Construction costs don't scale linearly with rent prices, it's a different market altogether that depends on regulation/worker supply/material costs/equipment/etc.

As long as construction costs remain below the value of the units all-in, there's profit motive for developers to build.

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estearum 5 hours ago | parent [-]

> As long as construction costs remain below the value of the units all-in, there's profit motive for developers to build.

Not true

Real estate development is extremely capital intensive and therefore it's a question of all-in cost of capital compared to other investment opportunities.

	▲	9rx 4 hours ago \| parent [-]
		The opportunity cost has already factored that in. Unless you think cost calculations are arbitrarily forgetting to include certain costs for no reason?