Tuesday, July 13th, 2021 by Leslie Halstedt
From the National Association of Realtors
How is the housing market in Arizona affecting the local economy? These reports outline the total economic impact of real estate related industries on the state economy, as well as the expenditures that result from a single home sale, including aspects like home construction costs, real estate brokerage, mortgage lending and title insurance.
The real estate industry accounted for $79.6 billion or 21.4% of the gross state product in 2020.
The economic impact of a typical home sale in
Arizona is $103,800.
Of that impact, income generated from real estate industries from a typical home sale was $29,100 or 28% of total impact. Expenditures (such as furniture and home improvement expenses) made up $4,700 or 4.5% of total impact.
The multiplier effect accounts for the fact that income earned in other sectors of the economy as a result of a home sale is then re-circulated into the economy. The multiplier of housing related expenditures contributed $16,200 or 15.6% of total impact.
Additional home sales induce added home production. Typically, one new home is constructed for every six existing home sales. Thus for every existing home sale 1/6 of a new home’s value is added to the economy. This accounts for $53,800 or 51.8% of total impact.
Racquet Club Realty is the only real estate brokerage located on site at The Racquet Club at Scottsdale Ranch. If you are looking for your new home away from home or know of traveling professionals needing a month or longer rental, they have beautiful, fully furnished properties available. For more information on how they can help you sell your home, call 1-480-367-1171.