What this report doesn't take into consideration is whether the construction is keeping up with
population growth. Surely you are not implying like the other cat that this rate of building is adequate or considered a boom?
Here is a relevant paper from the Furman Center...
"
A second argument raised by supply skeptics is that additions to housing supply tend to be luxury housing, but that “[t]he only increase in housing supply that will help to alleviate . . . [the] affordable housing crisis is housing that is truly affordable to low-income and workingclass people” (Aguirre, Benke, Neugebaurer & Santiago, 2016, p. 1). They reject the idea that building housing at one price point has any significant effect on the price of housing in other submarkets (Council of Community Housing Organizations, 2016). Even if they acknowledge that these units may age and filter down to lower-priced market segments over time, critics note that it will take many decades for them to do so. It is true that housing is more heterogeneous than most other goods, and that housing markets are more segmented as a result. Housing comes in many different forms, ages and sizes.
Rather than having one unified housing market, it is more accurate to think of a city as having numerous housing submarkets, each with its own demand, supply and price. It is also true that when first produced, housing tends to supply the medium- and high-end segments of a housing market, because housing is so expensive to build. Further, homes depreciate in value relatively slowly, and the direct filtering of new homes down to lower-priced submarkets therefore can take decades.
Still, although housing is heterogenous, additions to the housing stock in one submarket can fairly quickly affect prices and rents in other submarkets by alleviating competition that would otherwise be diverted to those other submarkets. Imagine a city with no new construction. As demand increases and prices or rents rise for higher-end housing, some homeseekers who would otherwise have searched in that submarket will be priced out.
They will either leave the jurisdiction altogether or turn instead to somewhat less expensive housing in the same city, increasing demand for housing in the next submarket. Unless there have been offsetting declines in demand for housing in those other submarkets, the failure of supply to respond to increased demand at the higher end will ripple through other submarkets as demand spills into these markets and increases their prices and rents."
