Why house prices have been more resilient during the pandemic than expected

House prices have remained strong despite rising interest rates and a slowing economy. The resilience of the housing market can be attributed to three main factors. First, net migration to the rich world is at an all-time high, driving up demand for housing. Second, strong wage growth and the entrance of wealthier households into the mortgage market have supported house prices. Third, shifting preferences for housing, such as the desire for home offices and gardens, have increased demand. Despite concerns about a potential housing correction, there is no evidence of widespread delinquencies or foreclosures. The housing boom may be over, but there is currently no sign of a housing bust.