3 ms·
I suggest you do a bit of research on how income relates to house prices. Here is the tldr: in country where most people buy houses on mortgages, and mortgages
by ak_111 3y ago
I suggest you do a bit of research on how income relates to house prices.
Here is the tldr: in country where most people buy houses on mortgages, and mortgages are given based on a person’s income then wages will pay a direct and very important role on house affordibity.
Also house supply is important but far from the only factor effecting house prices. If gov builds 1000 new houses and they instantly get bought by, say, the Saudi sovereign wealth fund it will have virtually no impact on house prices.
- stevenhuang 3y agoIf 1000 new houses get built and get bought instantly it won't have an impact on house prices? I beg your pardon? That's 1000 lots of land out of circulation. In no uncertain terms, this will have an affect on local market prices, by making the remaining land more valuable.
- slyall 3y agoIt depends what is happening to the houses. If they are empty then prices will remain the same or increase. If they are being rented out then prices to buy should decrease since there will be less demand (since more peopel will be renting and rents will probably decrease).