Commercial Broker Quarterly: Spring 2002 - GWCAR, Greater Washington Commercial Association of REALTORS(R)

CBQ >> Spring 2003 Issue

Impact Studies: Real Estate Driving Economy

WDCAR/WASHINGTON, DC

The Washington, DC Association of REALTORS recently commissioned a study from the National Association of REALTORS^® to determine the economic impacts of the housing sector in the District.

The findings concluded that because of the transfer and recordation tax hike homebuyers are helping to fill the $323 million shortfall in DC's 2003 budget.

In addition, the study says the number of home sales would have been substantially lower if the District's Five-Precent First-time Homebuyer Tax Credit were not in place. Further, it says the tax credit played a critical role in increasing home sales, homeownership rates and contributed to population stability.

GCAAR & MAR/MONTGOMERY COUNTY, MD

The Greater Capital Area and Maryland Associations of REALTORS^® had Frederick E. Flick, Ph.D., conduct a study evaluating the impact of the real estate industry in Montgomery County, Md.

The study found that real estate and its related activities accounted for at least $685 million in direct revenue to Montgomery County in 2002, and generated an additional $465 million in economic activity in the form of wages and expenditures. According to Metropolitan Regional Information Systems, Inc. brokered property sales accounted for $5.14 billion in the county last year.

Flick concluded that real estate is a key contributor to the fiscal health and economic soundness of Montgomery County.

The WDCAR/WASHINGTON, DC and GCAAR & MAR/MONTGOMERY COUNTY, MD studies are both available here on GWCAR.org.