I think it does change it somewhat though. For example Tokyo has seen a growth in population but no increase in rent. The zoning there allows construction where

I think it does change it somewhat though. For example Tokyo has seen a growth in population but no increase in rent. The zoning there allows construction whereas bay area zoning does not. If car production was outlawed existing car owners would get a windfall. But that's not due to some intrinsic feature of being a car owner. Land is definitely more limited than cars. But it seems to me that land scarcity explains only a portion of the increase in prices in San Francisco. This article has more on tokyo housing starts relative to sf and nyc: https://www.google.com/amp/s/www.wsj.com/amp/articles/what-housing-crisis-in-japan-home-prices-stay-flat-11554210002 https://www.google.com/amp/s/www.wsj.com/amp/articles/what-h... The difference from ag land is that the builders in tokyo are doing real activity to provide the housing. Lots of businesses benefit from externalities, not just landlords.