Housing Continues to Have Positive Impact on GDP in Q4 2021
Housing Share of GDP: 16.4%
A closer look at the Bureau of Economic Analysis (BEA) “advance” estimate of Q4 GDP, with a specific look as to how housing impacted the results and analysis provided by the National Association of Home Builders (NAHB), reveals that the surge in residential investment in 2020, and its continued strength in 2021, allowed housing to remain an elevated component of the GDP — especially when compared to most of the post-Great Recession period.
In Q4 2021, the overall GDP growth came in at a 6.9% growth rate, driven by inventory investment. Residential fixed investment (home building and remodeling) was effectively flat. During Q4 2021, housing’s share of GDP stood at 16.4%, somewhat off a 14-year high of 17.8% during the second quarter of 2020. The more cyclical home building and remodeling component – residential fixed investment — slipped to 4.6% of GDP in Q4 2021.
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