"The road to energy independence, economic recovery and reductions
in greenhouse gas emissions runs through the Building Sector."

-Edward Mazria

The Two-Year, Nine-Million-Jobs Investment Plan
Hope Resides in the Private Building Sector
The Two-Year, Nine-Million-Jobs Investment Plan

Download the Updated Plan.

Because the private building sector represents 93% of total U.S. building stock, the private building sector is the key to reviving the U.S. economy. Strategically investing $192.47 billion ($96.235 billion each year for two years) in the private building sector will create, in just two years, over 9 million new jobs and $1 trillion in direct, non-federal investment and spending while opening up a new $236 billion renovation market that could grow to $2.6 trillion by 2030 and over $5.47 trillion by 2069. This Investment plan pays for itself annually through the new tax base created and can be implemented quickly through existing federal programs.

Although important, infrastructure and the public building sector cannot solve the U.S. economic crisis:
  • The public building sector accounts for only 7% of total U.S. building stock.
  • Public Infrastructure and building are not currently in decline.
  • Compared to private building, public infrastructure and building generate very little private investment and spending.
  • Public Infrastructure and building projects are dependent on strong tax revenues, which are now in decline.
  • Because these projects cannot produce a sustainable tax base, the federal government will have to continue to provide funding for each new project.
The private building sector, on the other hand, is key to solving this crisis:
  • The private building sector accounts for 93% of total U.S. building stock and impacts the entire U.S. economy. Building construction alone accounts for approximately 10% of the U.S. GDP.
  • In 2008, construction of residential buildings was down a staggering 39%, and construction of commercial buildings was down 17%, with no bottom in sight.
  • Over one million construction workers are now unemployed, and every sector of the U.S. economy (from wholesale, retail, distribution, manufacturing and construction to professional services, banking and development) and every industry (from steel, rubber, insulation and caulking to mechanical and electrical equipment, glass, wood, metals, tile, fabrics and paint) is reeling from the effects.
  • Investing in the private building sector generates demand for construction services and products and private investment and spending on a much larger scale than public infrastructure and building projects, creating millions of more jobs.
  • The large tax base generated from the new jobs, private investment and spending, and new renovation market will both pay for the Plan each year it is in effect and provide the needed funding for future public infrastructure and building projects.
Investing in the private building sector generates demand for construction services and products, and private investment and spending, on a much larger scale than public infrastructure and building projects, creating millions more jobs. The large tax base generated from the new jobs, private investment and spending, and new renovation market will both pay for the Investment plan each year it is in effect and provide the needed funding for future public infrastructure and building projects.

The Two-Year, Nine-Million-Jobs Investment requires those participating in the housing mortgage interest rate buy-down or the commercial building accelerated-depreciation program to renovate (or build new) to specific energy reduction targets. This requirement is central to the Investment plan, immediately creating demand for Building Sector services and products, including $236 billion of building renovation. It is this demand within the private building sector that generates $1 trillion in private investment and spending, and it is this $1 trillion in private investment and spending that makes the 9 million new jobs possible. Without this additional investment and spending, the number of jobs created will be far less.

Only 5.8% of homes and 3.1% of commercial buildings, i.e. just 5% of total U.S. building stock, would need to participate in the Two-Year, Nine-Million-Jobs Investment to create these massive economic benefits. If demand for these construction services is also generated in the remaining 95% of the Building Sector, either through market forces or continuation of the Investment plan after two years, the demand created could fuel the economy for the next 40 to 50 years. The renovation market alone would be worth $5.47 trillion.

In addition, during the two years the Investment plan is in effect, consumers will save $44 billion to $69 billion in energy costs and mortgage payments, significantly reducing the risk of mortgage failure while increasing disposable income. Because the 2030 Challenge calls for buildings to be renovated or designed to reduce their fossil-fuel, GHG-emitting energy consumption either 30%, 50% or 75% below that required by the IECC 2006 and ASHRAE 90.1-2004 code standards, or to carbon neutral, the Investment plan will also reduce CO2 emissions by 168.16 MMT and energy consumption by 2.16 QBtu. All of these benefits continue in perpetuity, so that, for example, over five years, consumers will save $132 billion to $208 billion in energy costs and mortgage payments, and CO2 emissions will be reduced by 504.47 MMT and energy consumption by 6.47 QBtu.

Addressing the foreclosure crisis and the collapse of the private building sector is critical to stabilizing the U.S. economy. The Two-Year, Nine-Million-Jobs Investment addresses both, as well as many other challenges facing the country, including energy independence and climate change. With a single investment, the U.S. can create millions of jobs, strengthen the U.S. economy, reduce CO2 emissions and energy consumption, and save consumers billions of dollars. Investing in the private building sector is the only investment that can accomplish all of these objectives.

For further information, contact:
Kristina Kershner, Director
Architecture 2030
505.988.5309
kershner@architecture2030.org

Read the Two-Year, Nine-Million-Jobs Investment Plan here.
For a sample letter, urging your representatives to support the Plan, click here.



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