I don't think they were really arguing the supply and demand point. I think they were pointing out all the other stuff that goes along with housing. A lot of pe

I don't think they were really arguing the supply and demand point. I think they were pointing out all the other stuff that goes along with housing. A lot of people want to move to san francisco, but it's just to expensive. Your point (or part of it) means they'd need to add a whole lot of housing to bring the price down. So far so good, and i think we agree up to here. They were concerned with ancillary effects. If you bring in more people, right of the bat you'll need to deal with more water, sewer and garbage. Next you have cars. Roads are tough to widen. Expanding mass transit might help. Next the fire, police, schools and voting districts need to be expanded. Scaling is hard. Scaling government organizations is even harder. Compound interest is awesome, so maybe a few % a year would be tolerable, but it's not like you can just build 100k apartments one Thursday afternoon and call it good. So, you're absolutely right supply and demand works. You're wrong because that's not the only effect in play.