Housing Industry Essay

6297 words - 25 pages

Table of ContentsThe current housing industry is not doing as well as it has in the past. Builders are not building as many homes, real estate companies are laying off employees, mortgage companies are closing and the average value of homes is falling in (in some areas). The housing industry is still around and always will be around the major downside to the current market conditions is the overall numbers of homes being sold. The number of homes being sold affects several other aspects including mortgage bankers, realtors, appraisers, homebuilders, inspectors and the manufacturers of the goods that are used to manufacture homes. The government has implemented several rules and regulations to rebuild the housing industry. With the market in its current state, many American's are taking advantage of the situation by purchasing foreclosed homes to gain equity at an accelerated rate.The Housing Industry, crisis or opportunity? This argument has had analysts evaluating the economic impact of the 2006 housing slump and continues to draw fear and speculation as to the future of the market. Is there an end in sight? Will the catastrophe ever subside? To answer these questions effectively buyers and sellers alike must evaluate the current market conditions of the housing industry. By analyzing the marketing structure, the impact of new companies entering the market, prices, technology, productivity, the cost structure, the price elasticity of demand competitors, supply and demand analysis and the impact of government regulations of the housing market these conditions will be revealed and will allow involved parties to gauge the future success of the industry.Market trends within the United States (U.S.) housing industry will always fluctuate at the determination and constant variation of the economy. The state of the economy at any given time, affects the value of the housing market by the rising, declining and leveling of market value. These market trends affect the housing industry and its consumers through variations in market structure, entry of new firms, prices, technology, productivity, cost structure, price elasticity of demand, competition, supply and demand, and proposed government regulations. How each of these factors are affected by market trends is discussed in further detail and provides insight to consumer's and industry officials of the current market state.History of the Housing IndustryThe United States has gone through its up's and down's since the beginning, but the pursuit of happiness in accomplishing the American dream has not disappeared. Since the beginning the goal has been to start over, find work, raise a family, and own a piece of America.An ad printed by the Buffalo New York Commercial Advertiser Printing House (1872) states the following:•MILLIONS OF ACRES- Products will pay for land and improvements!•View on the Big Blue, between Camden and Crete, representing Valley and Rolling Prairie Land in Nebraska. Iowa...

Find Another Essay On Housing Industry

How To Fix the Housing Industry

1366 words - 5 pages payment, they would have no problem paying for the mortgage on their home. This goes for every other unneeded thing that Americans believe they want, but they don’t really need. The whole problem with the housing industry is that families are thinking they “need” that huge six bedroom four bathroom home. When in actuality they don’t, they need a home that fits their “needs” instead of their “wants.” When home buyers go into buying a place they

A Perfectly Competitive Market and the Housing Industry

1419 words - 6 pages What is a perfectly competitive market? A perfectly competitive market is defined as something that occurs in an industry when that industry is made up of many small firms producing homogeneous products, when there are no impediment to the entry or exit of firms, and when full information is available (Baumol and Blinder, 200). In other words, when competition is at its greatest possible level, it describes a market structure in a perfect

“Affordable Housing in Queensland is a Myth” A Report on Housing Problems and Issues in Queensland

1495 words - 6 pages has eroded the capability for homeownership (Housing Industry Association and Commonwealth Research, 2003). As a result, affordable private rental housing and social housing have experienced higher demand pressure. Without additional residential supply, demand will pull the price up and, therefore, reduce the amount of low priced accommodation and lead to an increase on social disadvantage.Private and public rentalsAt the same time, the

The Evolution of Federal Housing Policy

2036 words - 8 pages quantity of housing did not improve. The management was left to localities, whom could choose to partake in this program or avoid it. The Housing Act also mandated that the maximum income for public housing be kept very low; the private housing industry feared that providing an excess of public housing would lead to competition. (Boston Fair Housing, n.d.) This combination of factors in the 1930s was an influence on the future of public housing, of


2325 words - 9 pages . The housing industry is the second largest employment generator in the country. The Housing finance sector has assumed significant importance in the country.BACKGROUND OF HDFCLaunched in October 22 1977 with a share capital of Rs. 10 crores, HDFC has since emerged as the largest residential mortgage finance institution in the country. It today covers the entire country with more than 120 offices, cumulative approvals and disbursements of over Rs

