> I don't think it is unreasonable to claim that there exist feedback loops +ve or -ve in a neighborhood between the price of new housing being built Per the a

> I don't think it is unreasonable to claim that there exist feedback loops +ve or -ve in a neighborhood between the price of new housing being built Per the article: > The alternative to induced demand is called “filtering” — or as I like to call it, the “yuppie fishtank theory”.[1] Basically, this says that when you build a big glass tower full of nice new apartments, it draws high-earning people away from working-class neigborhoods. Yuppies would probably rather go live in a nice new tower with other yuppies than go around bidding up the price of 40-year-old apartments in working-class neighborhoods. So if you build those “luxury” apartments, they’ll draw the yuppies away and stop them from pricing out the working class. The article [1] in question: > In 2018, I wrote a post[2] about why building market-rate housing in gentrifying cities helps relieve rent pressure on long-time working-class residents. I dubbed this kind of housing “yuppie fishtanks”, and I tried to explain why they help without resorting to the theory of supply and demand. Later, someone made a TikTok video about the concept. Anyway, with people moving back to the big cities after Covid, and housing construction still lagging, I thought it would be a good time to re-up my original post. * https://noahpinion.substack.com/p/yuppie-fishtanks-yimbyism-explained https://noahpinion.substack.com/p/yuppie-fishtanks-yimbyism-... * [2] http://noahpinionblog.blogspot.com/2018/07/yimbyism-explained-without-supply-and.html http://noahpinionblog.blogspot.com/2018/07/yimbyism-explaine... Going back to this article, increasing housing stock in general is generally good: > What you should notice here is that Gopal and Clark only briefly mention the “growing body of research” that supports the filtering effect, choosing only to specifically name the 2019 paper by Asquith et al. They do not mention Li (2019), who finds that “for every 10% increase in the housing stock, rents decrease 1% and sales prices also decrease within 500 feet.”