> Most price increases are due to a lack of supply that exceeds population growth.
Citation definitely needed.
In my opinion, cheap credit (i.e. low interest rates) is the primary culprit. It has created an awful lot of 'artificial demand' for properties as investments as opposed to demand for properties to be used as homes. In most markets I look at, the proportion of underutilised properties has been rising (second homes, short term rentals, land banking, etc).
Here in NZ the sharp rise in interest rates caused a sudden and significant increase in homes available for sale and homes available to rent. Where did they come from?
Citation definitely needed.
In my opinion, cheap credit (i.e. low interest rates) is the primary culprit. It has created an awful lot of 'artificial demand' for properties as investments as opposed to demand for properties to be used as homes. In most markets I look at, the proportion of underutilised properties has been rising (second homes, short term rentals, land banking, etc).
Here in NZ the sharp rise in interest rates caused a sudden and significant increase in homes available for sale and homes available to rent. Where did they come from?