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Suppose that the town/county/region is expected to see an increase of 5% basic employment jobs in the near future. Assess the impact of the increase on the demand for real estate and estimate the new demand for housing.

Employment is the primary driver of real estate demand. Basic employment firms primarily export goods and services. Their activities create employment, and their employees in turn demand goods and services, which creates more employment. Thus, basic employment has a multiplier effect with which additional employment is created in non-basic employment firms that produce goods and […]

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