[asdfologist]

Lower apartment prices would cause a downward pressure on overall real estate prices, including for houses. As an extreme (and absurd) example, consider the scenario where apartment prices are zero or even negative. Demand for houses would drop dramatically, causing their prices to also drop.

[zaroth]

They are not perfect substitutes. If they were, no one would be paying $2.4m for this postage stamp in Sunnyvale.

There is plenty of supply below $2.4m. The 20 people who made offers on this house weren't interested.