The aim of this contribution is to study the role of demographics in the explanation of house prices in the last few decades. Special attention is paid to the role, which has been played by three groups of population that have different necessities in terms of the amount of housing services that they wish to consume: (a) population aged between 25 and 44 years old; (b) population aged between 45 and 64 years old; and (c) retirees. Following our discussion of recent trends in demographics and relevant stylized facts, the construction of a theoretical framework ensues; finally we provide empirical evidence in the case of 17 OECD economies over the period 1970–2013, discuss it in relation to our theoretical framework before we summarize and conclude.