South Bay Digs • May 24, 2013

Since we tend to always focus on what the local real estate numbers are telling us about local market conditions, I thought I would share some “big picture” economic numbers that you may find interesting. Housing contributes to Gross Domestic Product (GDP) in two ways: private residential investment and consumption spending on housing services. Historically, residential investment has averaged roughly 5% of GDP while housing services have averaged between 12%-13%, for a combined 17%-18% of GDP!