Boise’s housing supply is in short supply right now, and with inventory low, prices are nearing record highs. This is great news if you are looking to sell. And, it is also great news for the economy as a whole.
This hot real estate market has a far-reaching impact on the local economy. The following statistics outline the total economic impact of real estate related industries on the Idaho’s economy, as well as the expenditures that result from a single home sale. These include aspects like home construction costs, real estate brokerage, mortgage lending and title insurance.
According to the National Association of Realtors (NAR), the real estate industry accounted for $12,442 million or 19.0% of Idaho’s gross state product in 2015.
When a home is sold in Idaho:
$16,911 of income is generated from real estate related industries, and the following see a direct economic contribution:
- Home construction
- Real estate brokerage
- Mortgage lending
- Title insurance
- Rental and leasing
- Home appraisal
- Moving truck service
$4,572 is spent on consumer items such as furniture, appliances, and paint service. Just think, when you buy a new home, often you replace carpet, paint the house, and do other remodeling projects. And, likely you will want to buy new furniture and window coverings, etc.
As well, home sales generate an economic “multiplier” impact. There is greater spending at restaurants, sports games, and charity events. The size of this multiplier effect is estimated to be $10,312.
Additional home sales induce added home production. Typically, one new home is constructed for every eight existing home sales. Therefore, for each existing home sale, 1/8 of a new home’s value is added to the economy which is estimate in this state to be $23,488.
The total economic impact of a typical home sale in Idaho with a median home price of $187,900 is $55,283.
So, the short answer to the question, “Who Benefits from Boise’s Hot Real Estate Market?” – we all do, in one way or another.
If you are thinking about selling your Boise-area home and want to get top dollar, please give Templeton Real Estate Group a call. We offer a free and confidential consultation, and with your listing, complimentary staging services! As your East Boise real estate experts, we will walk you through each step, make the process easy and stress-free for you, and sell your house faster and for more!
Source: Idaho Real Estate’s Economic Contribution – NAR