> why would housing price decrease? One possible reason is because more housing requires more infrastructure expenses. These expenses will be paid from taxes.

> why would housing price decrease? One possible reason is because more housing requires more infrastructure expenses. These expenses will be paid from taxes. Since you cannot tax low-income people, either current residents will see their bill going up, or the infrastructure will be now underfunded. It takes some time for the infrastructure to fall apart though, so the effect may be not immediate.