We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Impact of the Housing Market on the US GDP - Term Paper Example

Comments (0)
Summary
Topic: Impact of the Housing Market on the US GDP MICRO AND MACRO ECONOMICS Name : [Pick the date] Instructor name: Introduction: Economics is the social science that deals with money, markets, individuals, investments, economy etc. Economics has two main branches “Micro economics and macro economics” Micro economics deal with individuals and how they earn their livelihood where as macroeconomics deals with aggregate issues or economy as whole…
Download full paper
GRAB THE BEST PAPER
Impact of the Housing Market on the US GDP
Read TextPreview

Extract of sample
Impact of the Housing Market on the US GDP

Download file to see previous pages... There are different types of competition and different types of markets available in economic sense. Why is GDP important? The GDP Gross domestic product is one of the primary indicators to predict a country’s stability and economic health. “Gross domestic product (GDP) tells you about the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living.” Impact of the Housing Market on the US GDP (Facts and Statistics): the housing market of US includes the construction, sale, and resale; of all residential properties all over the country, people might underestimate the US housing market but usually the conditions of the housing market indicates the stability of the entire economy. Homes are fixed Assets. Constructing and selling of the houses are highly related with the economic society. People usually buy houses for the purpose of long term investment. Houses are their tangible assets. People only buy houses when they are confident enough that they will be able to pay entirely for the house. But often people take loans and borrow money from people to purchase a house and when they fail to pay back, this has a very diverse impact on the economy. Besides the basic buying and selling of the houses, whenever a new house is built or purchased many new appliances, furniture, utility services, and many other goods and services are brought. Many people earn their livelihood by constructing, buying and selling of the houses in US. Hence the Housing market has a vast impact on the US economy. “The best way to judge the stability of any country is to look at its GDP, the U.S. economy, as measured by GDP, is everything produced by all the people and all the companies in the U.S. In 2010, it was $14.7 trillion. (The American Bureau facts and statistics 2010)” Housing is a “mid-stream” sector of the economy, meaning that many other industries, both upstream and downstream, is affected by the health of the housing market. For example, the demand for building materials increases in a booming housing market, as does the demand for appliances and furnishings. Even more important in terms of dollars pumped into the economy, is appreciated home values, which have been an important source of stimulus over the past few years. Housing sector contributes to GDP in two main ways: through private residential investment and consumption spending on housing services. In times gone by, residential investment has averaged roughly 5 percent of GDP while housing services have averaged between 12 and 13 percent, for a combined 17 to 18 percent of GDP. These shares tend to vary over the business cycle. The construction of the houses has a small portion of the Gross domestic product i.e. $573 bill-lion. Other investments like furniture and household equipments, comprises another 5 percent of GDP. Altogether, currently the housing sector comprises 15 percent of the economy. (The American Bureau facts and statistics 2011) Constructing a new home building generates income and jobs for the citizens, as well as becomes a source of revenue for the government. Whereas home building also generates liability for the government and increase their costs by ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Sociological Impact of the Ongoing Downturn In Our Economy/Housing Market
While there has been some anemic recovery in the US economy from the 2007-2009 global recession the housing market remains a serious problem. For the most part the economic impact has been well documented analyzed and quantified the sociological implications are less clear.
12 Pages(3000 words)Term Paper
Comparison of market structures of US retail and housing industry
Comparison of market structures of US retail and housing industry Executive summary This study focuses on different market structures and their implications on US retail and housing industry. These industries possess different market structures; retail industry lies in Oligopoly whereas construction industry carries monopolistic competition structure.
16 Pages(4000 words)Term Paper
Impact of NAFTA on the US economy
Since its inception in 1994, the agreement has been appreciated for the benefits U.S. economy reaped through it and criticized for the negative impacts it might have had on U.S. economy. This paper discusses some of the negative and positive impacts of NAFTA on U.S.
4 Pages(1000 words)Term Paper
What Caused the Bubble and Bust in the US Mortgage Market
What Caused the Bubble and Bust in the US Mortgage Market? The objective of this paper is to study the structure and mechanism of the mortgage market and in the light of these characteristics, analyze the factors that led to its ultimate demise. Identification of the problematic areas within this subject will facilitate the process of finding adequate solutions to those problems through policy changes and other measures that will restore the economy back to its original progressive stance.
6 Pages(1500 words)Term Paper
World Finacial Crisis - Impact in the American Economy
World Financial Crisis - Impact in the American Economy. The main cause of the financial crisis of 2007-09 was the housing market of U.S. From the decade of 1990s policy of financial deregulation was taken by the U.S. government. The monetary policy became loose in 2002-2005.
7 Pages(1750 words)Term Paper
How did the hurricane Katarina impact the reservation price on the housing market in New Orleans, before and after the catastrop
This hurricane began as a slight hitch in the weather system but then gained momentum bringing forth an equatorial stifling storm and in the course of time, it became a tempest. Cities like New Orleans, Gulfport, and LA endured the wrath of this force and the damage it brought with it was absolute and severe.
8 Pages(2000 words)Term Paper
US airways's new Market - China
US airways's new Market - China Considering the urge of the western countries to establish a strong foothold on the Asian continent in order to expand their aviation industry, US airways invading China seems to be a plausible option. The US Airways is one of the key players in the aviation industry in the US.
11 Pages(2750 words)Term Paper
Did Credit Rating Agencies do good work (with impact on the Qatari Context)
The fact remains that the CRAs will not be able to satisfy the policy makers in removing the flaws in the rating methods. From the research, the CRAs were not able to improve the corporate governance. The research will try and point out on the role and benefit of credit rating agencies which are private companies with one aim of assess the rate the issue of debt to individual, company and even the government.
12 Pages(3000 words)Term Paper
Housing Market
Consequently, British households will benefit by a slight global warming. Because there are limited European studies conducted in this topic, comparisons are hard to find. Therefore, the results from this study can not be confirmed with certainty, or refused completely.
6 Pages(1500 words)Essay
Housing market in China
One of the industries that have boomed is the property/real estate market wherein the demand and supply of commercial and residential properties have soared. This research study was aimed at trying to establish the idea that the rise in the property market industry was due to the economic growth made possible by China globalizing itself.
20 Pages(5000 words)Case Study
Let us find you another Term Paper on topic Impact of the Housing Market on the US GDP for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us