I questioned your premise that cities were "designed" to be expensive, whereas I believe they merely "become" expensive through basic laws of supply and demand.

I questioned your premise that cities were "designed" to be expensive, whereas I believe they merely "become" expensive through basic laws of supply and demand. Capital cities are a "premium" product, and they are designed to be so. People pay the premium, because they are effective in the task for which they are designed. Where do you think the "demand" comes from? The demand is for the productivity improvements that can accrue to those who control assets that are highly productive. But note the two words: (1) control; and (2) productive. To extract maximum rents, the product must be under control (so expect a class of laws designed to g;tee this). And secondly, expect a design which caters to high-end productivity (ie, networking, and its corralry...social exclusivity).