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More Evidence of Strength in Housing as GDP Tumbles

Posted To: MND NewsWire

The National Home Builders Association (NHBA) has been saying since the COVID-19 virus first began to ravage the economy, that it might be housing that would drive the eventual recovery. Now they have some real evidence. The record setting 32.9 percent second quarter decline in the gross domestic product (GDP) revealed on Thursday had at least one bright spot. NAHB’s chief economist Robert Dietz says the share of residential related economic activity reached its highest mark since the third quarter of 2007, increasing to 16.2 percent during the otherwise dismal quarter. Part of the reason for the growing share, of course, was the weakness of other sectors, and the residential fixed investment share held at 3.3 percent of GDP. Housing contributes to GDP in two basic ways. The first, residential…(read more)

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