Why prices continue to rise?

In the real estate market - the peak season. The fact that real estate prices in Ukraine today are transcendental, that practically no honest person can buy housing for themselves is what everyone says: janitors and journalists, pensioners and students, market traders and deputies. People are also discussing a wide range of possible causes of price increases - from rising prosperity and, consequently, an increase in the purchasing power of the population to the criminal plot of builders, and regional power .

Stimulators to increase housing prices in recent years indeed several. Nominal incomes of the population are growing rapidly. Real incomes — that is, considering inflation — are also increasing. This can not affect the increase in demand for housing and, therefore, the rise in prices. In addition, an increasing number of Ukrainians cannot resist the temptation to purchase an apartment on credit. Another important reason for increasing the cost of housing is the insufficient volume of its construction. The growth of supply does not keep pace with the increase in demand, which creates prerequisites for the corresponding price dynamics. These reasons are objective and understandable to everyone. Therefore, the words of many politicians and statesmen about ways to reduce housing prices seem fair. The fact is that in Russia there is exactly the same problem - with the high cost of real estate , which is not subject to healthy logic, as in Ukraine. Moreover, in both countries, records hit prices for metropolitan housing.