Analysis of the Impact of Interest Rate Level on the Real Estate Industry

Abstract

As a matter of fact, interest rate level is one of the key indicators in financial fields especially in recent years, which has a strong effect on domestic economy as well as global economy. Among various affected fields, the real estate industry is one of the most influenced industries on account of its intrinsic features of financing as well as highly relevant on the cash flow. With this in mind, this study will systematically analysis the impacts of interest level on the real estate industry based on the data analysis of several situations and cases. To be specific, the interest rate shock effects will be evaluated at the same time. According to the analysis, the mechanism will be demonstrated based on the evaluations from the demand as well as supply sides. Following the analysis, corresponding suggestions as well as strategies will be proposed accordingly. Overall, these results shed light on guiding industry, governments as well as consumers to aware the impacts and pave a path to propose solutions.