The Public Housing Program

3043 words - 13 pages providing jobs in the building industry. Public housing was never actually thought of as being a long-term or permanent home for the poor. The actual purpose of the act was “...to alleviate present and recurring unemployment and to remedy the unsafe and insanitary housing conditions and the acute shortage of decent, safe and sanitary dwellings for families of low income...” A modification was actually made to the original legislation in order to be

Evaluating UK Housing Policy Journal by other researcher

8396 words - 34 pages facilities. It is argued that this can generate major delays in planning permission being granted which, in turn, makes housing supply less responsive to price signals, so driving house prices upwards and causing them to be volatile. 3.1.2 House-building industry. Another potential factor influencing the supply of the UK housing has been the consolidation of the house-building industry. Blake et al. (2004) argue that the sector demonstrates

The Housing Market as an Economic Indicator

2259 words - 9 pages considered a huge market mover. However, the Census Bureau reports that the housing industry represents over 25% of investment dollars and a 5% value of the overall economy.New housing construction data is collected by the Census Bureau in two surveys:The Building Permits Survey (BPS) produces estimates of the number of permits issued for new housing units each month. This is done through a mail survey of a sample of permit offices. Permit offices not in

Levittown Experiment

1316 words - 5 pages government to provide them with affordable houses (Jackson. 1985). However, the strong private construction lobby was pressuring Congress to get out of the housing business, but the past record of private housing industry was patchy and they were not expected to live up to demand of providing millions of houses on affordable prices in a quick time (Baxandall and Ewen, 2000; Clapson. 2003). Abraham Levitt, a prominent builder, understood the importance

Solving the Foreclosure Crisis

1277 words - 5 pages The foreclosure crisis is like a sore, festering, but treatable with the right financial remedy. Over the past couple of years, little has been done to prevent an economic downturn in the housing industry. With hard work, excellent financial planning, and most importantly, patience, the government and the housing industry will be able to overturn the rising foreclosure rates. The economic impact of the housing market has varied over the

Can Mass Production Housing satisfy people's diverse living needs?

1636 words - 7 pages 1. Brief History of American Mass Suburbia 1.1. Using Levittown as an Example The period of postwar America witnessed a extensive building boom. As one of the paradigm of American suburbanization after World War II, Levittown displays mass-produced, standardized and also affordable houses that were exploited by the firm of Levitt and Sons, Inc, at the start. Although this new production techniques met massive housing demand effectively

Similar Essays

Housing Industry Essay

2000 words - 8 pages IntroductionSince the beginning of time man has had a roof over his head to endure bad weather and to stay away from other creatures that live on this planet. Everyone needs a place to call home, and one thing we can not live without is a roof over our heads. This is where the housing industry comes into play. The housing industry is a monopoly and has been affected by economic periods of inflation, recession, and government regulation.Shifts

Housing Industry Essay

2828 words - 11 pages The housing industry has a significant effect on the economy and affects every person's life who is a homeowner or renter. The housing industry plays an important role on economic relations, individually, across the United States, the international market and economic globalization in terms of trade in building materials, like lumber, cement, and steel. Historically the government has tried assisting people with homeowners by supporting

Helping The Housing Industry Essay

2219 words - 9 pages Helping the Housing Industry In the current state of the economy, one thing is sure to either help it bounce back or keep it in the basement, and that is the housing industry. It is very hard to drive anywhere and not see a “for sale” sign or two sitting in front yards. People have lost jobs or been cut back, and therefore driven out of their homes they once loved for something cheaper that they can afford. Not only did this hurt each

Economic Indicator Forecasts: Housing Industry Essay

1582 words - 6 pages 1,855,000. Although the USA Today article did not specify an amount for 2005, there estimate for 2006 came in a bit lower than that of the NAHB, with an estimate of 1.6 million. The data presented by the NAHB would appear to be more accurate. We believe this because their information appears to be more focused, and specific within the housing industry. Additionally, the trends in previous years support the drop they predict more accurately than what we