HOME BUILDING DELIVERS POWERFUL IMPACT ON BUFFALO-NIAGARA’S LOCAL ECONOMY

Employment, local businesses, and tax dollars benefit from the home construction industry.

BUFFALO, NY—The home building industry has been working diligently for nearly two years to keep up with the intense demand for new homes throughout the country. The Buffalo-Niagara region is no exception. More than providing residences, the addition of homes to the region is demonstrating short- and long-term benefits, according to a current economic study.
Dr. Elliot Eisenberg, an internationally recognized economist, analyzed the depth of the impact that new homes contribute to the local economy. According to Dr. Eisenberg’s study, the residential construction industry accounts for 4,202 jobs in the region, making it the fifth largest employer, larger than Wegmans Food Markets, General Motors, and GEICO.
“This total number is disbursed around town in various companies, so no one appreciates how big the overall enterprise is,” explains Dr. Eisenberg, who was formerly the Senior Economist for the National Association of Home Builders (NAHB) in Washington, DC.
In addition to job creation, residential construction contributes significant tax revenue and income to local businesses.
“Building obviously creates jobs but we need someone who moves in and contributes to the economy. If someone can afford to buy the home, and we build the home, and they live here, are we better off?”
According to Dr. Eisenberg’s analysis, the answer is a resounding “Yes!” Regionally, he reports that $15 million to $16 million is added annually to the local economy just during the construction phase. When buyers move in, employee salaries represent another $240 million, which trickles through as they spend their money locally—on everything from groceries to healthcare. Tax dollars from this stage contribute to the infrastructure, including schools.
After the home is built, the occupancy contributes long-term economic benefits. Over a ten-year period, Dr. Eisenberg estimates $869,501,850 of income streams into Buffalo-Niagara’s economy, along with $255,622,750 in local taxes, and 5,714 jobs.
David Capretto, founder and president of  Forbes Capretto Homes, has been building homes in the region for 32 years. He has navigated the shifts in the housing market, from the downturn that began in 2008 to the current surge. He says it’s important for people to understand the lasting impact of a vibrant housing market.
“Local home builders represent an important contribution to our region. It’s easy to miss the distinction because the industry comprises many individual companies and builders,” explains Capretto, who currently serves as Vice President of the Buffalo Niagara Builders Association and was President in 2011 and 2019. “When you add it all up, the business of building homes is essential to any area.”
Capretto adds that smart growth is also critical to the economy, balancing the influx of people with managing the infrastructure that serves them. Forbes Capretto Homes has built thousands of homes in the region, developing communities that make sense for the region, the residents, and the economy.
For more information about Dr. Esienberg’s economic study, visit www.youtube.com/watch?v=fqNarPO4MRU.
About Forbes Capretto Homes: An award-winning homebuilder, Forbes Capretto Homes has been building luxury homes in Western New York for more than 30 years. In that time, the locally-owned company has built thousands of homes and dozens of communities.