[AnthonyMouse]

The construction will focus on whatever is in demand. Moreover, expensive luxury units often make more family units available, because then the new occupants of those luxury units vacate the existing family units they'd have otherwise occupied.

[thfuran]

No, it'll focus on whatever's expected to be most profitable, which is not necessarily the same thing.

[AnthonyMouse]

The price they can sell the unit for is determined by demand. Profit is then the difference between that and their costs. But selling units with lower demand would then only be more profitable if those units also had lower construction costs. Which isn't really consistent with the practice of making luxury units.

[fodkodrasz]

No, at least not in the sense as what is in demand by the population, they focus on what is in demand by the investors. All new construction projects advertise themselves either as luxury or as investments. The fact that hosing is usable as investment is what has ruined the market, and the demographics of the west.

[BrenBarn]

Unless they keep those vacated units to rent them out on AirBnB.

[epistasis]

If you didn't build those units, they would be taking existing units for that rather than the new units, right?

[AnthonyMouse]

And if they use those units for that then the demand for new units from people who want to live in them will still exist and it will continue to be profitable to build even more units.