[rurp]

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.

[mrguyorama]

>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.