[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.