NYC has tons of regulations that _drastically_ limit the supply of new housing. New supply hasn't even come close to keeping up with new growth. New supply is a drop in the bucket.

https://www.nytimes.com/interactive/2016/05/19/upshot/forty-...

> Last I heard, NYC is literally running out of pavement space for pedestrians, let alone vehicles

That's news to me, as someone who lives and works in the two busiest and most crowded neighborhoods in the city

> and increasing the supply of housing still hasn't brought prices down.

Yes, but that's because of the way new housing has been constructed (skewed towards luxury buildings, which are purchased by foreign speculators as ways to park money essentially tax-free). That means that many of these new units that are constructed don't actually increase the supply of housing, because speculative purchasers tend not to rent out the units (it's not worth it, given their goals).

> (NYC running out of space for pedestrians) is news to me, as someone who lives and works in the two busiest and most crowded neighborhoods in the city

I assume that's a reference to this - https://www.nytimes.com/2016/07/01/nyregion/new-york-city-ov...

It is not. Brooklyn, Queens and Bronx are littered two story houses.