The nation’s real gross domestic product grew at an annual rate of 2.8 percent in the third quarter of the year. But with falling sales and tapering price growth, agents could be forgiven for feeling left out.
This report was originally published on Nov. 4, 2024, exclusively for subscribers of Intel, the data and research arm of Inman. Subscribe to Inman Intel for a deeper analysis of the business of real estate.
New data released earlier this month confirms that growth remains fast-paced in most sectors of the economy, even as housing continues to be left in the dust.
The U.S. Bureau of Economic Analysis reports that the nation’s real gross domestic product — an inflation-adjusted measure of total economic output — grew at an annual rate of 2.8 percent in the third quarter of the year.
Real estate agents watching this hot run could be forgiven for feeling left out.
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The brokerage industry has been plagued by plunging sales and tapering price growth that has left broker’s fees stagnant even during a period when most other sectors have enjoyed robust gains.
And new housing construction — on a track to recovery as recently as the opening weeks of this year — has since taken a turn for the worse as well.
These factors contribute to an ongoing housing contraction that is largely unique in size and scope in this otherwise healthy economy.
In this week’s report, Intel breaks down the weak housing numbers within an otherwise strong GDP release.
Left behind
Within the GDP numbers, the government tracks the performance of each sector.
And the key number for the housing industry is a category known as private residential fixed investment, which makes up 3 percent to 5 percent of total U.S. economic output.
This housing-centric component of GDP primarily includes:
- Broker’s…