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Commentary: The Housing Market and the Macroeconomy

It might only be just a little too strong to argue that the housing market dominates our national life. Whilst economists, if they consider housing at all, would think of the consumption of housing services as another aspect of the basket of goods and services bought, like clothing or food, most people would place the decision on the location and type of their accommodation as critical to their sense of well-being if not their very identity. Indeed accommodation may not only represent the key to understanding people’s perception of their own status but as the critical determinant of the wealth as it operates as a vehicle for household saving.