Dwelling Data

homebuildingWhile today’s report shows residential construction improving, economically it’s largely irrelevant. In 2005, single-family construction was single-handedly 3.4% of GDP and all new residential spending was 6.7%. Now, single-family activity is 1.3% of GDP and all residential activity is 3.3%. Conversely, since 2005 GDP has grown by 38%. Thus, in only 4 of the last 24 quarters has housing contributed more than one-third of a percentage point to GDP growth.

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  1. Given that the GDP is up 38% with residential activity down, what are the major contributors to the growth and is the growth sustainable with out the residential sector? What would happen if regulation is loosened and residential grow returns to 2005 level?

    Not an Economist

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