I should have clarified. Yes, increasing supply satisfies some demand and brings down prices. My point was that demand is so much higher than supply that the

I should have clarified. Yes, increasing supply satisfies some demand and brings down prices. My point was that demand is so much higher than supply that the market value is still much higher than the intrinsic value. Saying you can build a home for $50K doesn't mean it will cost that. Regulatory concerns are a large part why homes so much more expensive. I built a 2 story, 4 room structure inside of a friend's warehouse for $3,800 total. I got a book on framing and just bought a bunch of lumber and drywall from Home Depot and built it myself with the help of a friend. It wasn't legal of course. If I actually followed the law I couldn't have afforded a place to live and would have been homeless. I agree that technology follows an exponential curve and will bring construction costs down, but gov't and society in general doesn't move at that speed and so I don't anticipate homes being much cheaper. That and inflation.