NAHB Provides Job Growth Testimony
Home building and remodeling, including the development and rehab of LIHTC sites, have generated 274,000 jobs over the past two and a half years, said Robert Dietz, an economist with the National Association of Home Builders (NAHB). Dietz recently testified before the Senate Banking Committee’s Subcommittee on Economic Policy during a hearing examining the drivers of job creation. He discussed the health of housing as a key for the overall state of the U.S. economy and how housing stands poised to serve as an engine of job growth with the right policies in place.
According to NAHB’s analysis, construction of 1,000 rental apartments, including units developed under the Low Income Housing Tax Credit program, generates 1,130 jobs, while $100 million in remodeling expenditures creates 890 jobs. This analysis follows previous examination on the LIHTC industry's impact on the U.S. and local communities. That examination found that the LIHTC program generates approximately $7.1 billion in economic income and approximately 95,000 jobs per year across many industries.
Specifically, NAHB estimates that, in its first year, a typical 100-unit LIHTC development will have the following impact:
- $8.7 million in additional wages for local workers and profits for proprietors of businesses;
- $3.3 million in additional taxes for federal, state, and local governments; and
- 116 additional jobs, about half of which are in the construction sector.
It also found that job creation spurred by LIHTC development continues after the construction phase. NAHB estimates 30 jobs remain after the homes are occupied in the wholesale and retail trade, eating and drinking establishments, local government, and in the health, education, and social service sectors.