People live in worse apartments they can afford, so they buy a luxury apartment. Their apartment is now open to a person who could afford that apartment, but not the luxury apartment, so theirs gets filled. This repeats down the chain of quality/desirability/cost.
Every new apartment adds supply, thus adding negative price pressure.
People live in worse apartments they can afford, so they buy a luxury apartment. Their apartment is now open to a person who could afford that apartment, but not the luxury apartment, so theirs gets filled. This repeats down the chain of quality/desirability/cost.
Every new apartment adds supply, thus adding negative price pressure.