top of page

Real Estate Is a Driving Force in the Economy

  • Yvonne Yang
  • Nov 4, 2020
  • 1 min read

As the economy recovers from this year’s health crisis, the housing market is playing a leading role in the turnaround. It’s safe to say that what we call “home” is taking on a new meaning, causing many of us to consider buying or selling sooner rather than later. Housing, therefore, has thrived in an otherwise down year.

Today’s high buyer demand combined with low housing inventory means we’re seeing home prices appreciate at an above-average pace. This demand is being driven by those who want to take advantage of historically low mortgage rates. According to Freddie Mac:

“The record low mortgage rate environment is providing tangible support to the economy at a critical time, as housing continues to propel growth.”

These factors are driving a positive impact on the economy as a whole. According to the National Association of Realtors (NAR), the real estate industry provided $3.7 billion dollars of economic impact to the country last year. To break it down, in 2019, the average newly constructed home contributed just over $88,000 per build to local economies. Across the country, real estate clearly makes a significant impact (See map below):


In addition, last week, the Bureau of Economic Analysis announced the U.S. Gross Domestic Product increased at an annual rate of 33.1% in the 3rd quarter of this year, after decreasing by 31.4% in the second quarter. There’s no doubt the growing economy is being fueled in part by the soaring housing market. Experts forecast this housing growth to carry into 2021, continuing to make a big impact on the economy next year as well.

 
 
 

Comments


Stay in the Loop:
Join Our Newsletter for Exclusive Insights and Updates!

Thanks for subscribing!

WHAT'S UP?

DSC08989.jpg

Sold

161 Gladys Ave,

Mountain View, CA 94043

DSC02721 .jpg

Sold

3133 Raleigh Ct,

Fremont, CA 94555

DSC00018.jpg

Sold

1306 Thistle Pl,

Milpitas, CA 95035

YvonneYang_MonogramOnly_Black.png

270 3rd St, Los Altos, CA 94022

Calbre# 01371905

Tel: ‪(650) 530-3162‬

Email: yvonne@yvonneyanghomes.com

© Copyright 2024 Yvonne Yang, All Rights Reserved

Wall Street Journal Logo.jpg
award 1.jpg
award 2.jpg
award 5.jpg
award 4.jpg
award 3.jpg
award 6.png
bottom of page