Aren't high house prices due to immigation and low interest rates?

Aren't high house prices due to immigation and low interest rates?

A:

This is a common misconception but does not make any sense. If demand increases you would just increase supply so there are more houses available. New Zealand has tons of really buildable land, a lot of around the main centres and serviced by good networks of rural roads. It has been estimated that extending the city limits in Auckland by just 2km would accommodate another million people. Mobile phones don't increase in price because there is increased demand - they just make more of them.

Low interest rates should be helping people buy houses not hindering them. House Club is here to expose the myths you have been told about house prices by simply building them! And you can be a part of it.

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