Chart Detail

Home prices and their impact on residential investment and housing wealth, 1995–2011

Note: The housing wealth effect is obtained by multiplying the change in housing wealth from its 1997 average by $.06 (the low-end estimate of annual consumer spending generated by each dollar in housing wealth) and expressing the resulting product as a share of overall GDP. Data are quarterly.

Source: Authors' analysis of Shiller (2005 and 2012), Bureau of Economic Analysis National Income and Product Accounts (Table 1.1.5), and Federal Reserve Board (2012)

Updated August 8, 2012

Documentation and methodology

Underlying data are from Shiller (2005 and 2012), Bureau of Economic Analysis National Income and Product Accounts,Table 1.1.5, “Gross Domestic Product,” and Federal Reserve Board (2012), Flow of Funds Accounts of the United States. Home prices are indexed such that 1997=100, and residential investment and the wealth effect on consumption are relative to 1997 average as a share of GDP.

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