As the heads of the big three auto companies are in Washington begging for help, as trillions of dollars have been thrown at Wall Street, when are our elected official going to realize the importance of the real estate industry?
I am a Texan so I will talk about Texas, but I would imagine that the following is true throughout our nation.
Texas is best-known for its oil well and high-tech business.
But real estate is a close third, a new report by Texas A&M University’s Real Estate Center found. Real estate is the third-most-important private industry in Texas, according to the latest data from the U.S. Bureau of Economic Analysis. The real estate industry accounts for almost 8 percent of the state’s gross domestic product, A&M’s new report says.
Only manufacturing, at 13.4 percent, and mining and energy, at 9.8 percent, rank higher.
Every $1 million dollars of revenue in the Texas real estate industry generates just over half a million dollars of revenue in other parts of the state’s economy.
Every $1 million dolllars of revenue in the Texas real estate industry generates 11.16 jobs.
The Texas real estate industry has the largest portion of self employed persons of all industries.
Nearly 552,000 people were working in the Texas real estate industry in 2007, representing 3.9% of statewide employment.
Commercial real estate was valued at $251 Billion in 2007 and industrial real estate was valued at more than $85 Billion.
Taxes paid by the state’s real estate industry accounted for 18.7% of the total business taxes in 2007.
Real estate owner’s paid $24 Billion in Texas school taxes.
I believe that loosing the auto industry in this country would be tragic and that steps need to be taken to help save those jobs, but I also think it is time that congress take a long hard look at the real estate industry as well.