Economic/Governmental Influences on Housing

Transcription

1 Economic/Governmental Influences on Housing

2 Objectives Relate the effects of economy and housing on each other. Identify the role of government in housing decisions.

3 Economic Influences Those that involve the production and consumption of goods and services related to housing Include the interaction among consumers, businesses, and government in meeting housing needs People make economic decisions everyday; concerning how they they use their resources to meet their goals Items that can be used to meet their goals Example is money

4 Homes are expensive 1923 a 3-bedroom house could be bought for $4,325 Average annual salary was $1, the average cost of a 3-bedroom house was $104,400 Average annual salary was $21, the average cost of a 3-bedroom house was $159,600 Average annual salary was $26,363 In addition to the purchase price of the house; the cost of utilities and maintenance needs to be considered Average electric bill $207

5 How the Economy Affects Housing A large amount of nationally-produced goods and services is related to the housing industry Employment goes up and down in relation the the condition of the housing industry Employs planners, developers, builders, material supplies, real estate personnel, and financial experts Housing industry is dependent on the housing market The transfer of houses from the producers to the consumers Depends on supply and demand Mortgage interest rates and tax advantages affect growth Mortgage rates affect and depend on housing demand Tax exemptions- you don t have to pay taxes on a certain part of you income

6 Governmental Influences on Housing

7 Legislation Can range from where to build to how to build In the 1640s the British ordered that houses be built with brick or stone and the roofs made with slate or tile to help prevent the spread of fire that was devastating homes Government now plays a stronger role in safeguarding people and their housing People used to live in very poorly built housing with landlords that took advantage of them 1800s that started to change Laws were created to control the use of the land, prevent overcrowding, and encourage beautification

8 Housing Standards Much of housing legislation sets minimum standards of quality in various areas like land use and house construction Building codes Minimum standards for materials and construction methods Codes for electrical, plumbing, heating, and ventilation Placement of stairways and exits Used to assure health, safety, and sanitary conditions Some set to determine the use, occupancy, and maintenance of a building To prevent overcrowding; to make sure renovations meet standards

9 Housing Standards Zoning Regulations Control land use in certain areas Only specific activities can take place in certain areas Zoned for residential, commercial, or industrial Residential- only houses Commercial- only stores and offices Industrial- only industrial businesses Density is also controlled Reduces the risk of fire and controls traffic and pollution; restricts noise and lighting

10 Funding for Housing Several government agencies are involved with buying and selling of home mortgages Makes sure loans meet standards; stands behind the lender if homeowner doesn t meet obligations Department of Housing and Urban Development HUD Makes sure affordable housing is available to everyone Helps special groups secure funding Gives first-time homeowners assistance

11 Housing for People in Need Government provides assistance for those that can t afford it Provides rent supplements for low-income families Build public housing and rents it to those who are unable to fully pay for housing Gives support to private programs that help the homeless Numbers have increased dramatically ,000 people on a single night were experiencing homelessness

12 Environmental Protection Awareness of environmental problems has increased US Environmental Protection Agency (EPA) and US Consumer Product Safety Commission (CPSC) have been formed to support a positive natural environment Research and provide information to consumers