Attention to money growth is thus sensible as part of the eclectic modeling and forecasting framework used by the U.S. central bank. References Anderson, Richard G. and Kenneth A. Kavajecz (1994). "A Historical Perspective on the Federal Reserve’s Monetary Aggregates: Definition, Construction and Targeting (PDF 7.4 MB)," Federal Reserve Bank of St. Louis Review, March/April, pp. 1-31.
And then, once construction is actually underway, it takes about two years to build higher-density housing compared with around nine months for a detached house. The greater share of higher-density means the construction response to changes in demand is probably slower on the way up and on the way down, as higher-density is harder to stop once it's underway.