I see a lot of talk of this 'increase supply' in Australia where house prices are out of control. Personally I think insatiable demand is a bigger problem and no increase in supply will fix it. Over last couple of decades we have had financial deregulation and cheap money - 30 year mortgages are a norm (used to be 20 years), tax system favoring property investment (losses claimed as tax return), global economy where anyone in the world can bid for local housing (e.g. rules change so foreign students can buy property), huge liquidity in pension funds (superannuation) allowed to do leverage/borrow so investment property can be purchased - again policy change in last decade or so. This is without even talking about stock reduction due to temporary rentals. I see big part of the problem interest groups driving policy change, rather then people wanting to live in desirable places. (edited - typo)