While house prices are among the most affordable in Newcastle compared to the other major cities in the UK, they aren’t showing signs of dropping. The opposite is true as the housing supply is failing to meet the demand. Over the past 10 years, an average of 715 units have been added to the housing stock each year. This is well below the annual housing requirement of roughly 1,128 units. Taking the previous backlog into account, an undersupply of at least 18,707 housing units is expected by 2030. This economic fundamental is the basis for long term growth despite economic headwinds that may cause price fluctuations. Over the next 5 years, prices are expected to rise 13.5%.