“While construction jobs are the most obvious impact of new homes on the economy, it’s important to realize that it doesn’t stop there,” said NAHB Chairman Granger MacDonald, a home builder and developer in Kerrville, Texas.
This includes appliances, furnishings and home improvements in the first year after purchase. That means that new home buyers are spending an average 2.6% more than other homeowners in a typical year.
“It’s the architects, the heating technicians, the lumber suppliers. And it’s the mom-and-pop owners at the local furniture or appliance store who are helping these buyers make their house a home,” added MacDonald.
The study found that during the first two years after closing on the house, a typical buyer of a newly built single-family home tends to spend on average $4,500 more than a similar non-moving home owner.
“The health of housing – and new home buying – is key to the overall state of our economy,” MacDonald concluded.
More market update:
Aside from the cost of purchasing their home, buyers of newly-built homes typically add $10,601 to the economy through home-related purchases, according to an analysis by the National Association of Home Builders.