Study shows home building industry has significant impact on Indiana’s economy
An economic impact study conducted by the Indiana Builders Association (IBA) in conjunction with the National Association of Home Builders (NAHB) shows that the home building and remodeling industries in Indiana are significant contributors to the fiscal health of the state and financial wellbeing of Hoosiers.
According to the study, the estimated one-year economic impact of building 1,000 single-family homes in Indiana includes $208.9 million in income for Indiana residents, $38.8 million in taxes and other revenue for the state and local governments in the state, and 3,197 jobs in Indiana.
“When residential construction occurs, it generates substantial economic activity that includes income and jobs for residents, as well as revenue for state and local governments,” said IBA Chief Executive Officer Rick Wajda.
New home construction in Indiana is on the rise. Single-family building permits in Indiana increased 13 percent in 2016 compared to last year to their highest rate since 2008.
Despite the rise in new construction, home builders still face regulatory hurdles.
“The latest data shows that, on average, regulations imposed by government at all levels account for nearly 25 percent of the final price of a new single-family home built for sale,” said Wajda. “That is why the Indiana Builders Association will continue to advocate for pro-housing policies that keep regulations in check at the local, state and federal levels.”