Investing in housing is more than just buying a place to live—it's a cornerstone of the American economy. Each home sale generates two jobs, and the real estate sector alone makes up approximately 18% of the entire nations economy, according to data from the National Association of Realtors. This ripple effect of home sales extends beyond property lines, influencing numerous facets of American life.
In Tennessee, the local real estate industry is a powerhouse, contributing a significant $82.5 billion to the Gross State Product (GSP), representing 15.8% of the state's economic output. The impact of a single home sale in Tennessee is particularly striking, resonating throughout the economy with a total economic impact averaging $118,500 per transaction.
These numbers reveal a prosperous reality generated by the housing sector and underscore the importance of our political leaders and voters alike to invest in policies that expand housing supply on a local, state, and national level. Our nation is currently in the midst of a 5.5 million unit housing shortage that will take years to correct without urgent action. Moreover, the U.S. faces the largest shortage of homes in the middle-income price range, exacerbating the nation’s middle-class struggle to access housing.
While these facts cause concern, Realtors across the country, alongside housing advocates, are working hard to promote policies that expand housing, and their efforts are delivering results.
Late last month, the U.S. Department of the Treasury announced steps to address housing affordability aimed at lowering housing costs and increasing housing supply. This includes a new Treasury program administered by the Community Development Financial Institutions (CDFI) Fund that will provide an additional $100 million over the next three years to support the financing of affordable housing. Efforts are also underway to provide greater interest rate predictability to state and local housing finance agencies borrowing from the Federal Financing Bank to support new housing development. Additionally, there is a call to action for the Federal Home Loan Banks to increase their spending on housing programs.
This is just one of many examples of policy initiatives that Realtors are advocating for to inspire and incentivize housing efforts so that more Americans can gain access to housing and experience the tangible benefits of homeownership.
The housing market is a vital component of our economy, and every home sale contributes significantly to the prosperity of our communities. As we navigate the challenges of housing shortages, it is imperative for all stakeholders to support and implement policies that will expand housing opportunities and ensure a thriving future for Tennessee and the nation.
