Honestly, I’m not sure. I think the power of property holders in local zoning is part of it, along with foreign investment properties taking up available units.

Honestly, I’m not sure. I think the power of property holders in local zoning is part of it, along with foreign investment properties taking up available units. The middle class using their property to bolster stagnant wages is probably a part too. I have no clue if any or all of those is sufficient to explain it. Particularly worrying is that suburban homes should be falling in price, since most American municipalities have unfunded obligations to maintain infrastructure like roads and pipes, which are insanely expensive per person in low density suburbs. The expectation of future tax raises or infrastructure decline should be priced in by the market, but it isn’t.