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What influences demand for housing?

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Introduction

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. ...read more.

Middle

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. ...read more.

Conclusion

There is no substitute for a shelter but a house in its simpler form can be avoided by living in a flat, renting, cave etc. If the house prices rose at a huge extent and interest rates were at a all time high, people would have to look for a new means of shelter. The rich may still be able to afford to move and buy houses but the poor wouldn't. This would make them look to find different means of shelter or building their own as it could prove cheaper. Also most people already have a home and they wouldn't need to move out and buy another house. They do this normally for comfort or the family has grown bigger or smaller. This is mind people could just wait for the price to drop. ...read more.

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