A nation’s gross domestic product (GDP) measures the economic performance of the country and is defined as “the monetary value of all the finished goods and services produced within a country’s borders in a specific time period.” In short, GDP measures how well a country, state or region’s economy is performing.
According to the NAHB, housing contributes to GDP through residential investment (e.g., home building and remodeling) and housing services (e.g., rent including utilities, the estimated cost of an owner renting their residence and utility payments). It also indirectly impacts consumer spending – when homeowners have more expendable income or increased access to credit, they may buy more goods and use more services, which benefits the overall economy.
By Buffini and Company.
Leave a Reply