Total impact one Fla. home sale has on the economy? $77,858
ORLANDO, Fla. – June 14, 2019 – When it comes to Florida’s economy, real estate is a heavyweight. A recent updated analysis by the National Association of Realtors® (NAR) finds that money generated by the state’s real estate industry makes up 21.9% of the gross state product.
Each home sale generates $21,483 for home-related businesses, such Realtors’ commissions and moving services. And buyers spend an additional $4,243 on items for their new homes, such as appliances, furnishings, property alterations, etc.
Because money spent by one person goes into someone else’s pocket, a single dollar can be spent over and over, called a multiplier. According to NAR, the total multiplier of a housing sale in Florida is $12,348 – and that doesn’t include the total impact of new home construction, which is $39,783 per sale (51.1% of the real estate industry’s total impact).
In total, the average impact of a Florida home sale is $77,858.
Nationally, the impact of the real estate business is lower for the U.S. economy – 17.4%. But the total economic impact per sale is $84,724.
According to NAR’s numbers, each buyer spends $4,243 (same as Florida) on things related to the purchase, and the multiplier is $13,338. New home construction generates $43,600, or 51.5% of the industry’s total impact.
Reprinted with permission Florida Realtors. All rights reserved.