You're missing an essential element: the living conditions of a human in a NYC apartment are entirely voluntary. People rent overpriced tiny places because the

You're missing an essential element: the living conditions of a human in a NYC apartment are entirely voluntary. People rent overpriced tiny places because they can't afford full priced full sized rooms. If overpriced tiny places were not available, full sized rooms would be more expensive and many people would not have the choice to live in a small cheaper room. Anyway, if you want the real culprit of NYC and SF rental pricing problems, it's very simple: RENT CONTROL IS EVIL. Rent control causes hoarding, and the higher market prices go the more hoarding and the higher prices go. It's a vicious cycle.