Real Estate Named 3rd Largest Contributer to Texas Economy

Real estate is the third most important private industry in Texas, accounting for nearly 8% of Texas’ gross domestic product in 2006, behind manufacturing (13.4%) and mining (9.8%). “The GDP is the broadest measure of economic importance when looking at the overall economy,” says Ali Anari, Ph.D., research economist with the Real Estate Center at Texas A&M University. Anari analyzed a variety of economic factors in his recently released report, Texas Real Estate Industry Review, 2008. Among the findings:

Every $1 million of revenue in the Texas real estate industry generates 5.16 jobs within the industry and five jobs in other industries.

$1 million of sales tax generated in the real estate industry leads to $1.26 million of sales tax overall in the Texas economy.

Taxes paid by the real estate industry accounted for 18.7% of total Texas business taxes in 2007.

Source: Real Estate Center at Texas A&M University