> Imagine manhatten house prices doubled tomorrow. How much extra housing do you think this would lead to? A lot. Rising prices would encourage the development

> Imagine manhatten house prices doubled tomorrow. How much extra housing do you think this would lead to? A lot. Rising prices would encourage the development of non-NYC cities. As those cities developed, some portion of Manhattanites and those thinking of moving to Manhattan would choose to move to the new cities. As the new city develops further, Manhattan becomes that much less attractive as a place to work until such time as Manhattan RE prices again drop / fail to rise, and vacancy rates increase. Vacant units = extra housing.