Building new homes at the top of the market induces at “moving on up” effect that quickly creates vacancies in the least-expensive homes.

Conversely, blocking new housing in high-demand places makes wealthy people move into and renovate existing, once-affordable homes, raising prices.
Reposted from Andrew Rivas
Building market-rate/luxury housing relieves pressure on rents in lower-end housing. This is because absent the new luxury housing, wealthy people will move into older homes displacing lower income families. This process is called filtering. www.planetizen.com/news/2024/03...

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