The Effect of Density on Demand

Alex Potorack writes that there's two things going on here. Confusing shifts in demand with movement along the demand curve and getting causation backwards. Scott Sumner is an economist and blogger. He says building more housing can make a city more desirable, but this effect could be so strong that it overwhelms the price depressing impact of a greater quantity supplied. Alex: Texas provides a nice case study. Among Texas's big metro areas, Austin has the tightest restrictions on building,. Houston is the most willing to allow dense infill development.