- inelastic means the demand is more or less independet of the price; you can't "just stop renting & living" if prices are going up, your options to bypass are highly limited -> therefore its called >inelastic<
Housing demand is less elastic than, let's say, potato demand, but it's not "absolutely inelastic" as you have said.
Thats always the biggest difference:
In theory, there is no difference between practive and theory - but in practice, there is ;-)
- inelastic means the demand is more or less independet of the price; you can't "just stop renting & living" if prices are going up, your options to bypass are highly limited -> therefore its called >inelastic<