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44 | M R EP O RT O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST DATA Housing Market's Share of GDP Strengthens The first reported growth in six quarters can be attributed to rising single-family permits and starts. T he National Association of Home Builders report- ed that the housing share of the GDP rose for the first time in six quarters, increasing to 14.6% in Q 3 2019. The overall GDP growth slowed to 1.9%. The NAHB analysis said the gains are due to rising single- family permits since April and an increase in single-family starts since May. Data shows that the home building and remodel- ing section increased to 3.11% of the total GDP an added 0.18 basis points to the overall GDP growth rate. Housing-related activities contribute to the GDP in two ways. The first is through residential fixed invest- ment (RFI), which is the measure of home building, multifam- ily development, and remodeling contribu- tions to GDP. the RFI includes construction of new single-family and multifamily structures, residential remodeling, production of manu- factured homes and brokers' fees. The RFI during Q 3 2019 was 3.1% of the economy and reached a $594 billion seasonally adjusted pace. The second impact housing has on GDP is the measure of hous- ing services, which includes gross rents paid by renters, and owners' imputed rent—an estimate of what it would cost to rent owner-occu- pied units—and utility payments. Housing serves 11.5% of the economy, or $2.18 trillion. A report by CNBC said the economy beat expectations during Q 3 2019, coming in above the pro- jected growth of 1.6%, which was projected by the Dow Jones. CNBC added that economy beat expectations based on con- tinued consumer spending and government expenditures, accord- ing to the Commerce Department. Personal consumption expendi- tures rose 2.9% annually while government spending rose by 2%. Growth in private domestic in- vestment declined by 1.5%, which is better than the 6.3% drop during Q2 2019. "For manufacturers, the big- gest challenges remain finding skilled labor and trade uncer- tainties, which make it difficult to hire and expand business operations," said Chad Moutray, Chief Economist at the National Association of Manufacturers. The 2.9% growth in consump- tion in Q 3 2019 is a decline from the prior quarter's 4.6% pace. Which Metro Has the Most $1M Homes? A new survey found that difference in home values between the markets with the highest and lowest median-home price is nearly $1 million. Find out which city came in at number one. L endingTree revealed that million dollar homes are most uncommon throughout most of the nation, as just 5.86% of the owner-occupied homes in the nation's 50 largest metros are valued at $1 million or more. California is home to four of the top 10 metros with the largest share of million-dollar homes, and nearly one-third of homes in these mar- kets is valued at at least $1 million. San Jose, California, has the high- est share of $1 million in the state at 56.46%. San Jose's average home value is $1.09 million. Cincinnati, Ohio, has the smallest share of $1 million homes at just 0.66%. The average home value in San Jose is $917,600 higher than in Cincinnati. San Francisco, San Diego, and Los Angeles are the other California markets with the na- tion's highest share of $1 million homes. Los Angeles has the highest overall number of homes valued at $1 million or more at nearly 2.1 million. LendingTree released a report last month that found that the median-home price in San Francisco is worth 5.4 homes in one of the nation's largest cities. Additionally, a median-prices home in San Francisco costs almost 10 times the area's median- yearly income of $112,376. The study found that for what it costs to buy a home in San Francisco, one could purchase 23.2 homes in Detroit, Michigan. LendingTree states that Detroit has an average home price of $51,600. Seattle is the metro that has the largest share of million-dollar homes outside of California. LendingTree states that companies such as Microsoft and Amazon have contributed to the 11.3% of homes in the area that are valued at $1 million or more. The median- home price for Seattle is $487,400. The markets of New York; Boston, Massachusetts; Washington, D.C.; Miami, Florida; and Denver, Colorado, rounded out the top 10. Following Cincinnati for the lowest share of $1 mil- lion homes was Buffalo, New York; Pittsburgh, Pennsylvania; Cleveland, Ohio; Columbus, Ohio; Memphis, Tennessee; Indianapolis, Indiana; Hartford, Connecticut; Louisville, Kentucky; and Kansas City, Missouri. "For manufacturers, the biggest challenges remain finding skilled labor and trade uncertainties, which make it difficult to hire and expand business operations." —Chad Moutray, Chief Economist at the National Association of Manufacturers.