Economists' Outlook

Housing stats and analysis from NAR's research experts.

How Do Home Sales Affect the Economy in Your State?

Real estate has been, and remains, the foundation of wealth building for the middle class and a critical link in the flow of goods, services and income for millions of Americans.  Accounting for nearly 17 percent of the GDP, real estate is clearly a major driver of the U.S. economy.  

How is the housing market in your state affecting the local economy? NAR calculated the total economic impact of real estate-related industries on the state economy, as well as the expenditures that result from a single home sale, including aspects like home construction costs, real estate brokerage, mortgage lending and title insurance.

Nationwide, NAR estimates that each home sale at the median generated nearly $85,000 of economic impact in 2018.

Charts: Total economic impact generated by real estate

The top 10 states with the highest income generated from a home sale in 2018 are:

  1. Hawaii - $246,980
  2. District of Columbia - $224,730
  3. California - $173,130
  4. Colorado - $129,050
  5. Washington - $126,170
  6. Massachusetts - $125,090
  7. Oregon - $116,840
  8. Nevada - $96,150
  9. Maryland - $95,910
  10. Utah - $95,400

Find out how much the real estate industry is affecting the gross state product for your area.