Induced demand is not an infinitely scalable effect. There is some point at which adding more lanes will in fact reduce traffic congestion (ignoring logistical

Induced demand is not an infinitely scalable effect. There is some point at which adding more lanes will in fact reduce traffic congestion (ignoring logistical issues with extremely wide roads, which isn't the point of the induced demand argument). With housing, the induced demand is mediated by housing prices. More housing lowers prices, which attracts more demand, which raises prices. But it's not going to raise prices above where they would have been had no new housing been built. (If prices were higher in the more housing scenario, what's stopping the person who moved to the city at those higher prices from moving in the less housing scenario?)