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Looking at the larger picture, housing’s economic impact extends beyond the construction of new units to ongoing sales, financing, brokerage, repairs, management and operation of existing housing units, according to the institute’s research.
“When all facets of the housing sector are considered — including new home construction, residential real estate transactions, expenditures of home owners, employment, maintenance and operation of housing and the expenditures of employees of the housing sector and its supplier industry,” Sacramento researchers estimated that housing annually:
- Contributes more than $257 billion in economic activity in the state
- Generates 821,000 jobs
- Accounts for roughly 13% of the state’s total economic activity
The report based its findings on data from 1997-2001, when annual housing production averaged 132,000 units.
According to the state’s department of finance, the amount of housing actually needed to meet demand over the past 12 years averaged closer to 230,000 units a year, suggesting the significant potential for additional economic growth.
Don’t Miss NAHB’s Spring Construction Forecast Conference
See what's on the horizon for the housing industry at the semi-annual gathering of the country's premier economists and finance experts. Get the latest forecasts on housing starts, project budgets and other economic bellwethers at the Spring Construction Forecast Conference on April 21 at the National Housing Center in Washington, D.C. Visit the Web site for more information.
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