If you consider what actually deters construction/building rates, there's no reason to believe that capital "moved elsewhere" (appropriated by some abstract ent

If you consider what actually deters construction/building rates, there's no reason to believe that capital "moved elsewhere" (appropriated by some abstract entity / people) would translate to more housing. Supposing everyone had more money in their hands (all else remaining equal), that would just be reflected in the market. Houses would increase in cost. Now you're where you started. Housing supply is just too inelastic in most US cities.