In a functional market where demand signal drives production the value of a thing declines as it ages. Japan has this figured out. Tokyo is relatively affordabl

In a functional market where demand signal drives production the value of a thing declines as it ages. Japan has this figured out. Tokyo is relatively affordable because it is possible to build just about any form of housing anywhere. Further, there isn't unlimited demand at every price point. When you constrain supply to the point that high-end demand can consume more than total possibly supply, of course builders only build to the high end of the market. Finally, we've made the high end of the market the only thing which can possibly pencil out by driving up costs. Planners demand low floor area ratios, high parking rates, articulated facades, parks dedications, high impact fees - that money ultimately comes from the buyer or the renter. So by making those demands you price out increasingly large portions of the population.