I agree with everything you say, indeed the increase in demand is only the first movement of market in search for a new equilibrium. Surely at higher prices markets become more attractive, and those which has a lower cost of entry will attract new supplier, and price goes down, and so on. It is difficult to predict a new equilibrium, although I share your view that the main problem is going to be houses.
This thread is for asking any questions that might seem obvious, tangential, silly or what-have-you. Don't be shy, everyone has holes in their knowledge, though the fewer and the smaller we can make them, the better.
Please be respectful of other people's admitting ignorance and don't mock them for it, as they're doing a noble thing.
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