The real estate market tends to be a mystery for most people. Unless you are an investor or a real estate agent, the only thing you might care about is whether you can afford to buy a home, your home increases in value, or you can afford to pay your mortgage.
However, everyone should always remain interested in the local real estate market as it often provides insight into the general state of the local economy. For example, Texas (where New Home National Title has an office and conducts business) has topped the nation in real estate development activity for the second year in a row. That is a good sign for Texas. The building sector is booming.
Over $25 Billion in Real Estate Projects
In 2018, there was close to $26 billion in direct spending on real estate projects in Texas. According to a report by the National Association of Industrial and Office Properties (NAIOP), the building sector contributed over $62 billion to the state’s economy.
Rounding out the top five states:
The full report covers direct spending, total output, salaries and wages, and jobs supported.
Impacting the Job Market
These facts are important because the development sector often creates jobs. In fact, more than 400,000 jobs were supported by the development sector in 2018 in Texas alone. This places Texas ahead of California and New York when it comes to the ranking of real estate development impact.
Overall, in 2018, commercial property developments created and supported 8.3 million jobs in America. In dollars and cents, according to the NAIOP study, this resulted in salaries and wages of $325.9 billion.
Gross Domestic Product
The study also provided insight into the following contributions made by not only the commercial real estate development sector but also by existing buildings:
This shows the positive impact the sector has on the economy.
Significant Contributions
According to Thomas Bisacquino, NAIOP president and CEO, these contributions are significant. Growth in the industry is critical to job creation. He also says that the industry improves infrastructure, creating the places required for living, working, and recreation. Bisacquino attributes industry performance to a number of factors, including consumer spending, wage increases, tax reductions, and job growth.
Personal Income
Although these numbers apply to the economy in general, there are also personal benefits as well. The NAIOP estimates that in 2018, there was more than $20.6 billion generated in personal income statewide, thanks to the development and ongoing operations of office, industrial, warehouse, and retail buildings.
New Home National Title is changing the way the world views real estate transactions. From start to finish, our experienced team and our fresh, innovative technology remove the guesswork and move your transaction forward.
We currently work with commercial and residential clients across Texas, Colorado, and Florida, with more states to come soon!
Contact us today to learn how our Elite Closings program can make your job easier and win you repeat business and referrals!