[MRSallee]

I'm not sure why you presented this as contradictory to the post you replied to.

> High prices (demand) attracting speculation (supply) should drive down rents (prices) ... [but they're not]

Should? Then why aren't they?

> new buildings are regulated through zoning and permits.

[tw04]

Because it is contradictory. Sure, in a vacuum where there's infinite land available and no rules, supply would meet demand. In a vacuum Antarctica would be a great vacation destination with amazing views of the ocean.

In reality Antarctica is freezing cold and difficult to get to. And in reality there is a shortage of places to build new housing at an affordable price in either location mentioned.

[MRSallee]

If you think that is contradictory to the original poster, you might think they said something I'm pretty sure they didn't.

[cgmg]

Are you claiming most of that shortage is from physical constraints?