It just means that we need to build even more new housing to keep up with the demand, and that the situation would have been even worse if we hadn't built what we have.

The problem is that there is not enough housing for the people who want to live there. Building more is the only way to address that problem other than exclusing people who want to live there.

But the problem is that there is little economic incentive to build more than is being built. The housing is being built for wealthy people. If most of those people aren't trading up from less expensive units, then that doesn't vacate any less expensive units. So, outside of the wealthy crowd, there is little downward price pressure in housing.