Manchester City Centre Housing Boom

MANCHESTER CITY CENTRE HOUSING BOOM COURSEWORK By Course Name Professor’s Name University City, State Date of Submission Manchester City Centre Housing Boom Coursework Question 1 High investment rates in the housing market. Many young investors are investing directly in this market. The development of modern and urban housing facilities has contributed to the boom. The overseas returns on rents have been pumped into the development of more upmarket apartments, the reinvestment of returns from foreign investors has been significant in enhancing the boom. The forces of demand and supply in the housing market have occasioned boom in this market. There are few upmarket apartments yet there is an influx of young professionals in the market yielding to an anticipated undersupply of housing facilities within Manchester city center in the next five years. The capitalist system in the market has influenced the boom. Rent is determined by demand and supply forces. Since there is an undersupply of upmarket apartments, owners charge exorbitant rent rates, thus a boom in the housing market since there is constant money circulation. Question 2 The effects of forces of demand and supply in the upmarket cannot be underscored since they influence pricing and volume of sales. Being a capitalist market, there are no price controls within the market set up, demand and supply patterns determine the rent rates. In the diagram below, the supply of rented housing continues to rise significantly with an increase in the demand for housing. The demand is in excess of the supply, thus the market forces are beyond the equilibrium point (P1, Q1). Rental charge increases with increase in demand.
In the diagram below, the introd...