Explain what you mean when you say if there's not enough houses that it won't drive the price up........ Low supply of stock, drives the value of products up further...... Look at oil, petrol etc.....why wouldn't this be true for a House or property?
A higher population will surely increase demand in the privator housing sector aswell? Basing that purely on if there's more people, more people will be in the market.
After war no houses and rebuilding took 30 years for people plus baby boomers and immigrants and then there was still a housing shortage but house prices hardly rose over build costs in all that time.
Around 1985 they relaxed mortgage lending so anybody could have anything 99%+ mortgages........this equaled house boom..............then crash for many reasons one of which houses had risen too high for people to afford then plus they were losing the jobs etc...............there was still house shortages even though house prices went through the floor and whole estates were lying empty............
why?
Then this repeats itself twice since then.
So you say more people = more demand for homes which is true.......reason too many people not enough homes..........
No.
For house prices to rise then people and more importantly enough people have to ...........want to buy.........have a reason to buy............but more importantly..............
BE ABLE TO BUY.
For people to be able to buy they ...............have to have jobs...............be earning enough to pay the price.................to availability of mortgages.
When house prices rise too high.............then people cant borrow enough money to buy.................so prices will reach a point of stagnation and the market collapses because some people need to sell quick for various reasons then they reduce prices...............this causes the whole market price to drop.
Wages cannot increase at the same rate of the house market because then goods and services become noncompetitive which would lead to companies going bump and job losses so nobody can then afford to pay mortgages etc etc etc etc etc.......................recession.
If you increase the amount of people...............then if this happens at a controlled rate (organically) then there should be no problem as they just replace people dying and retiring etc.
Uncontrolled immigration which is what you have now............regards houses...............well there is an over supply of labour so employers have no need to increase wages as they normally would...............so people cannot afford to borrow more money to pay for the higher house prices.....................so eventually the over supply of people will also assist in the reduction of house prices or even crash...................among other things like pressure on services, roads clogged, waiting lists etc.
If you can find away to increase house prices forever.................then sell the idea you will make more money from that than houses.
Apart from all this house markets are the same as other markets and are rigged by clever people who want them to rise and crash so they can make money...............they will make more money from crashing a market than from the steady rise in the markets..................they are in it for the kill............nothing else.
Traditional houses depreciate in condition over about 10 years so there is and always will be building work.
If people turn against tradition and decide to live in other types of houses then that work may start to disappear.....................houses made from other materials made in factories very cheaply and fast and just bolted together on site.....................that day will come very soon.
