> let's all take a moment to stare at the horror show that is the 13% that is real estate.
12% in both USA (2023) and Mexico (2015). Other countries that use a similar classification seem to also be in the same range. Japan, for example, also sits at 12% (2022).
Is a single percentage point really that horrific?
This is the most interesting bit of information in this entire comments section:
Japan, which has a completely different view, model, and concept of real estate that does NOT treat it as an investment, ends up with the same portion of GDP locked/used/coming from real estate.
I feel like there's important information in that tidbit, but I am not equipped to grasp it.
Real estate is 3-5% of GDP for construction of new homes. And 12-13% for housing. That includes rent, but also the owner's imputed rent that they would pay. I think sales are counted as capital gains and I think not included in GDP.
I'm not too surprised that countries have similar housing, there is percent of rent that can afforded. I'm surprised that higher home prices aren't reflected, but that may show up as higher overall GDP.
It is when real estate prices are massively inflated. If houses cost 50% more than they're worth, it would mean that 4% of the Canadian economy is completely imaginary and based solely on speculation.
12% in both USA (2023) and Mexico (2015). Other countries that use a similar classification seem to also be in the same range. Japan, for example, also sits at 12% (2022).
Is a single percentage point really that horrific?