Since housing generally represents a large part of most household budget, the elasticity of demand for housing is likely to be large.

Question

Quizplus · Accepted Answer

Housing is a necessity and a major investment for most people, so changes in price (or interest rates) can have a significant impact on the amount of housing demanded. Therefore, demand for housing is likely to be highly sensitive or elastic to changes in price.

Since Housing Generally Represents a Large Part of Most Household