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:
$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