@BenRossTransit @matthewstoller Sure. We’re painting in broad strokes. But where exurbs are distinct markets, it’s easier, not harder, for homebuilders to exercise market power. In places with a lot of old, underutilized supply, things get complicated, whether an older unit is plausible substitute for a home in the suburbs depends on a lot on things like crime, the state of the home and the state of neighboring homes.

@BenRossTransit @matthewstoller The key point is that it’s hard to find places where new private supply responds to consistent demand to bring down prices. Austin is perhaps an example, at least in its rental market. But developers and home builders are profit-motivated and cautious. They try to exercise pricing power in a forward-looking way, not to meet demand until price falls to marginal cost. Barriers to entry are high enough they usually succeed.