Housing's impact on the local economy

When you buy or sell a home, you not only build your financial portfolio, you benefit your local economy as well. Typically, there are 26 services involved in a single real transaction in the 30 days before and after a real estate transaction has closed. Buyers and sellers may use services such as movers, painters and contractors during and after a transaction has closed. Additionally, buyers may continue to use these services and more while they own the home.

The Impact of New Homes

While the true economic impact of new home building varies by community, the National Association of Home Builders calculated the figures for a typical euro area.

The Impact Of Remodeling

Renovations contribute to the economy through the use of local labor and businesses, as well as permitting and other government-related fees. The National Association of Home Builders also conducted a study on the one-year impacts of residential renovations on the local economy. Spending one million in remodeling generates an estimated $841,000 in private income and an estimated $71,000 in government revenue. * It also creates an average of 11 local jobs.

Homeownership Benefits the Community

Homeownership bolsters a community's treasury through the collection of property taxes. The money collected from property taxes. The money collected from property taxes helps support infrastructure, police and fire protection, education and community programs.

Additionally, studies from the National Association of REALTORS show that homeownership has many social benefits, including:

• Increased civic participation and charitable activity
• Better health for homeowners
• Less crime
• Higher student test scores and high school graduation rates
• Higher social capital

Sources:

1. NAHB, HousingEconomist.com, September 1, 2015

2. NAHB, Local Impact of Home Building: Updated NAHB Estimates, April 1, 2015