Positive signs continue to point toward growth for the home improvement sector. While multifamily apartment development has led the housing recovery since the Great Recession, and single-family residential construction shows potential for accelerated growth into the future, current market conditions are supporting a solid remodeling sector, creating jobs and sustaining small businesses.
The economic boost from investment in the existing housing stock is significant. My colleague Paul Emrath has estimated that for every $10 million in housing improvement expenditures, enough economic activity is created to sustain 89 full-time jobs and $4.8 million in wages. This economic effect is also broad based. Of these 89 jobs, 44 are in sectors outside of construction, including manufacturing, transportation, real estate and business services. Every $10 million in remodeling work also generates almost $3 million in state, local and federal government tax revenue and fees.
Remodelers are also a classic example of small businesses. For instance, among remodeler members of the National Association of Home Builders in 2014, the median business had about $750,000 in annual revenue and employed four individuals. More here.