Population and Housing

[tomh009]

I wonder what house prices would be like if there was no such thing as a mortgage?

I’m not advocating for this, but I’d love to know as a matter of curiosity.

I assume what you are asking is, what would house prices be like if you could not borrow money to buy a house.

The short answer is that the prices would surely be lower. But home ownership rates would be lower, and the construction business would not exist the same way it does today. You can see the artifacts of inability to borrow for a house in most developing countries: partially-built houses , or houses where the first floor was built (and is inhabited) but the second floor has just some walls or rebar. Basically, you build as you have money, you don't just go out and buy a house.