How Real Estate Transactions Create Jobs and Growth


If you're thinking of buying or selling a house, it's important to know it doesn't just impact you — it helps out the local economy and your community, too. According to the National Association of Realtors (NAR), a typical home sale generates significant income for real estate industries (28.1% of the total economic impact), which then goes on to be spent in the community (4.4% of the total economic impact).  This spending creates a multiplier effect, rippling throughout the community and generating additional economic activity (15.6% of the total economic impact). Real estate activity can even lead to new home construction (52% of the total economic impact), further boosting the local economy.

In short, when you buy or sell a home, you're helping out your neighbors. You're supporting local businesses and creating jobs. So, when you decide to move, you're not just meeting your own needs — you're also doing something good for your community.

The Ripple Effect of Real Estate

The housing market is intricately linked to many other professions.  When a home is sold, a chain reaction of economic activity is triggered. Here are some of the professionals who benefit from a real estate transaction:

  • City officials
  • Contractors
  • Lawyers
  • Real estate agents
  • Inspectors
  • Movers
  • Appliance stores
  • Furniture stores
  • Home improvement stores
  • The Impact of New Home Construction

New home construction creates a significant economic impact.  According to the NAR, construction of a new home generates enough economic activity to sustain three full-time jobs for a year. This is because new home construction requires a variety of materials and services, from lumber and concrete to plumbing and electrical work.

Conclusion

Buying or selling a home is a big decision. But it's important to remember that it's not just a personal decision — it's a decision that can have a positive impact on your community. So, if you're thinking about moving, know that you're not just changing your own life — you're also helping to create a stronger and more vibrant community.

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