- Is it a desirable location, and the zoning laws cause the prices to skyrocket because not all the people that want to live there can
- Is it desirable because the zoning laws make sure it's a certain type of environment, and the desirability is what causes the price to increase
- Is it a combination of the two.
I think any reasonable person would say it's a combination of the two. And removing the zoning laws would both make it less desirable _and_ lower the price of housing. It would not leave it just as desirable, but with more people living there.