Real estate has been the foundation of wealth creation for the middle class and a critical link in the flow of goods, services and income for millions of Americans. Accounting for nearly 17% of GDP, real estate is clearly a major driver of the US economy.
How does the housing market in your state affect the local economy? NAR calculated the overall economic impact of the real estate-related industries on the national economy, as well as the expenses associated with the sale of a single home, including aspects such as home construction costs, real estate brokerage, mortgage lending, and home insurance.
Nationally, NAR estimates that each home sale in 2021 had a median of about $113,000 in economic impact.
The top 10 states with the highest income from a home sale in 2021 are as follows:
- Hawaii – $306,130
- District of Columbia – $280,180
- California – $246,700
- Massachusetts – $191,680
- Washington—$187,630
- Oregon—$176,460
- Colorado – $169,220
- Idaho – $160,600
- New Jersey – $158,100
- New Hampshire – $156,140
Find out how much the real estate industry influences the gross national product for your region.
Effects of an existing home sale on employment
The National Association of REALTORS® estimates that every home sale creates two jobs. At that ratio, 1,000 home sales create 2,000 jobs.
The key figure results from the economic impact of an existing house sale and the average amount of income. While each home sale contributes about $113,000 to the economy, US workers earn an average of $57,300.1 Putting these numbers together reveals that every home sale creates two jobs.
Because all real estate is local, the impact of selling a home in some areas is even greater. In Hawaii and California, for example, every home sale creates more than three jobs.
Hover over the map to see the job impact of a home sale in your area:
See individual state economic impact reports.
1 According to the US Bureau of Labor Statistics, the average weekly earnings in April 2022 was $1,102.
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