> more expensive housing (larger, more luxurious) will be constructed first because it's more profitable, and building companies and homeowners will do all they

> more expensive housing (larger, more luxurious) will be constructed first because it's more profitable, and building companies and homeowners will do all they can to keep less expensive units out of the market as long as they can That's almost entirely due to regulations that restrict density. For example, strict parking space requirements sharply limit the number of units you can build in a given parcel. If you are required by law to only let 10 people live on a parcel that could comfortably house 80, you're going to have to maximise the amount of money you get from those 10 people. Repeal the laws that force developers to focus on luxury housing, and you'll get less luxury housing. It's not rocket science, and it works well in areas which have done so.