In my experience a rising tide lifts all boats. New "luxury" housing sets a new price for a neighborhood, which attracts flippers and investors who turn the ol

In my experience a rising tide lifts all boats. New "luxury" housing sets a new price for a neighborhood, which attracts flippers and investors who turn the old, cheaper stock into old, expensive stock. The rise in price of the old stock also increases the price of the new stock because of (hand wave) "comparables" and some people just want the biggest and newest house. Maybe this wouldn't happen if we had all the stock we needed, but from what I've experienced it seems like adding new high priced housing to a supply constrained market increases prices rather than reduces them.