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There are very few negative externalities associated with the home building industry. The few that exist usually pertain to those who advocate less home building and land development. In the same way that locals protest large shopping districts moving into their communities, many people hold the same position regarding new homes being built. However, in the grand scheme of things, homes being built is a sign or positive growth in a region. you will not find new homes being built in a ghost town, but rather in communities that are growing. Those who fight this occurrence are often either naive to the positive aftermath, or place some soft of intrinsic value on the land to be developed.

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Q: What are some negative externalities of the home building industry?
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What are some positive externalities in the home building industry?

Thanks foir you assistance with this class question.


What are any negative or positive externalities the home building industry?

A negative externality of the home building industry is the depleation of resources. The home building industry is rapidly depleating forests. Oregon is the nation's largest source for lumber, and the vast spans of clear-cut forest are evidence of this. Even though new forests are planted, they take a long time to grow and once they have, do not provide the same biodiversity that the original old-growth forest did. Thus, some of the critters have to alter their survival skills. Another negative externality is that more and more undeveloped land is being developed and pushing animals out of their habitats. A positive externality is that new homes means economic growth. New homes means the town is growing, and consequently new businesses will be opening, thus, creating new jobs.


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Externalities can be internalised by bringing the cost home to the producer or consumer so that they have to pay for clean-up.


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One impetus for the rapid consolidation of the single-family home-contracting industry was the parallel consolidation that has characterized lumber and building material (LBM) dealers.


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What is internalising the externality?

Externalities can be internalised by bringing the cost home to the producer or consumer so that they have to pay for clean-up.


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demographic trends, such as the number of adults in the prime home-buying years (ages 25-44), changes in the mortgage financing industry, increases in energy costs and property taxes


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