You’ve probably heard by now that buying and selling real estate is a great way to build individual wealth, but did you know buying and selling Real Estate also heavily impacts Florida’s economy?
A recent analysis by the National Association of Realtors® (NAR), determined money generated by real estate sales in Florida make up 21.9% of the gross state product. Yes, almost 1/4 of Florida’s economy in 2018 was the result of real estate transactions.
On average, each home sale generated $77,858 in total economic impact. Where did this money come from?
- $21,483 in income from real estate activities (commissions, fees, moving expenses)
- $4,243 in expenses related to home purchases (new furniture, remodeling expenses)
- $12,348 in monies earned in other sectors of the economy related to the home sale and recirculated into the economy
- $39,783 in new home construction because one new home is constructed for every 6 existing homes sold
All of this means the real estate industry accounted for $227.3 billion or 21.9% of Florida’s gross state product in 2018 which is pretty awesome!
Kelly Harden, Realtor®
Mihara & Associates, Inc.