The home building industry has the opportunity to show that it can react to adversity and with the situation as it currently stands, builders may have the desire to lower expenses, while not cutting corners, as much as possible.
The home building industry, therefore, seems to be one that can provide the economy with a boost when it is needed, with a foundation at all times and with overall growth that can lead to a robust job market, growth in the GDP and financial independence for those builders that are willing to commit to the hard work necessary to succeed. There are relatively few industries that provide individuals with that type of opportunity and even fewer industries that continue to have the financial and market influence that the housing industry displays.
It is difficult to discern whether the economy has more influence on the housing market, or the housing industry has more influence on the economy. Both play a key role in the public's financial perception of the state of the economy. If the housing market is strong, that means there is more of a demand for houses, which translates into the buyers believing that the economy...
If the housing market is weak, the reverse is true. Hand in hand, the housing market and the economy provide a picture of what life in the future will be, based on the present. Sometimes that picture is bleak, and sometimes it's rosy.
Works Cited
Bogoslaw, D. (2007) Homebuilders in a Hole, Business Week Online, pg 15 Accessed Sept 24, 2007 at http://web.ebscohost.com/ehost/detail?vid=6&hid=2&sid=486e70e9-8320-4156-9bd0-750d6c9d32d0%40sessionmgr2
Fed's Calming Outlook Bucks up Stocks, (2007) USA Today, Money Section, pg 1B
Patterson, R. (2005) Home Sour Home, Mother Jones, Vol. 30, Issue 4, Accessed September 26, 2007 from Academic Search Premier
Stovall, S. (2004) Homebuilders: A Slump After the Jump, BusinessWeekOnline, Accessed Sept. 25, 2007 at http://web.ebscohost.com/ehost/detail?vid=6&hid=2&sid=486e70e9-8320-4156-9bd0-750d6c9d32d0%40sessionmgr2
Stover, D. (2006) Building Blocks, Popular Science, Vol. 269, Issue 5, pp 79 -124, 7p
Tangled Reins, (2007) Economist, Vol 384, Issue 8545, pg 80
