housing supply and demand

Housing supply refers to the total number of homes available for sale or rent in a market, while housing demand reflects the number of people seeking to buy or rent homes. When demand exceeds supply, prices tend to rise because more people are competing for fewer homes. Conversely, if there are too many homes and not enough buyers or renters, prices may fall. Factors influencing supply include construction, land availability, and regulations; demand is affected by income levels, population growth, and interest rates. Balancing these forces helps determine housing prices and availability in a market.