A significant proportion of the Australian economy is at risk if the property market takes a fall, according to data released today. That’s a problem because the sector is not really productive, simply riding the back of inflating home prices, mortgages and debt.

From The Real Estate Conversation.

The property industry now employs more people than any other sector, according to a new report by AEC Group. The property industry accounts for more than 1.4 million jobs, according to the report, taking over health care and social assistance as the nation’s largest employers.

Source: Property Council of Australia.

Between 2013-14 and 2015-16, the number of jobs in the property industry grew by 22 per cent.

Direct Contribution to Employment by Industry, 2015-16 (‘000 FTEs)

Note: * Only non-property related activity is included for this industry classification. All property related activity is included in the property industry. Sources: AEC, ABS (2017a, 2017b, 2017c, 2017d, 2017e, 2016b, 2016c and 2013), APRA (2017a, 2017b and 2013), RBA (2017a and 2017b).

Source: Property Council of Australia.

The property industry also contributed $202.9 billion to GDP in 2015-16, an increase of $20.4 billion since 2013-14, extending its lead as the biggest direct contributor to GDP.

Direct Contribution to Gross Domestic Product by Industry, 2015-16 ($ Billion)

Note: * Only non-property related activity is included for this industry classification. All property related activity is included in the property industry. Sources: AEC, ABS (2017a, 2017b, 2017c, 2017d, 2017e, 2016b, 2016c and 2013), APRA (2017a, 2017b and 2013), RBA (2017a and 2017b).

Source: Property Council of Australia.

The industry also contributes $87.9 billion each year to Australian, state, territory and local government tax revenues. Ken Morrison, chief executive of the Property Council, said the research shows how important the property industry is to the overall economy as the major creator of new jobs and in supporting communities. “More than 1 in 4 wages rely on our industry,” said Morrison. “That’s a huge contribution to the livelihoods of individuals and families across the nation. “These are white-collar and blue-collar jobs, from high finance to skilled trades, and from construction to the managers of the most sophisticated commercial properties.” The release of the AEC Research marks the beginning of a Property Council campaign to promote the importance of the property industry in Australia.

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