I need help with the following:
Prepare a 500-word paper based on the home building industry which is clearly impacted by the macro economy . Include in your paper an industry overview. Also address the impact of real GDP, the unemployment rate, and the inflation rate as measured by the consumer price index (CPI). Also include three additional economic indicators from the following list:
a. Interest rate (for example: mortgage rate, prime interest rate, fed funds rate, discount rate, three month treasury bill, 10 year treasury bond)
d. Housing starts
k. Money supply (measured by M1, M2, or M3)
A 100-unit home building project creates 550 jobs for a period of next ten years. The average prices new and existing homes more than doubled between 1980 and 2000. 18 million new homes will be required to meet the demand over the next ten years. At an average, the housing industry accounts for 15% of the gross domestic product. According to 2005 US Census figures there were 1,930,300 housing units that were completed and an average of 2,064,700 housing units were started. However, it is estimated that home building is responsible for almost one-third energy use, 43% of all construction debris generated, use of between 50 to 100 gallons of water per unit a day and deterioration of natural water resources near construction sites.
As the housing industry constitutes 15% of GDP, a decrease in the GDP will lead to a fall in housing construction. Similarly if ...
This solution talks about home building industry.. It also explores how the industry is impacted by the macro economy.