This entire statement just blows my mind.
Getting people to build enough expensive homes for rich people seems to be an already solved problems. People already build homes as expensive as the market will bear and and the rich buy not one but 2 of them or even more and rent them out to others less rich than themselves. The only way to get people to build a glut such as to devalue their own product would be to provide tax incentives or kickbacks effectively funding rich peoples houses with tax money from the middle class.
Supposing you decided to do this building a glut of "top end" housing enough to move the needle as far as price would be an insanely expensive endeavor. Millions of dollars per unit.
There are 74 million single family homes in the US building out 10% more all at the top end at 2 million per would cost 148 trillion dollars. This is actually more than the 25 trillion it would cost just to give every household their own free 200k house.
Building 1% of the present housing supply would only cost a laughable 14.8 trillion and would barely move anyone up much beyond making it easier for the upper middle class to move from nice house to awesome.
The truly funny thing is that no matter how much top end housing we build the poor would never live in the houses the wealthy used to live in because we would literally let it rot to the ground before the rich would sell it to them for anything like they could afford not because they have a several hundred dollar a day drug addition but because they don't have enough wealth to pay for what it actually costs to build and maintain a nice large rich persons house.
Ultimately if we want there to be a bigger supply of affordable housing then we will build more for 100-200k not mansions for 2-5million because poor people can afford the first and you can build 10-50 of one for the cost of the other. It's simple math.
As a final note if we charitably say several hundred is 3-400 a several hundred dollar a day drug habit is between 109k and 146k per year.
The only people that have several hundred dollar a day drug habits for very long are drug lords and CEOs that are fueled by cocaine.
Think of it like a hockey team. If your 4th line Center isn't good enough (or you don't have one) you're better off to add a player that is better than your BEST Center because that improves your 1st, 2nd, 3rd, and 4th line. Improving your worst Center only improves your 4th line. Its like that but houses instead of players.
The math says you fix housing affordability by building more mansions. Poor people can't afford them and the actual price change is so small for the massive investment that its insane.
Building enough to push 250k houses to 200k would cost more money than the entire GDP and poor people still couldn't make the down payment.
Increasing the housing supply by 1% once again would imply building 7 million homes. Your top end homes cost 2-5 million. This is once again trillions of dollars.
Your post is like saying that in order to ensure everyone can afford groceries we ought to build more 5 star restaurants instead of giving out food stamps.
"scarcity" being supply, and "wealth" being supply of money which translates to demand for housing. "demand" is people's willingness to purchase something.
> Building enough to push 250k houses to 200k would cost more money than the entire GDP and poor people still couldn't make the down payment.
You have it exactly backwards. Like I say, you're too focused on the literal cost. 250k vs 200k is entirely based on supply and demand.
Lets say we want low income people to be able to afford 2 bedroom 1k sq/ft apartments. To achieve that we need to build more 3-5 bedroom 2k sq/ft places. The wealthy will want the nicer apartments which reduces demand for the 2 bedroom place and that's how they become affordable.
"Mansion" is entirely subjective. Its just a way to refer to the nicest homes available.
Well-being is based on production and production is not a zero-sum game. We can have low-income people living in high-end housing. All we have to do is keep building nice homes.