> This explanation is commonly repeated, but it rings false, for a couple reasons. Good explanation, thanks. While often repeated on HN, reality is that exist

> This explanation is commonly repeated, but it rings false, for a couple reasons. Good explanation, thanks. While often repeated on HN, reality is that existing homeowners have the home to live in it, approximately none of them are tracking prices or caring if it goes up/down. The only exception is the house flippers, but those are a tiny minority. Even for the rare few who do obsessively track prices, they don't matter because the city planning commissions who approve the permits to building companies are not consulting with any voters on what they do or don't do.