By: Arcadia Chase
It's long been known that the housing market has a profound impact on the economy. Every quarter, the housing industry contributes in some way to further push economic growth. This past quarter, housing accounted for nearly 16 percent of economic growth, as shown through measures of Gross Domestic Product (GDP).
GDP is generally used as a measurement of the health of the economy. Using multiple indicators, one being the housing market, GDP accurately gauges the overall dollar value of goods and services produced over a set time period. In many ways, GDP can be viewed as the economy itself; when it grows, it represents the economy growing.
According to Forbes.com, GDP rose at a 2.8 percent annual rate in the third quarter, a significant improvement from the .1 percent growth rate observed in the last quarter of 2012. This 2.8 percent increase is the fastest growth rate in a year and is better than what economists originally predicted.
Housing contributes to GDP through residential fixed investment, or RFI, and housing services. RFI refers to new home construction and all that is involved with it: the labor, the materials, and the time. Housing services refers to monthly rent, or what a homeowner would charge as monthly rent, including utilities. This past quarter, RFI was accountable for 3.2 percent of GDP, and housing services for 12.4 percent. The rate of RFI improvements over the past two years have increased by $119 billion, adding up to a $728 billion GDP growth. With these numbers, it’s clear that the housing market has an incredible influence on the economy!
Arcadia is proud to be apart of an industry that adds so much to the health of the national economy. Through building our communities in West Virginia and Virginia, we help to boost local markets while providing the best homes for new residents. As the nation’s economy continues its recovery, we can expect more people to start moving into homes they love in our beautiful Arcadia communities!
Arcadia homes are known for their high quality construction and expert designs. Standard features in Arcadia Chase include high ceilings, granite countertops, modern appliances, new carpeting, and energy efficient heating and cooling systems. And, with a selection of home styles and neighborhoods, there is the perfect Arcadia home to suit the needs of every homeowner. Best of all, homeowners can rest assured knowing they live in a neighborhood that adds so much to the local and national economies!
Source: Forbes, The National Association of Home Builders
