Building a 55+ community has a positive economic impact on the surrounding community, creating income, jobs as well as tax and other revenue, according to research from the National Association of Home Builders.

NAHB's Housing Policy Department, in conjunction with the 50+ Housing Council, has developed a model to estimate these local economic benefits. The model captures the effect of the construction activity itself, the ripple impact that occurs when income earned from construction activity is spent and recycles in the local economy, and the ongoing impact that results from new homes becoming occupied by residents who pay taxes and buy locally produced goods and services

Versions of the local economic impact model for different types of residential construction (for example, active adult) differ primarily in the income and spending tendencies of the residents used in estimating the ongoing impacts.

NAHB's Housing Policy Department has produced two reports exclusively for NAHB 50+ Housing Council members. They include:

• Local Impact of Income, Jobs and Taxes Generated by a Typical Active Adult Community – This updated report includes estimates of the local economic impacts of building 100 single-family homes in a typical active adult community.
  
•  Local Economic Impact of a Typical Elderly Tax Credit Project – This new report includes estimates of the local economic impacts of income, jobs and taxes generated by building 100 apartments in a typical elderly tax credit project. This refers to a project that uses the Low-Income Housing Tax Credit Program, which was created as part of the Tax Reform Act of 1986 and currently is the federal government's largest vehicle for building affordable housing.

“This resource is invaluable to builders and developers who are trying to get a 55+ housing project approved,” said Joanne (Jo) Theunissen, a small-volume custom builder from central Michigan and 2008 chair of the NAHB 50+ Housing Council. “The impact models show how building an active adult or 55+ community can benefit the local economy in the short and long term. It’s great information to bring before a local zoning or planning board, city or county councils, civic and homeowner associations and other groups.”

Visit the 50+ Housing Channel or the 50+ Housing Council’s Research area to access the local impact models and other exclusive 50+ housing research.

For more information on the two 55+ housing economic impact models, contact Paul Emrath at 800-368-5242 x8449 or pemrath@nahb.com. [Return to top]