Supply and demand of housing

Anyone that has taken economics 101 knows that when you increase the supply of some good that the price of that good will fall. But many fail to see this connection with housing. 

Over the last year, we have seen the supply increase in Boston, Washington DC, and Seattle reduce the rents in these cities. Well, this is recently true in Portland, OR, as well..

The Oregon Office of Economic Analysis (Oregon.gov) writes:

"The continued supply of new apartments is beginning to result in a rising vacancy rate, and the flattening of rents. In fact 7 of the 20 submarkets covered in the report saw rents decline. For renters and the overall economy, this is a welcome respite from the affordability problems in the past decade."