one of the four broad categories of factors affecting the value of real estate, which are - physical, social, economic and governmental. 

Economic factors that affect real estate markets originate at the national level and at the state and local level. From a national perspective the federal government’s monetary and fiscal policies may cause changes in interest rates, inflation, and the cost of housing. On a local level, the availability of high wage employment, financially sound employers, a good economic base, and a community that encourages business development are all favorable factors for real estate markets.