His whole premise seems flawed to me. His premise is that the sole reason that home prices are falling is high supply and low demand. If builders build more homes it will only increase the number of available homes.
Any Pigg knows that that the real reason that home prices are falling is that they are overpriced. There’s actually a ton of demand for homes… at the right price! Any home that comes on the market anywhere close to the right price will get multiple offers. This shows that rather than an oversupply of homes, there is actually an under-supply of correctly priced homes.