A Study on the Meaning of Supply and Production in the Housing Market

Abstract

(1) RESEARCH OBJECTIVES The purpose of this paper is to argue that supply in the housing market should be viewed as a concept that combines the production of new housing and the sale of existing housing (existing housing supply)and to expand the concept of supply in the housing market considering interest rates and financial markets in terms of housing investment goods. (2) RESEARCH METHOD This study adopted the existing theoretical literature review and I added my thoughts to it. (3) RESEARCH FINDINGS I argued that the logic that supply is used similarly to production in general economics should be used in a clear distinction between production and supply in the housing market because of the properties of housing, such as permanence, buoyancy, and immobility. 2. RESULTS Considering that housing has characteristics such as durability, permanence, buoyancy, and immobility, unlike general goods, it is hoped that this new discussion on supply will help to understand the housing market and establish correct real estate policies.