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, and interest rates. 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 economic conditions. For example, during a strong economy, more people may seek to buy homes, while in a recession, demand may decrease as individuals face financial uncertainty. Understanding housing demand is crucial for real estate professionals and policymakers.