Given the stock of excess housing built up during the boom, and how leveraged home-owners became during that period, it is no surprise that Housing remains an under-performing sector today.
Exactly how much that is impacting the economy can be seen in a recent study:
“Residential investment, which includes new-home construction as well as renovations and broker commissions, accounted for 19% of GDP growth on average in the first two quarters of postwar recoveries, according to Harvard’s Joint Center for Housing Studies. In turn, GDP growth during those periods averaged nearly 7% at an annualized pace.”
Hence, the current recovery is likely to remain sub-par for the foreseeable future . . .
Recipe for Recovery Lacks Housing’s Spice
WSJ, APRIL 18, 2011
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.