what kind of internet is available in the area? How close are you to grocery stores? Is there a HOA that you have to pay dues to? What's the weather like? Is the home up to date or is the wiring and plumbing likely to need a lot of work? How big is the lot? How walkable is the neighbourhood? Is it near a smelly dump? What's the crime rate like? What are the schools in the area like, how close are they? How much access is there to transit?

It's not as simple as just "Build more housing" society also has to adequately service the people who want to live in that housing. If our lower income housing is all just bare minimum roof over your head and no access to anything then no one will want to live there, which also means that supply will not affect the demand on housing that has better access to amenities.

We can also be quite certain that providing the bare minimum housing pulls in demand from those more luxurious options (wants) to the more economically practical option (needs), because the bare minimum option was never available. We'd be giving people more choices and at least some would take it.

Then if you have so many people that "demand" a certain standard of luxury housing, then they will have to compete and pay the premiums for the actual limited resources like lakefront property or great schools (living near other like-minded wealthier people). That's the realities of scarce resources, and is fine, since there's not much we can improve there. But the major gap is providing the bare minimum of housing which we are currently not doing.