Prices can rise without demand increasing, if there is a reduction in supply. This is exactly what is happening in many housing markets in the US, due to under

Prices can rise without demand increasing, if there is a reduction in supply. This is exactly what is happening in many housing markets in the US, due to underwater homeowners not putting their houses up for sale when they otherwise would. This causes people who would otherwise move to stay put at lousy jobs, tying into the narrative of the article. The numbers don't lie: there is a significantly decreased supply of houses for sale compared to previous years. This is the only thing propping the still-inflated housing prices up, courtesy of the bullshit government policy of obsessing over people acquiring huge amounts of debt for "the American dream" (whatever the fuck that is). My twin brother and his wife recently bought into the wonderful northern Virginia (dc suburb) housing bubble. They are now paying a mortgage on a $500,000 duplex, ignoring the fact that they are paying more to borrow the money to own the house than they would have paid to just borrow the house (aka rent it). The difference is high enough that investing the savings of renting over mortgage in the stock market would far outstrip any value they will get from the home in even optimistic house price inflation scenarios. Me? My family of 4 (i'm the sole breadwinner) are renting, and I'm now considering excellent job offers in other states and cities, with no concern of a bank-forged chain to prevent me from moving to a better life.