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[quote=Anonymous][quote=Anonymous][quote=Anonymous]
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.

[/quote]

So lets say the amount of housing in the District doubled.  Instead of housing for 750k people you have housing for 1.5 million.   Lets say prices/rents  for apts/condos drop by 5%.

Are there 750k people currently living in the rest of the metro area who would move to DC (to apts/condos) because its now 5% cheaper than it was?  I mean lots of people living in the suburbs work in the suburbs, and are going to need a huge discount to reverse commute. Some work in DC, but don't want to live in a condo or apt.

Maybe there are 750k people who live in the suburbs, who either already live in apts/condos or would be interested in doing so, and who work in DC.  But even among those, there are plenty who just like the suburbs more.

Now maybe if rents/prices went down by 20%. you would get more.  That only shows there are limits to the rent/price decrease. Its VERY unlikely there would be no price decrease - because that implies all the new units would be filled even if prices/rents only went down by one percent say. [/quote]

Doubled? Why don't we just say it grows by a million percent? The housing stock won't double in the next 100 years. [/quote]

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