That’s a bad example. Detroit isn’t an example of over building it’s an example of eroding the demand across the entire economy by outsourcing jobs. There is a big difference between a city with full employment with a robust consumer base that happens to have a ton of housing hit the market and one that has it’s entire bedrock industry carved into pieces over several generations.

If you want a valid example look at Austin Texas or Japan. Housing inventory growth in a robust economy leads to….wait for it….rent decreases.