Growth DOES pay for growth
Study proves homebuilding pays its way

PORT HADLOCK – The homes built in Jefferson County in 2007 will generate net revenue of nearly $18 million over the next 15 years. An economic impact study conducted by the National Association of Home Builders (NAHB) Housing Policy Department shows that the homebuilding industry in Jefferson County not only pays for itself, its economic impact results in new income and jobs for county residents and additional revenue for local governments. The results of the study were released at the Sept. 23, 2008 "Impact of Housing on Jefferson County" daylong series of seminars in Chimacum.

The 288 single-family homes built in Jefferson County in 2007 will generate a cumulative $30.2 million in revenue, compared to only $12.3 million in costs over the next 15 years. By the end of the first year, the housing industry's economic impacts more than offset the fiscal costs, resulting in a fiscal surplus to local governments. Moreover, by the end of the first year, the fiscal surpluses were more than enough to pay off all debt and result in a surplus available to pay for additional government services. New single-family housing produces a net income to local governments of $3.7 million the first year, and $1.0 million each and every year thereafter.

"These results show that homebuilding is more than paying its own way and should put to rest the notion that existing homeowners are subsidizing new home construction here in Jefferson County," said Dr. Elliot Eisenberg, the Senior Economist who conducted the analysis of the impact of homebuilding here in Jefferson County. "This is an excellent result and tells me that local residents should be thanking the building industry for footing the bill for a lot of city and county services."

The economic impact study looks at the impact of the construction industry in three phases: the construction phase, the ripple effect, and the occupancy phase. The impact of the three phases are added up, and then compared to the cost of services such as education, fire, police, utilities, parks and recreation, and roads that are required to support the new housing units.

During the construction phase, the building of every 288 single-family homes creates 915 jobs (646 jobs in construction alone), generates $4.7 million in local taxes and $35.1 million of local income in the first year. The ripple effect of those homes, which includes the wages and profits local area residents earn during the construction period that are spent on other local goods and services, results in another 505 jobs, $1.4 million in local taxes and $18.2 million in local income, also in the first year. The ongoing annual effect of those homes, which includes local jobs, income and taxes generated as a result of the home being occupied, is 297 jobs, $1.7 million in local taxes and $10,207,000 in local income per year.

"For years, we've been saying that growth pays for growth. Now we have statistical proof to back that statement up," said JCHBA Executive Officer Sandy Hershelman. "It is important to look closely at these numbers. Local homebuilders are doing their part to build community, and these numbers confirm that they are very important players in the overall economic health of our county."
The NAHB model used to determine the economic impact of the housing industry was first developed by NAHB in 1997 and has been applied to construction in more than 525 areas of the country. This study looks at economic impact of building 288 single family homes across all of Jefferson County during 2007. The figures used in this study were collected from city and county building and public works departments, the county auditor and assessor and the PUD.

Impact of Housing on Jefferson County
THE REPORT 348KB .pdf
Net benefits 307KB .pdf

The Jefferson County Home Builders Association (JCHBA) is celebrating 25 years as a nonprofit trade association. Its membership of about 100 companies is representative of the very diverse building community of Jefferson County. It includes residential builders, remodelers and businesses affiliated with the housing industry, many of whom are members of Built Green® of Jefferson County.

Contact Sandy Hershelman, JCHBA Executive Officer, 360-385-1087, hershelman@olympus.net
or Dr. Elliot Eisenberg, (301) 351-2080 or eeisenberg@nahb.com