According to NAHB’s National Impact of Home Building model, building 1,000 average single-family homes generates 2,975 jobs and $111.0 million in taxes and fees for all levels of government. Similarly, building 1,000 average rental apartments generates 1,133 jobs and $42.4 million in taxes.
Wages, profits and the construction activity itself are subject to a variety of taxes and fees that generate revenue for the approximately 90,000 different governments in the U.S. The $111.0 million in taxes and fees generated by 1,000 single-family home includes $74.4 million in federal taxes (mostly income taxes and Social Security), $10.3 million in state and local income taxes, $6.9 million in state and local sales taxes, and $13.7 million in impact, permit and other fees local governments impose on new construction.
Similarly, the $42.4 million in taxes and fees generated by 1,000 rental apartments includes $28.4 million in federal taxes, $3.9 million in state and local income taxes, $2.6 million in state and local sales taxes, and $5.4 million in permit and other construction-related fees collected by local governments. These fees are part of the government regulation that in total accounts for 24.3 percent of the price of a new home.
Read more at Eye on Housing – NAHB
