The simplest answer possible: the higher end of the market, in a market based housing system, will always live where it wants to live, because it can bid up re

The simplest answer possible: the higher end of the market, in a market based housing system, will always live where it wants to live, because it can bid up rental prices higher than the rest of the market when there is housing scarcity. Right now in the bay area, there are many wealthy people (including many people on this website) that are living in non-luxury condos that would live in luxury condos were they more reasonably priced (which building more would do). Those wealthy people would move out of middle class housing and then people with lower incomes would be able to afford the middle class housing. If you build enough luxury housing, the greatest beneficiaries will be people with lower incomes