Home Building Industry

1061 WordsFeb 8, 20095 Pages
Home Building Industry How does the home building industry affected by the economy? This is what we will be exploring in the paper. There are different areas within the industry that can be affected. First we will look at supply and demand. Then continue to the positive and negative externalities, and how wages inequality is measured. Then finally, we will look at the monetary and fiscal policies that affect the housing industry. With the information we will have a better understanding of how the home building industry is affected. When looking at prices within an industry, we need to first look at the supply and demand. For home builders this market has been fluctuating for awhile. The gross domestic product (GDP) is one of the…show more content…
The policies that the government put in to place get passed down to the consumers of the product. In this case the cost of the homes being built. The home building industry has many factors that set the prices. In this report, it show them the supply and demand of new homes in down. So companies are trying to get rid of the inventory they have before building more. The externalities within the industry are ever-changing. The changes all depends on the buyers needs, if it positive or negative. As the demand lower for building new homes so does the demand for labor. Final the government rules and the distribution of permits are a factor. All the factors from the economy affect the housing industry. Furthermore it affects what we paid of houses in our area. References Bernstein, J. (2006, August 4). Slowing housing market contributes to downshift in job growth. Retrieved February 10, 2008, from Economic Polocy Institute: http://www.epi.org Construction Wages Drop But Devolopment Is Still In The Works. (2008, January 25). Retrieved February 10, 2008, from Yahoo! Real Estate Web site: http://www.realestate.yahoo.com Cooper, J. C. (2008, January 14). Recession Fears Still Linger. Business Week, Retrieved January 24, 2008, from Academic Search Premier database Gopal, P. (2007, November 21). As New Home Sales Stall, Deals Abound. Retrieved January 21, 2008, from Business Week Online: Academic Search
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