>> That’s the drop-off you experience at the lower price levels - there’s nothing between “This is a tiny but acceptable apartment” and “Slum apartments in stab-ville”.

>I don't think this is true, and why would it be? Unless you're in an area where the housing market is cliffed for some legislative or regulatory reason. But most places, no, I've not seen this. You might have to put effort in to find nicer places on a budget, research areas, etc. but isn't that true of any purchase?

The thing that I've noticed is that yes the sweet spot exists but the supply is always more limited. You have higher availability on living because it is so expensive that not everyone can afford it(or think it is worth it). And the cheap in not so good areas (not necessarily dangerous but gives e.g. longer commutes and has less services and so on) have a higher supply because of that. The sweet spot in good location and a good price is going to have all houses and/or apartments taken. Then the surprise happens, since supply is limited at this sweet spot the prices tend to rise so you get that cliff mentioned in the article.