Mumbai has had some of the most extreme land-use restrictions in the developing world; for much of Mumbai’s recent history, new buildings in the central city had to average less than one-and-a-third stories. What insanity! This bustling hub of India enforces suburban density levels in its urban core. This self-destructive behavior practically ensures prices that are too high, apartments that are too small, and congestion, sprawl, slums, and corruption. Despite an economy that is even hotter than Mumbai’s, Shanghai remains far more affordable because supply has kept pace with demand.
