When residential construction occurs, it generates substantial economic activity in the state where it takes place. The economic activity generated includes income and jobs for state residents, as well as revenue for state and local governments. The National Association of Home Builders (NAHB) has developed a model to estimate the economic benefits.

The model captures the effect of the construction activity itself and the ripple impact that occurs when income earned from construction activity is spent and recycled in the state. It also estimates the ongoing impact that results from the homes becoming occupied by residents who pay taxes and buy goods and services produced in the state. In order to fully appreciate the positive impact residential construction has on a state economy, it is important to include the ripple effects and the ongoing benefits.

Since the model was initially developed in 1996, NAHB has used it successfully to estimate the impacts of construction in over 800 projects, local jurisdictions, metropolitan areas, non-metropolitan counties, and states across the country.

The report presents estimates of the impacts of building 1,000 single-family homes in the State of Wisconsin. It found:

The estimated one-year economic impacts of building 1,000 single-family homes in Wisconsin include

$298.8 million in income for Wisconsin residents,

$56.3 million in taxes and other revenue for the state and local governments in the state

4,451 jobs in Wisconsin

The additional, annually recurring impacts of building 1,000 single-family homes in Wisconsin include

$52.0 million in income for Wisconsin residents

$20.4 million in taxes and other revenue for the state and local governments in the state

1,014 jobs in Wisconsin

To view the full report, including comparing costs to revenue for state and local governments and a breakdown of the impact of home building in Madison and Milwaukee specifically, please visit wisbuild.org/housing-impact-studies.