What Determines Demand for Housing?

Posted by: Peter Coy on October 11, 2006

Interesting discussion over at calculatedrisk.com on determinants of demand for housing. In the early 2000’s nearly 200,000 housing units died per year—they burned or were bulldozed or whatever. An increase in demolitions doesn’t imply a contraction of housing supply, though. The rate of demolition actually rises during construction booms because more houses are torn down to make way for new construction—sometimes multiple units where one existed before.



BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.

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