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Economic Profile of the Home Building Industry

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Provide an economic profile of the home building industry. Include an industry profile, industry size information, and current development and trends within this industry. How does the economy effect the home building industry? What are economic influences that affect the industry in a negative way? Bullet points only, Not more than 500 words.

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This posting provides an economic profile of the home building industry.. In addition, this posting discusses the manner in which the economy affects the home industry. .

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STEP 1
Provide an economic profile of the home building industry. Include an industry profile, industry size information, and current development and trends within this industry. How does the economy affect the home building industry?

1. During the last decade there were 17 million new conventional homes added.
2. Single family starts were more than 1.7 million in 2005 alone.
3. The stability of the economy and the low mortgage interest rates have added to the boom in the home building industry.
4. Larger builders have initiated a number of mergers and acquisitions and their share of the market has increased considerably.
5. Stability in economic growth and low interest rates (mortgage) have contributed to a strong environment for home building industry.
6. There are more complex regulations for home industry leading to sustained interaction with local officials. This has favored large builders.
7. Most of the current financing for home building comes from investment banks and private equity funds.
8. Larger investments mean that the larger builders prosper more an continue to improve performance ...

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