Housing Economics - 04/16/2008 (Plain Text Version)
In this issue:
Housing’s Contribution to State Economies at the Peak of the Boom
In 2005 the share of housing in the nation’s total production of goods and services reached a record 16.6 percent. Since then it has fallen and in 2007 stood at 15.2 percent of the US Gross Domestic Product (GDP). 2005 is also the most recent year for which detailed information about individual state economies is available.
New NAHB estimates show that, in the midst of the 2005 housing boom, many state economies were even more reliant on housing as an engine of economic growth and the source of state income. For example, housing accounted for almost 30 percent of Nevada’s Gross State Product (GSP, the state equivalent of the national Gross Domestic Product) in 2005. During the same year, Hawaii, Florida, Arizona, California and Maryland each derived more than 20 percent of their respective GSPs from housing. Only in Louisiana (which lost a large portion of its housing stock to Hurricane Katrina, and consequently had an unusually low share of housing services created by the remaining occupied properties) did housing account for less than 10 percent of GSP from housing.
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