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SELEGTED FACTORS THAT HAVE INFLUENCED RESIDENTIAL DEVELOPMENT SINCE 1950 A vexy complex system of checks and balances operates to determine where, when, and how residential development takes place. This section of the report looks at two major aspects of the system: 1) the " context within which the key decision makers operate; 2) the influence which s elected facto rs exe rt du ring the dec is ion making proc es s. � KEY DECISION MAKERS There are three major decision making groups : builders , lenders , and consumers, all acting within the context �f a governmental framework. 3 These groups interact and have fostered strong reciprocal relationships in many aspects of urban development. Each group is also strongly in- fluenced by the institutional context withiil which it operates. It is this context which we will now briefly consider in order t� provide a back- ground for understanding the viewpoints and decisions of these three groups. The Builder and the Building Industry Buildei•s are businessmen whose prime objective is to build and sell houses �.t a profit. Due to the nature of the product sold, the builder's business is of vital intere5t to the public and involves a large number of gublic and private agencies. As the result of a whole host of motiva- tions, people are not only concerned about the type of product, but also where, when, and how this product is produced. These consider�.tions have caused the builder to take on many secondary operations sim�ly to sell his finished product. The builder offers to the consuxner a finished package which may be acquired through several relatively simple operations; signir.g his name, placing a down payment, and agreeing �o meet monthly payments for a given period of time. In preparation of this �Sackage, the builder typically has had to search for suitable land; negotiate its purchase; find capital for purchasing it; prepare and develop the land according to local government standards; dete rmine the pr ic e rang e, nurnbe r, type , and des ign of the hous e s; contract for la�or and materials; supervise the construction; arrange for the construction and mortgage financing (possibly dealing with a nurr►ber of lending institutions besides governmental agencies); and finally, sell the package to the rath�r undefined consumer group. In maneuvering his way from the conception to the final sale, the builder must deal with numer�us governmental levels and frequently a number of 3Som� readers may prefer to sse governmenttreatedas a fourth decision mal:er. As viewed here, government normally speaks in more general terms over longer time spans. It �rects guides to development rather than making direct developinent decisions, and sets farth policies which affect developrxient. I5