Building costs, economic conditions, and interest rates are categorized as what type of factors?

Building costs, economic conditions, and interest rates fall under the category of supply factors because they directly influence the ability and capacity of builders and developers to construct new housing and commercial properties. When building costs are high, it may discourage construction, thereby affecting the overall supply of properties available in the market. Similarly, economic conditions that affect overall investment in construction projects and interest rates that determine the cost of financing directly impact the supply side of the real estate market.

In contrast, demand factors pertain to the preferences and ability of consumers to purchase properties, market factors encompass both supply and demand elements influencing a specific market environment, and environmental factors relate to geographical and ecological influences on real estate. Thus, recognizing building costs, economic conditions, and interest rates as supply factors is vital for understanding how they shape the real estate market.