For example, consider "more supply can generate more demand". I agree. In many cases, when a city starts to densify, the simple fact that the city is denser can generate more demand by attracting more people that want to live in it due to job opportunities, culture, etc that develop due to the new density.
But that doesn't contradict supply and demand. And, for example, if the prices stay the same while both supply and demand increase, that still has a positive side. It means that the city is becoming attractive while still permitting more people to live in it for the same price.
But that doesn't contradict supply and demand. And, for example, if the prices stay the same while both supply and demand increase, that still has a positive side. It means that the city is becoming attractive while still permitting more people to live in it for the same price.