#DHA #karachi rental boom

Causes and consequences of rise in house prices

Costs are being driven by a number of factors including:

  • demographics shifts
    • the declining number of people per dwelling
    • Growing Density Convergence, Regional Urbanization
    • solid population growth (for example sky-high prices in Australia and Canada as a rising population pushes up demand).[24]
  • supply and demand
    • a shortfall in the number of dwellings to the number of households
      • smaller family size
      • the strong psychological desire for home ownership,[27]
  • shifts in economic policies and innovations in financial instruments
    • reduced profitability of other forms of investment
    • availability of housing finance[26]
    • low interest rates[26]
    • mortgage market innovations[26]
  • public policy
    • deregulation
    • land use zoning
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