To Create More Housing Jobs, Don't Build—Rebuild

It's intuitive that if we build more buildings, we'll create more jobs. But given finite resources (and these days, let's face it, resources are pretty finite) cities would be better served by pouring their money into retrofitting and repairing old housing stock rather than adding to it. Residential redevelopment creates more jobs than new construction.

This intuitively makes sense. Rehabilitating old buildings is more labor-intensive than new construction, since much of the cost of new construction goes literally to bricks and mortar. But we asked Heidi Garrett-Peltier, an economist with the Political Economy Research Institute at the University of Massachusetts Amherst, for some data to back this up. She ran some estimates based on national 2009 data, the most recent numbers available. And it turns out that repairing existing residential buildings produces about 50 percent more jobs than building new ones.

Nationally, about 41 percent of the cost of residential repair goes to labor. For new construction, that number is just 28 percent, meaning considerably more than half of any investment in a new home goes not to construction jobs, but to materials, equipment and things like trucking services.

Read the full story at The Atlantic Cities.


Presented by

The Atlantic Cities explores the most innovative ideas and pressing issues facing today’s global cities and neighborhoods. By bringing together news, analysis, data, and trends, the site is an engaging destination for an increasingly urbanized world.

How to Cook Spaghetti Squash (and Why)

Cooking for yourself is one of the surest ways to eat well. Bestselling author Mark Bittman teaches James Hamblin the recipe that everyone is Googling.

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register.

blog comments powered by Disqus

Video

How to Cook Spaghetti Squash (and Why)

Cooking for yourself is one of the surest ways to eat well.

Video

Before Tinder, a Tree

Looking for your soulmate? Write a letter to the "Bridegroom's Oak" in Germany.

Video

The Health Benefits of Going Outside

People spend too much time indoors. One solution: ecotherapy.

Video

Where High Tech Meets the 1950s

Why did Green Bank, West Virginia, ban wireless signals? For science.

Video

Yes, Quidditch Is Real

How J.K. Rowling's magical sport spread from Hogwarts to college campuses

Video

Would You Live in a Treehouse?

A treehouse can be an ideal office space, vacation rental, and way of reconnecting with your youth.

More in Business

Just In