National Association of REALTORS® Survey Finds Like-Kind Exchanges Promote Job, Economic Growth
July 9, 2015
A new report says REALTORS® and their clients hold Section 1031 rules at a very high priority, calling like-kind exchanges “fundamental to the real estate investment sector.” For a significant proportion of real estate market participants, like-kind exchanges provide an important vehicle to dispose and acquire property. The survey finds that like-kind exchanges support the nation’s financial growth, job creation and economy.
The report, “Like-Kind Exchanges: Real Estate Market Perspectives 2015,” is the result of a survey of NAR members representing all 50 states and the District of Columbia.
Some highlights from the survey findings:
- 63% of NAR respondents participated in a like-kind exchange transaction between 2011-2014.
- 40% of respondents said that transactions would not have occurred had 1031 exchanges not been available.
- 56% of respondents said that even if the project would have occurred, it would likely have been smaller in scale.
- For like-kind exchanges in which REALTORS® participated, 10-35 new jobs were created, mostly from spending on property improvements following acquisition.
- 96% of REALTOR® respondents believe real estate values would decline should Section 1031 be repealed.
NAR Chief Economist Lawrence Yun said that “REALTORS® and their clients often look for better economic use of existing properties that are underutilized,” and that Section 1031 like-kind exchanges help “promote local economic development and increase the nation’s gross domestic product.”
Find highlights, a press release, and the the full report at www.realtor.org/reports/like-kind-exchange-survey