The housing and construction sector of each and every country is closely linked with its economy and the overall social health of that country. Apart from being a key growth driver of the economy, housing is the basic need of mankind. The improvement in the social capital of a nation is another major contribution of housing development other than GDP. Thus housing has been termed as the “Engine of Growth for the Economy”. Housing has a direct impact on employment and income generation. It has various backward and forward linkages and is linked to a host of industries and vocations. Investment in the housing sector, across the entire spectrum from luxury housing to low income housing, contributes to economic growth. This has been demonstrated across the world in developed as well as developing economies. This paper attempts to prove that there is an association between housing and improved economic health.