Arthur Acolin, an assistant professor at the University of Washington’s real estate school, has some optimism about the theoretical impact a sufficient supply could have on home prices. But in practice he expects an increased supply to mostly help flatten price growth in Seattle.
Though flattened home prices don’t do much in the short term to help people priced out of homeownership, Acolin argued they could even out the imbalance between home prices and wages, where you might get an annual 2%-3% growth in home prices, rather than the current 7%-10% (or higher).
“Prices would increase with income, which is what you would expect in a functioning market,” he said.
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