For cities with the most extreme prices, demand is driven in part by larger increases in office space than housing. ‘Unaffordable’ cities for people can be ver

For cities with the most extreme prices, demand is driven in part by larger increases in office space than housing. ‘Unaffordable’ cities for people can be very attractive for businesses due to the local workforce, and for cities office space doesn’t have downsides like the need for schools and similar infrastructure. That’s how you get extreme prices independent from national population trends. There’s other effects in play, increases in earnings and low interest rates allow for increased prices, but that doesn’t explain why housing specifically would be expensive.