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
There is still demand for housing in areas with large homeless populations. It may sound cold, but the homeless population isn’t typically comprised of persons who are actively in search of a home to purchase – think high rates of mental illness or youths who have lost their housing. Home prices are volatile and based on a lot of different factors, such as interest rates, the overall state of the economy (which in turn affects consumer confidence), government policies, and the available supply of homes.
Latest Answers