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Housing in the United States facts for kids

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Housing is a really important part of the United States economy. It makes up about 15% of the country's total economic activity, which we call the Gross Domestic Product (GDP). Think of GDP as a way to measure how much money a country makes from everything it produces and sells. Housing helps the economy in two main ways: through building and buying homes, and through renting homes.

How Housing Helps the Economy

Housing plays a big role in how money moves around the country. It's not just about having a place to live; it's also about jobs, investments, and spending.

Building and Buying Homes

One way housing helps the economy is through building new homes, fixing up old ones, and the fees people pay when they buy a house. This is like an investment in the country's future. For example, in the year 2000, this part of housing added about $425 billion to the GDP. That's a huge amount of money that goes into things like construction jobs, materials, and services.

Renting Homes

Another way housing helps the economy is through renting. When people rent apartments or houses, the money they pay for rent also adds to the GDP. This is considered part of what people spend their money on. In 2000, renting homes added about $959 billion to the GDP. This shows how much money people spend on having a place to live, which supports landlords, property managers, and many other businesses.

Finding Homes You Can Afford

Sometimes, it can be hard for people to find homes they can afford to buy. This is called affordable housing. In 2019, homes in the United States were less affordable than they had been in the previous ten years. This happened because home prices were going up much faster than what people were earning from their jobs.

However, some places are still more affordable. For example, cities with large universities can sometimes have more affordable housing options. USA Today pointed out that places like Madison in Wisconsin, which has the big University of Wisconsin-Madison, were good choices for students after they finished college because housing there was more affordable.

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