"A flurry of studies over the past few years have consistently found that new market-rate development, even of the luxury variety, helps relieve pressure on local housing prices in this way. According to one 2019 study of low-income census tracts, the construction of new market-rate rentals resulted in rents for nearby buildings falling by 5 to 7 percent. A more recent 2021 study, by the economist Kate Pennington, looking exclusively at San Francisco, found a more modest drop of 2 percent, alongside evidence that new development reduces the displacement and eviction of existing residents. It might not change minds at a raucous public hearing, but the research is clear: Even new high-end development can help cool local housing prices."
"A flurry of studies over the past few years have consistently found that new market-rate development, even of the luxury variety, helps relieve pressure on local housing prices in this way. According to one 2019 study of low-income census tracts, the construction of new market-rate rentals resulted in rents for nearby buildings falling by 5 to 7 percent. A more recent 2021 study, by the economist Kate Pennington, looking exclusively at San Francisco, found a more modest drop of 2 percent, alongside evidence that new development reduces the displacement and eviction of existing residents. It might not change minds at a raucous public hearing, but the research is clear: Even new high-end development can help cool local housing prices."
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