According to an article by NAHB’s Robert Dietz, housing’s share of GDP reached 16.9%, thanks to an uptick in residential investments in 2020. This mark is elevated in comparison to recent years and is “somewhat off” a 14-year high.
“Last year’s market conditions involved a renewed focus on the importance of home, an evolving geography of housing demand, and a lack of for-sale inventory,” Dietz wrote. “Housing will continue to expand in 2021, although as the rest of the economy recovers, the housing share of the economy will taper.”
Diving deeper, more cyclical home building and remodeling remained at unchanged at 4.7% of GDP.
“Home construction will continue to expand as the consequences of the virus crisis are likely to lead to a reversal for declining home size trends, a greater need for additional home office space, and more working from home,” Dietz wrote. “Moreover, the U.S. continues to experience a deficit of single-family housing.”