This is a vast oversimplification. Cities like NY & SF have a zoning problem far bigger than the fatcat problem. If inventory is restricted, and you can’t build densely on expensive property, naturally the homes will be expensive. Most of my city is zoned for 2 family max, and 35’ high. This dictates what we call a “Bayonne Box”, a cheap, ugly, but huge 2 family filling the lot. Many houses on double lots (50x100) are being scraped to put up 2 of these, 4 condos. If zoning allowed, you could easily put up 8 to 16 homes on this same plot, with the same land, foundation and roof costs. Anyone can see that would create more affordable homes. But residents want to complain about high prices and rents at the same time as they defend the status quo to keep their low density and street parking. This is hypocrisy.
This row of Bayonne boxes could easily have been dozens of homes had zoning allowed:
Legacy pre-zoning housing in the same city that can no longer be built ‘as of right’.
Excellent article on this subject.
https://www.buildzoom.com/blog/paying-for-dirt-where-have-home-values-detached-from-construction-costs
