Question

Housing market in the United States between 2015-2019 •

Use the model of supply and demand and provide a textual and diagrammatic explanation, using the supply and demand curves for the changes in the prices of the good

• Explain the elasticity of supply and demand of the good

• Discover and describe the market structure of the good and specifically if there are any cartels/price fixing activities in the industry effecting the price changes discussed

Answer 1

SOLUTION:-

Investment of American real estate market /Household industry

* There was a strong hou8se price growth in US for six years which can be seen by the seasonally adjusted national home price index by S&P /Case shiler rosed by about three to thirteen percent during the yar 2019 with infllation of 1.46% adjusted and iot is the lowest growth since 2012.

* During the latest quarter the house price increased by 2.29% with 1.52% adjusted inflation.

* With in the year 2015-2019 19 out of 20 major cities of US experienced medium to minium n house price hikes given by the standards with phoenix representing the highest increase of about 5.83% in the year 2019.

* Then Las Vegas with 5.51%, Boston with 3.87%, Minneapolis with 3.85% etc.

* The minimal household rise in the price was seen in the washington city with 2.89% rise likewise other cities like Dallas,portland, Los angeles, chcago, san diego, san fransico. So we can see the nature of household industry changes from location to location or place to place.

* In some places, the household price rises heavely whereas in some places the hike is minimum which is affordable. This way the household industry changed during the year from 2015-2019.

* The inflation rate when goes up the demand is lowered despite of high supply of household.Thereofre the supply is not a problem. Also, as we move from year 2015 to 2019 we can see a huge changes in technology leading to changes in the lifestyle of the people in the society.

* This results in high purchasing of the houses in busy cities where work envt is good and offices are based which make it demanding.

* Therefore it again independ on the location which determines the supply and demand of the household industry in US.

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