Housing prices are affected by the
macroeconomy. Research conducted in 2018 indicates that a 1% increase in the
Consumer Price Index leads to a $3,559,715 increase in housing prices. As a result this raises the property price per square foot by $119.3387.
Money Supply (M2) has a positive relationship with housing prices. A study conducted in
Hong Kong reported that as M2 increased by one unit, housing prices rose by 0.0618. When there is a 1% increase in the best lending rate, housing prices drop between $18,237.26 and $28,681.17 in the HAC model. Mortgage repayments lead to a rise in the discount window base rate. A 1% rise in the rate leads to a $14,314.69 drop in housing prices, and an average selling price drop of $585,335.50. In the United States, when there is a 1% increase in the US
real interest rate, the property prices decrease from $9302.845 to $4957.274, and sellable area drops by $4.955206 and $14.01284. When there is a 1% rise in overnight Hong Kong Interbank Offered Rate, the housing prices drop to about 3455.529, and the price per ft2 will drop by $187.3119.
Housing affordability index Housing crisis ==Health and housing==