Real Estate and GDP

Real estate is big!  I often refer to the national real estate market as huge, but very nimble.  It’s a behemoth in the national economy, but it can move very quickly as we’ve seen a few times over the past four years.  But just how big is real estate on a national scale?  Historically, it’s about 17% of the gross domestic product.  That means about 17 cents of every dollar of producing activity in the US is spent on real estate. It’s often broken into two components.  The first includes home building, remodeling, multifamily development, and broker’s fees.  That’s often around 5% of GDP.  The second is what is spent on rent, property taxes, repairs, and a host of other items.  That’s usually around 12%.  So the various aspects of real estate are a big part of the US economy.  For those of you still watching, thank you.  I’ve been a real estate agent for almost 25 years, but I majored in economics in college.   

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