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This is completely wrong. Housing starts - the number of new home units which began construction in a given quarter - have long been a significant economic indi
by djrogers 10y ago
This is completely wrong. Housing starts - the number of new home units which began construction in a given quarter - have long been a significant economic indicator.
More specifically, new residential construction accounts for roughly 15% of the GDP, compared to the 3-3.5% from the automobile industry.
Housing supply is so far from being 'fixed' that it contributes 5x more to the GDP than automobiles.
- rahimnathwani 10y agoYou are correct. I was forgetting the fact that homes in the US are produced in the US, but that, on the whole, cars, and especially car parts, are not. I looked at this data from 2014: http://www.bea.gov/industry/gdpbyind_data.htm http://www.bea.gov/industry/gdpbyind_data.htm It shows the value added rather than gross GDP. So if I import $7000 of parts from Asia, and use them to make a $12000 car, that would show up as a $5000 value add, representing the work that was done in the US. From this data it appears that construction is about just under 4%, and motor vehicles are just under 1%. So, 4x, which is not far off the 5x you stated.