why have house prices gone up so dramatically over the last 20 years?

Answer 1

Basic Economics

A high demand because so many people want to own their own houses, which has now caused a shortage in Supply. Both factors increase prices.

The only way to reduce house prices is for loads more houses to be built, thus increasing the Supply.

Answer 2

In the US, house prices have actually gone down or stagnated in the past one year to 18 months. Generally the trend in prices of anything is upward. Houses are being made bigger, fancier and with more technology than in the past. Shortly after WWII, a 24 x 36 bungalow on a concrete slab was a popular house. Today, you would have a hard time trying to find someone to build one.

Answer 3

Because the interest rates on mortages are quite low, there is a demand in house and land which forces the price to increase dramatically.
If the interest rates on mortages were to increase, house and land prices would decline due to the lack of affordability and inflation (ie people would not be able to pay the mortage payments therefore they tend not to buy).

Answer 4

Housing prices are affected by several factors. Basically, however, the two most important are the costs involved with producing NEW housing coupled with the demand for desirable land on which to build them. Existing houses follow the market based upon the costs of producing the new.

Answer 5

It is purely a factor of supply and demand. A basic law of economics is that scarcity of supply allied to increased demand will, all other things being equal, lead to price increases. Land, where houses are built on, is a scare resource. The world population grows but the amount of land to build on is finite. If you are looking to raise extra cash or reduce your monthly mortgage outgoings then look no further than http://www.shoessale.net

Answer 6

Supply and demand. Population growth calls for more housing and since the age old issue of land..."they aren't making it anymore" still holds true...except for Hawaii...which is the only state that actually gets bigger each year due to lava hitting the ocean and hardening...thereby expanding the island....prices go up.

Answer 7

Its called supply and demand, population has increased enormously over the last 20 years and more and more people have access to mortgages especially within the uk.

Answer 8

because the population has increased, a lot more people have two homes, and so there is more demand hence higher prices.

Answer 9

GREED.....i know i have benifitted since 1980 however its all relative if you think about it you need somewhere to live so if you sell you have to buy another and they have increased in value....your just on a tread mill i am going to sell pocket and spend.....spend....spend am going to rent

Answer 10

They don't make land any more.