# Build Build Build Build

And some people, for some reason, they think that building more won't affect prices.

It's mind-boggling.

# One Type Of Person, One Type Of House

You have 200 people wanting a house, and there are only 200 houses. So the price of a house is high.

You build 20 more houses, the price of the houses goes down.

# Over time

Every year, 10 people enter the market to buy a house.

Every year, 5 houses are built. Prices are high.

But if you build 10 houses a year, prices are lower.

# Induced Demand

A city is known for being affordable, so a few more people want to move there every year.

So instead, 11 people enter the market every year.

It might raise prices, but only if you don't build enough housing. In fact, you can keep prices low if you just keep building.

And you keep building until the place reaches its natural limit, until the number of people entering the market slows down. Because of course an infinite amount of people won't want to move there.