How Does The Housing Multiplier's Affect You?

There is a direct connection between housing and economic vitality at the state, local and neighborhood level, and after years of struggle during the recession, the housing market is in the process of being rebuilt.  2012 ended as the best year in residential construction since the housing market began, and Portland blew the national average out of the water as single family construction was up 34%.

What does that mean for you? Whether or not you are in the market to buy or sell the health of the the housing market will most likely have an impact on you.

The direct impacts of new construction will result in 300 jobs being generated for every 100 homes built, according to Dave nielsen, CEO of the Portland Home Builders Association. About half of the jobs created are in the construction industry and the other half spread over related sectors including manufacturing, brokerage, law and accounting.

The indirect impacts are the jobs and spending created from businesses that are suppliers to the construction operations including building material suppliers, cabinet manufacturers, as  well as businesses providing services such as architectural firms and trucking companies.

The induced impacts result in new job creation in the consumer-related sector. Workers involved in the construction project will spend their earned wages at local restaurants, shops, grocers, clinics, pharmacies and other local businesses.  This creates a ripple effect as those employers now have more resources to hire additional staff that will then spend their wages in the same manner.
 

A strong housing industry not only means more jobs, but more money in our communities. Home building increases the property tax base which generates revenue that supports local schools and communities. For each new single-family home that is built, it is estimated that it generates a total of $90,000 in government revenue -- $67,000 in federal taxes and $23,000 in state and local taxes.

100 Homes = 300 jobs
+ $20,000,000 into the local economy
+ $4,000,000 in tax revenue
  

The Portland Home Builders Association expects construction to continue to thrive due to lower inventories, rising home prices, and fewer foreclosures.

Steve Roesch | Principal Broker, Owner
PDX Home Group, LLC
o. 503.748.8387 | c. 503.318.6351 | f. 503.748.8307
Steve@PDXHomeGroup.com

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