Why Buying or Selling a Home Benefits the Economy and Your Neighborhood

If you're considering buying or selling a home, you should know that it has an impact on more than just your life.

The National Association of Realtors (NAR) releases a report every year to show how much economic activity is generated by home sales. The chart below illustrates that impact:

As the visual shows, when a house is sold, it can make a big difference in the local economy. The impact comes largely from the workers required to build, update, and buy and sell homes. Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), explains how the housing industry adds jobs to a community:

“The economic impact means housing is a significant job creator. In fact, for every single-family home built, enough economic activity is generated to sustain three full-time jobs for a year, per NAHB research. . . . And one job for every $100,000 in remodeling spending.” 

Housing being a major job creator makes sense when you consider there are many different industries involved in the process. A recent article from Fortune notes housing activity could have a more robust impact than you think due to the many ways it’s tied to the economy:

“Housing has three direct linkages to economic activity (GDP): the construction of new homes, the remodeling of existing homes, and that of housing transactions. . . . consider the activity associated with home sales – think broker fees, lawyers, etc. – which are a sizable contributor to housing’s GDP footprint.” 

When purchasing or selling a home, you work with a team of professionals that includes contractors, specialists, lawyers, and city officials. Each person contributes to the transaction's success. 

So, when you make a move in the housing market, you're not just addressing your own wants; you're also helping the community. Knowing this can help you feel more empowered as you make your selection this year.

Bottom Line

Every house transaction has an impact on the local economy. Let's connect if you're ready to move. It will not only change your life, but it will also have a significant good impact on the entire community.

Post a Comment