If the price of buying a house rises based on demand, how come the price doesn’t fall in areas that have large homeless populations?

Question

If there are so many people who can’t afford housing, why does the cost continue to rise? Shouldn’t the cost fall because there isn’t a demand?

In: Economics

Answer 1

The opposite is true. Homeless people want houses too, so if there is a large homeless population that is usually a sign of huge demand with no supply.