> the evidence is clear to me that you'll never reach the incredible supply levels that would cause prices to drop (why would builders do this anyway?). It's t

> the evidence is clear to me that you'll never reach the incredible supply levels that would cause prices to drop (why would builders do this anyway?). It's the same as in any other market, people will carry on doing things while there is significant profit it in. A builder can only stop another builder by forming a cartel. Also, bear in mind that just because house prices have gone up as decent numbers of buildings have been put in place, it doesn't mean they wouldn't have gone up more if supply had been even more constrained. There probably is some self perpetuating element to house building - if prices are cheaper than they would otherwise be, more people would move to a city, so that means there is an effwct of supply creating more demand. But I think that occurs at the edges. Most people don't move city or in particular country for the house prices.