When looking at gross domestic product, the broadest measure of the economy, housing plays a significant role. Housing’s share of GDP was 17.7% in the first quarter of 2021, the latest data available when writing this, which represents a near 14-year high. The housing market can therefore push up or pull down growth, and, right now, housing is a main driver of the expansion.
The housing sector was one of the quickest to rebound from the pandemic-induced recession and helped get hundreds of thousands of Americans back to work quickly. Residential construction is now operating with 35,200 more workers compared with pre-pandemic levels. The housing market contributes to the economy in four main stages: during planning and land development, throughout the actual construction of the home, at the point of sale, and upon moving in.
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