The reason NYC's still got real-estate-price-itis is that demand still outstrips supply even though they do allow new construction. But the mismatch is not as great as the bay area, where from what I hear nothing can be built and everyone wants to live there.
If you want to see matched supply and demand, look at most of the big cities in Texas. Part of that is geographic -- they're in "flatland" as it's called -- and part of it's that Texas tends to be more pro-development. Supply can rise with demand. Lots of people are moving to Texas too, but prices remain relatively sane excluding a few hotspots.
The reason NYC's still got real-estate-price-itis is that demand still outstrips supply even though they do allow new construction. But the mismatch is not as great as the bay area, where from what I hear nothing can be built and everyone wants to live there.
If you want to see matched supply and demand, look at most of the big cities in Texas. Part of that is geographic -- they're in "flatland" as it's called -- and part of it's that Texas tends to be more pro-development. Supply can rise with demand. Lots of people are moving to Texas too, but prices remain relatively sane excluding a few hotspots.