https://www.frbsf.org/wp-content/uploads/wp2025-06.pdf
https://www.federalreserve.gov/econres/feds/files/2020044pap.pdf
https://www.localhousingsolutions.org/pl...g-for-new-housing-for-all-income-levels/
https://www.tandfonline.com/doi/full/10.1080/10511482.2024.2418044
Quick summary: new development tends to markedly increase demand in the immediate area more than it unloads supply. The increase in demand outstrips the increase in supply, and leads to increased rents and mortgages in a hyper-local sense. When an
entire market is subject to the same trends (as is Austin), this leads to cost increase spirals EVERYWHERE.
What is happening is not a market supplying housing for internal demand, but a market supplying housing for relocational demand (e.g. rich people from elsewhere) who can afford those cost increase spirals whereas the internal demand (e.g. people from here) are displaced to cheaper markets.
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