The economy won’t improve until housing improves
The economy won’t improve until housing improves
Whether you’re buying or selling a Boston Seaport condo, here’s something to think about that most people don’t. Your decision doesn’t just impact your life and your family’s, it sparks a ripple effect that has a positive impact on your entire community.
Every year, the National Association of Realtors (NAR) puts out a report that breaks down the financial impact that comes from people buying and selling homes.
The data shows that if you buy an existing (previously lived-in) home, you’re giving the local economy a boost of just over $60K. And if you buy a newly built home, that number goes up to over $125K (see visual below):
That’s because of all the people needed to build, fix up, and sell homes. Robert Dietz, Chief Economist at the National Association of Home Builders (NAHB), explains how the housing industry adds jobs to a community:
“. . . housing is a significant job creator. In fact, for every single-family home built, enough economic activity is generated to sustain three full-time jobs for a year . . .”
When you think about it, it makes sense. Behind every home sale is a network of people involved, including contractors, city officials, real estate agents, lawyers, specialists, and more. Everyone has a job to do to help make sure your deal goes through.
Put simply, when you buy or sell a Boston condo, you’re helping out your neighbors. So, your decision to move doesn’t just meet your needs; it supports their families, strengthens your town, and shapes the future of your community.
Imagine walking through the front door of your next home, knowing your decision helped a local contractor keep their crew working or a small business thrive. Remember that feeling as you make your decision this year.
Boston Condos and the Bottom Line
Moving isn’t just a personal milestone – it’s an investment in your community, too. If you’re ready to make a move, connect with a local real estate agent. You’ll make a difference for more people than you know.
Love thy neighbor
Click Here to view: Google Ford Realty Inc Reviews for 2025
Peace be with you
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The economy won’t improve until housing improves
Amir Sufi and Atif Milan of the University of Chicago Booth School of Business argue in today’s Wall Street Journal that the recent decrease in consumer spending has been directly fueled by a drop in housing prices. The article is a response to a piece last week by Charles Calomiris and several other economists which suggested the relationship between the two has been overstated. From Sufi and Mian:
…We find striking results: from 2002 to 2006, homeowners borrowed $0.25 to $0.30 for every $1 increase in their home equity. Our microeconomic estimates suggest a large macroeconomic impact: withdrawals of home equity by households accounted for 2.3% of GDP each year from 2002 to 2006.
Our results demonstrate that homeowners in high house price areas borrowed heavily against the rise in home equity from 2002 to 2006. We also provide evidence that real outlays were a likely use of borrowed funds. Money withdrawn from home equity was not used to buy new homes, buy investment properties, or invest in financial assets. In fact, homeowners did not even use home equity withdrawals to pay down expensive credit card debt! These facts suggest that consumption and home improvement were the most likely use of borrowed funds, which is consistent with Federal Reserve survey evidence suggesting home equity extraction is used for real outlays.
The bottom line for Sufi and Mian is clear, unless the housing market recovers, consumer spending will continue to fall.
