Oh no, that'd be awful...but good news, I just looked into it, no China/Russia investors! It's a real estate developer working with the people to get a bunch of units built to ease a historic shortage. Huzzah!
There's a billion dollar price tag being punted around and you think the resulting development is going to be aimed at and priced to reduce a housing supply shortage? Are you by chance on the market to buy a bridge?
They're saying "thousands of new homes." If they can build that many homes for a billion dollars, that doesn't sound like its' all luxury housing.
I know I'm supposed to say no, but...yes I do believe it.
I have a proof, too long to be contained within the margins of this page, that when supply goes up, price goes down
Go for it. Econ 100 textbook bs about supply and demand are trivially dismissed by a casual examination of housing and rental prices in the US in gentrified areas. What happens when the real world intrudes on academic platitudes is rather straightforward: pricing for everything goes up and the folks who were struggling get pushed out. Nobody who couldn't afford housing in the market before the shift is served.
I'm more than open to reading anything about that! Literally anything!
Most respectfully and deferentially, I don't think "more things available makes price goes down" is a platitude or textbook or academic thing!
I must confess, the fact this Fat Tony logic and not some theory invented in an academic textbook ivory-tower divorced-from-reality impoverished-intellectual safe haven is why I cannot provide a proof: the note about the margin was an attempt to inject some levity, via a reference to Fermat!
Luxury apartments do reduce the housing shortage. Cashed up boomers can move out of the nice family home they've been living in since the kids left and upgrade/downsize.
Building the high end and having people move up helps with the high cost of construction also.
The general phenomenon is well known to those who study this kind of thing, but yep, building housing of any price helps reduce costs overall:
Depends on if people live in it or buy as an investment and leave it vacant or air bb as often happens in London
Not really since those people would otherwise some different existing property to do the same thing with.