[michaelt]

Optimistically, or pragmatically?

An optimist would predict that some people will spend the extra $$$ on a car and a move to the suburbs; others will choose not to work at all, moving to cheap areas to live frugally; and others will find house building much more profitable as rents rise, motivating them to build more.

A pragmatist would say you're completely right, based on my country's many failed attempts to lower house prices by handing out money to house buyers.