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More supply might lower prices, or it might lead to "induced demand" that eventually makes prices creep back up... Maybe even higher than before. So you're both
by rdiddly 9y ago
More supply might lower prices, or it might lead to "induced demand" that eventually makes prices creep back up... Maybe even higher than before. So you're both right. The deciding factor which way it's gonna go is basically "location, location, location."
- YokoZar 9y agoAnd where is that hypothetical "induced demand" coming from? Some other city that now has more affordable housing due to the people leaving town. Either way, when you legalize housing and build more houses, you end up with more houses. That makes getting a house easier, for someone, somewhere.