The construction of homes provides the second largest boost to the economy among all industries in Australia, says a report by the National Housing Finance and Investment Corporation. Every $1 million of residential building construction supports nine jobs across the economy, found the analysis Building Jobs: How Residential Construction Drives the Economy. The report found that each million spent in the home building industry saw $2.9 million spent across the broader economy and with each new home, three jobs would be supported. Residential construction has one of the highest multiplier effects of any industry, meaning its economic activity benefits other industries through spending and job creation.
The jobs impact includes construction services such as plumbing, electrical, bricklaying, carpentry and architecture. This adds further importance to the Federal Government’s new $25,000 grant to people building new homes. “Understanding how residential construction affects jobs and flows through to the broader economy is increasingly important, given the impact of COVID-19,” says NHFIC chief executive Mr Dal Bon.