What influences demand for housing? :: Economics

What influences demand for housing?There are many key factors that result affect the demand for housingsome of the easy hotshots to notice are population and price. Thesefactors effect divide of goods as the larger amount of people the moreconsumers there result be. With price a consumer will always wish to paythe lowest amount for a good. If the price gets to high then they willfind a substitute.Looking at population in more detail it isnt as simple as it wouldfirst appear. You could just say the populace will buy a house and themore public there is there is more demand for the good. This in turnwould allow housing companies to pull larger prices and so only therich can afford it. The problem is that people dont nurse to buy ahouse they can rent one or share one. As well as these factors theycan take out a loan to buy the house and pay it back everyplace a utmost oftime. Loan companies charge interest and when interest rates are lowmore people take out loans as they dont h ave to pay back such a largesum of money. With lots of loans companies coming up, it has becomevery easy for anyone to get loan whatever their background knowledge is like.Renting a house can be done in lots of ways. Some people make theircareer in it they buy lots of houses and rent them to people who areunable to buy a house. This is good for people who are only in thecountry for a short period of time, as you can charge them largeamounts because of the location of your house. Some people dont haveany money at all and are in a bad economic state and are given ahouse/flat by the council. They still have to pay money to live in thehouse but less(prenominal) than from private rent business. Private rentbusinesses are there to make a profit and will charge higher(prenominal) pricesand have better quality goods to match.When accounting at price it normally goes on a set pattern that as highprices means less demand and vis versa. The problem was this didnthappen and looking at figure 4.8. This is due to the low interestrates charged by loan companies mentioned above.When addressing others factors you need to look at the country and isit going through some sort of event. During a depression people arefind it hard to get a bloodline due to high unemployment. With this thedemand for new house with the public wouldnt become a luxury that