Real estate holds a fundamental place in the real economy in America. Nearly all the different aspects of the interdependent economic world are affected by real estate whether directly or indirectly. In recent times, this fact was made painfully evident during the Housing Market Crisis of 2008. As the housing market crashed, large swaths of the economy collapsed or were severely depressed, including the biggest finance and investment institutions in the country. It is clear, therefore, that housing, housing construction, home ownership, and commercial real estate all play a huge role in how our national economy runs. As simple a notion as housing is, it is hard to exaggerate its importance. Residential real estate provides housing for people and families. Housing is a vital part of human life. Proper housing makes the rest of the economy possible as it shelters economic actors who in turn provides the goods and services that make up the market. Even more, a good living situation and all of the dynamics of domestic life are powerful motivations for the work …show more content…
economy and drives it forward. The National Association of Home Builders (NAHB) estimates that between 1980 and 2015 real estate and related industries contributed on average 15-18% to GDP with Residential investment accounting for 3-5 percent of GDP and consumption spending on different housing-related services accounting for another 12-13% of GDP. In 2015, Residential and Commercial construction combined for a total of $990 billion of the total economic output for the country; that's 6% of total GDP. That's almost back to its decades high 1.195 trillion in 2006; then, it was near a tenth of GDP. as such, Real estate construction contributes to the country’s jobs market in a major way. Consequently, post 2008, a decline in housing construction furnished, in large part, the high unemployment rate observed during the Great