The U.S. Bureau of Economic Analysis released underlying details for the Q1 advance GDP report. And, for the third year running it looks like the leading contributor to GDP among residential components, which includes new single family structures, multifamily structures, home improvement, brokers’ commissions and other ownership transfer costs, is investment in single family structures, according to CalculatedRisk's Bill McBride.
But there's still room for growth.
However - even though investment in single family structures has increased from the bottom - single family investment is still very low, and still below the bottom for previous recessions as a percent of GDP. I expect further increases over the next few years.
At least, single-family housing is heading upward, unlike the energy sector, according to McBride.
Investment in petroleum and natural gas exploration declined from a $64.6 billion annual rate in Q4 to a $38.7 billion annual rate in Q1. 'Mining exploration, shafts, and wells' investment is down 68% year-over-year.