Secret #13 – The Desire to Own the House You Live In is Extremely Price Inelastic

For many people, owning their own house is more than a purchase, it’s a life goal up there with getting married and starting a family. Many people seem to view the home they own is part of their own self-worth.

That’s one reason why the demand for houses is so price inelastic, and why the number of houses sold doesn’t fall that much when prices rise.