Housing Share of US GDP Remains Above 16% Despite Marginal Declines in Residential Investment

By Jesse Wade
NAHB – Eye on Housing
July 25, 2024
Category: Finance & Economics
Region: United States

Housing’s share of the economy stayed level at 16.1% in the second quarter of 2024. The share remained above 16% after staying constant at 15.9% for all of 2023. The more cyclical home building and remodeling component – residential fixed investment (RFI) – was 4.0% of GDP, level from 4.0% in the first quarter. RFI subtracted 5 basis points from the headline GDP growth rate in the second quarter of 2024, marking the first negative contributions since the second quarter of 2023. In the second quarter, housing services added 18 basis points (bps) to GDP growth while the share remained at 12.1% of GDP. Overall GDP increased at a 2.8% annual rate, up from a 1.4% increase in the first quarter of 2024, and a 3.4% increase in the fourth quarter of 2023. …Housing-related activities contribute to GDP in two basic ways: The first is through residential fixed investment (RFI). The second impact of housing on GDP is the measure of housing services.

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