- Most American households own their home.
- Homeowners vote at substantially higher rates than renters.
- Home equity is one of the largest components of American wealth (roughly equal with retirement accounts).
Taken together it's difficult to see how home values will be allowed to fall.
If you allow increased density, and you use it to provide actually valuable homes (rather than studio/one/two bed apartments or the like mostly intended as a store of wealth), then land value can go up while unit value goes down.
This means people joining the market can buy for a couple of years salary, while people already in the market can exit and downsize for a decade's salary.
Do you have a reference for that? I'm interested to see how it breaks down. I have to assume this is true because of America's aging population.
Ref: https://en.wikipedia.org/wiki/Home-ownership_in_the_United_S...