But I think the data can be interpreted in several ways.
If home prices are rising while apartments are being constructed, that doesn't have mean the price increase is caused by the construction.
For one thing, these units won't exist until 2016¹, so supply hasn't actually increased. It could also be that the area needs 1000 units to offset the increased demand. Or, as you imply, that the higher level of services make the area more attractive, rather than the added units themselves.
I would like to see actual studies by real economists to change my thoughts on this.
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Thanks for providing a real world example!
But I think the data can be interpreted in several ways.
If home prices are rising while apartments are being constructed, that doesn't have mean the price increase is caused by the construction.
For one thing, these units won't exist until 2016¹, so supply hasn't actually increased. It could also be that the area needs 1000 units to offset the increased demand. Or, as you imply, that the higher level of services make the area more attractive, rather than the added units themselves.
I would like to see actual studies by real economists to change my thoughts on this.
¹ http://www.mercurynews.com/business/ci_27717752/facebook-flo...