Housing industry provided major boost to Virginia economy during the pandemic
Virginia REALTORS® has published a new study quantifying the economic impacts of Virginia’s housing industry and demonstrating the vital role the housing sector played during the COVID-19 pandemic and economic recession.
Throughout 2020, 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. REALTORS® and other real estate professionals across the state were able to pivot to adapt to changing 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.
“One of the key reasons residential real estate is so important to the economy is because it touches so many other sectors of the economy. But the housing sector is also unique because it is an important economic driver across all regions of the state,” says Virginia REALTORS® Chief Economist Lisa Sturtevant, PhD.
In addition to this impact on the economy, housing-related activities expanded state and local tax revenue by more than $2 billion in 2020. This tax revenue relates to real estate activities during the year 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, conducted in partnership with George Mason University, is available on the Virginia REALTORS® website.