I wonder if it’s akin to how adding lanes to a road doesn’t reduce traffic. Once the road has more capacity, people use it more, using up the added capacity and leaving it in the same congested condition.

I think their theory with housing was similar. Added supply would create the conditions for increased demand to fill it, and everything would equal out. Maybe a short term dip (as is the case with traffic), but not a a long-term downtrend.

Bringing people to the city could also act as more of a feeder for future single-family home buyers in the area, and those still do have a more limited supply.

I think the big question will be what happens if we build a ton home housing right as the baby boomers are vacating their homes. Is this a short term crunch, where building to meet it will create a surplus of housing over the next 10-15 years that will tank the market?