Spending on housing declined to 15.6% of GDP, according to a study expected to be released Monday by the Rosen Consulting Group, a real-estate consultant.

How this comparatively factors into the overall picture is compared with a 60-year average of just under 19%. In addition, the share of spending linked to new-home construction and remodeling has fallen to 3.6% of GDP, which is approximately half what it was in 2005.

Some of the factors contributing to this strained recovery are the credit standards that the industry is now subject to, as well as a highly regulated environment, which is ham-stringing both middle-class families and the overall economic growth. Additionally, construction is slow to meet the needs for new housing. In some markets, some builders have built only 10% of what they had back in 2006.

Homeownership Rates According to U.S. Census

2016: 63.5
2015: 63.7%
2014: 64.8%
2013: 65.0%
2012: 65.4%
2011: 66.4%
2010: 67.1%
2009: 67.3%
2008: 67.8%
2007: 68.4%
2006: 68.5%
2005: 69.1%

Economic Disruption

  • Mortgage lending standards
  • Households putting off marriage and children
  • Inventory shortages
  • Increasing mortgage rates
  • Labor shortages
  • Regulatory barriers
  • Rising home prices