Analysis shows homebuilding boosts local economies, supports jobs and delivers long-term revenue streams to governments
New home construction in the greater Sacramento region is a powerful economic driver that generates billions of dollars in income, supports tens of thousands of jobs and delivers more than $1 billion annually to local governments, the North State Building Industry Association (BIA) reported today.
Four reports analyzing the impact of the more than 10,000 homes and apartments built between June 2024 and June 2025 in Sacramento and Placer counties found that homebuilding generates:
$4.51 billion in local income
$1.29 billion in taxes and fees for local governments and
45,728 jobs
“For decades, critics have claimed that housing doesn’t pay for itself,” said BIA President & CEO Tim Murphy. “This analysis shows that new housing not only pays its fair share of fees — and then some — but also generates significant economic activity and long-term revenue for local governments.”
Download a table highlighting the impacts here.
A BIA report last year found that area local governments collect an average of $109,000 in fees per new single-family home, costs that are ultimately passed on to buyers and limit housing production and affordability.
The new findings suggest that high development fees and regulatory barriers — including lengthy approval timelines, litigation and growth restrictions — can constrain housing supply and reduce the long-term economic and fiscal benefits for local communities.
“If local governments reduced excessive fees and streamlined the approval process, they would not only improve affordability, but also see greater long-term economic returns,” Murphy said.
That’s because in addition to the one-time impacts of construction, the reports found that new housing continues to generate economic benefits well after homes are built. On average, homes constructed during the study period will produce annually over the next decade:
$638.3 million in local income
$226.7 million in local taxes and
7,663 jobs
In addition, Murphy noted that housing is important beyond just the numbers because it provides needed shelter and builds community.
The analysis was conducted by the National Association of Home Builders using its economic impact model, which incorporates data from the U.S. Census Bureau’s Census of Governments. The reports evaluated homebuilding activity in Sacramento and Placer counties and its regional impacts across the four-county Sacramento-Roseville-Folsom metropolitan area, which also includes El Dorado and Yolo counties.
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