How Much Does One House Sale Benefit The Economy?

Real Estate Agent with KW Elite

The crew over at Keeping Current Matters had a very interesting article about the dollar amount effect one house sale has on the economy. The results are interesting and remind us that a stable housing market is crucial to a stable economy.  The research team at National Association of Realtors looked at studies done by the Bureau of Economic Analysis, the Census Bureau, Macroeconomic Advisors and the Joint Center for Housing Studies at Harvard and came up with the following impact:

Each home sale has a $56,464 effect on the US economy. 

From KCM: 

"Economic Contributions are derived from:Home sales effect on economy

  • Home construction
  • Real estate brokerage
  • Mortgage lending
  • Title insurance
  • Rental and Leasing
  • Home appraisal
  • Moving truck service
  • Other related activities

When a House is Sold in the United States:

$14,958 – Income generated from real estate related industries

$5,647 – Additional expenditure on consumer items such as on furniture, appliances, and paint service

$3,509 – Expenditure on remodeling within 2 years of purchase

It generates an economic multiplier impact. There is a greater spending at restaurants, sports games, and charity events. The size of this “multiplier” effect is estimated to be:$11,575

Additional home sales induce additional home production. Typically one new home is constructed for every 8 existing home sales. Therefore, for each existing home sale, 1/8 of new home value is added to the economy which is estimated in the U.S. to be:$20,775"


Posted by


Michael J. Perry



1280 Plaza Blvd. , Lancaster, PA 17601

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Longtime West Lampeter resident and Lancaster County Realtor!


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  1. John LeCates 11/19/2015 10:43 PM
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Helen and Larry Prier- Re-Max Gateway - Residential Real Estate
RE-MAX Gateway- Residential Real Estate Sales - Anacortes, WA
Anacortes & surrounding Skagit & Island Counties

Michael, I like these numbers. The housing market always effects the economy. When it comes back in all areas the economy will be on the right track again and unemployment will drop as well. The chicken and the egg syndrome again.

May 09, 2013 01:21 AM #1
Team Honeycutt
Allen Tate - Concord, NC

When we realize how much the benefit is for a home sale, it becomes very clesr why Real Estate is so important to the economy.  Thanks for sharing this information.


May 09, 2013 01:21 AM #2
Dan Hopper
Keller Williams Realty Downtown LLC - Denver, CO
Denver Realtor / Author / Advocate/Short Sale

Thanks Michael for that information!   It is clear that housng plays a very large role in the success or decline of the economy.

May 09, 2013 01:23 AM #3
Simone Bercu
Metro Referral - Palm Beach Gardens, FL
Not state specific Real Estate - GRI, e-PRO, AB

I think the renovation expenses are much higher, at least in my family and the people I know.  But, I am sure they know what they are quoting.

May 10, 2013 11:15 AM #4
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Michael J. Perry

Lancaster, PA Relo Specialist
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