Housing and Gross Domestic Product

Danielle Bacci - Nov 09, 2022

I have charted the New Housing Price index (going back to 1981 when the index started) verses Gross Domestic Product.  As shown below, the housing prices do broadly follow movements in gross domestic product.  A safe strategy when considering home renovations or improvements is to keep those increases to what the increase of gross domestic product is and not above as it is not clear that those improvements will add value to the home.

 

Sources: GDP

https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610010401&pickMembers%5B0%5D=2.1&pickMembers%5B1%5D=3.1&cubeTimeFrame.startMonth=01&cubeTimeFrame.startYear=1981&cubeTimeFrame.endMonth=01&cubeTimeFrame.endYear=2022&referencePeriods=19810101%2C20220101

Sources: Housing Index

https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1810020501&pickMembers%5B0%5D=1.1&cubeTimeFrame.startMonth=01&cubeTimeFrame.startYear=1981&cubeTimeFrame.endMonth=07&cubeTimeFrame.endYear=2022&referencePeriods=19810101%2C20220701