Free Lesson Plans for Teachers Less Housing Construction

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Free Lesson Plans for Teachers
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Less Housing Construction
November 17, 2006

The Washington Post is running an article entitled, "Housing Construction Plunges in October." The
article explains that construction began on fewer houses in October than in any month since July
2000. Applications for new building permits fell, as well. The article states:

The housing weakness trimmed a full percentage point off economic growth in the July-September
quarter, when the economy expanded at a tepid 1.6 percent rate. Housing is expected to continue
acting as a drag over the next year but analysts believe the adverse effects of falling sales and
construction cutbacks will not be enough to pull the country into a recession.

Read the Article!!

Discussion-Starters for Younger Students:

Ask your students if they think that it costs money to live in a house? Does it cost money to
drive a car? What has to be paid for? You might ask them to draw a picture of something in a
house that has to be paid for. Encourage them to explain their thoughts.

Inquire as to how your students think that people can make money to pay for their house and
car. This question might prompt a consideration or review of a variety of jobs.

If fewer houses were built in October, as the article explains, what does this mean about the
work available to home-builders?

Ask your students if they think that it is good or bad that fewer houses were built in October
than in previous months. Encourage them to explain their opinions. You might hold a mock
debate in your class over this question.

Discussion-Starters for Older Students:

Ask your students to define the following terms: "construction," "economy," "recession," and
"percentage." Ask what they think the three most expensive things that their families must pay
for are. Help them think about the answer to this question correctly. As a homework
assignment, you might have students interview their parents about the three most expensive
things that their families pay for. You might enjoy taking a look at this article that compares
recessions and depressions.

Ask how much money your students think that a typical house in your town costs. What about
a typical house in a town nearby, that is either more or less affluent? Ask them why prices
might vary between houses? What characteristics of a house do your students think that people
would be willing to pay more money for? You might consider asking your students to look
through newspaper pages that lists houses for sale and comparing the prices. Why do they
think that some homes are more expensive than others?

Ask your students how they think the economy might be effected when fewer houses are built.
Why do they think the economy might be effected in this way? The article explains that
analysts do not think the country will be pulled into a recession because of the current “housing
weakness.” Ask your students why this might be the case. What would have to happen for the
country to be pulled into a recession?

Tell your students to pretend that United States government officials (the secretaries of the
Department of Housing and Urban Development and the Treasury Department) have
approached them and asked for advice. What can they do to help ensure that people begin to
pay for the building of more houses so the country does not fall into a recession. People might
need to borrow money to build homes. Should interest rates be raised or lowered? If interest
rates are lowered what might happen that could negatively effect the economy? You might ask
your students to prepare a television news commentary in which they answer these questions.
If you have the necessary resources, you might even consider taping these commentaries and
putting them on-line.

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