&gt; Building housing in a bull market is almost always the right choice, but let&#x27;s not pretend rents are going to magically fall. Or stop rising. Housing is one of the most elastic goods one can find. Everyone has to sleep somewhere.<p>It doesn&#x27;t matter if it&#x27;s inelastic if demand can meet supply. The econ 101 example is diamonds (expensive but useless) vs. water (dirt cheap but necessary): <a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Paradox_of_value" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Paradox_of_value</a><p>If the theory&#x27;s not enough for you, I don&#x27;t have it on hand but there&#x27;s empirical research that shows this relationship holds for housing like it does for any other good.