How Buying or Selling a Home Helps Your Local Economy

Whether you’re buying or selling a house, here’s something to think about that most people don’t. Your decision doesn’t just impact your life and your family’s, it sparks a ripple effect that has a positive impact on your entire community.

Every year, the National Association of Realtors (NAR) puts out a report that breaks down the financial impact that comes from people buying and selling homes.

The data shows that if you buy an existing (previously lived-in) home, you're giving the local economy a boost of just over $60K. And if you buy a newly built home, that number goes up to over $125K (see visual below):

That’s because of all the people needed to build, fix up, and sell homes. Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), explains how the housing industry adds jobs to a community:

“. . . 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 . . .”

When you think about it, it makes sense. Behind every home sale is a network of people involved, including contractors, city officials, real estate agents, lawyers, specialists, and more. Everyone has a job to do to help make sure your deal goes through.

When you buy or sell a home, you’re not just making a personal investment—you’re also fueling your local economy. Real estate transactions have a ripple effect, creating jobs, increasing spending, and strengthening the financial foundation of your community. Let’s explore how your move benefits those around you.

1. Job Creation

The home buying and selling process involves numerous professionals, including real estate agents, mortgage brokers, appraisers, inspectors, and attorneys. Additionally, construction workers, painters, movers, and landscapers all contribute to making the home transaction smoother. Each sale generates demand for these services, providing employment opportunities and financial stability to local workers.

2. Boost to Local Businesses

New homeowners and sellers often make significant purchases. Whether it’s furniture, home decor, appliances, or renovation services, local businesses thrive when real estate is active. Small businesses, from hardware stores to interior design firms, benefit from increased customer demand.

3. Increased Tax Revenue

Property sales contribute to tax revenue through property taxes, real estate transfer taxes, and sales taxes on home-related purchases. These funds help improve public infrastructure, schools, parks, and emergency services, enhancing the overall quality of life in your community.

4. Stronger Home Values and Neighborhood Growth

A healthy real estate market leads to rising property values, which benefits homeowners and local governments. When home values increase, homeowners gain equity, and municipalities collect more in property taxes, which can be reinvested into public projects that improve roads, schools, and other community assets.

5. Community Development and Revitalization

New homeowners often invest in their properties, leading to neighborhood improvements. Renovations, landscaping, and home upgrades not only enhance curb appeal but also encourage others to do the same. This revitalization attracts more buyers and businesses, fostering a thriving, more desirable community.

6. Stimulates Financial Institutions

The homebuying process involves banks, credit unions, and mortgage lenders, creating demand for financial services. Loan officers, underwriters, and insurance providers all benefit from home sales, further strengthening the financial sector of your local economy.

Final Thoughts

Whether you’re purchasing your dream home or selling to move on to your next adventure, your transaction does more than just change your address—it contributes to the economic health of your local community. Supporting a thriving real estate market ensures job creation, business growth, and community development, making homeownership a powerful economic driver.

If you're considering buying or selling a home, know that your move is making a positive impact far beyond your own front door!

Book your appointment and let’s talk to take the next step in your real estate journey. Schedule a real estate consultation with one of our team members.