Centex Homes Is A Dallas-Based Term Paper

490 million pace. The reported 1.518 million March rate was revised by the government down to 1.491 million. Also, building permits dropped 8.9% in April to a pace of 1.429 million units. The situation regarding the U.S. housing market is not quite clear since housing level is high, on the one hand, but housing permits are very weak, on the other hand. House builders' forecasts are not very bright either, as they believe that "much weaker permits suggest home builders are looking to retrench home building and that would lead to cutbacks in house-related jobs" (Morrison, 2007).

Government regulations have a direct and quick influence on the U.S. housing sector and the companies involved in this sector: "when new construction is more constrained, as measured either by lower supply elasticity or the presence of certain regulations, affordable units are more likely to filter up and become unaffordable, relative to remaining in the affordable stock" (Somerville & Mayer, 2003). Land-use regulations negatively affect all those involved in the housing sector, by raising the price of owner-occupied housing and by reducing access to homeownership,...

...

Although these regulations affect buyers and the housing demand in the first place, the negative effects stretch to home builders also, since housing demand practically dictates their activity.
Given the current circumstances and the negative aspects presented by housing market forecasts, Centex might start considering expanding its building activity to other types of buildings. For example, the company could orient towards office spaces building. Another direction the company might follow is industrial building, given the recent developments in the industrial sector.

Reference List

Company Profile (2007). Centex Building Community. Retrieved June 7, 2007 at http://www.centex.com/about.htm.

Morrison, Joanne (2007). U.S. Home building to slow, factory activity up. The Boston Globe. Retrieved June 7, 2007 at http://www.boston.com/business/articles/2007/05/16/us_home_building_to_slow_factory_activity_up/.

Somerville, C.T. & Mayer, C.J. (2003). Government Regulation and Changes in the Affordable Housing Stock. Federal Reserve Bank of New York. Retrieved June 7, 2007.

Sources Used in Documents:

Reference List

Company Profile (2007). Centex Building Community. Retrieved June 7, 2007 at http://www.centex.com/about.htm.

Morrison, Joanne (2007). U.S. Home building to slow, factory activity up. The Boston Globe. Retrieved June 7, 2007 at http://www.boston.com/business/articles/2007/05/16/us_home_building_to_slow_factory_activity_up/.

Somerville, C.T. & Mayer, C.J. (2003). Government Regulation and Changes in the Affordable Housing Stock. Federal Reserve Bank of New York. Retrieved June 7, 2007.


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