What are the main factors affecting real estate prices in the USA?
What are the main factors affecting real estate prices in the USA?
Real estate prices in the USA are primarily influenced by supply and demand dynamics, interest rates, and economic conditions. When supply is limited and demand remains strong, prices rise. Interest rates play a critical role, as higher rates make mortgages more expensive, cooling demand for housing and potentially lowering prices. Local market conditions, including job growth, migration trends, and property taxes, also affect pricing. Additionally, government policies, including zoning laws, tax incentives, and regulations for homebuilders, can either stimulate or constrain the housing market. Demographic trends, such as the aging population and the millennial generation reaching home-buying age, also shape demand.