I am very interested in this problem as well and have been doing some digging. The surface level answer from some real estate people in NY is that the ROI from

I am very interested in this problem as well and have been doing some digging. The surface level answer from some real estate people in NY is that the ROI from condos is just better than any mid-priced living. 1. I don't know if that's actually true 2. Even if it is, it might be possible to change architectural and design constraints to achieve desired unit economics 3. If it's straight up not possible to build mid-priced units with the same return, then existing condo prices don't sufficiently take into account externalities and we should use local legislation to bump their costs up and take them into account.