I believe all these engineering/technology/economic discussions are missing the human element, humans do human kinda things. The #1 feature of housing in US is

I believe all these engineering/technology/economic discussions are missing the human element, humans do human kinda things. The #1 feature of housing in US is to keep the undesirables out. The best way to implement it is costly housing via zoning, deed restrictions and HOAs. And with costly housing, emerge good schools. Which creates a vicious/virtuous cycle. People who want to live in safe places (and/or good schools) create more demand in these specific locations even though they may not have the original motive (of keeping the undesirables out). This is the power of defaults. Now, add to this that most of the wealth in US is housing, it creates a perverse incentive to stop any more supply, which they can accomplish at the city/county level. Note: The above is US specific. There are other things at play in other countries. I'm not sure what drives costly housing in Canada and Australia.