Home building’s economic multiplier effect, according to NAHB’s chief economist David Crowe:
“Building 1,000 single-family homes creates 3,000 jobs, half in construction and half in support industries such as appliances, carpets, building materials, banking, etc. Single-family construction has dipped below 500,000 but underlying demographic demand requires 1.5 million single-family homes a year. The one million homes in lost production means a loss of three million jobs.
In addition to the lost economic activity from building homes, families moving into new homes would normally spend more than non-moving families on furnishings, decorations, landscaping, and other improvements. At roughly $5,000 per new home, an additional $5 billion in economic activity has been lost each year because of the new building slowdown.”
Is there any question that housing is the key to our economic recovery?