What influences demand for housing? :: Economics

What influences demand for housing? There are many key factors that will affect the demand for housing some of the easy ones to notice are population and price. These factors effect lots of goods as the larger amount of people the more consumers there will be. With price a consumer will always wish to pay the lowest amount for a good. If the price gets to high then they will find a substitute. Looking at population in more detail it isn't as simple as it would first appear. You could just say the public will buy a house and the more public there is there is more demand for the good. This in turn would allow housing companies to charge larger prices and so only the rich can afford it. The problem is that people don't have to buy a house they can rent one or share one. As well as these factors they can take out a loan to buy the house and pay it back over a period of time. Loan companies charge interest and when interest rates are low more people take out loans as they don't have to pay back such a large sum of money. With lots of loans companies coming up, it has become very easy for anyone to get loan whatever their background is like. Renting a house can be done in lots of ways. Some people make their career in it they buy lots of houses and rent them to people who are unable to buy a house. This is good for people who are only in the country for a short period of time, as you can charge them large amounts because of the location of your house. Some people don't have any money at all and are in a bad economic state and are given a house/flat by the council. They still have to pay money to live in the house but less than from private rent business. Private rent businesses are there to make a profit and will charge higher prices and have better quality goods to match. When looking at price it normally goes on a set pattern that as high prices means less demand and vis versa. The problem was this didn't happen and looking at figure 4.8. This is due to the low interest rates charged by loan companies mentioned above. When addressing others factors you need to look at the country and is it going through some sort of event. During a depression people are find it hard to get a job due to high unemployment. With this the demand for new house with the public wouldn't become a luxury that