>I have never heard of an increase in development bringing downward pressure on rent prices.
Can you offer up a plausible theory as to how more housing could possibly create upward pricing pressure on rent prices?
It's simple supply and demand. You can't "see" downward pricing pressure if the price of housing is still climbing nonetheless due to demand still growing faster than supply.
What do you think would happen if the number of available housing units in the bay area doubled over night? You think everyone would be able to keep raising the rent and keep their units rented at the same prices? Of course not, the empty units are going to cut prices to attract buyers/renters.
Can you offer up a plausible theory as to how more housing could possibly create upward pricing pressure on rent prices?
It's simple supply and demand. You can't "see" downward pricing pressure if the price of housing is still climbing nonetheless due to demand still growing faster than supply.
What do you think would happen if the number of available housing units in the bay area doubled over night? You think everyone would be able to keep raising the rent and keep their units rented at the same prices? Of course not, the empty units are going to cut prices to attract buyers/renters.