The real estate sector was responsible for $3.9 billion, or nearly 17%, of the national GDP in 2021, according to a study published by the National Association of Realtors Thursday.
According NAR estimatesNationally, each home sale at the median generated approximately $113,000 in economic impact in 2021. Commissions, fees, moving costs and other income from the real estate industries were responsible for approximately $31,742 of the total impact, with the remainder comprising $5,000 from home purchase expenses, $17,636 from a housing expense multiplier, and $58,781 from building a new home.
NAR also estimated that each home sale generated an average of two jobs, with five jobs generated per sale in Hawaii and four in California. In Oklahoma, Michigan, Ohio, Arkansas, West Virginia, Pennsylvania and Iowa, the sale of a house generated only one job.
The states that generated the highest revenue per home sale in 2021 were Hawaii ($306,130), the District of Columbia ($280,180), California ($246,700), Massachusetts ($191,680) and Washington ($187,630). At the other end of the spectrum are Arkansas ($62,800), West Virginia ($67,900), Oklahoma ($68,300), Iowa ($70,500) and Ohio ( $72,800).
In 2021, 6.12 million existing homes were sold and approximately 761,000 new homes were sold. While not the best year for new home sales due to supply chain issues and material and labor shortages, 2021 was the best year for existing home sales since. 2006. Additionally, according to the NAR2021 Profile of Home Buyers and Sellers report87% of buyers who recently purchased a home did so through a real estate agent or broker, up from 69% in 2001, which contributes to the significant income generated by commissions.