That doesn't strike me as true at all. Nationwide, housing has generally been a "good investment", regardless of whether we're talking about an area that restricts supply or one that does not.
The places where it's a good enough investment for investors to buy up real estate are in these high demand markets where housing supply has massively lagged demand. Homeowners may be satisfied that their home values have increased everywhere, but black Rock isn't buying houses in small towns in Idaho and ohio because the ROI isn't as high.
Rents and home prices have repeatedly fallen in places that have authorized large scale new building. In the past, those price pressures were probably offset by large-scale moves from the northeast and midwest into the Sun Belt, but those appear to have mostly equilibrated now.
