AMHERST, Mass.--(BUSINESS WIRE)--The year-over-year rise in single-family home construction contributes approximately 500,000 jobs to the U.S. economy, according to a new analysis released today by Regional Economic Models, Inc., an economic analysis firm.
“Construction of new homes is a major driver of our economy at the national and state levels”
This net gain in jobs accounts for about a quarter of the approximately 2 million jobs added to the economy from July 2012 to July 2013, REMI’s analysis indicates. During the same period, single-family housing starts rose from an annualized number of 512,000 to 591,000.
The greatest net gains occur in Texas (59,600), Florida (54,000), California (30,200), Georgia (25,200), and North Carolina (22,300), the analysis shows.
“Construction of new homes is a major driver of our economy at the national and state levels,” said Dr. Frederick R. Treyz, CEO and Chief Economist of REMI. “We estimate that for every new house constructed, between 4 and 5 new jobs on average are created.”
The national and statewide gains reflect all jobs – both in construction and other industries – that are created directly or indirectly as a result of the increased economic activity. (Complete state-by-state figures are below.)
Statewide construction jobs
New construction jobs can also be attributed to the year-over-year rise in single-family housing starts. The biggest net gains in construction jobs were in Florida (28,100), Texas (26,100), Georgia (12,700), North Carolina (11,300), and California (10,500).
“Among the major beneficiaries are states with increasing populations,” Dr. Treyz said. “Those beneficiaries include some of the states and cities that were hit hardest by the housing crisis.”
REMI’s economists estimated job gains, both nationally and state-by-state, using REMI’s highly regarded economic model. They utilized data from the U.S. Census Bureau on annualized single-family housing starts.
Established in 1980, Regional Economic Models, Inc. (REMI) is a leading provider of economic analysis and policy forecasting models. REMI’s clients include state and national agencies, regional planning organizations, universities, and other institutions. For more information, visit www.remi.com.
Net job gains attributable to year-over-year increase in housing starts
Total Jobs (thousands)
Construction Jobs (thousands)
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