- When you buy a home, or when you sell your home and buy a new one, it doesn’t just impact you. It also has a positive influence on your local community.
- Another NAR report, measuring the economic effect of a home sale, confirms that both existing and new build home sales help to stimulate the economy.
- The report finds that a single newly built home sale has an economic impact of $113,200; the economic impact of an existing home sale is $54,400.
- These impact numbers vary by state and include real estate industry income generated, related home purchase expenses, the multiplier effect as income is recirculated back into the economy, and new home construction costs.
How can the sale of one home have so much influence on the economy? Much of this has to do with the many industries that participate in the homebuying process—contractors, real estate agents, Loan Officers, lawyers, inspectors, and insurance agents, to name a few.
The data show that buying a home doesn’t just bring you joy. It plays an important part in helping to build and better your local community. For many prospective homebuyers, understanding the value of your contribution is enough to empower your decision.