Supply and demand

In several nations, the market has been unable to meet the increasing demand for affordable housing stock. Although demand for affordable housing, particularly rental housing for low and moderate income people, has grown, supply has not kept pace. Potential home buyers are being forced to shift to the rental sector, which is also experiencing difficulties. Inadequate housing stock raises demand for private and social rental accommodation, and in the worst-case situation, it leads to homelessness.

Factors that affect supply and demand of housing stock

• Factors such as demographics and conduct
• Migration is a term used to describe the (to cities and potential employment)
• Longer life expectancy
• Building regulations
• Young adults delaying starting their own household have a higher proclivity to live alone (in advanced economies)
• Zoning that excludes people is known as exclusionary zoning.

Factors that affect tenure choices (ex. owner occupier, private rented, social rented)

• Rates of employment
• Demand for market rentals, social housing, and homelessness increases as unemployment rates rise.
• Household incomes in dollars
• Household wages have not been able to keep pace with rising housing costs.
• Rent affordability and owner occupancy
• Rates of interest
• Mortgages are available.
• Confidence in the economy and in the housing market
• The demand for owner occupation is reduced when confidence is low.