Fully 15.24% of the nation’s gross domestic product in the third quarter of 2014 was tied up in housing, with home building and remodeling yielding 3.08 percentage points of that total.
This compares to the historical average of housing accounting for between 17% and 18% of the GDP.
Residential fixed investment is the measure of the home building and remodeling contribution to GDP. These investments include construction of new single-family and multifamily structures, residential remodeling, production of manufactured homes and brokers’ fees.
At 3.08%, this is below the historic average of 5%.
The RFI component reached a $500 billion annualized pace during the second quarter, according to the National Association of Home Builders.
This is the second highest quarterly total for RFI since the middle of 2008.
Housing services, meanwhile, includes gross rents paid by renters, and owners’ imputed rent plus utility payments.
Housing services was 12.16% of the economy in the third quarter.