For anyone who just reads the headline, and doesn't get to the first paragraph: Yes, if the new housing you are building is an increase in total stock. (I doubt that it's very often not the case, but still an important caveat).
If you tear down a high rise to build a mansion, no that won't decrease prices just because you built something new. Again, I realize that this probably almost never happens, but it's important to point out that the thing that matters is the change in stock, not the newness.
For anyone who just reads the headline, and doesn't get to the first paragraph: Yes, if the new housing you are building is an increase in total stock. (I doubt that it's very often not the case, but still an important caveat).
If you tear down a high rise to build a mansion, no that won't decrease prices just because you built something new. Again, I realize that this probably almost never happens, but it's important to point out that the thing that matters is the change in stock, not the newness.