What impact does the housing sector have on businesses?

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DrunkenPanda

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Analyze the impact the housing sector has on substitute and complementary industries and businesses
 
Whew! Good luck with that one!
I've worked in the housing industry for 18 years and I've learned that everything is connected. The raise in gas prices damaged the ability to afford to buy houses. Thousands of bad loans made by the mortgage industry caused thousands of family's to default on those loans. The housing industry crashed and houses were/are worth way less than they used to be thanks to no-one wanting/being able to buy. Everything is related and interwoven. You can't have a big problem in one section of society and not have it effect all others.
If we can't sell houses, we don't build them. If we don't build them all the subcontractors and suppliers are out a lot of business and some businesses don't survive. People across the whole spectrum loose their jobs. My accounts payable department went from 5 down to 2 last fall.
Hope that this gives you a bit of insight.
 
In economics one of the key things people look at is the number of new homes being built. When you build a home you need: bricklayers, electricians, plumbers, engineers, architect, roofer, carpet layer, plus all the physical things that make actually make the house. Basically it creates a lot of economic activity, so a change in new housing will have effects in all these types of areas.
 
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