Articles like this frequently assume that if new housing can be built, the value of existing housing will go down. Is there data to support this? Supply and d

Articles like this frequently assume that if new housing can be built, the value of existing housing will go down. Is there data to support this? Supply and demand is of course a real and powerful force, however if you tear down a single family house and build something more dense in its place, then you can build many units where there used to be only one. My intuition is that the cost of existing houses would not take such a big hit (and might even continue to appreciate), because existing houses have more land and thus more potential to build multiple units within that footprint.