When considering the purchase or sale of a house, it is crucial to recognize that it has an impact beyond just your personal life. It also affects the larger community in which you reside.

Every year, the National Association of Realtors (NAR) publishes a report showcasing the economic activity generated by home sales. The chart provided below visually represents this impact:

As depicted in the visual, the sale of a house can have a significant impact on the local economy. This impact is primarily derived from the employment opportunities created by the construction, renovation, and buying and selling of homes. Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), provides insight into how the housing industry contributes to job growth within 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.” 

The fact that housing serves as a significant driver of employment becomes evident when considering the various industries involved in the process. As highlighted in a recent article from Fortune, housing activity has a more substantial impact on the economy than one might initially assume, owing to its interconnectedness with numerous sectors.

“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 engaging in the process of buying or selling a home, you collaborate with a diverse team of professionals, including contractors, specialists, lawyers, and city officials, among others. Each individual contributes to facilitating the transaction successfully.

Therefore, when participating in the housing market, you are not solely fulfilling your personal needs but also making a positive impact on the broader community. Recognizing this aspect can empower you as you make informed decisions regarding your housing choices this year.

Bottom Line

Every home sale holds significance for the local economy. If you are prepared to make a move, it is advisable to contact a reliable real estate agent. This decision will not only have a transformative impact on your own life but will also bring about substantial positive changes for the entire community.