From East to West Reeds Are The Best!
Housing’s share of gross domestic product (GDP) was 15.5 percent in the first quarter of 2014, with home building yielding 3 percentage points of that total, according to the National Association of Home Builders.
As an important source of economic growth, housing-related activities contribute to GDP in two basic ways. One, residential fixed investment (RFI), which measures the home building and remodeling contribution to GDP. Secondly, the measure of housing services, which includes gross rents and utility payments. For the fourth quarter, RFI was 3 percent of the economy
For the fourth quarter, housing services was 12.5 percent of the economy. Historically, RFI has averaged roughly 5 percent of GDP while housing services have averaged between 12 percent and 13 percent, for a combined 17 percent to 18 percent of GDP.
Rich & Annie Reed
CalBRE# 01906230 & 01894384