– I keep hearing the housing market in the USA had such a price surge because of demand increase and a lack of housing. Why did happen all of a sudden? There wasn’t some huge increase in people too.

Question

Secondly- What would it take for prices to change?

In: Economics

Answer 1

House prices are appreciating far faster and more consistently than account interest or stocks. More people, and more importantly more companies, see housing as an investment asset to be acquired and rented out or sold on for a large return on investment.

First time buyers are having to compete with conglomerates who have a vested interest in pumping up the price rather than living in it as a home.