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[quote=Anonymous][quote=Anonymous]

I know this idea of increasing housing supply is like a religion to its advocates, and there's no evidence anyone could ever present that would change their mind, but there is a fundamental contradiction in their arguments.

An area is expensive because lots of people want to live there. Some people get shut out because of the prices are too high. If you create more housing in the area -- enough to actually affect the prices -- more people will show up to buy them, including all those people who had been shut out. That will bid up prices. So prices won't actually go down -- this might go up beyond what they would have otherwise been, and you'll just have more people all trying to live in the same area.

Prices won't go down until the area becomes less desirable. Have you every gone to one of those beach towns that are horribly overbuilt? And you just want to get out of there because there are too many people and it is so ugly? It's like that. [/quote]

Prices won't go down until supply exceeds demand.

Those beach towns are so crowded, nobody goes there anymore.[/quote]

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