I dunno, I do see "luxury" apartments being built rather often around here, but starting at $2K/mn for a 1 bedroom isn't really affordable.

Political NIMBYism probably does play some part along with the pandemic, but again, that doesn't mean these investors are paying attention to that. There is a gold rush on at the moment.

People who move into these more expensive units leave other, less-luxury units though that now someone else can move into. Of course, as someone else pointed out, there is actually pent up demand outside of major cities as well by people wanting to move to the city. But still our only realistic, long term solution out of this mess that 40 years of insufficient construction had gotten us into is unprecedented construction. Upzone and remove barriers to get permits.

Someone is willing to pay that much, they will pay that much for an old apartment if they must.

That, and inflation showing up in certain areas.