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

There are tons of people who can afford those houses moving in all the time. That’s why the prices are going up. There are people who used to live there that now don’t make enough money.