying taxes and otherwise participating in the local economy.
The annual recurring impacts of building 100 single-family homes in our two-county area include:
•$4 million in local income
•$1.1 million in taxes and other revenue for local governments
•50 local jobs
“The benefits of homebuilding continue year after year, as people come to live and work where homes are available,” said Schwab.
Separately, NAHB presents estimates of the costs housing typically imposes on local governments and compares those costs to the revenue generated. According to the report, 100 new single-family homes create an operating surplus that is large enough to pay off local governments’ capital investment needed to service that development within one year.
The report also finds that “after 15 years, the homes will generate a cumulative $20.8 million in revenue compared to $10.4 million in costs, including annual current expenses, capital investment, and interest on debt.”
Anderson said of the costs-to-revenue comparison report, “It acknowledges the costs that new homes impose on local governments and answers the question of whether or not residential development pays for itself. Based on NAHB’s findings in King and Snohomish counties, the answer is overwhelmingly yes.”
ABOUT MBA: Founded in 1909, the MBA is a trade association comprised of more than 3,000 companies involved in the residential construction industry. It is the nation’s largest and oldest local homebuilding association affiliated with the National Association of Home Builders.
ABOUT NAHB: The National Association of Home Builders is a Washington, D.C.-based trade association representing more than 140,000 members involved in home building, remodeling, multifamily construction, property management, subcontracting, design, housing finance, building product manufacturing and other aspects of residential and light commercial construction. Known as “the voice of the housing industry,” NAHB is affiliated with more than 800 state and local home builders associations around the country.