Housing demand refers to the desire and ability of individuals or families to purchase or rent homes. This demand is influenced by various factors, including population growth, income levels, interest rates, and economic conditions. When more people want to live in a certain area, the demand for housing increases, often leading to higher prices. Additionally, housing demand can fluctuate based on seasonal trends and local market conditions. For example, during a strong economy, more people may seek to buy homes, while in a recession, demand may decrease. Understanding housing demand is crucial for real estate professionals and policymakers to make informed decisions.