[akgerber]

Housing costs are a basket of the cost of the housing unit itself and land costs. Regulation limiting how densely housing may be built atop land, when this limit is lower than the number of housing units demanded, is what causes the Red Queen's race dynamic.

[torben-friis]

Land is still limited (given an interest in low distance to a hub) and density is physically limited as well, regardless of regulation.

[HPsquared]

Hubs can be built, though.