Does Building More Housing Reduce the Market Price?

Report by Vicki Been, Ingrid Gould Ellen, and Katherine O’Regan, Supply Skepticism: Housing Supply and Affordability, NYU Furman Center 8/20/18

Some affordable housing advocates question the premise that increasing the supply of market-rate housing will result in more affordable housing. This paper addresses the key arguments these “supply skeptics” make. Considering both theory and empirical evidence, the authors conclude that adding new market-rate homes moderates price increases does make housing more affordable to low- and moderate-income families.

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