Live Baltimore engaged ESI in 2023 to provide estimates of the economic impact of additional Baltimore residents, building on an initial study conducted in 2021. The analysis was designed to analyze the economic and fiscal value of residential growth to support the case for continued municipal investment in Live Baltimore, the primary organization working on resident attraction and retention in Baltimore.
ESI developed a customized economic impact model using IMPLAN, applying social accounting matrix methodology to trace the flow of economic activity generated by the spending of Baltimore residents. The model captured two primary impact streams:
- Economic activity generated by new residential construction and major renovation projects, estimated using standard input-output modeling; and
- Household spending of additional Baltimore residents, which drives significant local economic activity across food, entertainment, transportation, and other categories.
Regional purchase coefficients were used to estimate the share of spending that circulates within the local economy. This total economic activity generated from residential development and new resident attraction was translated into the employment and earnings that it supports and the tax revenue that it generates, which can be compared to public funding in a return on investment framework.
New construction and major renovation projects produce approximately $505 million in annual economic impact on the local economy, supporting approximately 1,900 jobs and an estimated $125 million in labor income. Aggregate household income for Baltimore residents totals approximately $12.7 billion annually, a substantial share of which circulates locally. The analysis illustrated that the combined impact of residential investment and household spending generates economic and tax revenue returns far exceeding the $1.15 million that the City invested in Live Baltimore in fiscal year 2024, supporting the case for continued municipal commitment to resident attraction and retention.