what are the economic principles affecting construction industry

[shane88]

I have an assignment which needs to be handed back in in one weeks time. The topic is.. .what are the economic principles affecting construction industry? i am really struggling on where to start and how to go about it. any ideas?

[Owner Builder]

-home values going down, while cost of materials continue to increase a lot due to the increase in fuel.

-vacant land values don't seem to be dropping like home values. So many people are buying existing homes.

-lendors have tightend up making it difficult to get financing for construction loans and also end mortgages. Tough to get low downpayment mortgage these days plus if you have less than perfect credit.

-many people are unsure of their job and financial situation causing them to sit tight in their existing home instead of building a new home.

[Lumberjack]

building a house is mostly about labor and materials. Financing is simply a means to acheive a goal.