[MartianSquirrel]

The demand gets higher, therefore a healthy market will move towards a supply/demand equilibrium.

There are creative ways to go around most problems, given the incentives are strong enough. i.e. we all live underground /s

On the other side, too much regulation can prove to be a strong disincentive. In this case I expect architecture or density requirements, amongst other things, in cities like Amsterdam to cool down the market, maybe a bit too much.