The Canadian population sailed past the 40 million mark for the first time in history this summer and new data shows that the country continues to outdo itself, adding 430,635 people in the third quarter of the year alone.That figure, which puts Canada’s population in the ballpark of more than 40.5M...
Other things being equal, an increase in demand leads to an increase in the equilibrium price. Google “demand shock” for more relevant info. To the extent that it is governed by the usual laws of supply and demand (which is to a notably limited extent), housing is a market that is slow to adapt and will take quite some time to adjust to a sudden change in the demand curve.
Yep, I know about demand shock. And I know that housing is slow to adapt usually, however it all adapt, even if it will take time. (That’s what happened with housing bubbles for example)
And I agree with you, you’re correct, however how does it go against additionally? Even if I’ve simplified, haven’t I made the same point?