Construction projects are about more than building homes, roads, and commercial buildings. Anyone who has woken up at 6AM to the sound of a jackhammer or has had to take a detour because a road is closed for repair knows that construction, indisputably, impacts community. Construction companies.
As with most things in life, that impact isn’t merely black and white. It sits in the gray area, meaning it has both a positive and negative impact on the community as a whole.
Assessing the impact is the first step in moving forward with a construction project. Once you do that, you can incorporate strategies to create a positive impact on the entire community.
Positive Economic Benefits
Economics play an important role in most decisions, including construction. Builders often claim that new construction creates an economic boom, but is that true?
In a recent report, the Association stated that the one-year economic impact of building 100 single-family homes with an average price of $378,000 is astronomical. Those 100 homes generate an estimated $28.7 million in local income, $3.6 million in revenue for the local government, and 394 jobs for the local community.
Local economies also enjoy recurring income after building those homes. They can expect to bring in $4.1 million in local income and $1 million in government revenue each year, along with 69 new jobs for the local community.
The economic benefits don’t stop there. Business owners make more money, so there is more money for local wages and salaries.
While the study was based on 100 single-family homes, the benefits are also true for apartments. Also, you don’t need to build 100 pieces of property to enjoy the economic benefits. They will be on a smaller scale, but the local community will still appreciate them.
New roads also boost a community’s economy. Improving transportation networks provides economic benefits to nearby properties. By reducing the time it takes to travel, people in local communities can reduce fuel costs and vehicle depreciation. Using basic urban economic theory, these cost savings benefit local property values. In other words, property values increase when you build up the surrounding infrastructure.
Commercial Real Estate Construction
Commercial real estate construction companies has an economic impact on local communities, as well. In a study conducted by the NAIOP Research Foundation, it was determined that pre-construction, construction, and post-construction all have a significant economic benefit when related to commercial real estate. While pre-construction and construction mainly have national benefits, post-construction benefits the local community.
The local community benefits from maintenance and repair, cleaning services, utilities, and management, which includes leasing, marketing, security, financial services, and more. As long as the building is in use, the local community continues to bring money in for these services.