Despite the impact of COVID, the real estate / housing sector contributed nearly $ 52 billion to the Virginia economy in 2020 and supported more than 325,000 jobs for a combined income of nearly $ 16 billion, according to new data from the Virginia Realtors and George Mason trading group. Dollars across the state university.
This economic impact takes into account the impact of transactions related to home buying and selling, new home building, mortgage refinancing, home renovation and remodeling, and residential property management and maintenance in 2020.
“One of the main reasons residential real estate is so important to the economy is because it affects so many other sectors of the economy. But the housing sector is also unique because it is a major economic driver in all regions of the state, ”said Lisa Sturtevant, chief economist at Virginia Realtors.
Despite the initial shock of the COVID crisis and the resulting government lockdowns in spring 2020, the construction and real estate industries began moving forward – often at warp speed – this summer. The study, conducted by the Center for Regional Analysis at Mason’s Schar School of Policy and Government, found that many sectors of the housing industry could turn quickly in the pandemic era.
“Government officials realized that home builders are important businesses and were allowed to continue operations,” they noted.
“Housing professionals who support and manage the transactional side of housing, including brokers, have been remarkable in adapting new practices to a wide and changing range of operational restrictions. Home tours have been made “virtual” through high quality video or curated live demonstrations using video camera technology and the persistent determination of professional realtors. Mortgage brokers and companies switched to fully electronic documentation with restricted access within a few weeks. Title companies have created a range of deal options that meet regulatory requirements and address homebuyer preferences. “
Virginia home-related activities increased state and local tax revenues by more than $ 2 billion in 2020.