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

Economic analysis of the current residential housing market in Houston - Essay Example

Comments (0) Cite this document
Therefore, based on the above analysis, it can be scrutinized that Houston real estate market has been experiencing a higher demand for residential houses. This further had caused a significant rise in housing prices…
Download full paper
Economic analysis of the current residential housing market in Houston
Read TextPreview

Extract of sample
Economic analysis of the current residential housing market in Houston

Download file to see previous pages... Houston realtor’s housing data indicates that demand for houses increased by 29% as January 2013 representing a sales increase of 4680 units as compared to the previous year. Additionally, the housing prices were ranging from $500,000 on January 2012 to million dollars. For instance, the highest price were recorded on January 2012 was $200296 (Bivins, paras7-8). The data further indicates that prices of single family houses increased by 9.6% between 2012 and 2013. This indicates that there was a 22.45% increase in housing prices this year as compared to the last year. Additionally, the sale of condominiums was reported to be 422 residential units as at February this year while on February last year the sales of condominiums was 313 units.
This indicates that there was an increase in demand for condominiums and mansions by 109 units as at February 2013. According to Eaton, Paras 2-4, higher demand for houses caused an increase in demand for mortgages. For example, demand for mortgage loans increased from 11.4% on January 2009 to 18.6% on January 2011.Therefore, study aims to explain three factors that increase or decrease demands for residential housing in Houston as well as those factors that increase or decrease supply of residential housing. In above connection, the study will put forth demand three examples that explain areas where demand or supply based market failure can be anticipated. Additionally, the study will put forth three examples that explain demand or supply based market failures and how the government can address such failures in a free market. Connectively, graphs will utilize to explain the concepts that are going to be discussed. Economic analysis of the current residential housing market in Houston Numerous factors have been attributed to an increases demand for housing in Houston, among those factors includes: change in consumer’s disposable income, change in demographic, availability of substitutes to mention just but a few (Arnold p.65). Changes in consumer’s disposable income may involve increase or a decrease in income. Whereby, an increase income caused an increase in demand for houses in Houston as many consumers could afford to pay for houses despite having a higher price. This in turn caused a movement from point A to point B causing a right ward shift demand curve from D1D1 to D2D2 as indicated in 1.1. Additionally, change in population demographics such; as increase in population, could have contributed to an increase in demand for houses (Gwartney p.61). Whereby, as birth rates increases, demand for houses increase causing a rightward shift in demand curve as indicated in diagram 1.1. In above connection, availability of houses that could have been used as substitute contributed significantly to a high demand of houses in Houston. This means that better houses were readily available and therefore, most people were able to substitute their old houses with a new and better residential house depending on their needs. On the other hand, those factors that decrease demand for housing include: changes in consumers future expectations. Whereby, future anticipations that houses prices might fall in the future they may make consumers postpone their current demand for houses in order to purchases those houses in the future at a lower price (Hall p.60). This in turn leads to a decrease in demand for houses and hence causing a leftward shift in demand curve as indicated in diagram 1.2 at the end of the essay. Additionally, a fall in consumer’ ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Economic analysis of the current residential housing market in Houston Essay”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1473673-economic-analysis-of-the-current-residential
(Economic Analysis of the Current Residential Housing Market in Houston Essay)
“Economic Analysis of the Current Residential Housing Market in Houston Essay”, n.d. https://studentshare.org/macro-microeconomics/1473673-economic-analysis-of-the-current-residential.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Housing Market in U.S
In mean time, speculators find their way in the market believing of making profits through short-term buying and selling. This drives to an increase in demand but at some point, demand decreases or stagnates with a subsequent increase in supply resulting to a sharp drop in prices (Baker, 2008).
6 Pages(1500 words)Essay
Housing Market in Australia
Many authors have conducted researches to determine which sector is dominant in housing sector as well as to identify the primary reasons behind these changes. Some of the most renowned researched covering these aspects have been presented in the subsequent part of this paper.
6 Pages(1500 words)Essay
Economic Analysis of the Fast Food Industry in Houston
This essay focuses on the analysis of the factors, influencing demand and supply in the fast food industry, and outlines the importance of the government regulation in this business. The success of the industry is attributed to financial support by banks, observation of government regulations and response to customers’ tastes and preferences.
5 Pages(1250 words)Essay
Current Market Conditions Competitive Analysis
Being the largest fast food chain restaurant in the world today with 32, 000 restaurants in 119 countries worldwide, McDonald’s set the bar so high and turned the competition so fierce. Hence, as an amateur in the field of food merchandising, it is highly beneficial to come up with a comprehensive, detailed, and clear-cut competitive market analysis of the world’s largest fast food chain.
5 Pages(1250 words)Essay
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 the UK
The housing market in the UK continues to be dramatically supported by that of historically low interest rates, low rates of house building, steady income growth, and of course, positive demographics; as well, "In our modeling, even very large (by recent standards) macroeconomic shocks fail to create a significant downturn in the market." (Cameron et al, 2006).
6 Pages(1500 words)Essay
Current Economic
She describes higher consumer spending as “an encouraging sign that high gasoline prices havent killed peoples appetite to buy.” She goes on to indicate that inflation has moderated, which adds to the sense of a strong economy and is a very positive sign when
2 Pages(500 words)Essay
Study the housing market bubble the US is currently experiencing. What happened because of the bubble and what is the current state of the housing market and ho
ending typically has been characterized as lending at relatively costly interest rates and fees to credit impaired or otherwise high risk borrowers.” (Lax, Manti and Raca). With the advent of innovation into the financial industry, Financial Derivatives provided a very
3 Pages(750 words)Essay
U.S. Real Estate Market - Commercial & Residential Market
Several contributing factors attributed to the crash of the real estate market. Such culprits include subprime mortgage lenders, massive job loss, unwarranted
5 Pages(1250 words)Essay
Current Market Conditions Analysis competitive Analysis
Analyzing how competitive the market can be allows business make important decisions with regards to whether to introduce a new product or not to maximize profit. This paper seeks to analyze the relationship between diminishing marginal productivity and both labour and
1 Pages(250 words)Essay
Let us find you another Essay on topic Economic analysis of the current residential housing market in Houston for FREE!
Contact us:
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