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Home Building Industry adds $8.4 Billion to State's Economy
July 23, 2019

The Building Industry Association of Washington (BIAW) commissioned the National Association of Home Builders (NAHB) to create an economic impact report examining the impact on the construction of 24,000 single-family homes built in Washington State in 2018.

The report examined one-year impacts that included both direct and indirect impacts of the construction activity itself, the impact of Washington residents who earn money from the construction activity and the money from the construction activity spent within the state. Additionally, the report reviewed ongoing, annual local impacts that resulted from the new homes being occupied, the occupants paying taxes and otherwise participating in the state economy year after year.

“ When residential construction occurs, it generates substantial economic activity in the state,” stated BIAW Executive Vice-President Greg Lane. “ Economic activity generated includes income and jobs for state residents, as well as revenue for state and local governments. Our study 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.”

The report found that new home construction has the following economic impacts:


    CONSTRUCTION PHASE (direct & indirect impact)
  • $8.4 billion in family wages
  • $2.2 billion in state & local taxes
  • 103,315 jobs created
    RIPPLE PHASE (spending of income and taxes from construction phase)
  • $3.2 billion in family wages
  • $774 million in state and local taxes
  • 46,381 jobs created
    OCCUPANCY PHASE (ongoing, annual)
  • $1.2 billion in family wages
  • $436 million in state and local taxes
  • 18,251 jobs created

“ The report shows that the residential housing industry contributes greatly to the economy of our state by providing quality housing for residents and family-wage jobs for businesses and workers,” added Lane. “ Employment from new home construction and remodeling has a wide ripple effect. About half the jobs created by building new homes are in construction. These include framers, electricians, plumbers, and carpenters. Other jobs are spread over other sectors of the economy, including manufacturing, retail, wholesale and business services.”

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