Most people on HN always repeat the sentiment that if you build more housing, prices will fall. I think you're right, these will sell for far above average. We don't have a housing shortage problem, we have a housing turned into a financialized asset problem.
It’s an asset due to its scarcity. If you remove the scarcity, it won’t be an asset. Financial asset managers buy real estate because they trust that silly people who think the demand for real estate is infinite will block new development allowing them to make money.
the thing is that these being available frees up other units, and you need to build enough for this to actually result in falling house prices. Canada and the US are generationally behind on building housing and so this effect will take many projects like this to show up.
Rich people do not pack up and leave in the absence of luxury housing. They settle for the next best unit, and then the people who would've booked that unit settle for their next best unit, and the shit continues rolling downhill. You have people spending thousands of dollars a month to live in Manhattan in buildings originally built as tenements.
The newly developed housing isn’t meant to be the one that is cheap. What gets cheaper is the old housing people left behind to get into the new housing.
And if a city cannot build as fast as people flowing into the city, then there will never be “housing left behind”.
