>I think that this is just a bias that is blinding people to the inherent contradiction. The reason that shithole apartments become so expensive is because there are people with the money to spend who "need" (i.e. work in the area) that apartment. It has nothing to do with construction or maintenance costs, just demand.

It is certainly demand but it's not demand coming from the people working and living there. It's demand coming from millionaire investors buying up high end property as an investment.

Google for dark condos.