Increasing any amount of supply will decrease prices while demand stays constant. Do you have reason to believe demand will grow at the same rate as new housing is built?
As long as the Federal government has a de facto open borders policy, demand will continue growing. I'm not trying to start an off-topic debate about immigration policy here, but regardless of your feelings on that issue the reality is that today we have a lot of people crossing the border and looking for places to live.
I mean, yes? Housing prices have continued to shoot up in many western cities despite large increases in housing supply.
It's weird to me that the concept of induced demand is pretty common knowledge when it comes to road traffic, but mostly ignored in housing discussions.
>I mean, yes? Housing prices have continued to shoot up in many western cities despite large increases in housing supply.
Well yes, because we have decades of undersupply to correct! Of course a small step in the right direction doesn't magically fix everything. We need to build WAAAAYYY more, like to a vast overabundance, which capitalism unaided can never do because a builder will never start building a hundred rooms if that makes the market go down because that would ruin their profits elsewhere.
I would be surprised if, after there is enough supply, there is an "induced demand" effect for housing. Humans take like 20 years to go from born to needing a house, and most people don't choose to have children when they otherwise wouldn't because of cheap housing.
https://www.pbs.org/newshour/world/u-s-allowing-hundreds-of-...