How New Construction Will Drive Raleigh’s Economic Recovery

After months of closures and restrictions, the Triangle’s businesses are finally starting to reopen in phases. As people begin returning to work, as consumers resume normal spending, and as life slowly returns to normal, our economy, too, will start to recuperate. And many analysts believe that new construction will drive Raleigh’s economic recovery.

Raleigh’s Economic Recovery Could Lean on New Construction

a beautiful new home for sale

Analysts believe the home building sector will be one of the first major industries to safely and successfully start back up. Spurred in part by years of low housing inventory and also by the number of people relocating to Raleigh on a daily basis, demand for new construction housing was high at the start of 2020, and is expected to increase again as the country reopens.

A low-supply high-demand environment like this is ideal for new home building. Here’s how this burgeoning new construction could drive Raleigh’s economic recovery.

It will create new jobs

working on a new home

One of the biggest perks of a demand for new construction is an increase in jobs. According to the National Association of Home Builders (NAHB), building 1,000 average single-family homes creates 2,900 full-time jobs.

It will increase valuable tax revenue

tax increases and raleigh's economic recovery

Those same 1,000 new houses will also generate over $110 million in tax revenue for city and state government—which in turn helps to support and improve police and fire departments, parks, schools, infrastructure, and more.

Real estate transactions impact the economy

happy home buyers

The physical building of the home is hardly the only impactful aspect of new construction. The sale of the home itself generates both income and employment. In fact, the National Association of Realtors (NAR) estimates the sale of one average single-family home generates over $43,000 in revenue—which goes to agents, lenders, inspectors, contractors, attorneys, and more. Make that home a new construction home and the revenue earned more than doubles, climbing to $88,000.

Residential construction goes far beyond real estate

lumber sales and raleigh's economic recovery

The effects of new home construction reach far past local lenders or agents or architects or even builders. The vendors from whom those builders purchase their lumber, light fixtures, and appliances are also impacted. The companies that ship and store these products are impacted. The companies that produce or manufacture the raw materials are impacted. Build one home, and the reach could be global.

Construction can respect CDC guidelines

following cdc guidelines to clean

It’s important for the businesses that reopen to be able to do so safely and in a manner that follows CDC guidelines for sanitation and social distancing. As construction, particularly new home construction, does not typically involve high client interaction, the NAHB was able to develop a plan specifically tailored to construction job sites.

The customizable Coronavirus Preparedness and Response Plan details manager and worker responsibilities, job site protective measures, cleaning and disinfecting methods, response to exposure incidents, and more.

Still Have Questions About Raleigh New Construction?

If you’ve been thinking about buying a new home in the Triangle but are concerned with how the current health crisis might have impacted your plans, Linda Craft & Team is here for you. Contact us at 919-235-0007 with any questions; we’d love to put our decades of expertise to work for you!

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