You are assuming that demand is not elastic though. If 1,000,000 more houses were built in the desirable parts of CA and filled with new residents, are you comp

You are assuming that demand is not elastic though. If 1,000,000 more houses were built in the desirable parts of CA and filled with new residents, are you completely sure that there wouldn’t still be at least as many people seeking to live there as this year? It would still be just as temperate and any dip in prices would be seized on as a great opportunity to snap up a home, increasing demand. I suspect the equilibrium price of housing would barely change at all. I am still very pro-development, but I don’t actually think it would get cheaper to live in these places - just because there’s such a plentiful supply of more people to move there.