Economics

SUPPLY and DEMAND in HOUSING PROJECTSThe laws of supply and exact apply to real solid ground as much as any commodity . However , unique characteristics of real estate give it a distinctive flavor as furthest as the economics are concerned . As such(prenominal) , the demand and supply of caparison is determined by factors that skill not be common to early(a) ordinary commoditiesThe briny determinants of the demand for housing are demographic However , other factors like income , price of housing , cost and availability of reliance , consumer preferences , investor preferences price of substitutes and price of compliments all play a role Meanwhile , the supply of housing is determined by land , labor , and various inputs such as electrical energy and building materials . Also , since real estate is durable , or so 98 of supply consists of the fund of existent home bases , while about(predicate) 2 consists of the f broken in of new development The stock 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 new 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 seen . In San Francisco , California , the range of prices for these kinds of homes range from more or less 625 ,000 to 689 ,000 , making it one of the most expensive cities to live in . Here , housing demand is game , with buyers demanding high flavor homes , with little regard to the price . Supply here doesn t change--it is superfluous demand that pulls prices up .

Meanwhile , a house with the same(p) specifications in Topeka Kansas costs around 73 ,500 to 129 ,900 , oer six times cheaper . With low housing demand in this ambit , there is a tendency to have low prices In Dallas , Texas , the same can be said , with houses cost from 79 ,900 to 149 ,000 , quite low for a house in the urban center . 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 supply , which drives prices complicate since more sellers are willing to part with their property for lesser price . In Concord , Massachusetts , a midget historical town , houses range from 435 ,000 to 759 ,000 . Here there is very limited supply , which constricts the amount of homes that are bought by buyers in the area 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 side . However note that the houses in the area are of the four-bed three baths typeChanges in...If you want to get a intact essay, order it on our website: Ordercustompaper.com

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