Virginia REALTORS® has published a new report by George Mason University, illustrating the major impact the residential real estate industry has on the Virginia economy.
During the COVID-19 pandemic and economic recession, Virginia’s housing industry was incredibly resilient, even as other parts of the economy struggled. Unlike in some other states, residential real estate transactions and other housing-related activities were able to continue throughout the pandemic. Virginia REALTORS® and their partners were quick to adapt to challenging conditions, adopting new practices and technologies to work within a wide and changing range of operating restrictions.
As a result of the industry’s resiliency and innovation, the housing sector contributed nearly $52 billion to Virginia’s economy in 2020 and supported more than 325,000 jobs in the commonwealth. This economic impact accounts for the effects of transactions related to buying and selling homes, building new homes, refinancing mortgages, renovating and remodeling homes, and managing and maintaining residential properties in 2020.
In addition to this impact on the economy, housing-related activities boosted state and local tax revenue by more than $2.0 billion. This tax revenue relates to real estate activities in 2020, but does not include property taxes paid on existing homes. Therefore, this number significantly understates the role housing plays in local tax revenue each year.
The full report on the impact of the housing industry on Virginia’s economy is available on the Virginia REALTORS® website.
Click here to send any comments or questions about this piece to Virginia REALTORS® Chief Economist Lisa Sturtevant, PhD.