> The main scenario I can imagine is if builders are operating psychotically, due to external incentives (corruption, poorly incentivized regulations, inability

> The main scenario I can imagine is if builders are operating psychotically, due to external incentives (corruption, poorly incentivized regulations, inability to build in more optimal locations/configurations) Yeah, I suspect regulations play a role. There seems to be a lot of weird (IMHO) regulations when building new homes in the US. Size of house/yard, number of parking lots, size of road, et.c. This probably removes the variability for the developers. Note: I am not American nor a housing expert, so I might be talking out of my arse.