According to a recent article by National Association of Home Builders (NAHB) Chief Economist Robert Dietz, housing share of the GDP rose to a 13-year high in the second quarter.
“Thus far, housing has experienced the strongest rebound among the individual sectors of the economy. These gains are exceptional, as the rest of the economy shows signs of a stall in the recovery that emerged in May,” Dietz wrote. “As a result of the gains for housing demand and a slowing in the rate of improvement for the overall economy, the housing share of GDP rose to a 13-year high in the second quarter of 16.2%. As estimated by NAHB, that share has increased due to GDP declines outside of housing and relatively smaller impacts for residential construction operations. ”
The high demand of housing has led to the spike of lumber prices which have have been a result of insufficient domestic production and tariffs on Canadian sources. Since mid-April, prices rose 80%, registering an average price of $627 per thousand board feet.
Although the overall economic recovery seems to be what Dietz called “sluggish,” the housing industry continues to show resilience and strength amid the turmoil caused by the pandemic.