At higher prices, real incomes will fall and individuals will reduce their demand. In addition, at higher prices, the alternatives to owning a property, such as renting, appear more attractive and individuals are more likely to rent. When house prices are lower the reverse is true, with individuals encouraged to buy because of a rise in their real income and because renting seems less attractive. However, the demand for property is also partly speculative, so that a rise in prices can lead to a rise in demand as buyers anticipate a speculative gain.