Well, it doesn't play out negatively in every city. The proliferating loft towers in Las Vegas don't really affect the housing stock available to local residents (most of which ranges from single family detached homes to 2-floor apartment complexes), and the fact that the lofts stand empty most of the time (it isn't just foreign investors, there are also snowbirds and empty-nesters buying a vacation home) means that they don't strain the local infrastructure much.