Want to see the housing meltdown's impact on an economy? Start with Phoenix

Yes, the builders have already gotten a 50%+ haircut on their stocks. Yes, mortgage brokers are laying off their staffs in droves. But that's just the start. And an economy like Phoenix where supposedly 33% of the entire economy rests on housing, you'll see a viscous ripple effect, from the drycleaner to the Lexus salesman, as housing goes bust.

Valley's housing skid hurts other economic areas

Metropolitan Phoenix's housing slowdown is bad news for more than home-building companies and the investors who hold their stock.The region's economy is unusually dependent on housing, so a lot of livelihoods rely on it.Everyone from lumberyard workers to people who buy and sell land has a stake in it.

The housing market is slowing across the board as buyers rebel against rising prices and higher mortgage rates.Sales of existing homes were down 34 percent last month compared with May 2005.

Housing accounts for at least $1 in every $3 generated in the Valley's economy. When housing hits the skids, the effects ripple throughout the economy. Builders and real estate agents are hurt. So are subcontractors, land brokers and retailers that outfit homes.Business slows at title companies. Finances of rank-and-file consumers are pinched when they get stuck with two mortgages: one for their new house and one for the old one that won't sell.

Builders take a hit
Subcontractors get caught in slowdown
Real estate agents rethink careers
Fewer sales equal less title work
Land brokers are losing deals
Retailers see sales slipping
Consumers stuck in slow market