THE ROLE OF REAL ESTATE IN SHAPING THE NATIONAL ECONOMY OF THE UNITED STATES

Abstract

The real estate sector is a fundamental pillar of the U.S. economy, contributing significantly to economic growth, employment, investment, and government revenue. This thesis explores how real estate serves as an economic driver through various channels, including residential and commercial property development, financial markets, and government taxation. Real estate’s impact extends beyond property transactions; it shapes financial markets, affects consumer wealth, and influences economic policies at local, state, and federal levels. By analyzing historical trends, economic cycles, and policy interventions, this research provides a comprehensive understanding of the sector’s significance. This study also delves into the interconnection between real estate and financial markets, assessing the role of mortgage-backed securities, interest rates, and investment vehicles such as Real Estate Investment Trusts (REITs). Additionally, it examines real estate’s influence on urban development, including zoning regulations, affordable housing initiatives, and infrastructure expansion. The research highlights how government policies, including property taxation and incentives, play a crucial role in shaping the real estate sector and its contribution to public revenue.

By evaluating data from national economic reports, financial institutions, and policy reviews, this thesis identifies key trends and challenges affecting the real estate market. It further explores future developments, such as digital transformation, smart cities, and economic recovery post-pandemic. Through this analysis, the study aims to provide insights into optimizing real estate policies for sustainable economic growth and financial stability. Ultimately, this research underscores the indispensable role of real estate in shaping the broader economic landscape of the United States.