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Housing Market: US: Difference between revisions
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Data: [https://docs.google.com/spreadsheets/d/1UzvIAz6CBS78vH1moNA-foaZA0HWOb-AG1DfvCUJDio/edit#gid=1917211317 Housing] | |||
== Housing Market as a Leading Indicator == | == Housing Market as a Leading Indicator == | ||
Housing accounts for a significant portion of investment spending by American households and overall economic activity. And has a significant impact on other industries, including labor, construction, raw materials, consumer durables, banking, and real estate. According to Leamer<ref>https://www.nber.org/system/files/working_papers/w13428/w13428.pdf</ref>, in six of the ten recessions since 1950, residential investment was the greatest contributor to weakness prior to the recession with an average contribution of 22% of weakness in gdp 1 year prior to the recession. And that an unusual residential investment contribution to GDP growth in one quarter predicts twice as much contribution from some other sector the next quarter. | Housing accounts for a significant portion of investment spending by American households and overall economic activity. And has a significant impact on other industries, including labor, construction, raw materials, consumer durables, banking, and real estate. According to Leamer<ref>https://www.nber.org/system/files/working_papers/w13428/w13428.pdf</ref>, in six of the ten recessions since 1950, residential investment was the greatest contributor to weakness prior to the recession with an average contribution of 22% of weakness in gdp 1 year prior to the recession. And that an unusual residential investment contribution to GDP growth in one quarter predicts twice as much contribution from some other sector the next quarter. | ||