According to a study funded by the National Association of REALTORS® the for-sale housing industry is a key component of the gross domestic product (GDP), and an important driver for the overall economy. Since 1959, total housing-related spending, including both owners and renters, accounted for an annual average of 18.9 percent of GDP, and an average of 17.8 percent of GDP since 1985. However, following multiple years of contraction in the national homeownership rate and a sharp reduction in capital availability for new home construction, housing-related spending as a share of GDP decreased significantly, falling to 15.6 percent of GDP as of 2016.
However, there is cause for optimism according to the report’s authors. They say foreclosure rates will continue to fall and economic factors work in favor of increasing home ownership rates in the near term. Income and employment are on the rise, potential increases in federal government spending on infrastructure and defense, and possible reductions in tax rates and regulation should stimulate the economy, the report states. Follow this link to read more: http://tinyurl.com/lkvjsox .