Economic impacts of NAHB's "Revive Housing" campaign goals

Economic impacts of NAHB's "Revive Housing" campaign goals are highlighted in new research from our Economics and Housing Policy Group. This analysis, which includes estimates of the number of jobs to be gained from each of our proposals, should help convince lawmakers that bolstering housing is key to reviving the national economy.
Following are the four primary advocacy goals of the Revive Housing, Restore America campaign that NAHB initiated in August and continues to push with all its might: 1) Extend the $8,000 tax credit for another year and make it available to all income-eligible buyers. Research by NAHB's tax analysts indicates that this action would spur 383,000 additional home sales – including 80,000 housing starts – and create nearly 350,000 jobs and an additional $16 billion in wages and salaries over the coming year. Approximately one-third of those jobs would be in the construction sector. Small business income would increase by $6.5 billion, while corporate profits would increase by $5.5 billion. 2) Reform the appraisals process. Doing this would boost home sales by increasing the flow of credit to home buyers and stimulating housing demand. Our economists estimate that the result of such activity would be an increase in home sales by nearly 100,000 during the first 12 months, which in turn would create more than 63,000 jobs (as measured on a full-time equivalent basis). These jobs would be in the construction sector and other parts of the economy. 3) Resolve the credit crunch for housing production loans.
Encouraging lenders to provide leeway for residential acquisition, development and construction (AD&C) borrowers who have loans in good standing would strengthen balance sheets for the nation's home builders, thereby saving thousands of businesses and creating more than 82,000 jobs in the residential construction sector.
4) Expand the tax code's Net Operating Loss carryback period for businesses.
Eliminating the current $15 million cap on average annual gross receipts and allowing 2009 losses to be eligible for the expanded carryback would help many businesses and provide relief to taxpayers who have been hit by the Alternative Minimum Tax. NAHB analysis shows that such tax relief would result in more than 53,000 jobs in the construction sector and more than 200,000 jobs throughout the rest of the economy.