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Housing’s Impact on the Economy

With the housing market continuing to strengthen with rising prices and unit sales, the dollar volume of those closed sales in the last year has hit a 5.5 year high, nearly $12 billion. Each sale creates a flurry of economic activity – let’s look at just some of the areas that are often impacted:

  • Real estate agents
  • Title company employees
  • Loan officers
  • Home Inspectors
  • Movers
  • Home improvement stores
  • Remodelers/contractors
  • New construction

Just in real estate commissions alone, there’s probably $300-$400 million that lands in the hands of real estate agents in the Twin Cities, even after the broker has taken their split, and that number is up nearly 60% from its lows in 2011.  All told there’s probably more than $1B in revenue earned by people involved along the way. Those people in turn are spending that money on everything the rest of Minnesotans do: food, clothing, housing, etc.  So as the housing market has continued to recover, there is real impact to the local economy and of course direct impact to the people involved and their families.

Twin Cities Real Estate- Dollar Volume of Closed Sales

I am not an economist and I made estimates in my numbers above based upon my experiences and judgment. They are estimates only.

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TwinCitiesRealEstateBlog.com is not a Multiple Listing Service MLS, nor does it offer MLS access.
This website is a service of Aaron Dickinson of Edina Realty, a broker Participant of the Regional Multiple Listing Service of Minnesota, Inc.