The wealth inequality widened by the increases in housing prices is positively proportional to the trade volume in the housing market.

The history explains how the class of landlords fell and was replaced by the entrepreneurs and capitalists, when many landlords sold their lands as the profits generated by farming became much lower than opening factories. Previously, land was the most important factor of production. Nowadays, the importance of land becomes weaker and weaker, and capital and labour become more important. Houses are not liquid assets, especially more expensive houses have fewer demands. If people rush to sell out their expensive houses, the housing price could drop sharply and people could only make losses. Therefore, in the house markets, high demand is the key to push up the house prices. When people are generally becoming wealthy constantly, the housing price increases, according to higher demands for houses and houses become more liquid assets, thus wealth inequality widens, as rich people can sell off their houses at higher prices and make profits. However, the first thing should be done is to distinguish between the wealth inequality led by housing price increases and the housing price increases led by the wealth inequality.