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Housing Supply And Demand Essay

989 words - 4 pages

Housing Supply and DemandThere are two factors needed for a market to exist. These factors are buyers and sellers. The buyers and sellers of the housing market have a voluntary exchange of a house and/or property where the outcome will produce a conclusion where the buyer and the seller are both better off as a result of their exchange. Does this one transaction affecting the buyer and the seller have an equal outcome for a third party, with this third party being society, whether the outcome is good or bad? When society is affected by the outcome of the market it is called supply and demand. Demand is the buyers or consumers willingness to buy a product and the price in which they are ...view middle of the document...

At the current time Howard, South Dakota a three bedroom, two bathroom house that is 1, 887 square foot costs $36,900 ( The population in this area is 1770, and the average housing median is $47,770. The determinants in this area that affect the market the most are the consumers low job opportunity and income ( In this area there is a low demand for an increase in housing. We can compare this to the statistics in Virginia Beach, Virginia. At the current time there is a three bedroom, two bathroom 1,486 square foot home that costs $259, 900 ( The current population in the Virginia Beach area is 76, 822. The median income in this area is $66,261 and the average house median is $ 245, 303. This area has a strong military population which is constantly affecting the influx of the population ( With this constant influx there is a constant demand for more housing. This type of determinant in this area proves to be a benefit for the seller, unlike the market in Howard, South Dakota.In Aspen, Colorado a three bedroom, two bathroom house costs $2, 395, 000 ( The median income in this are of Colorado is $64, 816, the population is 9,347, and the average house median is $894,455 ( When these house prices are compared with those in Virginia Beach, VA and Howard South Dakota with similar housing features, statistics clearly prove that this area has a greater demand than supply. The Colorado area is a high recreational area and has a high influx of white collar population. The determinants in this area are related more to the consumer's...

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