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> No one will build affordable housing when they can build expensive housing instead.

This problem is due to restrictions on supply. Consider the statement, "No one will build affordable cars when they can build expensive cars instead"

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Cars can be moved and occupy shared spaces. Dwellings are anchored to the earth and exclude other dwellings from the same location.

How does this affect the validity of the original statement?

Yup, that's one restriction on supply. Other restrictions include:

1. Limits on the height of new buildings

2. Limits on the ability to demolish or extend existing buildings

3. Limits on the minimum size of new apartments

4. Limits on the number of people who can live in an apartment

Affordable cars get built because the market for cars is saturated. Where the supply of some key component of cars a limiting factor on the production capability of car manufacturers, expensive cars would be the only ones produced.

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