Suppose the city of Oakland, California, was randomly chosen for an experiment in which they had to build 25,000 extra market-rate housing units per year beyond their current plan, with proportional increases in the number of office buildings, schools, etc. In terms of style, quality, location, etc, these homes would be distributed in exactly the same proportion as the city’s existing housing stock. If two people moved into each of these units, this would bring Oakland’s population from ~500,000 now to ~1,000,000 at the end of the decade. Suppose that every other city continues its current policy during this time.
At the end of the ten years, you would expect housing prices (compared to an alternate Oakland that didn’t perform this experiment) to be: