I mean, rents won't immediately fall. We're incapable of producing that much housing quickly. We're limited by all sorts of construction infrastructure. It's go

I mean, rents won't immediately fall. We're incapable of producing that much housing quickly. We're limited by all sorts of construction infrastructure. It's going to take a decade to crawl out of this hole in the best case. This also assumes that these hypothetical employers would be paying the same amount as the employers who were there before. Which is unlikely because the existing employers were already there paying increased wages, vs the new employers who waited for falling CoL/salaries to move in. Also, raising salaries is often not enough to offset CoL expenses, since not all employees have the same CoL expenses, e.g. families, and those with higher CoL expenses will again move away / won't come to these jobs. Also, in practice, the amount of jobs is not the binding factor in, e.g. the bay area. There are plenty of jobs out there, people are just a lot less willing to move there due to the insane CoL/shitty commute. You could have some perfect storm where the induced demand perfectly offsets the new housing, but if you assume there is some elasticity at all points in the system, I think the default assumption should be that increased supply will drive down prices for everyone.