Induced demand is generally found in situations where you're giving something away below cost or especially for free. Highways are the classic example of induce

Induced demand is generally found in situations where you're giving something away below cost or especially for free. Highways are the classic example of induced demand precisely because they're free to use. Induced demand in the context of market-rate housing is highly speculative and if it exists at all likely to be very limited. It's sort of non-sensical, like saying that demand for the original iPhone (or any new product) is "induced demand", either because it was new or because people wanted to be like other people. That's not the kind of phenomenon the concept of induced demand is trying to describe.