A higher expected appreciation of housing prices leads to ________.

Name: A higher expected appreciation of housing prices leads to ________.
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Question

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When there is a higher expected appreciation of housing prices, it encourages investors and developers to build more properties, leading to an increase in residential construction. This is because potential profits from buying and selling homes are higher, which incentivizes developers to build new homes and increases the supply of available housing.

A Higher Expected Appreciation of Housing Prices Leads to ________