A study released today reveals that states with prevailing wage laws have higher rates of home ownership for construction workers and their families.
The study, published by the Illinois Economic Policy Institute (ILEPI), demonstrates the effect of prevailing wage on home ownership is highest in Ohio and other Midwestern states where “strong prevailing wage laws boost blue-collar construction wages $2,000-$2,500 per year, on average.”
“State prevailing wage laws extend homeownership to more than 61,000 blue-collar construction workers, boost the value of the homes they own by more than $42 billion, and increase annual property tax revenues for their local communities by over $500 million,” according to the research.
This report finds that state prevailing wage laws extend homeownership to more than 61,000 blue-collar construction workers, boost the value of the homes they own by $42 billion, and increase annual property tax revenues for local communities by over $500 million.
Other findings from the study:
State prevailing wage laws promote ladders into the middle class: Prevailing wage boosts the annual earnings of construction workers by 5% and improves the construction worker homeownership rate by 2%.
Prevailing wage builds housing wealth: After accounting for other factors (including higher average home prices in prevailing-wage states), prevailing wage is associated with a 13% increase in home values for the average blue-collar construction worker.
Prevailing wage has larger impacts for some key groups: Prevailing wage significantly impacts African American construction workers, boosting their homeownership rate by 8% and improving their housing wealth by 18%. While impacts are positive across geography, the largest effects are in the suburbs– an increasingly important group electorally.
Are you being paid the correct wages and benefits for your work in Ohio? Verify your correct Ohio prevailing wage rate according to your trade and the county of your project.