So, we’ve rising GDP. We’ve also rising house prices.
Some therefore say we’ve rising GDP because of the housing bubble.
But I don’t see how house prices influence GDP. For GDP is a measurement of a flow. It’s not a stock like the “wealth” in property. The influence of housing sales on GDP would be the increase in estate agent commissions, the redoing of the bathroom and all that. But even that would be a result of the turnover of houses, not particularly the price at which they are selling.
So where does this idea that GDP growth is being driven by a housing bubble come from?
What have I missed?