Increased Home Construction Could Help Unemployment Rates
As residential construction continues to lag, the National Association of Home Builders suggests that pro-housing legislation could help jump-start housing starts and the economy.
Many economic experts have noted that the nation’s economic troubles may be tied to the housing market, and NAHB believes that increased housing starts can help create a number of jobs across the country. While the real estate market has improved somewhat since the depth of the recession, it is still far from healthy in many respects, in part due to unemployment.
Building 100 single family homes creates $8.9 million in taxes and revenue for the state and also creates 305 full-time jobs. Additionally, housing typically accounts for 17 percent of the U.S. Gross Domestic Product, NAHB explains.
“Getting housing back on its feet would be a shot in the arm for consumer confidence, boost job growth and lead to a long-lasting economic recovery,” said Bob Nielsen, chairman of NAHB.
Tight credit restrictions and the possibility that the mortgage interest tax deduction may be eliminated could be preventing people from buying homes, effectively stalling real estate and economic recovery, according to NAHB.