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Induced demand is real. Building a desirable house may cause somebody to move to a city that they wouldn't otherwise move to.

But the article is more than its headline. It comes armed with data that shows that the induced demand effect is not significant in the markets studied.



When you move into one place, you move out of a different place.


Housing is a local phenomenon. Some cities have a supply shortage and some don't.


Frequently leaving your parents or ex or roommates in the old place.


In that case, you had people co-habitating who didn't want to be. It's still an argument for more housing.

Also, there's a limited number of times that a housing unit of n people can split up without leaving an un-occupied unit.




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