The benefit and damage of rising property prices

Rising property prices could make people feel wealthier, especially to those who own their properties. Therefore, we could probably see an increase in consumption. Moreover, it could increase investment, as rising property price could improve people's ability to borrow, especially to borrow mortgages. However, rising property price has its negative effects on the economy. Rising property price is one of the easiest ways to widen the wealth gap and increase inequality. Moreover, as we can still remember from the 2007-08 financial crisis. The crisis followed the burst of the property market bubble. There is another trade-off if we focus on the property market boom. When there is a property market boom, we are more likely to put more resources into the property market than usual, which means other parts of our economy will receive fewer resources and have slower growth. More than just the property market, if we have any rapid growth in one particular market, it could lead to the similar situation.