ABSTRACT
Housing, in an economic sense, stands for services yielded by residential capital. The housing market differs from markets for most other goods and services in two ways.
First, residential capital is immobile. The services rendered can be enjoyed only in the vicinity of the buildings. A major economic principle says that commodities shall be made where the relative production costs are the lowest, but this bears little relevance to residential construction. Dwellings must be erected where there exists a demand, regardless of the production costs on the local market.
