>You could argue that you can just keep building up and up until you cross the threshold of demand affecting the price, but without a market incentive to do tha

>You could argue that you can just keep building up and up until you cross the threshold of demand affecting the price, but without a market incentive to do that, it's wishful thinking at best. Tokyo, with its reasonable zoning, seems to have figured out how to build densely without being absurdly expensive. The key here is that the "market" is indeed allowed to figure it out, and not as restricted by NIMBYism. The best thing the government can do right now is to get out of the way in regards to building more units.