AI Data Insight
In Q1 2026, the contribution of US residential investment to GDP dropped to -0.31%, deteriorating significantly from -0.06% in the previous quarter and marking the fourth consecutive quarter of negative contribution. Although corporate hardware and software investments and government spending boosted the overall annualized GDP quarter-over-quarter growth rate to 2.0%, the high-inflation and high-interest-rate environment continues to severely impact new constructions and real estate transactions, making the residential sector the largest drag in the economic expansion process.