Study on the Influencing Factors of Housing Price

Abstract

This study delves into the multifaceted dynamics of housing prices by applying a multiple linear regression model to assess the impact of various macroeconomic and social variables on housing price growth in the United States from 2010 to 2023. The research scrutinizes the influence of GDP growth, interest rates, unemployment rates, inflation, and population growth on the likelihood of housing price increases. The findings underscore the significant positive effects of economic growth and population expansion on housing prices, while concurrently highlighting the suppressive impact of rising interest rates and unemployment on the real estate market. Interestingly, the study reveals that inflation does not significantly influence housing prices over the studied period. These insights are pivotal for policymakers, investors, and homeowners, providing a nuanced understanding of the factors that can potentially sway housing market trends. The research concludes by emphasizing the complexity of housing market behavior and the importance of considering these economic indicators in strategic planning and investment decisions.