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This is an overview of the American Housing industry from an Economic view point focusing on past a...

Term Paper Number
898599411
Term Paper Description
This is an overview of the American Housing industry from an Economic view point focusing on past and present economic indicators and information from the Consumer Price Index (CPI) and Producer Price Index (PPI) (prior to '08 market collaps)
Publish Year
2008
Academy
Univeristy of Phoenix
Course
ECO 372
Number Of Pages
9
Number Of Words
1800
Number Of Sources
11
Price
30 $ (USD)
Keywords
American Housing Industry, PPI, CPI, GDP
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Paper Abstract

An Overview of America’s Housing Industry

The United States housing industry has experienced many changes over the years, many of which have been positive, driving the growth behind current housing market. Despite some past and present negative economic indicators, such as periods of high unemployment and poor interest rates, both data from the Consumer Price Index (CPI) and Producer Price Index (PPI) have proven that there has been strong economic growth within the housing industry, contributing to the over all Gross Domestic Product (GDP). The continued steady growth of our nations housing industry has producers increasing housing starts and consumers purchasing and refinancing despite fluctuating interest rates. 

A Brief History

            Between the years 2000 and 2005 a great deal of the statistics for the housing industry did not indicate large fluctuations. Statistics that did show large a influx were the number of families and the number of households, of which each grew by about a million families each year. The more prominent fluctuation that occurred in the housing industry is the value of new homes for producers and consumers. In 2000, the value of new homes averaged about 83 billion dollars; by 2005, the value of new homes was averaging approximate 1 trillion dollars. A great deal of that is connected to the average number of new home sales rising by 500,000 in that time. Statistics that did not change were the percent of one person households and the average number of people living in a home. Approximately 26% of the houses during this time were one person households and the average number of people living under one roof stayed very constant at approximately 2.5 (U.S. Census Bureau, 2007).



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