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Chapter 26

_______________Real Estate and the Economy

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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

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Short-Run Supply-Demand

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Economic Factors Effect on Property Value Vulnerability Employment Multiplier Housing demand – short & long run

◦ increases & decreases in supply & demand◦ effect on inflation

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Lifetime Income Curve

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Age Distribution of U.S. Population

(See page 441)

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Governmental Impact Tax laws Fiscal policy Monetary policy Mortgage markets

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Inflation Cost-Push Demand-Pull Monetary Real-Cost Tax Benefits Watch the Feds

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What’s the future outlook?

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Key Terms Base industry Cost-push inflation Demand-pull inflation Economic base Federal Reserve Board

Monetize the debt Real Real-cost inflation Service Industry