Housing Market Simulation Learning Objectives: Aim: Understand opportunity cost and scarcity Objectives: Define opportunity cost.

t. Describe the implications of scarce resources. Brief: You are a team of architects who have been given the task of creating a design for a new housing development on the outskirts of London. (Use templates provided). Your design must: Include access to a main road, and a tube station for commuters. You will pitch your designs to the building companys chief executive who will decide on the best design which will receive the design contract. You must add value to the land. All housing must have access to the main road and tube station. You may build large houses, standard houses, eco houses, apartments and tower blocks. You may also wish to build parks, shops, pubs and leisure centres etc. Costs: The costs of buildings for you to build and the occupancy of each building are detailed below: House Type Cost Occupancy

Large House

100,000

Standard House

75,000

Tower Block/Apartments

1m

250

Social/Eco Housing

50,000 (subsidised)

2/3

You must complete the following table of costs and buildings built. (Facilities and amenities are not included in your costs, but you may still build them into your design). Use the table on the previous page to help you! Property Number House Type Cost Occupancy

10

11

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14

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27

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30

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61

Total

News breaks in the UK that demand has fallen and the housing market has shrunk. People are simply not buying and choosing to stay put, turn to the rental market (mainly renting flats and apartments) or to buy cheaper affordable accommodation (such as standard houses, flats and apartments). The building company is not happy and has written to inform you that this news will be taken into consideration when deciding who should receive the contract. However, they also stressed that if a design was good enough, it would get the contract regardless of this news.