How is the estimated rental value of owner-occupied houses included in GDP?

Question

Quizplus · Accepted Answer

The estimated rental value of owner-occupied houses is included in GDP as consumption for both new and old houses. This approach is used to account for the housing services consumed by the homeowners as if they were renting the property to themselves, ensuring that GDP reflects the value of all housing services, regardless of whether the home is rented or owner-occupied.

How Is the Estimated Rental Value of Owner-Occupied Houses Included