>> Seems like a ridiculous idea to me that so many houses will be built that prices will crash down to the level that anyone can buy them There is an entire hi

>> Seems like a ridiculous idea to me that so many houses will be built that prices will crash down to the level that anyone can buy them There is an entire history of business where that exact thing happens (assuming anyone isn't literal). Watch the markets for energy (increased drilling causes prices to drop), metals (mines come online, prices drop), ag commodities... and real estate. There was a massive overbuild in the US during the late 90's and early 2000s, which resulted in a big drop in prices. See here: https://tradingeconomics.com/united-states/housing-starts#:~:text=Housing%20Starts%20in%20the%20United,units%20in%20April%20of%202009 https://tradingeconomics.com/united-states/housing-starts#:~.... The US needed around 1-1.2 million houses to cover new household formation during that period. Massive overbuild. Now look at prices: https://fred.stlouisfed.org/series/ASPUS https://fred.stlouisfed.org/series/ASPUS Notice the dip after there had been a build up of supply? Prices dropped about 30%. Then notice the shortage of building for several years... and a run up in prices shortly after? The old supply and demand... Just using common sense - land is a gigantic part of the cost of a house. If zoning laws made it such that you can build more units on a given piece of land...how could prices do anything but go down? The old "supply is the solution" is old because it has been true since the beginning of humans buying and selling things.