Friday, May 20, 2016

New Homes are The Lifeblood of An Economy

The trend of new homes Austin TX being built and sold is the lifeblood of an economy. It is a sign that enough people are doing well enough to be able to afford to make a long term commitment such as purchasing a home.

An economy has to be robust for builders and contractors to "risk" building new homes in the first place. There has to be enough jobs for people to be able to make enough money on a steady basis to qualify for mortgages, and then they have to keep their jobs in order to pay for their mortgages.

A capitalistic economy works that way. When people put goods and services onto the market to sell and make a profit, that sets into motion a chain of events that makes everyone prosper. Goods have to be manufactured, transported, wholesaled, retailed, and then finally purchased by the consumer. 

All along that chain of suppliers and transportation, people are give jobs to make the process work. Banks can then loan money for all of these processes to keep inventory and ultimately to build homes.

When an economy disrupts itself through government taxing higher rates, imposing laws that thwart growth, and place uncertainty in an economy, it will struggle and limp along for a while, but it eventually recovers and starts up all over again.

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