Are there any instances of this happening, ever? > Yes, the existence of less expensive high-density housing in a neighborhood puts downward pressure on the pr

Are there any instances of this happening, ever? > Yes, the existence of less expensive high-density housing in a neighborhood puts downward pressure on the price of single-family homes. That's false. If land can be redeveloped into high density housing, developers will pay top dollar for it. An 80-story tower going up next to your bungalow may seem annoying to you, but some developer is going to pay you a mountain of money for that bungalow - way more than you could get for it from a regular purchaser - knock it down, and build their own 90-story tower.