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IPFS News Link • Housing

Chart of The Day: Residential Investment As A Percentage of GDP

10-31-2010 • CalculatedRiskBlog.com

Note: Residential investment (RI) includes new single family structures, multifamily structures, home improvement, broker's commissions, and a few minor categories. It is interesting to note that RI as a percent of GDP has declined to a post war low of 2.22%. Some people have asked how could a sector that only accounts for 2.2% of GDP be so important? The answer is that usually RI accounts for a large percentage of the employment and GDP growth in the first year or so of a recovery. Not this time.

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Reported By Jack Gregson

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