Open AccessThe Relationship between Interest Rates, Income, GDP Growth and House Prices
Author(s) -
Ting Xu
Publication year - 2017
Publication title -
research in economics and management
Language(s) - English
Resource type - Journals
eISSN - 2470-4407
pISSN - 2470-4393
DOI - 10.22158/rem.v2n1p30
Subject(s) - economics , interest rate , real estate , house price , monetary economics , real gross domestic product , labour economics , finance
This paper will analyse the relationship between interest rate, income, GDP growth and house prices. First, the control power of interest rate for the prices is limited. Second, people’s income increases, thus that also increases the demand for housing. But house prices are too high and will cause buying pressure. Third, the real estate industry’s growth and GDP growth have inseparable relationship, they interact with each other.