How Does $10 Million in Remodeling Activity Impact the Economy?

A remodeling project can bring tremendous benefits to homeowners— an updated, look, new amenities, and an increase in home value. But the benefits extend far beyond the family in the home.

Every $10 million in remodeling activity supports 75 jobs and generates more than $2.9 million in local, state and federal taxes, according to a 2020 study of the national effects of remodeling by economists at the National Association of Home Builders (NAHB).

The most obvious impact is the job generation for workers on site. But, at the national level, the impact is broad-based, as jobs are generated in the industries that produce lumber, concrete, lighting fixtures, heating equipment, and other products that go into a remodeling project. Jobs are also generated from transporting, storing and selling these products as well as from the professionals who provide services to remodelers, such as architects, lawyers, and accountants.

Taking a more granular look at manufacturing, substantial shares of the wages are generated in many categories of wood products (led by wood kitchen cabinet and countertop manufacturing). Outside of wood products, the largest shares of the manufacturing jobs come from the production of concrete, and ornamental and architectural metal products.

Precautions for remodeling businesses during the pandemic

As the country faces a significant spike in COVID-19 cases, hospitalizations and deaths, it is more important than ever to keep America’s remodelers and trade partners safe while on the job.

Safety precautions are particularly critical when contractors work within occupied homes. These enclosed spaces present unique hazards with regards to potential COVID-19 exposure. Workers should evaluate the specific hazards when determining best practices related to COVID-19.

During interior work, employees must sanitize the work areas upon arrival, periodically throughout the workday, and immediately before departure. Employers should provide alcohol-based wipes for this purpose.

Employees should practice social distancing, and wash or sanitize hands immediately before starting and after completing the work. Workers should wear a face covering or mask. Access to the job site should be limited to only those necessary for the work, and all visitors must be pre-screened to ensure they are not exhibiting symptoms. Employees, contractors, and visitors must be asked to leave the jobsite and return home if they are showing symptoms of the virus. And all employers should have a COVID-19 Exposure Action Plan ready BEFORE an exposure occurs. The National Association of Home Builders (NAHB) has a wide range of COVID-19 related resources, including safety checklists and posters in both English and Spanish. These resources can be found at NAHB.org/coronavirus

NAHB ECONOMISTS OFFER INSIGHTS ON THE LATEST GOVERNMENT DATA, INCLUDING HOUSING STARTS, SALES, JOBLESS CLAIMS, AND MORE. REGULAR SURVEYS LIKE THE REMODELING MARKET INDEX (RMI) TAKE THE PULSE OF THE REMODELING MARKET. FIND OUT MORE AT EYEONHOUSING.ORG