>When supply is constrained, for whatever reason, prices go up.
It's the law of supply and demand, when supply goes down but demand remains the same or goes up, then it moves the price equilibrium up.
This is why the only solution is to build more and add more supply to meet demand. Everything else is a half-measure that will fail or is a lottery solution (i.e. BMR and affordable housing requirements) that only solves the issue for a few lucky winners.
It's the law of supply and demand, when supply goes down but demand remains the same or goes up, then it moves the price equilibrium up.
This is why the only solution is to build more and add more supply to meet demand. Everything else is a half-measure that will fail or is a lottery solution (i.e. BMR and affordable housing requirements) that only solves the issue for a few lucky winners.