My guess.. this won’t fit into your basic supply demand chart .. because 1. houses are more expensive than most things and 2. people look at housing as an investment and understand cycles
But if you want to try and figure it out maybe can start with:
Elasticity of demand and supply
The degree of buyers` responsiveness to price changes. Elasticity is measured as the percent change in quantity divided by the percent change in price. A large value (greater than 1) of elasticity indicates Sensitivity of Demand to price, e.g., luxury goods. Goods with a small value of elasticity (less than 1) have a demand that is insensitive to price, e.g., food.
