© OnCourse Learning Chapter 26 : Real Estate and the Economy

 Ability of area to produce a commodity or service that will bring in money from outside.  Industries that produce goods & services.  Base  Export  Primary Economic Base © OnCourse Learning

SHORT-RUN SUPPLY-DEMAND © OnCourse Learning

SHORT-RUN DROP IN DEMAND

© OnCourse Learning LIFETIME INCOME CURVE

 Effect on Property Value  Vulnerability  Employment Multiplier  Housing demand – short & long run  increases & decreases in supply & demand  effect on inflation ECONOMIC FACTORS © OnCourse Learning

AGE DISTRIBUTION OF U.S. POPULATION © OnCourse Learning

AGE DISTRIBUTION FOR 2000–2006

 TAX LAWS  1997 TAXPAYER RELIEF ACT  1986 TAX BILL  FISCAL POLICY  MONETARY POLICY  SECONDARY MORTGAGE MARKET © OnCourse Learning GOVERNMENTAL IMPACT

 Cost-Push  Demand-Pull  Monetary  Real-Cost  Tax Benefits  Watch the Feds INFLATION © OnCourse Learning

What’s the future outlook? © OnCourse Learning

Key Terms Base industry Cost-push inflation Demand-pull inflation Economic base Federal Reserve Board Monetize the debt Real Real-cost inflation Service Industry © OnCourse Learning