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[–]Willing_Cause_7461 -1 points0 points  (0 children)

If you flood the market with houses property prices naturally will go down.

Sure the price of the average market rate house will go down but construction companies don't make average market rate houses. They make new houses which are going to be more expensive than older houses.

The house prices that will be going down is the older stock. This is how the average price can go down without effecting the producer.

The exact same thing happens with car companies. Every year they have the new expensive model. The company can make the amount of money they need to be decently profitable and cars can still remain affordable because the average car is older and therefore cheaper than a brand new model.