Economics

SUPPLY and DEMAND in HOUSING PROJECTSThe laws of come out and admit apply to material solid ground as often propagation as any commodity . However , unique characteristics of in truth estate give it a distinctive flavor as furthest as the economics are concerned . As such(prenominal) , the quest and come out of caparison is determined by factors that expertness non be common to early(a) ordinary commoditiesThe briny determinants of the get hold of for housing are demographic However , other factors worry income , scathe of housing , cost and availability of reliance , consumer preferences , investor preferences wrong of substitutes and price of compliments all play a constituent Meanwhile , the supply of housing is determined by disembark , labor , and various inputs such as electrical zip and building materi als . Also , since real estate is durable , or so 98 of supply consists of the fund of existent stem bases , while about(predicate) 2 consists of the f broken in of rising development The shopworn of housing supply in any period is determined by the existing stock in the previous period , the ordinate of deterioration of the existing stock , the rate of renovation of the existing stock , and the flow of young development in the modern period . The effect of real estate market adjustments be to be mitigated by the relatively large stock of existing buildings ( Real estate , n .dComparing the prices for a 3-bedroom , 2-bath house listed at realtor .com , the effects of these supply and demand factors can be clearly lift upn . In San Francisco , calcium , the range of prices for these kinds of homes range from more or less 625 ,000 to 689 ,000 , make it one of the most expensive cities to live in . hither , housing demand is game , with buyers demanding high flav or homes , with small(a) regard to the pric! e . Supply here doesn t change--it is superfluous demand that pulls prices up .

Meanwhile , a house with the same(p)(p) specifications in capital of Kansas Kansas costs around 73 ,500 to 129 ,900 , oer six times cheaper . With low housing demand in this ambit , thither is a tendency to stand low prices In Dallas , Texas , the same can be said , with houses cost from 79 ,900 to 149 ,000 , sort of low for a house in the urban snapper . Being a much larger city , Dallas should have its share of big housing demand only , this has not driven prices up . A shift in the supply curve to the right creates excess s upply , which drives prices complicate since more sellers are willing to part with their property for lesser price . In Concord , Massachusetts , a midget historic town , houses range from 435 ,000 to 759 ,000 . Here there is very special supply , which constricts the amount of homes that are bought by buyers in the knowledge base Limited supply translates to higher prices for each several(prenominal) house and we see that buyers in Concord pay high prices for houses there . In Seattle , Washington , the prices range from 349 ,000 to 419 ,500 , also on the expensive locating . However note that the houses in the area are of the four-bed tether baths typeChanges in...If you want to get a intact essay, order it on our website: OrderCustomPaper.com

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