housing economics

Housing economics studies how housing prices and availability are influenced by factors like supply and demand, interest rates, income levels, and government policies. When more people want homes than there are available, prices tend to rise; conversely, if many homes are available and few buyers, prices fall. Low interest rates make loans cheaper, encouraging more home purchases. Economic growth can increase demand, raising prices, while economic downturns can reduce demand and lower prices. Housing markets are also affected by regulations, zoning laws, and development costs. Understanding these factors helps explain fluctuations in housing affordability and availability.