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s we celebrate Small Business Month in May, it's essential to recognize the significant role real estate plays in our region's economy. As a major contributor to its sustainability and success, Realtors are part of the small business community that drives growth and innovation.
According to the latest census count, there are 264 real estate firms in NE Tennessee-SW Virginia, employing approximately 1,205 people. However, this number only scratches the surface, as many local real estate firms have fewer than five employees, and most Realtors are entrepreneurs or nonemployer businesses.
Nonemployer businesses, which include real estate agents and independent contractors, account for almost three-quarters of all businesses in our region and contribute about 4% to the economy's overall sales and receipts data. Locally, real estate professionals make up around 10% of these nonemployer businesses.
NETAR's membership continues to grow, with over 1,762 primary members and 84 secondary members. The area's real estate firms with employees had an annual payroll of about $70 million in the current census count. However, the economic impact of Realtors extends far beyond their own industry, as they are involved in almost all real estate transactions.
A recent survey by Realtor.com found that the average mover spends around $20,000 setting up their new home, resulting in a significant boost to local small businesses. When factoring in the variables used by the National Association of Realtors' economic impact study, the actual economic impact is even higher.
Residential sales alone reached $2.1 billion last year, with the total economic impact ballooning to over $3 billion when including vacant land sales, new home sales, and commercial real estate transactions. Real estate accounts for around 15% of the state and local economy, with firms having fewer than five employees and nonemployer businesses doing most of the heavy lifting.
In comparison, the region's three biggest employers have around 37,500 workers, while the count of nonemployer businesses is almost 35,000. As our economy continues to grow, small businesses and real estate are playing a significant role in these gains. NETAR has been at the forefront of recognizing and embracing regionalism to market real estate and represent its members.
Small businesses like those in the real estate industry provide opportunities for entrepreneurs, create meaningful jobs with greater job satisfaction, and foster local economies that keep money close to home and support neighborhoods and communities. As we celebrate Small Business Month, NETAR and its members are proud to be part of this dynamic.
