It seems nearly every day, a piece of economic data is released by a government agency or industry analyst. Some data is certainly more important than others but watched nonetheless. For housing's broad impact on the economyexample, real estate investors and investors in general can pay attention to the unemployment numbers released each month.

The more people back to work, the more that can qualify for a mortgage and buy a home and is a closely watched number. Along with the unemployment report, housing sales get every real estate investor’s attention

But housing gets a lot of attention, both in terms of new housing starts by developers as well as existing home sales. Real estate investors watch such trends in specific areas when deciding when to invest and what to sell the home for. Strong housing sales is certainly a good indicator but housing also has an impact way beyond the settlement table, and why home sales is such an important number.

Think about that for a moment. You buy a property, fix it up and sell it for a profit. That’s what real estate investors do, right? But let’s look at some other things you did. You hired a contractor. You bought building materials. You obtained financing as did your buyers. Your real estate agent made a commission and is waiting on your next flip.

When you flip a home to your buyers, what do they normally do? They take trips to the furniture store and the home improvement store. They employ contractors to add on a deck. Those contractors then take that money and spur even more economic activity like buying a car, tools or simply a vacation.

When a home sells, there are profits to be distributed well beyond the seller’s pockets and occur long after the initial transaction. Housing is perhaps the single biggest economic driver in our economy today due to the broad impact it has on those that weren’t even at the closing table but still positively affected. Real estate investors lift all boats, not just their own.