The main purpose with this thesis is trying to understand the underlying factors of housing prices. The survey has been limited to Stockholm and the years 1990 to 2013. The independent variables were selected based on previous research. The real estate price index was then analysed using regression analysis and correlation analysis. The results have been compared with the previous research and with economic theories. The conclusion of the study is that the real interest rate and real disposable income, along with household preferences can explain a large part of the housing price surge. However, the preferences are exogenous variables in the general equilibrium model and therefore cannot be measured.