The Economic Impact of Buying or Selling a House on Your Community

The Economic Impact of Buying or Selling a House on Your Community

  • Amy Pedersen
  • 06/26/23

If you're considering purchasing or selling a house, it's crucial to understand that this decision holds significance not only for your personal life but also for the welfare of your community. The National Association of Realtors (NAR) publishes an annual report that highlights the economic activity generated by home sales. The accompanying chart demonstrates the profound impact:

According to the infographic, the sale of a house can have a substantial influence on the local economy. This impact primarily stems from the workforce involved in constructing, renovating, and engaging in real estate transactions. Robert Dietz, the Chief Economist at the National Association of Home Builders (NAHB), explains the role of the housing industry in job creation within a community:

"The economic impact of housing is substantial, as it serves as a significant job creator. In fact, NAHB research indicates that the construction of a single-family home generates enough economic activity to sustain three full-time jobs for an entire year. Additionally, every $100,000 spent on remodeling leads to the creation of one job."

The significance of housing as a major job creator becomes apparent when considering the various industries associated with the process. An article published by Fortune emphasizes that housing activity has a more substantial impact on the economy than commonly perceived, as it possesses three direct linkages to economic activity (GDP): the construction of new homes, remodeling existing homes, and housing transactions. The article also acknowledges the contribution of activities related to home sales, such as broker fees and legal services, to the overall GDP footprint of the housing sector.

When engaging in a home purchase or sale, you collaborate with a team of professionals, including contractors, specialists, lawyers, and city officials. Each individual plays a crucial role in facilitating the transaction.

Therefore, participating in the housing market extends beyond fulfilling personal needs—it also fosters a positive impact on the community. Every home sale holds importance for the local economy. If you're ready to make a move, let's connect. By taking action, you won't just transform your own life; you'll also contribute significantly to the overall well-being of your community.

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