A statewide analysis of jobs, income, and public revenue generated by owner-occupied residential construction in North Carolina.
Prepared by Dr. Michael L. Walden
The data below shows the economic impact of the construction period of new single-family homes and townhomes in North Carolina in 2025.
New Single-Family Homes
Built in North Carolina in 2025
Jobs Created
Generated by single-family residential construction in 2025
Total Economic Activity
Generated by single-family residential construction in 2025
In New Public Revenue
Generated for local, state and federal governments
New Townhomes
Built in North Carolina in 2025
Jobs Created
Generated by townhouse construction in 2025
Total Economic Activity
Generated by townhouse construction in 2025
In New Public Revenue
Generated for local, state and federal governments
This study examines the full economic impact of owner-occupied residential construction in North Carolina, including direct construction activity, plus indirect and induced effects prompted by new economic activity from suppliers and retailers.
The analysis also evaluates the public sector impact, including new revenues generated for local, state and federal governments. When annual local and state revenues are compared with the cost of providing additional public services, the study finds that new residential development generates more in revenue than it requires in public spending.
New single-family and townhouse construction generates $1.48 in new revenue for every $1.00 in new public service cost.
“The growth generated by the construction does pay for itself.”
Public Revenue vs. Public Costs (Annual)
Households who buy newly constructed single-family homes and townhomes in North Carolina create new economic growth for the state. The data below examines the direct, indirect and induced revenue effects of households purchasing a newly constructed single-family home or townhome in North Carolina.
New Public Revenues Generated (from new residents)
| Local Revenue | $90.4M |
| State Revenue | $106.9M |
| Federal Revenue | $196.2M |
Total Annual Revenue: $393.5M
Estimated Public Costs (for new services)
| Education (per pupil spending) | $81.7M |
| New School Construction | $15M |
| Transportation | $40.6M |
| Public Safety and Administration | $21.5M |
Total Annual Costs: $158.8M
New Public Revenues Generated (from new residents)
| Local Revenue | $32.6M |
| State Revenue | $38.5M |
| Federal Revenue | $67.7M |
Total Annual Revenue: $138.8M
Estimated Public Costs (for new services)
| Education (per pupil spending) | $8.5M |
| New School Construction | $1.5M |
| Transportation | $7.8M |
| Public Safety and Administration | $4.1M |
Total Annual Costs: $21.9M
This analysis was conducted using IMPLAN, an industry-leading economic impact modeling tool. It includes direct, indirect, and induced impacts on jobs, income, output and government revenue at the local, state, and federal levels.
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