As long as foreign wealth can continue to buy up properties as they are built, the actual housing supply doesn't really increase

That's a pretty large part of the problem

The actual housing supply also doesn't increase if you prevent building houses...

It can increase more rapidly if you prevent increasing _density_.

Preventing increase in _density_ leads to better outcomes long-term.

It sounds crazy, right? Supply/demand, and all of that.

But it's an example of one of the things in economics where the effects end up being different because of collective actions. As a result, no large growing city within the US within the last 30 years managed to lower down housing prices by increasing density. I checked that using the Census statistics database.

And no, Austin (TX) doesn't count. It decreased prices by decreasing the _population_.

Doesn't look like Austin's population decreased? They had a decline in net migration but a population increase.

Are we talking about the same Austin, TX?

https://www.macrotrends.net/global-metrics/cities/22926/aust...

Its population continues to grow. Basically monotonically increasing.