[bennysomething]

There was a post on hacker news a while back about a study in Finland showing that it doesn't matter if the new builds are "luxury", they increase so supply which will always eventually stop/slow/reverse price increases.

This actually makes sense in terms of supply and demand but more interestingly it's because people tend to "upgrade" when they move this then frees up space at the lower end of the market.

[TheCapeGreek]

The argument I've heard in South Africa for why luxury builds are the only things being built is that they're the only things that are profitable. After time and maintenance, ideally the luxury aspect falls away and it becomes affordable for the masses.

Same idea as buying a car - most people won't buy brand new because of the cost.