As the overall U.S. economy struggles to get back on track, the housing industry is in position to lead the economic recovery. Near or at historic low mortgage interest rates, limited inventory of home for sale and the COVID-19 pandemic refocusing our attention on the importance of home and the ability to work and go to school from home, have all contributed to making housing a positive spot on the overall U.S. economy. With the recent report that the U.S. Gross Domestic Product (GDP) declined at a -32.9% rate in Q2 of 2020, housing’s share of the GDP reached their highest level since Q3 of 2007. Increasing to 16.2% during the second quarter of 2020. The home building and remodeling component – residential fixed investment- held at 3.3% of the GDP.
Housing Share of GDP Climbs to 13-Year High