The bathtub analogy of housing supply

The stock of homes changes only via the flow. There is an equilibrium flow, not stock.

Many people hold the view that rezoning land to allow higher density residential uses on each plot will accelerate the rate of city housing development.

I think this is wrong.

The main reason I think this is because there are a finite number of new buyers per period, and residential developers are not in the business of competing with themselves on price.…