1. Economic impact of real estate activity
Northeast Tennessee – tri-cities region

2. Commercial real estate equals economic development
Major types of
Income properties
- Retail
- Hotels and motels
- Office buildings
- Apartments
- Industrial

3. Commercial real estate construction contributes 3% to total economic output
As a lagging indicator, commercial real estate statistics
follow residential real restate trends by a year or two

4. When you see a new business ribbon cutting or picture of a groundbreaking civic and political officials are always the focus, but…….
…in almost all cases a
commercial Realtor did
the initial work and the
heavy lifting to set up
the deal

5. Residential economic contributions are derived from…
-Real estate brokerage
-Mortgage lending
-Title insurance
-Rental and leasing
-Home appraisal
-Moving truck services
-Home construction
-Remodeling
-Other related activities

6. When a single-family home is sold
Income generated from
real estate related
industries is……………$14,981
Additional spending on items
like furniture, appliances
and remodeling is..…..$4,994
It generates an economic multiplier impact of…....$9,654
It stimulated additional home building – one home is built for every eight existing home sales. Impact……,,,,$20,807

7. Economic impact of a typical home sale in Northeast Tennessee
2017 existing home resales………………6,239
Average sales price…………………...$166,456
Total income from typical resale…....$50,435
Total economic resale impact… $314,670,205
Single–family resale volume ….$1,038,683,303

8. Townhome and condo resales
Related real estate industry per sale………..….$10,865
Consumer items per sale…………………………….$3,622
Multiplier effect per sale……………………………..$7,002
New home production per sale……………….……$9,657
2017 townhome, condo resales………………………..587
Economic impact per sale………………………….$31,145
Total resale economic impact………………..$18,282,115
Townhome, condo resale volume……..…….$70,861,375

9. Real estate’s 2017 economic impact $1,711,810,419
Total residential resale impact……...…$332,953,367
Total residential resale volume……...$1,109,544,678
Residential new home permits value….$45,133,000
Commercial permit value…………..…$243,516,045

10. Data sources Bureau of Economic Research Bureau of Census
Bureau of Economic Analysis
National Association of Home Builders
National Association of Realtors
Northeast Tennessee Association of Realtors
Macroeconomic Advisors