Speaking from personal experience people move to Seattle not because there’s large supply of housing but because it is where there are high paying jobs. It’s the only reason I’m in Seattle and I can say the same for several coworkers, so wouldn’t call it induced demand.
People move to where they can make a decent living, which increasingly means big cities. Saying it’s induced demand makes it sound like it’s insatiable but really it just the ratio of housing to high paying jobs is way out of whack.
It’s induced demand in the sense that the housing enables those jobs, or to say, less people would come here for those high paying jobs if the housing market was more bonkers like in SF or Hong Kong. If they weren’t building housing at a crazy clip, Seattle would be less appealing even to you who is just here for the job.
People move to where they can make a decent living, which increasingly means big cities. Saying it’s induced demand makes it sound like it’s insatiable but really it just the ratio of housing to high paying jobs is way out of whack.