Single-family and condominium homebuilding could provide a privately financed economic stimulus for the Bay State, according to a new study, further bolstering trade group’s arguments in favor of passing a key piece of permitting legislation.
The study, conducted by the Home Builders Association of Massachusetts (HBAM), found that construction of 5,465 residential dwelling units in 2009 created 22,111 Massachusetts jobs.
The state’s largest employer, Stop & Shop Cos., employed 22,093 people in Massachusetts as of April 2009, according to a statement.
In addition to creating thousands of jobs, homebuilding last year pumped $1.82 billion in personal and business income into the economy, and generated $314.6 million in revenue for state and local governments.
"This study shows that even in a recession, we are a major economic engine in Massachusetts," said HBAM President Judy Jenkins. "Now is the time to get that engine running on all cylinders again by passing the Permit Extension Act."
The Permit Extension Act of 2010 would allow shovel-ready private construction projects that have received state and local approvals, but are experiencing temporary financial difficulties due to the recession and credit crisis, to remain valid for three years. The bill would extend permits in effect or existence from Jan. 1, 2008 through Jan, 1, 2011 for an additional three years, according to a statement.
"Unemployment is still near 10 percent and we have lots of workers ready, willing and able to work," Jenkins said. "We can and should be a major part of any economic recovery. Our study shows how important homebuilding is to the state’s economic health."
"In addition to immediate benefits, we also looked at the ripple effects on related businesses and the continuing effects these homes have on the economy year after year," said National Association of Home Builders Senior Economist Elliot Eisenberg.
Eisenberg’s report, called The Economic Benefits of Home Building in Massachusetts: Jobs, Income and Public Revenue, found a $230 million net revenue gain for state and local governments over a 15-year period.
He said the study "explodes the myth that any segment of the population is subsidizing homebuilding."
