New housing aids economy, coalition says
New housing construction contributes about $40 billion per year to the California economy and creates an estimated 359,000 jobs statewide, according to a report released last week by the Job-Center Housing Coalition.
The report, titled “The Economic Benefits of California’s Housing Industry,” found that housing is among the largest contributors to California’s economy when the economic benefits of all housing activities are taken into account.
The housing sector as a whole contributes more than $257 billion per year to the California economy and generates 821,000 jobs when all facets of the industry are considered, including construction, residential real estate transactions, expenditures of homeowners, maintenance and operation of housing.
In addition, the report found that every dollar spent on new housing construction generates about $1.95 in total economic activity.
“These numbers are particularly astounding when you consider that we’re only building half the homes we actually need each year,” said Sunne McPeak, coalition co-chairwoman. For the last three years, the coalition has sponsored state legislation aimed at removing many of the hurdles to housing construction.
