There are in-demand cities that have relatively affordable housing (like Tokyo), that allow lots of housing to be built, and cities that have extraordinarily hi

There are in-demand cities that have relatively affordable housing (like Tokyo), that allow lots of housing to be built, and cities that have extraordinarily high costs of housing (like London) generally have a hard cap on housing development. While there is obviously some amount of this whole thing where more housing allows more people to come to a city which can in some circumstances drum up more jobs or whatever, I think it's a significant oversimplification to say that more housing increases property values in the long run. Ceteris paribus, more housing depresses property values. It is possible for there to be a feedback cycle where more people in the area increase the overall prosperity -- and thus property values -- of the area, but I do not think that generally more housing is the most important factor there.