- The Big Picture - http://www.ritholtz.com/blog -
Weak Housing = Anemic Recovery
Posted By Barry Ritholtz On April 18, 2011 @ 9:15 am In Economy,Real Estate | Comments Disabled
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
Article printed from The Big Picture: http://www.ritholtz.com/blog
URL to article: http://www.ritholtz.com/blog/2011/04/weak-housing-anemic-recovery/
URLs in this post:
 Image: http://www.ritholtz.com/blog/wp-content/uploads/2011/04/20110417175108.jpg
 Recipe for Recovery Lacks Housing’s Spice: http://online.wsj.com/article/SB10001424052748703648304576265302479318880.html
Copyright © 2008 The Big Picture. All rights reserved.