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Wednesday, January 31, 2007

Residential Investment as Percent of GDP

by Calculated Risk on 1/31/2007 04:11:00 PM

This graph shows Residential Investment as a percent of GDP.

Click on graph for larger image.

Residential investment (RI) has now fallen to 5.3% of GDP from the peak of 6.3% in the second half of 2005.

If RI falls back to the median level of the last 35 years (4.5% of GDP), then the RI declines are just over half over. If RI falls to the '80s and '90s bust lows (below 3.5% of GDP), then the RI bust has just started.