It also neglects a huge factor in several hot markets, particularly New York:  rich out-of-towners buying apartments as investments, and leaving them unoccupied.  The owners aren&#x27;t living there, and the buildings are typically reworking or replacing former residential units where people actually resided, so the net effect of that new construction is that the stock of housing available to house people who actually live in the city is <i>reduced</i>.