Yeah, generally speaking, if you are comparing the same types of housing (Single Family Homes) isn't new construction almost always more expensive than the existing inventory? Unless OP is talking about building more of different types of housing (multi-family, condos, etc.), then I don't see how the cost for housing goes down without a recession, as you said.
Another issue with the "just build more" philosophy is that it takes no account of the added infrastructure stresses that drive up other prices (gas, electricity, water, traffic, public transit, medical/police/fire) in the community and can detract from the quality of life previously enjoyed by the natives.
Another issue with the "just build more" philosophy is that it takes no account of the added infrastructure stresses that drive up other prices (gas, electricity, water, traffic, public transit, medical/police/fire) in the community and can detract from the quality of life previously enjoyed by the natives.