The article examines how property prices and investments change during economic ups and downs, focusing on the competition between households and businesses for real estate. By adding a construction sector to the model, the study shows that when demand for residential real estate goes up, the cost of building commercial structures also rises, leading to less investment in commercial real estate. The allocation of land for residential and commercial use influences their respective investments. After the financial crisis, both residential and commercial real estate investments fell, affecting prices. The study suggests that changes in demand and supply of real estate have a significant impact on prices and investments over the past two decades.