NYC is an excellent case of restrictive zoning driving housing prices. A shocking number of pre-war apartment buildings in Manhattan would be illegal to build t

NYC is an excellent case of restrictive zoning driving housing prices. A shocking number of pre-war apartment buildings in Manhattan would be illegal to build today. Not just for changes in fire escape design, but also the basic shape and height of the building. Despite being illegal designs these buildings remain highly desirable and command high prices, indicating there is a large gap between what the market wants from housing in NYC and what is permitted. NYC doesn't have uniform extreme density, with places in Queens and Staten Island having large swaths of single family homes. The popularity of NYC should mean the city is getting even more dense, but the restrictive zoning means units are being added at a much lower rate than demand. Of course prices are going to rise.