You're right that that is what gets built. And that's completely OK. Imagine one of those new big houses gets built. Someone buys it, they have the money to aff

You're right that that is what gets built. And that's completely OK. Imagine one of those new big houses gets built. Someone buys it, they have the money to afford it. If you don't build that house, that person with their money still exists. But instead, they outbid you for one of the units that should be less expensive. That raises the price of existing housing and keeps you from buying something. That's the process that is the problem when you don't add new supply.