Real estate and the housing market are key drivers and indicators of success in the nation’s economy, comprising nearly 17 percent of U.S. gross domestic product.
At the individual level, homeownership historically and currently remains the bedrock of wealth building for the middle class – accounting for a significant portion of households' networth in the U.S.
Zooming out, at the aggregate level, housing accounts for a large portion of all economic activity and provides an essential flow of goods, services, and a steady flow of income to millions of Americans.
The National Association of REALTORS® (NAR) estimates that, in 2021, the housing market generated about $113,000 in economic impact per home sale. Hawaii, California, Massachusetts and Washington, the top four states with the highest economic impact generated by home sales in 2021 accounted for a combined average of $233,035 from a single home sale.
In Tennessee, housing accounted for $62.1 billion or 14.8% of the gross state product in 2021 according to NAR.
For a breakdown of how much the real estate industry is contributing to the economy, see the infographic below.
