It sorta seems to make sense that new building would increase supply and lower prices, but it doesn't seem to work that way -- at least in states that are not RTW.
In the case of commercial space you will see that new buildings on the commercial strip get filled up by chain stores that are capitalized by publically traded companies. Small companies can't afford the rent in those buildings.
The countervailing trend to the market theory is the level set theory, which is that once people get the idea something is worth $X, they believe it is worth $X. Add new construction at $X+10 and that makes people's price expectations go up.
What you need is more old buildings, or, practically, rehabiliation and subdivision of old buildings, but then you will hear from people who want you to spend $50,000 to put in an elevator to comply with the ADA, funny that Wal*Mart is always compliant with the ADA isn't it?
In the case of commercial space you will see that new buildings on the commercial strip get filled up by chain stores that are capitalized by publically traded companies. Small companies can't afford the rent in those buildings.
The countervailing trend to the market theory is the level set theory, which is that once people get the idea something is worth $X, they believe it is worth $X. Add new construction at $X+10 and that makes people's price expectations go up.
What you need is more old buildings, or, practically, rehabiliation and subdivision of old buildings, but then you will hear from people who want you to spend $50,000 to put in an elevator to comply with the ADA, funny that Wal*Mart is always compliant with the ADA isn't it?