|Home Sales Generate $52,205 Impact on Economy
Posted: 18 Sep 2014 04:00 AM PDT
The National Association of Realtors (NAR) compiled data from research conducted by the Bureau of Economic Analysis & Macroeconomic Advisors on the economic impact of a home purchase. After reviewing the data, they concluded that the total economic impact of a typical home sale in the United States is an astonishing $52,205. Here is the breakdown of their report:
Economic Contributions are derived from:
When a House is Sold in the United States:$15,912 of income is generated from real estate related industries. New homeowners spend an additional $4,429 on consumer items such as furniture, appliances, and remodeling. It generates an economic multiplier impact. There is a greater sense of community associated with owning a home; therefore there is greater spending at restaurants, sports games, and charity events. The size of this “multiplier” effect is estimated to be: $9,764 Additional home sales induce additional home production. Typically one new home is constructed for every 8 existing home sales. Therefore, for each existing home sale, 1/8 of new home value is added to the economy, which is estimated in the U.S. to be: $22,100
When you add the numbers up it comes to $52,205!_______________________________________________________
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