Does it have to though? Think about startup fundraising rounds. At the very beginning, the founders own 100% of a $0 company. let's say they give up 15% for $15

Does it have to though? Think about startup fundraising rounds. At the very beginning, the founders own 100% of a $0 company. let's say they give up 15% for $150k at a $1mm valuation. 85% of $1mm is worth more than 100% of $0. So then a series B, for another 15% but this time at $10mm valuation. They're diluted down to 70%, but it's of $10mm, which equals $7mm. What does this have to do with housing? Well as a city grows, existing housing can become more valuable, along with more housing also becoming available. So similar to cases where dilution doesn't agree over existing shareholders because they now own a smaller piece of a much larger pie, so too then owners of existing housing also appreciate, rather than depreciate in value.