I want to add that not only you are right, you are more than right. Banks pay a lot of attention to where you buy a house when they give you a mortgage. And if

I want to add that not only you are right, you are more than right. Banks pay a lot of attention to where you buy a house when they give you a mortgage. And if the location does not have solid supply constraints (to make the price go only one way, which is up), they don't give you the same advantageous terms. Which means, NIMBYs constrain both the supply in their own neighborhood, and the demand in the non-NIMBY neighborhoods. So, prices go up everywhere.