The only people who benefit when a house is built are the family members who get to live there, and the builder who constructed and sold the home, right?
Wrong. The positive impact of new residential construction is far-reaching, bringing benefits to families, businesses and services throughout a community immediately, as well as for years to come.
When a family moves to a community and buys a new house, they will likely shop at local stores to buy furniture and accessories to decorate the home. They will fill their car’s gas tank at local gas stations so they can get to the stores, have local mechanics work on the car when it breaks down or needs the oil changed, or buy a new car at a local dealer when it’s time to replace the old one.
The family might need to hire local companies for regular services to maintain their home, such as landscaping, house cleaning, pet sitters, or pool upkeep.
The children will enroll in local schools. This increases enrollment, meaning more teachers, janitors, cafeteria workers, and other support staff will need to be hired. Those kids will also join sports leagues and other activities, buy equipment and pay registration fees that provide stipends for referees and coaches.
All of this economic activity puts income into the pockets of local business owners and their families, who can then afford to go out and spend money themselves, which recycles even more money into the community’s economy.
The new family also pays local and state taxes. These tax revenues help pay for a wide range of government services, including school teachers, police departments, refuse collection, parks maintenance, and road repairs.
Over the long term, as the families who move into new homes become part of the community, their positive impact continues.
Source: National Association of Home Builders