Economic of urban housing
Urban and Housing in Economics:
General objectives:
a) understanding of how economic values of housing and real estate change over time.
b) appreciation and understanding of the economic concepts and terms used in housing and real estate.
-Short introduction about the importance and sensitivity of demand and supply of making a decision of buying a housing.
Part one:
-Principles of economics: ex. Have what change what & here is what is happens?
-Government role-Historical information.
Part two:
-The changing in economy: The principle of change holds that as time and market conditions change, so does sup- ply and demand for real estate, and thus, the value of real estate. All elements around us are constantly in a state of change, and a valuation represents a photograph at a cer- tain point in time within its constantly changing environment. ex. People drive up, the market moving up. ex. When demand is high pushes the price up. ex. 80,000 people per day retirement in Florida. ex. Penselivinua has cheap houses because there is no work.
Supply: schedule showing various quantity at various prices, I want to sell a house instead of buying;
1) Price—quantity supply
2) Cost of production— or remodeling
3) Tech— separated part but related
How the impact in real estate market “assumptions” What if.. if the technology improve
1. Production costs, how much a good costs to be produced
2. The technology used in production, and/or technological advances
3. Firms’ expectations about future prices
4. Number of suppliers
We know that at a given level of supply, if demand increases, then the price increases. Conversely, given that same level of supply, if demand decreases, then price decreases. On other hand, At a certain level of demand, if the supply increases, then the price decreases. Given the same level of demand, if the supply decreases, then the price increases.
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