Fact: It takes an about 22 subcontractors to build an average single-family home.
Happy New Year! I hope that 2016 brings you happiness and prosperity. It will also, as each year does, bring changes to the housing market and our economy. Did you know how closely the two are tied together? Buying or selling a home not only affects your personal financial situation, but that of the local economy, as well.
Renovations to a home also contribute to the economy, due to their use of local labor and business. Government permits also help to boost the economy when renovating. This is another means to creating jobs, as well.
GDP is the monetary value of all the finished goods and services produced within a country's borders in a specific time period.
GDP measures how well an economy is doing, and in the United States, GDP has contributed to more than 15 percent of the GDP for the past two years. How does housing affect the GDP? Some ways include:
- Home building
- Home remodeling
- Rent and utilities
- Services for a home (i.e. electricians, plumbers)
At the beginning of last year, housing comprised about 15.45 percent our nation's GDP.
It's a great way to start the year knowing what owning a home, or renting a living space, can do to help our economies, both locally and nationally.
*Source: Buffini and Co.
