Do migrants push up house prices?

CLAPTON

Generali wrote: »

So put me right. How does someone that can't afford a million pound house but quite fancies one put up the price of a million pound house via a supposed increased demand? What is the mechanism for this 'quite liking something' translating into a price rise? If I change my mind and go from not wanting to own a private island to wanting to own a private island that I can't afford, how much do you think the price rises by?

It's not being pedantic, it's about understanding what demand is rather than what idiots like you pretend it is. It's hardly my fault that you can't understand what Marshall was banging on about.

the general proposition that the price of housing in london is affected by the number of people living there and 'wanting' living accommodation is self evidently correct.
the mechanism whereby 'want' is translated into bidding for a property at the point of sale is also self evident


the proposition that

The reason they (Ferraris) are expensive is that supply is also low.

is self evidently wrong

price, in some circumstances, is indeed determined by the demand of people able to pay and people willing to sell. That however doesn't mean that a general statement that prices in London are high because demand for accommodation is high.
The demand at the point of sale, is made up of many economic factors that create a demand for this product which eventually shows as a purchase.

Your example about the island shows your lack of knowledge of economics, maybe as your brains cells seem to have been adversely affected by your worship of your god the EU.

mrginge

This is excellent research.
I have used the same methodology to conclude that interest rates will be -3.5% in 2028

Generali

CLAPTON wrote: »

the general proposition that the price of housing in london is affected by the number of people living there and 'wanting' living accommodation is self evidently correct.
the mechanism whereby 'want' is translated into bidding for a property at the point of sale is also self evident


the proposition that

is self evidently wrong

price, in some circumstances, is indeed determined by the demand of people able to pay and people willing to sell. That however doesn't mean that a general statement that prices in London are high because demand for accommodation is high.
The demand at the point of sale, is made up of many economic factors that create a demand for this product which eventually shows as a purchase.

Your example about the island shows your lack of knowledge of economics, maybe as your brains cells seem to have been adversely affected by your worship of your god the EU.

So by your argument, if I decide that I quite fancy owning a Ferrari, the price will inevitably rise regardless of my ability to pay.

This is not economics.

CLAPTON

Generali wrote: »

So by your argument, if I decide that I quite fancy owning a Ferrari, the price will inevitably rise regardless of my ability to pay.

This is not economics.

we agree : your example about the Ferrari was economic nonsense

baza52

Surely its about supply and demand.

More people living in London means the demand for housing is greater so the price will reflect this.
An owned property rented out would increase in value as the landlords increase rent to match the demand.

cells

baza52 wrote: »

More people living in London means the demand for housing is greater so the price will reflect this.

Why just London why does the idea not apply to say the North or Midlands or Wales? all of which have taken a lot of migrants since 2004 and the population of the UK is up by about 5 million yet those regions are cheaper now than in 2004 when the eastern Europeans got free movement

cells

Since all but two regions are cheaper now than in 2004 in real terms it's impossible to claim anything has pushed prices up because well prices are not up

The wave of migrants since 2004 saved a lot of the country from going stoke-on-trent

baza52

cells wrote: »

Why just London why does the idea not apply to say the North or Midlands or Wales? all of which have taken a lot of migrants since 2004 and the population of the UK is up by about 5 million yet those regions are cheaper now than in 2004 when the eastern Europeans got free movement

perhaps those areas don't have such a shortage of houses or as high a demand for housing. (yet)

paddyrg

Correlation is not causation. It's important enough to trust - correlation is not causation. You simply cannot draw lines between sets of data that show similar trends and expect meaningful results.

Orange flavour lollies cause burns! If you look at the graph of lollies sold and hospital admissions for burnt hands there's a correlation. Or... on hot days, people have more barbecues and more lollies.

You can take any two sets of data and regress them for trends, and find some correlations between entirely unrelated, or very loosely related series.

Generali

Marshall on demand:

http://www.econlib.org/library/Marshall/marP11.html#Bk.III,Ch.III

If corresponding prices were filled in for all intermediate amounts we should have an exact statement of his demand. We cannot express a person's demand for a thing by the "amount he is willing to buy," or by the "intensity of his eagerness to buy a certain amount," without reference to the prices at which he would buy that amount and other amounts. We can represent it exactly only by lists of the prices at which he is willing to buy different amounts