The Housing Share of Gross Domestic Product Is Higher in 2022

 For the first quarter of 2022 GDP declined at an annual rate of 1.4% causing the housing share to jump up. In fact, reports show an increase of 16.7%. The residential fixed investment (the more cyclical home building and remodeling component) rose to 4.8% of GDP.

Housing and all activities related to housing give to GDP in a couple of ways. The first is through RFI which stands for residential fixed investment. It is effectively the measure of the home building, multifamily development, and remodeling contributions to GDP. It includes construction of new single-family and multifamily structures, residential remodeling, production of manufactured homes and brokers’ fees.  The second is the measure of housing services including gross rents (including utilities) paid by renters, and owners’ imputed rent (an estimate of how much it would cost to rent owner-occupied units) and utility payments.

The first quarter of 2022 saw an RFI of 4.8% of the economy which came out to be a $1.18 trillion seasonally adjusted annual pace. The housing services made up 11.9% of the economy which was $2.9 trillion on a seasonally adjusted annual basis. That means the total housing's share of GDP was 16.7% for the first quarter of 2022.

Click Here For the Source of the Information.

Construction Jobs Are Up In Residential Construction

March 2021 saw the employment total payroll increase by 916,000. The unemployment rate also dropped in March 6%. As the country is slowly reopening from the pandemic, the labor market is improving. In fact, the residential construction employment is beyond the level seen in February 2020. There were 37,000 residential construction jobs added in March 2021.

This is good news for the US job market. During the pandemic, 22.7 million jobs were lost in March, April and December of 2020. For the jobs lost, 14.3 million have been recovered in the last 11 months.

The Bureau of Labor Statistics broke the increase down by industries. The top industry to see employment changes in March 2021 was the leisure and hospitality industry with 280,000 month-over-month change. Government followed with 136,000, construction gained 110,000, professional and business services saw 66,000, while educational services had 64,000, manufacturing 53,000, transportation and warehousing 48,000, other services 42,000, health care and social assistance 36,000, durable goods 30,000, wholesale trade 24,000, nondurable goods 23,000, retail trade 23,000, mining and logging 20,000, financial activities 16,000 and utilities 0.

Out of the 110,000 construction employment, 37,000 were in residential construction alone. In fact, 518,000 residential construction jobs have been created in the past 11 months. Residential employment was reported at 3 million in March 2021. Builders included 873,000 and 2.2 million were in residential specialty trade contractors. Over the last 12 months, home builders and remodelers added 87,900 jobs on a net basis. Since the low point following the Great Recession, residential construction has gained 1,047,900 positions.

Click Here For the Source of the Information.