Selling Your House Guide From Valentine Dream Homes Group

Economic Impact of a Home Sale

As businesses around the country move through the various phases of reopening, it’s important to understand how housing can have a major impact on the recovery of the U.S. economy. Buying a home is a driving financial force in this process. Today, many analysts believe one of the first things we’ll be able to safely bring back is the home building sector, creating more jobs and impacting local neighborhoods in a big way. The National Association of Home Builders (NAHB) notes the impact new construction can have on the job market: “Building 1,000 average single-family homes creates 2,900 full-time jobs and generates $110.96 million in taxes and fees for all levels of government to support police, firefighters and schools, according to NAHB’s National Impact of Home Building and Remodeling report.” These employment opportunities, along with the home purchase, are a huge win for the economy. The National Association of Realtors (NAR) recently shared a report that notes the full economic impact of new and existing home sales. The report shows the average economic impact of the sale of an existing home is $43,099. Given the sheer number of workers it requires to design, build, equip, and finalize the sale of the house, the impact more than doubles to $88,416 for a newly built home. Average Economic Impact of One Home Sale in the U.S.

Newly Built Home: $88,416

Existing Home: $43,099

Income generated from real estate industries

Expenditures related to home purchase

Multiplier of housing related expenditures

New home construction

$24,471 27.7% of total impact

$4,650 5.3% of total impact

$13,978 15.8% of total impact

$45,317 51.3% of total impact

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NAR calculated the total economic impact of real estate-related industries on the state economy, as well as the expenditures that result from a single home sale, including aspects like home construction costs, real estate brokerage, mortgage lending and title insurance. NAR

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