Housing’s share of gross domestic product declined in the third quarter as home sales and residential construction activity remained subdued.
Residential fixed investment, which broadly covers spending on new construction, was down 3.3% year over year in the third quarter at a 3.6% share of GDP, according to Bureau of Economic Analysis figures. It has been 4.1% or lower since 2023.
“It’s clearly been a steady drag, but nothing like the drop-off after the housing bubble,” said Preston Caldwell, senior U.S. economist for Morningstar, in a note to Scotsman Guide. Caldwell said low residential investment subtracted about 0.1 percentage points from total GDP growth in the third quarter.
Consumer spending and investments in artificial intelligenc...
