The WRA Releases Economic Impact Study of Real Estate Industry in Wisconsin
Date: October 23, 2019
MADISON, Wis. – Today, the Wisconsin REALTORS® Association
released a new study that shows the economic impact of Wisconsin’s real estate
industry, including 380,000 jobs, as well as challenges facing the industry as
compared to the rest of the country. The report titled, “The Impact of Real Estate
on Wisconsin’s Economy,” showcases the tremendous effect that the real estate
industry has on Wisconsin’s growing economy.
The report, authored by University of Wisconsin’s Graaskamp
Center for Real Estate Director, Dr. Mark J. Eppli, Ph.D., was compiled based
upon the most recently available data.
The economic impact of construction and real estate services
on Wisconsin Gross Domestic Product is vast. The special report finds that 15.8
percent of the state’s GDP is directly attributable to construction and real
estate services. This makes the real estate industry second only to
manufacturing in total economic impact on the state’s economy.
“This report shows that the jobs supported by construction
and real estate services are a dramatic part of Wisconsin’s growing economy,”
said Tom Larson, the WRA’s Senior Vice President of Legal and Public Affairs.
“However, it is disconcerting that we have seen a decline in construction and
real estate services since 2001, showing that it is time to address the issues
that are hindering Wisconsin from keeping pace with the rest of the nation.”
The impact of the construction and real estate services on
the Wisconsin economy is impressive, including:
- 15.8 percent of the
state’s GDP.
- Support 380,000 jobs.
- Produce $18 billion in
personal earnings for state residents.
Yet, the earnings and employment in construction and real
estate services have been declining since 2001. For example:
- Construction and real estate
services dropped from 16.3 percent of GDP to 15.1 percent of GDP.
- Employment fell as a
share of the state’s employment from 16.5 percent to 15.4 percent.
- The percent of
employment attributable to construction and real estate services in Wisconsin is
26 percent lower than the national average:
7.6 percent for Wisconsin vs. 9.6 percent for the U.S.
The report reveals the state is not keeping pace with the
nation in providing the necessary housing and commercial buildings for business
and economic growth. Wisconsin must provide innovative and productive
workplaces as well as engage housing options for the next generation. State and
local leaders must focus on policies, regulations, and real estate development
initiatives that encourage residential and commercial development. Without
sustainable new investment in real estate development, Wisconsin’s economic
growth will continue to under-perform against the national average.
The WRA’s special report “The Impact of Real Estate on
Wisconsin’s Economy,” can be read in its entirety at www.wra.org/EconomicReport.