[zahlman]

> The law of Supply and Demand still works.

The problem is on the supply side. It happens because of zoning restrictions. There actually is plenty of housing nationwide, but that isn't really usable because moving involves quite a bit of friction, as well as because of general market failures.

https://www.youtube.com/watch?v=3RSwkXbjaE0

And because it's constantly talked about by activists: rent control doesn't work. It actually reduces supply (because people who would offer apartments at the top end of the market drop out of the market) and liquidity (because people who do and don't already have a lease are treated differently). This is one of the best agreed-upon results in economics.

https://www.nmhc.org/research-insight/research-notes/2023/re... , among countless other links a basic search might turn up.