1960 real GDP (and 1970 real GDP, and 1980 real GDP, etc) calculated at recent prices is dominated by the things which are expensive today—like real estate, for instance. Things which are cheap today are ignored in hindsight, even if they were a very big deal at the time.
I think this part could be misleading. Gross Domestic Product only includes goods that are produced in one year. Thus, if you live in a big city where it is almost impossible to build new buildings, the variation of real estate prices in this area doesn’t affect the GDP. Therefore, the fact that real estate is expensive today, which is mainly true in city center, has nothing to do with GDP, GDP growth, or the weight of the construction sector in the GDP.
I think this part could be misleading. Gross Domestic Product only includes goods that are produced in one year. Thus, if you live in a big city where it is almost impossible to build new buildings, the variation of real estate prices in this area doesn’t affect the GDP. Therefore, the fact that real estate is expensive today, which is mainly true in city center, has nothing to do with GDP, GDP growth, or the weight of the construction sector in the GDP.
Good clarification.