Housing proves key to economic recovery

While America continues to feel the effects of a historic recession and staggering unemployment, housing can help the nation achieve a genuine recovery."Although job numbers have improved over the past few months, the unemployment rate is still more than 9 percent, well above historic norms," said Nubia Aguirre, president of the Downey Association of Realtors. "Home ownership creates jobs and has led this country out of six of the last eight recessions. It is essential to a full economic recovery." A solid housing recovery means robust economic recovery. The National Association of Realtors estimates that one job is generated for every two home sales. That means for every 5 million homes sold, 2.5 million private-sector jobs are created. NAR also estimates that each home sale at the median price pumps a total of $60,000 into the economy over time. "Homeownership builds a stronger America," said Aguirre. "In addition to helping create jobs, housing also has a significant impact on national spending. Housing accounts for more than 15 percent of the Gross Domestic Product, making it a key economic driver." Spending as a result of a home sale can be directly or indirectly tied to a home purchase. Expenses such as commissions and fees are a direct result of a sale or purchase. Meanwhile, other sectors that benefit from the demand for related goods and services including carpeting, furniture, appliances, window treatments, landscaping, home improvement and more. "Jobs enable people to achieve the American dream of home ownership," said Aguirre. "Every time a home is built, bought or sold, jobs are created. Housing isn't the only thing to restore our country's economy, but it will play a critical role." Contributed by the Downey Association of Realtors.

********** Published: March 24, 2011 - Volume 9 - Issue 49