[aimanbenbaha]

>For example: more supply can generate more demand. Demand can be inflexible with respect to supply. Supply and demand are unstable and can change unpredictably. In a monopoly situation price can be manipulated. Short term large supply can hamper long term.

What you're describing here is jevon's paradox and it particularly works on unfulfilled markets with high price elasticity. Additionally the field of economics deals a lot of what you're describing in the contexts of monopolies/monopsonies.

But as a general rule of thumb, if something has an inelastic demand (as in housing) the law of supply and demand will always be the guiding concept to explain the shortage and high prices.

[PaulDavisThe1st]

A law of supply and demand that applies only to something with inelastic demand (and housing is not a perfect example of such a thing) is very different than some universal law of economics, and even more different than any law of physics.