It's if you consider X,Y dimensions. Z axis is controlled by law as well so we can't build up to alleviate the congestion in X,Y plane. Furthermore, parking lots and accessibility laws take up a lot of space in cities which take up the free-available X,Y supply.
IMO the biggest problem is Z axis and the infrastructure enabling it (public transportation) for example.
However, since Z axis is stuck, we choose to suburbanize and infinitely expand beyond reasonable sized cities effectively making unlimited supply of real estate. Look at Phoenix and Houston.
So, what you're talking about is real-estate in places like Bay Area and New York cities. Which is not a general argument.
IMO the biggest problem is Z axis and the infrastructure enabling it (public transportation) for example.
However, since Z axis is stuck, we choose to suburbanize and infinitely expand beyond reasonable sized cities effectively making unlimited supply of real estate. Look at Phoenix and Houston.
So, what you're talking about is real-estate in places like Bay Area and New York cities. Which is not a general argument.