> demand is inelastic There you go again, making fallacious claims. Demand for housing is definitely not inelastic. > What happens is that prices go up, lando

> demand is inelastic There you go again, making fallacious claims. Demand for housing is definitely not inelastic. > What happens is that prices go up, landowners build upward until prices stagnate, then landowners stop building. Wrong again, landowners will build upwards until the cost of building upwards outweighs the gains in terms of expected rent. There is no reason the rent couldn't decrease and still result in a net increase in profit for the landowner. After all, you would be renting out more units on the same land.