Posted inHousing

Yes, building more housing does lower rents, study says

Does increasing the supply of housing, even if it’s mainly higher-cost, market-priced units, temper the runup in costs that has so many residents straining to make ends meet? The idea follows the basic economic principle of supply and demand – when more of something is made available, its price falls. But there are plenty of “supply skeptics” who aren’t convinced that simply opening the housing production spigot will lower costs, and argue instead that it often just drives up prices by promoting gentrification.