Why Does The Housing Market Keep Going Up?

[integral]

I'm guessing because it counters inflation, as value of the dollar drops the value of the house does not, propping up the prices over time. The value of a house is closely aligned with the economy of the country while the dollar does not.

What do you guys think? 

Edited April 25, 2023 by integral

[Sucuk Ekmek]

Because someone must print dollars out of thin air plus we need these credits.

I suggest you to read Prof. Antal Fekete's last paper "waiting for godot".

https://professorfekete.com/writings/popular-economics/

[mr_engineer]

22 hours ago, Sucuk Ekmek said:

Because someone must print dollars out of thin air plus we need these credits.

I suggest you to read Prof. Antal Fekete's last paper "waiting for godot".

https://professorfekete.com/writings/popular-economics/

And you can't make LAND out of thin air. The amount of land itself is finite. 

[Sucuk Ekmek]

12 hours ago, mr_engineer said:

And you can't make LAND out of thin air. The amount of land itself is finite. 

Unless you believe you live in some digital universe like metaverse or something. Then we can create land out of thin air.

[hyruga]

Housing price will always keep rising unless there are severe news like mortgage crisis or global disaster which cause the sentiment for housing to become negative. But that's very unlikely to occur. You see even with the Tech jobs retrenchment, Ukraine war or trade war or covid-19, you can see that price still rises because many people want to own a home, rather than rent (unless they had to). 

People who already owned a home would only want to sell it higher. It's human nature to be greedy and ask for a profit so price will always keep rising. 

Govt policies also affect housing price a lot. If govt suddenly opens up and allows more foreigners to invest in local's home, price will increase.

If you look at Hong Kong's housing price, price increased by about 3x since year 2000. So which country's housing price actually dropped from year 2000 to 2023? Pls enlighten me. It's gullible to wait for housing price to drop by much, you should be thankful if the price didn't increase further.