Earlier quoted context omitted.
You are assuming that the economics of house building is such that developers would do as many projects as they could if only they were allowed to, but even in the current market, property developers are still very picky and have to make sure they can make a decent profit; land costs are only one part of that. If you let developers build 100,000 market rate places in one city, (a) they actually don’t have the resourc…
First, I mentioned regions, and do be clear, I'm referring to regions - Thats the point, there is a point where is does reach equilibrium and the price of lower tier and less desirable housing starts to fall. The Bay Area has 7m people in it, SF proper 800k, you could grow the number of housing units by 10% every decade, or less - and it's more than feasible. Seattle Metro is 4m people, and Portland is 2m. That works…
Houston is cheap to live in because it simply isn’t a place that a lot of people want to live. Young people who dream of Texas dream of living in Austin, not Houston or Dallas. That puts growth on Austin, stoking supply and demand, whereas Dallas and Houston are growing much more slowly.
If you want affordable housing and are happy not living in a hot/popular location, things get much easier.