Housing market

Housing market is a very interesting topic, because I think housing market is a very unique market. You can see it as an investment market, because houses can generate profits for their owners. However, houses can also be seen as necessity, because people need somewhere to live (they can either buy a house or rent a house); especially in some cultures, buying a house is almost a must for getting married. I think maybe the latter factor makes housing actually good investment. Moreover, some cities have rapidly increasing housing prices, this will stimulate an even faster rise of housing prices. In addition, since it is a necessity for many people, which means there is a safe net for housing investors. 

Furthermore, buying a house (or a flat) is always a big decision for most people, as it will consumes a significant proportion of an ordinary person’s income. Therefore, housing price does affect individuals’ wealth, thus affecting their daily consumption decisions. And this can explain why the housing market is possible to affect the entire economy.

Of course, the importance of housing market can be reduced. For example, aging population and low birth rate can reduce the demand for housing. Moreover, better public transportation can reduce the population densities in some major cities, thus reducing the housing price in these major cities.