From 2000 to 2005, the home building sector was expanding and new housing construction as measured by housing starts was approaching an all-time high. (At www.census.gov, click

“Housing,” then click “Construction data.”) Big builders such as Lennar Corporation were making exceptional profits. The industry was expanding. Existing home building firms invested in more capacity and raised output. New home building firms entered the industry. From 2006 to 2009, demand for new and existing homes dropped. The inventory of unsold homes grew sharply. Home prices began to fall. Home builders suffered losses, and the industry contracted. Many firms went out of business, and many workers in the construction industry went bankrupt. Use the Internet to verify that all of these events happened.

Access www.bls.gov for employment data and www.bea.gov for information on residential construction as part of gross domestic product. What has happened since the beginning of 2010?

Has the housing market recovered? Have housing starts stopped falling? If so, at what level? Write a short essay about whether the housing sector is about to expand or contract.