Home Sales Generate $52,205 Impact on Economy!

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The National Association of Realtors (NAR) compiled data from research conducted by the Bureau of Economic Analysis & Macroeconomic Advisors on the economic impact of a home purchase.

After reviewing the data, they concluded that the total economic impact of a typical home sale in the United States is an astonishing $52,205.

Here is the breakdown of their report: 

Economic Contributions are derived from:

  • Home construction
  • Real estate brokerage
  • Mortgage lending
  • Title insurance
  • Rental and Leasing
  • Home appraisal
  • Moving truck service
  • Other related activities

When a House is Sold in the United States:

$15,912 of income is generated from real estate related industries.

New homeowners spend an additional $4,429 on consumer items such as furniture, appliances, and remodeling.

It generates an economic multiplier impact. There is a greater sense of community associated with owning a home; therefore there is greater spending at restaurants, sports games, and charity events. The size of this “multiplier” effect is estimated to be: $9,764

Additional home sales induce additional home production. Typically one new home is constructed for every 8 existing home sales. Therefore, for each existing home sale, 1/8 of new home value is added to the economy, which is estimated in the U.S. to be: $22,100

When you add the numbers up it comes to $52,205!

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Text:  Jolie  To:  85377

 

About The Author

Jolie Powell

Jolie Powell has been a distinguised leader in the Real Estate industry since 1987. Prior to entering the world of Real Estate, she worked as a TV producer for the Advertising Agency, Dancer Fitzgerald Sample in NYC. Jolie's expertise in counseling buyers and sellers brings people together from Long Island, and indeed, Globally! Having lived abroad and traveled extensively, Jolie has an excellent understanding of many cultures. As a Cuban-born American, she is fluent in Spanish and communicates well with international clients relocating to the North Shore of Long Island. Jolie is proud of the high level of trust she and her clients have established and looks forward to continue building exceptional client/broker relationships.

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