New Construction Jobs Support Overall GDP
Home building generates a substantial amount of money for local governments and the federal government just by the nature of the industry. According to the National Association of Home Builders, approximately 90,000 different governments receive approximately $111 million in taxes and fees from the construction and building of 1,000 single-family homes.
Sub-Contractors Contribute Greatest Share
In addition to the governments making a substantial amount of money from home building, sub-contractors also
are reported to make consistently higher wages because of home building. One of the reasons for this is that sub-contractors actually do the work themselves instead of hiring the jobs out to employees. Because sub-contractors make up the majority of the workforce when building a new home, the taxes on profit then paid by these sole proprietors also contribute greatly to the overall economy.
Tax Breakdown
The amount of taxes paid to the federal government is comprised mainly of income taxes and social security equaling an amount of $74.4 million. State and local income taxes comes to $10.3 million, and city and county taxes equal approximately $6.9 million. Other taxes consisting of impact fees, permit fees, and other fees for new construction bring in a total of $13.7 million.
A breakdown of industries which bring in the revenue shows that construction has the most jobs, and other affiliated companies related to construction such as manufacturing, bring in other revenue. Other affiliated businesses include trade, transportation, warehousing, finance, insurance, real estate sales, rental and leasing, and professional, management, and admin services. A total of 2,975 jobs are created from building 1,000 single-family homes based on full-time jobs over one year.
