Vancouver, BC – September 2, 2008. British Columbia Real Estate Association (BCREA) released today a report on the economic impact of Multiple Listing Service® (MLS®) residential sales to the provincial economy in 2007. A typical MLS® residential sale generated nearly $42,000 in economic output, $20,000 in Gross Domestic Product (GDP) and $13,000 in household income. Tax revenues to federal, provincial and municipal governments exceeded $9,800. A typical MLS® residential sale also generated 0.28 full time equivalent jobs (FTE).
“MLS® residential sales provide a significant contribution to BC economy,” said Cameron Muir, BCREA chief economist. Every 100 transactions in 2007 generated nearly $4.2 million in economic output and $2 million in GDP.
“While a single home sale has a relatively small impact, the cumulative effect of thousands of transactions is noteworthy,” added Muir. The province recorded 102,892 MLS® residential sales last year, contributing $4.3 billion to economic output and $2 billion to provincial GDP.
Home sales also create employment. For every 100 MLS® residential sales, 28 full-time equivalent (FTE) jobs were generated in 2007. This means 28,800 FTE jobs were needed to service the total number of MLS® residential sales last year.
100 typical MLS® residential transactions added nearly $1.3 million to household income. Total MLS® residential sales in 2007 contributed to more than $1.3 billion in BC household income.
Residential transactions generate significant tax revenue. Every 100 MLS® residential sales in 2007 accounted for nearly $300,000 in federal taxes, $660,000 in provincial taxes and $32,000 in municipal taxes. Total MLS® residential sales in 2007 generated approximately $300 million in federal taxes, $680 million in provincial taxes and $33 million in municipal taxes. In total, MLS® residential transactions contributed more than $1 billion to government coffers.
“Copyright British Columbia Real Estate Association. Reprinted with permission.”
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