August Builders Bulletin

Builder Confidence Remains Low in August

Builder confidence in the housing market slipped to 32 nationally in August, an 18% decline from last year, according to the NAHB/Wells Fargo Housing Market Index. In the West, sentiment was even weaker, with an HMI reading of 26, underscoring the region’s ongoing affordability and housing challenges.

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The first report examines the economic activity created during the year homes are built, including job creation, wages, and tax revenue. Using housing production data from the 12-month period ending April 2025 and based on estimates from the Washington State Office of Financial Management (OFM), NAHB analyzed the direct and indirect impacts of new residential construction.

These impacts include not only construction-related employment and income, but also the ripple effects as workers and businesses spend earnings throughout the local economy.

For single-family homes, the construction of 14,348 homes generated an estimated one-year local impact of:

$5.16 billion in income for Washington residents
$1.25 billion in state and local taxes and other public revenue
44,686 jobs statewide

For multifamily homes, construction of 32,368 homes generated an estimated:

$10.81 billion in income for Washington residents
$2.18 billion in state and local taxes and other public revenue
92,916 jobs statewide

These figures reflect both direct construction activity and indirect economic activity driven by household and business spending.

Ongoing, Annual Economic Impacts

The reports also highlight the recurring annual benefits that continue once new homes are occupied. These impacts reflect the economic activity generated as residents live, work, and pay taxes in their communities

The annual recurring impacts of the newly built homes include:

Single-family homes (14,348 units):

$978 million in income for Washington residents
$355 million in state and local taxes and revenue
10,041 jobs

Multifamily homes (32,368 units):

$2.17 billion in income for Washington residents
$702 million in state and local taxes and revenue
22,345 jobs

These benefits continue year after year, underscoring how housing availability supports long-term economic vitality across the state.

Comparing Public Costs and Public Benefits

At a more practical level, NAHB’s findings show that every 100 homes built in Washington generate approximately $34 million in income, $7 million in public revenue, and support nearly 300 jobs—illustrating why residential development produces significant returns for both local economies and public budgets.

A separate NAHB analysis compared the public costs of residential development—such as infrastructure, services, and capital investment—to the revenue generated for state and local governments.

The findings show that, from a public finance perspective, residential development more than pays for itself within the first year.

Over a 15-year period, newly built single-family and multifamily homes combined are projected to generate:

$18.76 billion in cumulative state and local revenue
Compared to $9.42 billion in total public costs

Over that same period, the homes are expected to generate approximately $9.34 billion in net revenue, effectively doubling the public investment in infrastructure such as roads, schools, and essential services.

A Broad Benefit for Washington Communities

Taken together, the reports reinforce the far-reaching economic value of homebuilding in our state. Residential construction supports jobs, strengthens local economies, and provides a sustainable source of public revenue that helps fund community priorities across the state.

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