This is called induced demand. Evidence suggests that for housing increasing supply doesn't cause demand to rise as quickly[0][1][2].

[0]: https://www.planetizen.com/news/2019/06/104783-doubt-cast-in...

[1]: https://cityobservatory.org/another-housing-myth-debunked-ne...

[2]: https://www.slowboring.com/p/induced-demand