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Real Estate Is a Driving Force in the Santa Barbara Economy

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Real Estate & The Santa Barbara Economy

Maureen McDermut

Having sold residential real estate in Santa Barbara for over 20 years, initiating her career in Los Angeles selling commercial real estate, and daugh...

Having sold residential real estate in Santa Barbara for over 20 years, initiating her career in Los Angeles selling commercial real estate, and daugh...

Nov 6 3 minutes read

Santa Barbara Real Estate is a Hot Commodity & Homes are Selling Fast

Real Estate Is a Driving Force in the Economy | MyKCM


As the Santa Barbara & Montecito economy recovers from this year’s health crisis, the housing market is playing a leading role in the turnaround. It’s safe to say that what we call “home” is taking on a new meaning, causing many of us to consider buying or selling sooner rather than later. Housing, therefore, has thrived in an otherwise down year.

Today’s high buyer demand combined with low housing inventory means we’re seeing home prices appreciate at an above-average pace. This demand is being driven by those who want to take advantage of historically low mortgage rates. According to Freddie Mac:


"The record low mortgage rate environment is providing tangible support to the economy at a critical time, as housing continues to propel growth."


These factors are driving a positive impact on the economy as a whole. According to the National Association of Realtors (NAR), the real estate industry provided $3.7 billion dollars of economic impact to the country last year. To break it down, in 2019, the average newly constructed home contributed just over $88,000 per build to local economies. Across the country, real estate clearly makes a significant impact (See map below):Real Estate Is a Driving Force in the Economy | MyKCMIn addition, last week, the Bureau of Economic Analysis announced the U.S. Gross Domestic Product increased at an annual rate of 33.1% in the 3rd quarter of this year, after decreasing by 31.4% in the second quarter. There’s no doubt the growing economy is being fueled in part by the soaring housing market. Experts forecast this housing growth to carry into 2021, continuing to make a big impact on the economy next year as well.

Santa Barbara Real Estate Bottom Line

The American Dream of homeownership has continued to thrive in the midst of this year’s economic downturn, and “home” has taken on a new meaning for many of us during this time.  Best of all, the housing market is making a significant impact as the economy recovers. If you want to list and sell your Montecito or Santa Barbara home for top dollar, contact us today!

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