Induced demand in itself is not a bad thing. The reason why induced highway demand is almost always bad is because expanding highways rarely results in faster t

Induced demand in itself is not a bad thing. The reason why induced highway demand is almost always bad is because expanding highways rarely results in faster trips after a few years. But a public transit expansion on the other hand can move many, many more people for decades before the induced demand causes the transit system to choke up. Likewise for housing, induced demand isn't that bad. Most people will only ever have one house. In the case of a highway expansion, people can easily take multiple auto trips that they'd otherwise avoid given congestion. Unless the price of housing craters, I doubt most people will start consuming multiple homes.