On: Up to a Quarter of Rental Inflation Is Due to Pric...

[PlunderBunny]

I should have prefixed my comment by saying I'm not in America. In the country I live in, population growth effectively occurs by immigration of not-poor migrants, and that growth continues to outstrip supply. Sure, if you build more high-end houses than you need, you would see the effect you describe, but it's like emptying a swimming pool with a straw.

[BenFranklin100 → PlunderBunny]

I can’t speak to your unspecified country, but in America the effect on lower income housing occurs within three years:

https://www.sciencedirect.com/science/article/abs/pii/S00941...

The only reason we don’t see more of this effect is because zoning restricts most new construction. The straw in your analogy is zoning.