Want to help your local community? BUY A HOME.
Ever wonder how the purchase of your new home impacts your local economy? Well, it certainly does. The National Association of Realtors® (NAR) shared an extraordinary analysis indicating the impact just one home purchase can have on your state. Get ready, this report will challenge you to think outside the box on all related costs in the real estate market. Areas like: home construction costs, real estate brokerage, mortgage lending, and title insurance are all included in this data. Things you may have never considered! Real estate as an industry, is impacting our economy, in a big way. So, rest assured, you are helping your local community when you purchase a home.
Here’s how it all adds up.
According to NAR®, in Florida, the economic impact of a typical home sale is $77,858. Considering the average annual household income in Florida is $50,883, this creates a considerable impact. The report also states that money generated by Florida’s real estate industry makes up 21.9% of the gross state product*. A significant percentage, for sure.
Each home sale generates $21,483 for home-related businesses, such as Realtors’® commissions, moving services and more. Buyers spend an additional $4,243 on items for their new homes, such as appliances, furniture, and property alterations.
Let’s not forget the multiplier effect! The money spent by one person benefits another. A single dollar can be spent over and over; this is called a multiplier. According to this NAR® report, the total multiplier of a single housing sale in Florida is $12,348. What’s even more exciting is that doesn’t include the total impact of new home construction, which is $39,783 per home sale, or, 51.1% of the real estate industry’s total impact.
Also according to this NAR® report, each buyer spends $4,243 (same as Florida) on things related to the purchase, and the multiplier is $13,338. New home construction generates $43,600, or 51.5% of the industry’s total impact.
After understanding NAR’s® analysis, it’s clear that homeownership is a clear path to becoming impactful in your local community. Buying a home ensures longevity in home-related industries, creates a cash flow necessary for a thriving economy and, let’s face it, IT FEELS GOOD TO OWN A HOME.
*Gross State Product is a measurement of a state’s output; it is the sum of value added from all industries in the state. GSP is the state counterpart to the Nation’s gross domestic product (GDP). GDP is the market value of goods and services produced by labor and property in the United States, regardless of nationality. Current dollar GSP components are compensation of employees, taxes on production and imports, and gross-operating surplus.
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