Housing Helped U.S. GDP Recover and Grow in 2020

An in depth look, provided by the National Association of Home Builders (NAHB), on buildings impact on the Bureau of Economic Analysis (BEA) Q4 2020 Gross Domestic Product (GDP) report, reveals that housing was one of the bright spots in the overall US economy. While overall GDP continues to grow and recover at a seasonally annual adjusted rated of 4%, residential fixed investment (home building and remodeling) increased at a 33.5% annualized rate, after a spectacular 63% growth rate in Q3. Housing has shown an impressive improvement since the spring of 2020. Thanks to low mortgage rates, a transformed focus on the importance of home, a change in the landscape of housing demand and a dearth of for-sale inventory all have helped to keep housing a leader in the GDP for all of 2020.