[civilized]

On reflection, I don't think I buy your premises here:

1. Salaries (and spending proclivities) are hardly so tightly banded that X is affordable for everyone who might want to move to an area and X+1 isn't. Tech company salaries alone vary a ton.

2. Housing prices are not set in a centralized way like concert ticket prices.

Those points notwithstanding, I do agree that if there's tons of pent-up demand for a product, tiny increases in supply are not going to change a seller's market into a buyer's market. It may take a lot of supply to overcome induced demand, market psychology and price stickiness, but there is an amount of added supply that would do it. It's just not the case that every rich person in the world wants to move to, say, San Francisco. Once you've built enough, you're going to have inventory that is moving slower than the sellers would prefer, and sellers will then lower price to make that inventory accessible to a wider pool of buyers.