Intuitively this seems very true to me, but can you recommend somewhere to read more about this? The residential real estate market definitely feels rigged, but I don't know where to find the case for this claim layed out in a cogent way. The linked tweet (being a tweet) is not particularly detailed, nor is the 2-links deep Vox article.

You can consider the greater Toronto area as a case in point. We had greenbelt laws enacted for supposedly environmental reasons. We got shitty, tiny condos all over the city and million dollar detached houses.

What I thought was particularly perverse was builders lamenting that no one wanted 3 bedroom condos, which is why they were building so few. Complete B.S.! Since they charge per square foot, no one can afford the 3 bedroom condos!

I recall reading somewhere how this will eventually affect the fertility rate. As a couple that waited quite a bit longer to have kids, I can see this being accurate.