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NEW STUDY UNDERSCORES HOMEBUILDING INDUSTRY'S CRITICAL IMPORTANCE TO REGIONAL ECONOMY
Study examined industry's impact on jobs and wages, regional growth, and revenues to cities and counties
ROSEVILLE -
The North State Building Industry Foundation (NSBIF) today released a new, wide ranging research study - Economic Effects of the New Housing Industry in the Sacramento Region - that highlights the significant role the homebuilding industry plays as a driver of the greater Sacramento region's economy.
The study, commissioned by NSBIF, was conducted by local firm New Economics and Advisory and peer reviewed by Sanjay Varshney of Varshney & Associates and William Zenoni, a former Director of Finance and Assistant Director of Finance for various cities and special districts in California. The California Homebuilding Foundation provided additional funding for the study.
"This is a groundbreaking study for the regional homebuilding industry," said Rick Larkey, Executive Director of NSBIF. "For the first time, we can definitively say that our industry is an indispensable component of the region's economy. And we look forward to playing an even more prominent role economically as the region continues to grow."
"What's great about this research is that it shows just how widespread the economic reach of the homebuilding industry is throughout the region," said Michael Strech, President and CEO of NSBIF. "Whether its creating and sustaining tens of thousands of jobs, contributing millions to local governments via builder fees, or helping to support existing businesses through new home construction, we do it all and do it well."
The key findings of the research study are broken down into three general areas and can be found below:
Jobs and Wages
- Sacramento's homebuilding industry supports 50,000 jobs each year
- Industry wages pay 10-12 percent more than the Sacramento average wage
- Every 100 Industry jobs supports an additional 90-122 jobs in other sectors
Regional Growth
- By continuing to increase the supply of new homes in the Sacramento Region, the industry helps to maintain relatively lower home prices compared to other more constricted markets
- Housing growth in the Sacramento Region provides critical funding for new infrastructure and amenities
- The homebuilding industry has been a leader in sustainable communities that contribute to water conservation and energy efficiency
Local Revenues
- Each year, local governments receive more property tax revenue from new residential construction than from retail, office, and industrial construction combined
- As on-line shopping continues to grow, remaining store-based retail will be more oriented toward local services and entertainment. New homes located close to store-based retail are needed to help sustain those existing brick-and-mortar retail outlets and to capture sales/use tax from on-line shopping
About the North State Building Industry Foundation (NSBIF)
This research study was commissioned by the NSBIF, a 501(c)(3) nonprofit organization operating exclusively for charitable and educational purposes, especially focused on strengthening the Northern California homebuilding industry through community service, workforce development, and building industry related research. In addition to this study, NSBIF is engaged in the 5kin5 Initiative working with a variety of member employers and community and education partners to recruit and place 5,000 workers in the building trades over the next five years.
About New Economics & Advisory
Founded in 2011, New Economics & Advisory is a boutique economic consulting firm that provides economic analysis for planners, developers, and government officials to inform intelligent and financially sustainable land-use planning. Analytics used by New Economics are shaped by the latest market trends, economic dynamics, and best financial practices. New Economics serves Northern California and Northern Nevada, and has of offices in Roseville, CA and Lake Tahoe, NV.
About the Professional Peer Reviewers
This study placed great importance on objectivity and was professionally peer reviewed by two economic and finance experts, whose feedback and insights were integrated into the study. Sanjay Varshney, of Varshney & Associates, teaches at California State University, Sacramento, and is the head of the Sacramento Business Review. He is also the Faculty Director of the EMBA program at California State University, Sacramento and was the previous Dean of the College of Business at Sac State. William Zenoni is a former Director of Finance and Assistant Director of Finance for various cities and special districts in California, including the City of Alameda, San Leandro, Vallejo, and Oakland. Mr. Zenoni now serves as a financial and management consultant and has provided expertise and interim staffing positions for cities and other agencies throughout Northern California.
About the California Homebuilding Foundation
Funding for this research study was substantially provided by the
California Homebuilding Foundation
(CHF), a 501(c)3 tax-exempt organization investing in the future of California's homebuilding industry. CHF's mission is to ensure the continued success of homebuilding through the development of its current and future workforce by providing scholarships to college students in building-related programs, promoting high school trades education courses, funding pertinent construction and employment research, and honoring exemplary industry leaders. The Foundation hosts California's annual homebuilding gala, Hall of Fame.
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