Which option best describes a supply factor affecting real estate?

The correct choice is builders because they play a direct role in the supply of real estate. Builders determine how many properties are constructed and when they are brought to market, which directly influences the availability of homes and commercial properties. The volume of new construction, as well as the types of properties being built, can significantly impact the overall supply in the real estate market. When builders ramp up construction activity, it can lead to an increase in supply, which may stabilize or reduce prices if demand does not keep pace. Conversely, if builders slow down, the supply may tighten, potentially driving prices higher.

Public policy changes, natural disasters, and economic downturns all affect real estate indirectly. While they can have significant impacts on the market, they do not directly alter the supply as builders do. Public policies might influence the regulatory environment or incentivize development, natural disasters could damage existing properties or hinder construction temporarily, and economic downturns can lead to decreased demand or availability of funding for new projects. However, it is the builders who ultimately control the quantity and timing of new construction that most directly shapes the real estate supply.