{"id":3195,"date":"2022-06-06T17:15:42","date_gmt":"2022-06-06T17:15:42","guid":{"rendered":"https:\/\/www.realtrends.com\/blog\/2022\/06\/06\/real-estate-industry-accounted-for-16-9-of-gdp-in-2021\/"},"modified":"2025-03-13T02:44:00","modified_gmt":"2025-03-13T02:44:00","slug":"real-estate-industry-accounted-for-16-9-of-gdp-in-2021","status":"publish","type":"post","link":"https:\/\/www.realtrends.com\/blog\/2022\/06\/06\/real-estate-industry-accounted-for-16-9-of-gdp-in-2021\/","title":{"rendered":"Real estate industry accounted for 16.9% of GDP in 2021"},"content":{"rendered":"\n

The real estate industry was responsible for $3.9 billion, or nearly 17%, of the national GDP in 2021, according to a study<\/a> published by the National Association of Realtors <\/strong>on Thursday.<\/p>\n\n\n\n

According to estimates from NAR<\/a>, nationwide, each home sale at the median generated roughly $113,000 of economic impact in 2021. Commissions, fees, moving expenses, and other income to real estate industries was responsible for an estimated $31,742 of the total impact, with the rest comprised of $5,000 from expenditures related to the home purchase, $17,636 from a multiplier of housing related expenditures, and $58,781 from new home construction.<\/p>\n\n\n\n

NAR also estimated that every 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, a home sale generated just one job.<\/p>\n\n\n\n

The states that had the largest income generated per home sale in 2021 included, 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).<\/p>\n\n\n\n

In 2021, 6.12 million existing homes<\/a> were sold and an estimated 761,000 new homes<\/a> were sold. Although this was not the strongest showing 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. In addition, according to the NAR2021 Profile of Home Buyers and Sellers report<\/a>, 87% of buyers who recently purchased homes did so through a real estate agent or broker, up from 69% in 2001, contributing to the large amount of income generated from commissions.<\/p>\n","protected":false},"excerpt":{"rendered":"

According to estimates from NAR, nationwide, each home sale at the median generated roughly $113,000 of economic impact in 2021.<\/p>\n","protected":false},"author":34740,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3255],"tags":[],"coauthors":[1760],"class_list":["post-3195","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"\nReal estate industry accounted for 16.9% of GDP in 2021 - RealTrends - Blog<\/title>\n<meta name=\"description\" content=\"A new study from NAR found that each home sale at the median, generated $113,000 of economic impact in 2021\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.realtrends.com\/blog\/2022\/06\/06\/real-estate-industry-accounted-for-16-9-of-gdp-in-2021\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Real estate industry accounted for 16.9% of GDP in 2021\" \/>\n<meta property=\"og:description\" content=\"A new study from NAR found that each home sale at the median, generated $113,000 of economic impact in 2021\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.realtrends.com\/blog\/2022\/06\/06\/real-estate-industry-accounted-for-16-9-of-gdp-in-2021\/\" \/>\n<meta property=\"og:site_name\" content=\"RealTrends - 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