It has been stated time and again: Buying a home is the single largest investment most people make; home ownership is a key path to building wealth. For many, it is the American dream. But beyond the individual, what is real estate’s broader impact on the economy, communities, and society?
Economy
The real estate market has a significant impact on the general economy because it constitutes a large portion of the country’s economic activity. Real estate, rental, and leasing in California contribute approximately $539 billion (around 14%) to the state’s GDP per year, which is also the highest among all states in the U.S. Real estate transactions create economic activity across more than 20 related industries, including banking and lending, title and escrow services, home improvement retail sales, construction, legal services, insurance, and moving companies. Real estate-related activity fuels job creation and income growth for the broader economy.