Why Buying or Selling a Home Helps the Economy and Your Community

If you’re thinking about [buying](https://www.simplifyingthemarket.com/2023/06/06/real-estate-is-still-considered-the-best-long-term-investment-1/?a=550432-7d0dd2250a392515b4ab3273bfa644ce) or [selling](https://www.simplifyingthemarket.com/2023/05/26/moving-now-can-give-your-house-its-day-in-the-sun-infographic/?a=550432-7d0dd2250a392515b4ab3273bfa644ce) a house, it’s important to know that it doesn’t just affect your life, but also your community. The _National Association of Realtors_ (NAR) releases a [report](https://cdn.nar.realtor/sites/default/files/documents/2023-state-by-state-economic-impact-of-real-estate-activity-report-us-05-01-2023.pdf?_gl=1*13hskvj*_gcl_au*NTQ4NDc1ODEzLjE2Nzg5MTgyNzk) every year to show how much economic activity is generated by [home sales](https://www.simplifyingthemarket.com/2023/05/25/the-benefits-of-selling-now-according-to-experts/?a=550432-7d0dd2250a392515b4ab3273bfa644ce). The chart below illustrates that impact: [](https://i0.wp.com/www.simplifyingthemarket.com/content/images/20230614/20230615-economic-impact-of-a-typical-home-sale.png?ssl=1) As the visual shows, when a house is sold, it can make a big difference in the local economy. The impact comes largely from the workers required to build, update, and buy and sell homes. Robert Dietz, Chief Economist at the _National Association of Home Builders_ (NAHB), [explains](https://chicagoagentmagazine.com/2023/01/02/nahb-robert-dietz-new-construction/) how the housing industry [adds jobs](https://www.simplifyingthemarket.com/2023/05/18/powerful-job-market-fuels-homebuyer-demand/?a=550432-7d0dd2250a392515b4ab3273bfa644ce) to a community: > _“_**_The economic impact means housing is a significant job creator._** _In fact, for every single-family home built, enough economic activity is generated to sustain three full-time jobs for a year, per NAHB research. . . . And one job for every $100,000 in remodeling spending.”_  Housing being a major job creator makes sense when you consider there are many different industries involved in the process. A recent article from _Fortune_ [notes](https://fortune.com/2022/08/09/real-estate-housing-market-falling-prices-economic-risk/) housing activity could have a more robust impact than you think due to the many ways it’s tied to the economy: > _“Housing has three direct linkages to economic activity (GDP): the construction of new homes, the remodeling of existing homes, and that of housing transactions. . . ._ **_consider the activity associated with home sales – think broker fees, lawyers, etc. – which are a sizable contributor to housing’s GDP footprint._**_”_  When you [buy](https://www.simplifyingthemarket.com/2023/05/24/owning-a-home-helps-protect-against-inflation/?a=550432-7d0dd2250a392515b4ab3273bfa644ce) or sell a home, you work with a [team of professionals](https://www.simplifyingthemarket.com/2023/05/22/why-buyers-need-an-expert-agent-by-their-side/?a=550432-7d0dd2250a392515b4ab3273bfa644ce), including contractors, specialists, lawyers, and city officials. Each person plays a role in making the transaction happen.  So, when you [make a move](https://www.simplifyingthemarket.com/2023/06/13/your-needs-matter-more-than-todays-mortgage-rates/?a=550432-7d0dd2250a392515b4ab3273bfa644ce) in the housing market, you’re not just [meeting](https://www.simplifyingthemarket.com/2023/05/23/why-buying-a-vacation-home-beats-renting-one-this-summer/?a=550432-7d0dd2250a392515b4ab3273bfa644ce) your own needs, you’re also making a positive impact on the community. Knowing this can give you a sense of empowerment as you make your decision this year. ### Bottom Line Each and every home sale is important for the local economy. If you’re ready to [move](https://www.simplifyingthemarket.com/2023/06/01/the-true-value-of-homeownership/), reach out to a trusted real estate agent. It won’t just change your life – it’ll also have a strong positive effect on the whole community.