You might be considering how investing in real estate will affect you and your family. That is not a bad thing. However, along with the financial benefits, there are many social advantages to homeownership. Most people are unaware of the advantages homeownership has for other sectors. So, it is important that you know its effect not just on you, but the economy and community as well.
A report from NAR shows how much economic activity a home sale can produce.
You contribute to the income of others when you buy or sell a home. It helps you do more than just improve your living situation or turn a tidy profit so you can buy the house of your dreams. As a matter of fact, the housing sector can boost employment in a community. Robert Dietz of NAHB explained:
“The economic impact means 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, per NAHB research. For every apartment, it is one job. And one job for every $100,000 in remodeling spending..”
The process of a real estate transaction involves many different industries. It is not just the actual sale of the house. There are contractors and experts involved in new construction. Also, lawyers and local government representatives all contribute to the process of new homes built. Through your transactions, you are meeting the needs of many people in your community. In the event that you intend to buy or sell a house soon, this can make you feel good.
People who Own Homes Invest More in their Neighborhood and Community Life
There are two explanations given by economists for this:
- The more improved the neighborhood is, the more money homeowners stand to gain from higher home prices.
- Homeowners are more inclined to settle down in a neighborhood and raise a family there. Instead of leaving soon, they become more involved in the local community.
The most important thing to understand about houses is that they play several different economic roles. They are people’s homes, resources for the land, and exchangeable financial assets.
The Bottom Line
The communities where home buyers and sellers buy or sell homes benefit economically from their actions. It’s a smart idea to contact a local expert if you’re prepared to buy a home and also contribute to the local economy.
What To Do:
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