I don't think there is much in the literature to suggest that increasing the zoned capacity will lead to significant declines. All I've seen is that such development will instead curtail the significant gains that march past local median wages, which seems like a good thing even if you are a homeowner, unless you identify as a Scrooge McDuck with no empathy for your friends and family or people in your community.
Given that most developers charge a premium over the local market, modest development increases average prices. The bigger problem is it makes existing property look less shinny and new. New buyers are typically richer, or at least more liquid, to be able to afford to pay upfront for the property growth that the existing properties have achieved.
