Buying a home is one of the most significant investments a person can make. With millions of Americans looking forward to laying down a foundation of security and stability or looking for new ventures to invest in, the demand for properties has been increasing day by day. As a result, the real estate business has played a crucial role in the U.S. economy by developing great communities and real estate personalities like the Fiddler’s Creek Aubrey Ferrao.
The Current Real Estate Landscape
A recent report indicates that there are over 106,548 real estate companies operating in the United States. In contrast, the 2021 congressional report shows that an estimated 65% of occupied housing units are owner-occupied because homes are a crucial source of household wealth and provides considerable employment opportunities to millions of people, leading to significant growth of the Country’s economy.
According to the report, the industry currently employs more than 872,000 people. It further shows that owner-occupied real estate accounted for more than a quarter of households’ net worth as of October 2020. The trend has been relatively stable over the years, especially after the 2007-2009 decline.
Real estate companies led by successful Chief Executive Officers like Aubrey Ferrao are taking the forefront in developing some of the most impressive and successful luxury residential homes across the United States. As a result, the country has been receiving a significant economic boost into prosperity. Spending on residential fixed investment was approximately $885 billion as of 2020, accounting for about 4.2% of the GDP.
Spending on housing services, including rents and utility payments, was estimated to be $2.8trillion, accounting for 13.3% of the GDP in the same year. So the spending in the housing market accounted for 17.5% of the GDP in 2020.
Reasons for High Property Demand in the U.S.
There has been a high property demand in the United States due to the following reasons:
Appreciating Property Value
The price of houses increases with time, making the real estate business the most significant investment opted for by many Americans. For instance, experts say that home prices have risen by 3% to 6% annually in the last two decades.
Favorable Mortgage Interest Deductions
In the United States, the mortgage tax rate favors property owners, making it easier to acquire more properties. For instance, if the mortgage balance is lower than the home price, the mortgage interest is fully deductible on the tax return, reducing your tax and increasing savings.
The Pride of Owning a Home
People enjoy owning homes as it gives them and the family a sense of security. However, investing in the future will see your family covered as long as they live.