Tell your husband “I’m not just trying to get rid of this 1950-era pink bathroom, I am helping the local economy!”…
Remodeling activity boost local economies and NAHB has the numbers to prove it. NAHB Senior Economist Elliot Eisenberg says on average, every $100 million spent on addition and alteration projects creates 690 full-time jobs (480 construction jobs, 110 wholesale and retail trade jobs and 70 jobs in business and professional services) and generates $36.7 million in local income and $3.2 million in local taxes. The “ripple effect” of all this economic activity adds even more to the positive impact. Remember, the ripple occurs because the local economy has increased by almost $40 million in taxes and local income ($36.7 million in local income and $3.2 million in local taxes) because of the additions and alterations that were performed. Once earned, this nearly $40 million gets spent, much of it in the local economy. And, in the process, this creates another 320 jobs — 70 in the wholesale and retail trade; 60 in local government; 30 in restaurants, bars and other eating establishments; 30 in healthcare, education and social services; and many other jobs in other sectors — not to mention $1.7 million more in taxes and another $17.5 million of local income.
Combined, the direct and ripple phases from that amount of additions and alterations would result in 1,010 jobs, $4.9 million in local taxes and $54.2 million in local income. Another way of putting it, says Elliot, is that every 10 jobs created doing building additions and alteration work leads to almost five more jobs through the ripple phase, and every $10 of tax revenue that’s initially generated creates another $5.40 due to ripple effects. Elliot also points out that, while additions and alterations always result in a temporary boost to the local economy, a permanent boost is also likely. That’s because, when additions and alterations result in a permanent addition to a structure, its taxable value rises and the flow of property taxes to all local governments improves.
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